Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
We have all heard the expression; The less I do the more I make. Well, I have been applying that expression to buying houses and who should make the offer.
I have found that I am still buying houses even though I am not making a single offer. All I am doing is accepting offers. Role reversal at its finest.
I decided to only buy houses where the seller made me an offer that I can and want to accept. It has become so much easier.
Is this an in-house receptionist or answering service? I have been contemplating an answering service recently because I have been getting lots of missed calls with no voicemails lately. What are the 5 questions? How many calls do you get per day typically?
What we see in our system is a very high abandon rate when the caller hits VOICEMAIL. Not only that, in our case the licensee has sent out postcards or other advertising that has the "We Buy Houses" branding on it and if the voicemail does not mention the name (Thank you for caling We Buy Houses...etc) we see an even higher abandon rate, we assume because the person is not sure if they called the right number.
So, I'm a big time proponent of ANSWER THE CALLS - you or someone you hire. Voicemail is death to leads. Sure, some will leave a message, but is it worth losing the people who won't? (no, it isn't.)
Michael's approach is interesting - an example of what you can do by putting a system in place...
Sounds like that would make a good podcast topic - maybe @Brandon Turner might want to have you on one. I for one am curious as to how the seller comes up with a number that you would consider acceptable; I guess that some just want so little because they really want to be relieved of their problem property.
I guess that some just want so little because they really want to be relieved of their problem property.
That describes it very well. No podcast needed. I decided to have an uneducated, from a REI perspective, receptionist answer the phone and ask my 5 questions. Based upon those answers she then runs a basic CMA. She doesn't even know what the numbers mean.
She includes a google street shot and hands me the package of info. Based upon their answers and CMA I decide to buy or trash. This takes maybe a minute or two.
If I want to buy she sets an appointment and more importantly confirms their offer price. Then it's a matter of contract, meeting at escrow to open and notarizing the memorandum and a 10 day close.
The key is a fail safe maximum purchase price.
I'm certain I let a lot of opportunity go by not negotiating however this model is so friggin simple and easy as well as plentiful I am not seeing a reason to do more.
Is this an in-house receptionist or answering service? I have been contemplating an answering service recently because I have been getting lots of missed calls with no voicemails lately. What are the 5 questions? How many calls do you get per day typically?
Is this an in-house receptionist or answering service? I have been contemplating an answering service recently because I have been getting lots of missed calls with no voicemails lately. What are the 5 questions? How many calls do you get per day typically?
What we see in our system is a very high abandon rate when the caller hits VOICEMAIL. Not only that, in our case the licensee has sent out postcards or other advertising that has the "We Buy Houses" branding on it and if the voicemail does not mention the name (Thank you for caling We Buy Houses...etc) we see an even higher abandon rate, we assume because the person is not sure if they called the right number.
So, I'm a big time proponent of ANSWER THE CALLS - you or someone you hire. Voicemail is death to leads. Sure, some will leave a message, but is it worth losing the people who won't? (no, it isn't.)
Michael's approach is interesting - an example of what you can do by putting a system in place...
Is the property listed with a Real Estate Professional?
When do you want the house sold?
What do you think your house will appraise for in today's market?
What are you asking for the house?
We receive enough calls to generate a purchase a week.
The two components that drive this are marketing; media, message, and frequency as well as determining the fail safe number.
Is this really all the information?
I like the keep it simple idea and generally have no use for every rambling detail one can give about a house, however at this point you don't know where the house is (aside from some place you are doing marketing, most likely) or anything about it (number of BRs, BAs, Size...).
How are the receptionists or other call takers doing the CMA without at least some of this info?
@Michael Quarles Hey Mike this thread is awesome. I am very new to this and a stickler for doing things the right way. Your system looks amazing and I know you have been doing this for a while, I was just wondering about the drivers of this as you mentioned. The marketing, do you think you could give a few quick tips on the media, message and frequency that you have found success with?
But when you ask them what they would like to sell the house for, aren't they going to give you an over-inflated number? Or do you even care what they give for that number?
I'm just wondering if the script could help you get a better feel if they're willing to negotiate or not and if they are truly a motivated seller.
i.e. We only pay 65 to 75% of the market value of your home. Would you accept an offer in that range? Yes or No?
But when you ask them what they would like to sell the house for, aren't they going to give you an over-inflated number? Or do you even care what they give for that number?
I'm just wondering if the script could help you get a better feel if they're willing to negotiate or not and if they are truly a motivated seller.
i.e. We only pay 65 to 75% of the market value of your home. Would you accept an offer in that range? Yes or No?
I may be wrong but I think that the original point was that he isn't really negotiating. So if that number is way off he just doesn't accept their "offer".
Interesting. So when the clerk asks them for the price, they're giving numbers in that 65 to 75% range or better? About how many would you say you're picking up a year with this?
Thats really amazing you can get enough people to give you pricing that low without asking them to give their rock bottom price or something. I would think most people would be inclined to give what they want for a price and not what their absolute bottom dollar number would be.
But you have to be saving an absolute boatload of time doing it this way. I've actually thought about doing some marketing for deal flow but was just thinking that the time on the phone would suck up way too much of my free time with calls that went nowhere.
@Michael Quarles , hope you are reselling the leads that did not work out for you (i.e., answer NO to RE agent but are above your price point) to some real estate agents to recover marketing cost and some additional cash flow ...
I was thinking that it would make sense to collect the info on the ones that weren't super far off but to high for a simple yes and "Birddog" them to other investors for a couple hundred bucks if they end up buying something.
If he, or someone in the office, has a licence they could try to refer out the retial people as well.
I am a California Broker however I am not wanting to work harder or more. I currently send "All" of the none deals to another Brokerage for a 25% listing fee referral...
As for the fail safe number that is way too detailed to write... Sorry
I want to congratulate Michael Q on generating 2 pages of discussion on this. I think he may be some sort of evil genius, only maybe more mischievious than evil. =P
Here's what mortal men can do:
Ask the caller:
1) What do you think the house would be worth if it was completely fixed and remodeled?
2) How much would you like to get for it?
3) If I could give you CASH for your house before your next payment is due, what is the absolute least you'd take for it?
Bingo. That's their actual number. If it is even close to a deal. proceed ~
Now, go see the house! Check it out. Understand what you're getting into. You should have a process for evaluating that gets you to a ballpark repair cost.
Determine your ARV based upon recent sold comps. Determine your expected price per square foot. Multiple that times the s/ft in your deal. Now you have your ARV.
YUCK NO!!!! I Absolutely don't rehab... And I don't wholesale...
I buy at an "As Is" value and sell at an "As Is" value...
The message on the marketing is fairly simple.... 1-800-SELL-4-CASH.
That cash word helps find the motivated seller who needs my money....
And I have gone to a system that is all about the seller telling me their sales price.
We get sellers calling back to tell us no one called them back and to that we invite them to lower their ask by saying the reason the investor didn't call back is that your sales price was too high for him and he didn't want to waste your time...