I'm about to send my first mailing out on Monday. I need to be prepared for the incoming calls. What should be my general script? What questions should I ask?
1. Why are you selling?
2. What kind of condition is the house in?
3. What is the lowest offer you would accept?
Check the fileplace. I located several scripts there and just combined them together.
You should not ask these questions up front. Ask how you can help them with their situation. Find out through conversation, not direct questions those answers.
Don't have a script. It sounds terrible. It's a simple matter of having a conversation with another human being, and during that conversation being able to elicit information necessary to determine if the property is a deal for you or not.
1. Shut up and listen. Let them talk. If they've responded to your mailer, they're obviously interested in selling. What you need to do is let THEM tell YOU why they want to sell their house, and be ready to offer solutions to their problems.
2. Know your options. Don't get tunnel vision on whether or not the deal meets your "wholesale" criteria. As @Brian Gibbons puts it, be a "transaction engineer". Understand the seller's situation, and understand what options are available to you to make a profit by helping them out. If you limit yourself to wholesaling, i promise you, you'll miss out on deals, and you'll be back at your 9-5 in no time flat.
3. Know how to negotiate. You mentioned a few key questions in your post. Understand that those questions are asked for two reasons; 1. to elicit necessary information and 2. to psychologically move the seller from a position of strength to position of weakness.
4. Don't ask the condition of the house. Everyone is going to tell you "Great!". Ask them to tell you everything that's wrong with the house. "Can you tell me about any issues with the house?; foundation, wiring, plumbing etc." Every time they mention something wrong, reiterate how expensive that item is to fix. "Oh man, that would be expensive to fix just to sell the house.."
5. Don't ask "what's the lowest offer you'd accept". No matter how desperate they are, it makes you sound like a used car salesman. Instead try "If we were to get you an all cash offer today, no closing costs, no commissions, and we bought the house 100% as-is with no repairs needed, what would you be happy with/willing to sell for?"
So much more! Negotiating is a fine art ;) practice makes perfect!
**Disclaimer - If none of this makes sense, I've had some bourbon tonight and am typing with one eye open**
@Patrick Philip as mentioned there are scripts in the file place..
As far as #3 I personally would not word it that way. I think your are going to turn off potential sellers approaching it in that manner.
Maybe just ask them what they think the house is worth? If and when they give you a number, ask how they came up with that number. This number might just be pulled out of thin air, it might be based off a recent sell in their neighborhood of a much nicer house than theirs or it might be justified by a recent appraisal?
This will be the starting point of your negotiation and also give you an idea if you guys are on the same planet. If they want 315k and you need to pay 100k to make it work, well that will be one heck of a battle.
Asking someone what is the least you will take on the first phone call might work with some people? But might make a lot of people think you are just trying to squeeze every penny out of them. You want to build as much trust as possible as fast as possible if that's possible:)
Just my opinion...
To your success bud!!!!
@Lloyd Stanton when you say don't limit myself to wholesaling, do you mean that I should keep sub2 as an option? Do you mean something else?
I don't think I have the money to take over people's old mortgage payments at this point, even if I would make it back with the down payment.
If you don't have the money to take over the mortgage, then find a partner. Go to your local REIA and put it out there that you have a property for sale. You could even wholesale it then or do a joint venture.
Wishing you all the best!
@Patrick Philip first off kudos for taking action and getting a mailing out! Second, I'm in the same camp with Stephen Anderson and some of the other folks here: don't worry about a script. Have a natural conversation with the Sellers about the property and the situation and try to help them solve their problem. If you're nervous about what to say, that's totally fine! Be honest with the Sellers when you talk to them about who you are, what you are doing and most importantly how you can help them. I'd also encourage you to maybe just have a few key questions you want to ask but it should definitely be a fluid and natural conversation with them. Good luck with your call!
I wasnt able to find the document you created. Can I get a copy of it?
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