Talking to distressed sellers and inventory.

[Luis Saenz]

My friend and I want to start marketing this week. We have found a list of preforclosures and we are going to go door knocking this coming up weekend. I'm kind of nervous to go and talk to these people, I don't really know what to say, and I really don't want to piss them off. If anyone could recommend a few tips that would be fantastic! Also I am wondering the best way to calculate inventory or to find the so called "hot spots" to buy and sell; I want to start looking for forclosures in those areas. 

[Brian Gibbons]

@Luis Saenz 

I train REIs 1 on 1, and you have a very common problem.  What do I say?

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1. questions to ask on the phone 

(Dont Be a 1 Trick Pony, Be a Transaction Engineer)

MOTIVATED SELLER - QUESTIONNAIRE CHECKLIST

The following is a list of sample questions you should ask a seller. When talking to a seller, try to ask the questions through the course of a conversation and try not to sound like you are reading from a list.

(Note: You will not ask all of these questions depending on the answers the seller gives and your investing objectives.)

Asking About The Seller And Their Property:

• Can you tell me a little bit about your home? (# of bedrooms, baths, size etc.)
• What do you like most about the home?
• What do you like the least?
• Are there any repairs needed?
• What is your sales price and how did you arrive at it?
• What do you think your house would appraise for in excellent condition?
• What do you think your property could rent for?
• Is your property listed with a real estate agent?
• If you don’t mind me asking, why are you selling?

Asking About The Existing Financing:

• Do you own the house free and clear?
• Do you know if your mortgage loan assumable?
• Would you sell the house for what you owe?
• If not, how much are you looking to get above what you owe? (Subtract that from sales price to get loan balance.)
• How much are the monthly payment on the mortgage?
• Are the payments current?

What Kind Of Deal Can You Get:

• If I paid you all cash and closed quickly, what is the least you could take?
(Follow-up by asking if that is truly the least they would take.)
• Will you consider leasing the property to me with an option to buy if I guarantee the mortgage payments and maintenance?
• Do you have a problem with someone living in the property until I get it sold?
• Would you consider optioning the property to me, if there is absolutely no risk or cost to you?

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2. Prospect Lead form

PROPERTY INFORMATION WORKSHEET

Address __________________________________________ Date _________
Location / Cross Street _______________________________ Map Pg# _____
Seller _______________________ Ph# ____________ Alt. Ph# ___________
Listing Agent _________________ Ph# ____________ Alt. Ph# ___________

CONDITION
__Occupied / __Vacant _____ Bed/_____ Bath Construction _____________
A/C ___________ Elect. Amps ________ Garage _____ Year Built _______
Roof ____________________________________________________________
Exterior __________________________________________________________
Interior __________________________________________________________
Kitchen __________________________________________________________
Baths ___________________________________________________________
Plumbing ________________________________________________________
Appliances _______________________________________________________
Neighborhood ____________________________________________________
Other Work Needed ________________________________________________
________________________________________________________________

FINANCIALS
1st Lien Bal. $_________ 2nd lien Bal. $_________ In Foreclosure: __Yes/__No
Asking Price $_________ My Offer $_________ Resell Approx. $__________

Terms: __ Subject To, __ Agr. For Deed, __ Seller Fin., __ Lease Option, __ All Cash
Additional Notes __________________________________________________
________________________________________________________________
________________________________________________________________

CONTACT RECORD
Name Date Note
_________________________ _____________ ____________________
_________________________ _____________ ____________________
_________________________ _____________ ____________________
_________________________ _____________ ____________________
_________________________ _____________ ____________________
_________________________ _____________ ____________________