Hi all!
Just wanted to get some advise on how to handel this situation if it ever happens again.
Ok, went to a pre-foreclosure home this morning in hopes to talking to the owner (early bird gets the worm, right?) well I get there and end up talking to his mother who lives next door, guess she didn’t know about the foreclosure. She gives him a call and tells him he needs to come talk to me. Well here is when it gets messed up, while I’m waiting for him, another investor shows up and pulls into his drive, she gets out of her van and starts to talk to the mother. Now Mr. pre-foreclosure shows up and we start talking, he needs help, and hes motivated :), the price is right. Well the whole time i’m talking to him, the other investor is standing right there, like shes waiting in line at a grocery store. Well he didn’t have time to go inside and talk and had to get back to work, but he said he would give me a call when he got off work, I kindley gave him my card shook hands and went on my way, only to have investor #2 move in right behind me. Now, I,m still new to this but I just wanted to hear others opinions on how you would handle the other investor standing there, and if you have been in that situation before. I realy thought she would get the hint and leave.
Thanks for letting me vent.
There are always going to be other investors “waiting in line” The key is not to be the one who simply gets there first, but the one who gets the contract signed first. Make sure you always have your contracts on hand, and try to get them to sign them right away. I dont mean walk up and say hi I want to buy your home, sign here. I mean talk to them, work it out, and as soon as you think they are in agreement, simply take your contracts out, and start walking through them… Don’t ask hey do you want to sign a contract, simply follow through with the contracts as if they have already said yes. You can not let them sit and think for a couple days or even hours. People in foreclosure don’t really know whats best, so they are fickle, thats why you have to get them signed right away.
RentalCashflow
Thanks for the advise. I just didn't expect to have another investor right next to me while I was negotiating. I was just wondering what you would say to another investor in that situation?? I was thinking..Hey since I got hear first.. and unless you want to partner on this deal....please move along. If the roles were reversed I would not have done what she did. Just wondering what your thoughts were.
Thanks again.
I admit it makes it harder when she is right there. The best thing to do is to act like she is not there. Either go inside, or go around to the back, somplace you, and especially the seller cannot see her… Not only is she a discraciton to you, she makes the seller think hmmmmm I wonder what that person can do. Get them out of eye sight.
If you were her, you should have done exactly what she did!
I would have kicked her in the shins an said, “shame on you”. :o
When going after preforclosure you need to make these sellers think your there best friend. You have to liste to there problems and see what the best solution is. many times it is to sell to you. Need to know how much money they need to take care of bills outside of the mortgage going default. Do they have medical problems, credit cards, car payment, etc. Sometimes you need to paint a picture for them. If you can make them want to sell the house to you, your gonna clean up.
I would go back to the house that night and talk to him again and see what he wants to do…
Dont give up…
How did you find this Pre Foreclosure?
Maybe, you should have said to her, “Excuse me would you mind coming back later, cause we are discussing some personal business. Thank You.” She would have either left, or she would have responded “No” which would make her look pushy and arrogant to the guy you were talking to, which he might have made up his mind to deal with you instead of her at that point.
Hey, thanks for all of the imput.
I did go back this morning because I decided I wasn’t going to give up that easily. Well got to talk to him, he had not signed a contract yet, we talked for a long time, even through all that negotiation, and a solid offer, he still could’nt decide what to do, I tried painting a good picture for him, but nothing, I could’nt get it on paper. He had another investor coming by at 12:30, to look things over. Its not over yet but, I don’t think I’ll get this one. If I don’t, I’m ok with it this time, because I didn’t give up and learned a few lessons too. On to the next one, I just hope that its soon.
This was a notice of trustee sale that will go down on Nov 7th.
This is what the whole thing looked like.
SF 3/2 1460 Sq Ft ranch not too old, decent area, not too bad of shape, lots of potential and big lot, with new construction all over.
58,000 1st @ 10.75%
10,000 2nd
10,000 back payments and legals
I offerd to pay off all that, and give him 30,000 at closing
Total 108,000
Comps in the area are 205-210 Maybe more.
I just wish I could get him to comit to somthing!
Again thanks for all your advice, I’ll let ya know If I get anywhere else with this.
See if he has any other issues, maybe there’s something else you can help him with to get him fully back on his feet. Maybe something financial and maybe not.
Hard to believe someone would let thier house go with that much equity. Shame.
Yes it is a shame. He has an emotional attatchment to the home, besides the fact that it was his. He helped his father build it years ago, his dad owned a bunch of land around there and his mom still lives next door to him. He has been taking care of her at times. This guys in a rough spot. I can only offer to get some of his equity back. I hope that if he goes with the other investor that he gives him a fair shake too. I gave him advice on as many alternitives as I could think of, but none of them seemed to be anything that he could do, or wanted to do. I do feel bad for him. I get the feeling that I will see this again in the future. I might be wrong but I just get the gut feeling that hes lying about his job, and the fact that he has one, just a gut feeling. I hope that it works out for him. Thanks again