When you’re talking with a seller re: a l/o are you telling them that YOU are renting the place out and you will need 30 days for a “due diligence” or are you explaining that you have clients that you help with poor credit become home owners?
I’m just curious of which approach most people out there take.
I use the latter approach myself. When people find out that I am not actually going to be the person living there about half of them turn the deal down.
Your approach is all wrong. You are using the deceptive bait-and-switch tactic. Not a good way to give a homeowner a warm and fuzzy feeling for doing business with you.
You need to tell them from the very beginning what your plans are with their property. It’ll save you much time and frustration to know early on that they aren’t interested.
I’ve struggled with this issue for all the years I’ve been investing. I still haven’t found the best way to “break the news” but I have found some ways work better than others.
I find the “I have T/Bs” speech is not good. I think the problem with it is that they get the same line from countless realtors who are just lying to get the listing.
Recently I’ve been saying flat out: “I’m not looking for a place to live for myself.” This works surprisingly well, usually the response is: “Oh, ok.” and we move on to the terms of the deal.
Another way I will be testing soon is: “If I wanted to sublet the house, would that be a problem?”
Another thing is TIMING, in fact when you say it is much more important than what you say. You need to tell them before you get into terms (price, rent etc.) otherwise they feel like they’ve been negotiating under false pretenses and the deal will die right then and there.
That is of course the one in a hundred calls that goes really smooth
I go off and do my due diligence, checking into the price and rent to see if it’s a deal. Then I call back, usually the next day and tell them yes or no. If the price or rent are way out of line then I say so and ask if there’s any flexibility there. If not I ask if there’s any reason for me to call back in a few weeks to see if they still have the house. This is a great way to gauge if they might become more motivated with time.
If everything checks out then I tell them the good news, I’m definitely interested! Then I ask when they want to get together and if they want to sign the papers when we meet, assuming the house passes my inspection. Usually they say yes.
I’ve found that it’s very important to delay your decision by at least 24 hours. If you try to get an appointment right then on the initial call, you seem too eager and they will back away more often than not. But if you play the reluctant buyer who needs to check into things before you make your decision, then they’re MUCH more likely to do the deal, and feel lucky that they “qualified”.
“Because I’m an investor who focuses only on nice homes in nice areas, can you tell me, is yours a nice home in a nice area?”
“Well I don’t know if there is a reason for us to be talking or not. As an investor, I have several different methods to buy your home. One method is for me to lease your property for a year or two and then completely cash
you out of the home. Is that something we should talk about or probably not?”
I find it helps to have the key questions written down in case I get nervous and forget what I’m calling about LOL! But other than that JR is right, you can’t follow a script. Just let the conversation flow. If the seller wants to talk a bit when you ask about the condition of the house, don’t interrupt them. Let them tell you whatever they want to tell you and take note of anything important (anything that might indicate motivation).
I tried Peter Conti’s “probably not” line and you know what sellers say? “Yeah, probably not.” HAHA!
just go with the flow. scripts are a waste of time, you sound fake. they are only meant to sell tapes and seminars. The real world doesn’t run on a script. Just be genuine and you’ll find lots of opportunity.
Scripts aren’t meant to be read, they’re meant to be learned and adapted to your style. Any professional will tell you that it is ALWAYS better to have a “script” memorized so that you know how to stay on track and communicate effectively with your prospect.
By just going in and “winging it” you look unprofessional. The “that’s a nice fish, did you catch that yourself?” line doesn’t cut it anymore. People see through the :bs very quickly nowadays.
When most people think “script” they think “reading it word-for-word”. THAT is impossible in a conversation.
But having an outline (whether on paper or in your mind) of the ground you need to cover during the call is critical. It’s far too easy to get side-tracked and forget to ask key questions.
It’s also very important to experiment and find the phraseology that works best for your area and your target sellers/buyers. For example, in my area saying: “Would you like to lease purchase your house to me?” will get a NO about 95% of the time (of course that 5% are HOT prospects!) whereas saying: “If your house doesn’t sell would you consider renting it?” gets a YES nearly 75% of the time (but they aren’t quite as well screened).