Real Estate Game Face, Immediate Gratification

It is of the upmost importance that when receiving calls from a potential property seller that your games face be on.  Most callers will want immediate gratification and will demand a price though you haven't yet seen or uncovered any detail of the property.  This is the point at which most deals are lost. 

It can be a difficult challenge for many new investors to meet the callers need for immediate gratification while acting in self preservation.  Price the property to high and you will lose the deal when you later conduct the research, price to low and the caller hangs up, wait to long to return the caller with a potential buy price and they have completely forgotten who you are.This is a juggling act which can be frustrating, but does it really need to be?

By having a set of general rules to follow, knowing how to access public county records and by targeting specific areas, it definitely makes life much easier.  I find vacant land owners to be the most notorious for needing immediate gratification and are in need of your most serious game face.  They call and assume you can pull a magic number from your head.  Most will throw 3 or four details in the air and hope the ball lands on their side of the fence.  I have a 1/2 acre parcel in Wakulla Acres subdivision in Wakulla County, the property is on a paved road, it's a nice lot, what will you pay for my property?  Upon explaining that there are many considerations to coming up with an answer many will just want a price.   

While, yes you certainly have a number in mind, be aware that many are not who they seem.  A number of the callers will not be in possession of the title and will be solicitors wanting your input prior to negotiating a price for their purchase of the property.  If this is the case contact the owner directly and offer to purchase from them.  I have done this and while it stinks for the person who called you, it often turns out that they didn't have a contractual interest in the property. 

Protocol-Never offer a price on the initial call.  I have fallen victim and have done this and many times it turns out badly.  I did throw a price in the air on one property only later to find out the property was zoned commercial not residential as the owner stated.  My price was based on the lesser zoning.  Always get the owner's email address before you hang up.  Always assure the owner that you will return the call shortly and that you will need to conduct a property analysis so as to present the best offer.

Once you have the property identification number or address, take a look at the following web sites in the county of which the property resides. 

Property Appraiser, where comp data, aerials, features, prior sales, and zoning can be found. 

Tax Collector, to find out if there are back taxes owed and to be appraised of any outstanding tax certificates which may have been issued. 

Clerk of Circuit Courts, query the official records where you can uncover any liens, encumbrances, judgments and conveyances of the property.  In many instances, you will be able to conduct these searches in less than 20 minutes.   

Before returning the call, make sure you have your purchase and sale contract in hand.  I always enter all off the information with the exception of price prior to returning the call, the ability to see the goal as tangible creates action.  On the return call don't be bullied.  Post your price and stick to your guns, support your price.  Many sellers will want to haggle, and a little is o.k. but when the prices are so far apart that it is unreasonable I go into the "I pay mode". 

Most property owners have little idea of the actual cost of closings, title insurance, marketing property and even fewer know the process.  "I pay" all closing costs, title insurance, back taxes, attorney's fees, doc stamps, recording fees, and this would cost you xxxx.  If you listed the property with a realtor you would also incur xxxxx of the purchase price. My price is comparable considering these expenses.   I am offering a 10 day closing with no cost to you.  If the answer is still no, which it typically is, inform the seller that you will reevaluate the property and will get back to him shortly.  It is now time to utilize the email address. 

I will add a small amount to the offer and email the contract to them.  Believe it or not, many will ponder a few days and respond. 

Get your prospect list.  I typically run a query of the tax collectors records and send flyers to those property owners who have one year of delinquent taxes.  In Florida, the taxes must be delinquent for 2 or more years before the tax deed can be applied for, until that point the certificate or lien holder is just counting the days until the property is redeemed or they can apply for the tax deed.  I usually compile a list after October 1st.  The reason for this is that 85% delinquent tax payers will pay up within a few months of the tax lien being sold which in Florida is June 1. 

It Works.  One such owner sold me his golf course front lot in a very private neighborhood surrounded by $800k homes.  Within 45 days I resold the parcel to the home owners association for a hefty 39% profit.  Another owner sold me 2 lots, one of which I  sold for the investment made into both and retained the other to pay for my daughters future education.