Hello,
Can anyone and i do mean ANYONE please recommend a good site/book on lease option scripts? ie. Calling potential For Rent Ads.
Thanks in Advance![b][/b][b][/b]
Perhaps the worse thing you can do when talking with a homeowner about buying their property is to read a canned script. Not only is it hard to do (i.e., the conversation can easily go off on tangents), but it doesn’t sound too encouraging on the other end. Just understand what it is you are hoping to accomplish BEFORE you call, and then let the conversation flow naturally.
thank you for the info. would you think that it would be better to visit the owner/view the property before proposing a deal, or doing it over the phone/finding someone that would consider a l/o.
thanks.
I have probably used a hundred or more scripts for L/Os over the years. The best one BY FAR also happens to be the simplest and most obvious.
Drumroll…
“Hi, I was wondering if you would be interested in leasing your property with the option to buy?”
WHY is this single question the best “script” you’ll ever find?
- It cuts right to the chase, in less than 10 seconds you know whether you should move forward for more details, or move on to the next lead.
- No wasting your time getting to know the seller’s family history only to find out they would never even consider renting their house out.
- No irritated sellers yelling at you for suggesting your “stupid” and “crazy” ideas.
Since this business is a numbers game anything you can do to save time so you can talk to more sellers, the more deals you will ultimately do. Asking one simple question and takes all of a few seconds and completely screens out the losers is the single most important thing you can do IMHO.
thanks so much doug. that was a big help. in your experience, what was/is the most difficult part of the the process (l/o’s).?
There is one thing I dislike the most and it is not so much difficult as it is irritating. You see, there are 3 answers you get when you ask: “Would you be interested in doing an L/O?” and 3 types of sellers who give them.
-
MOTIVATED SELLERS say: Yes! I was just thinking about renting it out actually, you’re timing is impeccable.
[Gotta love them! They usually ask very few questions and you don’t need to do any convincing. In fact you’re at risk of talking yourself OUT of the deal by accident so it’s best to say as little as possible once you’ve got that initial “YES”.] -
UNMOTIVATED SELLERS say: NO! And if you call here again I’m calling the cops!
[I love these people too because they save you time by telling you right away your offer is unwelcome.] -
UNMOTIVATED with a TWIST say: I’m not sure, how would that work?
[This are the sellers I absolutely can’t stand! And they break down into two subcategories:]
3a. MANIPULATIVE: These want you to explain everything to them so they can do an L/O without you.
3b. STUPID: These people make you stand on your head trying to “dumb down” the concept so they can understand, only to finally GET IT and tell you to get lost.
I’ve seriously considered just hanging up when I get seller type number 3 because I know it’s a complete waste of time to explain anything to them. I have NEVER EVER finished my explanation and had a seller say YES they’re interested. Maybe that’s my fault and I just suck at explaining it. Either way I came up with a better solution. I simply say:
“I’m glad you asked, please visit my educational website to learn all about it at your own leisure.”
thanks doug…lol…i’ll get-a-callin’. one last question.
once you do get a “yes” and work all the details of the deal out, what would you say is the best method for getting a tenant buyer in the property…? advertise as soon as the owner commits? my main concern would be no out of pocket expense. ?
thanks for your help. i really appreciate it.
Well first my payments don’t begin until I have a t/b, so there’s no risk of getting stuck with payments.
I market for buyers all the time whether I have houses or not. I do online ads and of course have a website for buyers. That keeps a slow but fairly steady stream of potential buyers coming in. When I want to market a local house I put up directional signs and usually toss an ad in the Pennysaver. The ad and EACH sign pulls 5 - 10 calls and about 100 hits to the website.
And yes I usually start planting signs one my way back from signing a house up.
so is your agreement with the owner contingent on finding a t/b? also, do you usually wait until the contract signing to disclose that you “or your assigns” have the “option” etc…? i guess, i’m curious about the owner’s concern with “someone else” other than myself living in their home…i’ve read that it’s best to just not say anything until the contract point, where all obviously must be disclosed…
Not precisely. Rather than having a variety of conditional clauses I just put in a blanket cancellation clause. I can cancel for any reason at any time up until the possession date.
I don’t think keeping them in the dark up to contract time is a good idea. It will look very shady if you suddenly “spring” this revelation on them at the last minute.
I’ve told people on the initial call that I “manage” L/Os, so they know right upfront. But there’s no question that lots of sellers don’t want you to sublet especially when you’re a stranger to them as it is!
Another approach is to be non-commital on the phone. Make it a: “Well, I’ll come out and take a look and see if it’s something I’d be interested in.” Then when you meet them and and are walking through the house you can say something like: “I am interested but not to live here myself, I think it could work as an investment though, in fact I have a qualified tenant/buyer couple in mind that would absolutely LOVE this place.”
Thank you so much Doug. You’re a great help.
Good info, Doug. Thanks for sharing.
UGH! Time to share a little venting. I talked to a couple of sellers this passed weekend who uttered the dreaded: “Hmmm, I hadn’t thought of that… how does it work?” and as usual the ONLY result of attempting to explain, was that familiar desire to reach through the phone and strangle them to death!
You know how so many gurus teach that the road to frustration is to cold call FSBOs? Well that’s not entirely true. The frustration comes from trying to work with people who don’t jump at the chance from the beginning of the call.
As I said above, the people who say YES are great, the people who say NO are fine too. The people who will drive you to an early grave are the ones who ask broad-reaching questions like: “What’s your program?” or “How does that work?”
My advice: DON’T ANSWER THEM! SAVE YOUR SANITY!