found shortsales, how and what to say to them???

hello everyone. first of all this website is just great. i have been reading posts for about two weeks now and have recieved alot of good information, even though there has been information that had been contradited with someone elses info. i reside in kissimmee florida and here is my question. i have access to the mls and conducted a search for preforclosures in my area. now when i find a property that looks good as far as the numbers go how do i go about contacting the homeowners and how do i screen them? im speaking of properties that are not listed on the mls (public market). i would like to focus on the private market, properties with no realtor, owners are late on payments.

also i read you need earnest money to provide an offer for an reo property, weather it be public or private. how do i take advantage of this situation if i dont have money? i have an llc and can recieve proof of funds on the internet. this is my passion and will not stop untill i get the answers needed to be a smart investor. thank you all for yopur time and experience!

maximo

I’m keeping my fingers crossed for you too, hopefully everything will go well …

ok. maybe my wording way off. after reading the post i was all over the place. i would like a script for the homeowners that are late on their payments. what is the easiest or most effective way to obtain permisiion from them to make an offer, if they dont have a realtor yet?
would love to hear from the gurus out there thanks

I think it is much better to talk with them for the offers directly so that, they will be aware of the payments that are required.

The first thing I try to do is make friends of them, shoot the breeze a little, tell them why a short sale is better for them and the lender. Then I give a verbal disclaimer, I am not a CPA,Lawyer, Realtor whatever and inform them that if they require these people then feel free to contact them. You should come prepared with a short sale packet, you’ll need a financial statement, last 2 check stubs, 2 years of tax returns, hardship letter plus many more. Sorry I’m going to stop here because the answer is just to big. I suggest working first as a short sale bird-dog, maybe a course, I say maybe because I didn’t need one. This is an excelant forum but there are more you should visit and read all you can here about shorts. Herbster

How you solicit prospects will highly influence your script. Cold calling takes some stamina, patience and salesmanship.

Handwritten letters are one good way to get sellers to call. However, the more aggressive approach is get to the door and knock on it.

Many won’t answer, because they think you’re a bill collector.

I think a more effective way, and one that keeps me in control, and exudes confidence … is to send a letter that says if I’m coming by your house after 5:30 on Thursday to talk about your real estate. Let me know if you can’t make it. Call me at …

The assumption is, “I’m coming anyway” so let me know you’re gonna be home and let’s talk. Some will call and tell you that they’re not going to be home. Set up another appointment time. Others will tell you take a hike, in not so many words, or have made other arrangement. Some investors I know have script for pushing through denial. I just take them at their word, because I’m not there to hard sell a solution.

Meantime, if you get calls from mailers, and aren’t cold calling, this is the generic template of a script I use for all sorts of real estate offers…

BTW, I went to an appointment two weeks ago, and the husband didn’t show up as scheduled. I rescheduled. When I came back, I realized why the husband didn’t show up. He wasn’t interested in dealing with me or anyone else. I disqualified that prospect nearly immediately, since he sat with his arms crossed for the first five minutes, and I wasn’t getting agreement on the basic introductory points, so I said “buh bye.”


Here’s a basic “script formula” that can be tailored to fit different situations that I use as a template. However, there’s nothing more efficient at noting objections and adjusting the script, than being in front of an objecting prospect.

The basic script template I follow:

  1. Set the tone of the presentation by having the seller fish or cut bait at the door. “Are you ready to lease/option your house today (if we can come to terms)?” If the seller responds with anything other than a clear, definite “yes,” then tell him you’ll come back when he’s ready, because you’re only here to do a lease option today. It sets the agenda very clearly and places you firmly in the drivers seat.

  2. Tell them about you; what you’ve done; with whom you’ve done it; and whom likes you (testimonials/references/affiliations).

  3. Rub salt in their wounds; rehearse the problems the seller is most likely experiencing with their property (setting up a solution); slow market, lazy Realtors, failed escrows, competition, deadbeat renters, negative cash flow, etc. Get agreement on what’s said thus far, meet objections, or walk.

  4. Demonstrate your solution to all that pain, without being eager to do any deal with this person (You’ve got options, and lease/optioning this particular house may not be a good fit for you).

  5. Inspect the house. Ask for everything you see to be included in the option price/lease/sale/etc.

  6. Go through the numbers and discourage the seller from any/all unrealistic equity expectations. I call it “yellow padding” the seller. Get agreement on what’s said thus far, meet objections, or walk.

  7. Write up the agreement and have it approved then and there including submitting the deposit/option fee, etc. Affirm the decision and get out.

This is not a firm outline, but the basics are in order.

As far as meeting objections, nothing is more efficient than simply pitching sellers on your solution, and letting sellers tell you exactly what their objections are. Then adjust the script to meet those objections in advance of the next go round. In no time, you’ll see patterns emerge in your presentation that are completely predictable. Every prospect will respond one of two (maybe three) way at each juncture of the presentation, and you’ll be nimble, agile, and quick to either continue with the presentation, or quit and move on to the next money-maker.
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OH! silly me, I thought he had a short sale post.