What sort of presentation do you use to convince your leads that lease options will be beneficial to them? Do someone have an all-inclusive script that covers everything from the logistics to things like insurance, taxes, etc.?
I am a professional “subject to” investor/merchandiser, but I’m often having to blend an option into my deals, and/or lease options. I’ve got several excellent option and lease/option courses in my library, but my favorite is Todd Toback’s, The Lease Purchase System. [toddtoback.com]
He includes scripts specifically for dealing with agents, landlords, and/or FSBO’s. He offers a ton of other useful information that I don’t find anywhere else.
I have no idea what he charges now, but whatever it is, he guarantees it, and it’s makes me money. If you buy it, and like it, tell him that javipa sent you.
I get nothing from referring you to him, except a warm feeling of helpfulness. :biggrin
As far as “convincing” somebody to go along with your lease/option, I think that’s a bad mindset with which to start off. You don’t need to do any convincing. If you do, then it’s gonna be a hard slog going that route.
Think of yourself as having a big, giant “itch” scratcher. In this case, a giant debt relief solution; or a huge management headache reliever.
Once you find a seller with any one, or more of these “itches,” they’re gonna be all over your solution to their problem. It’s not going to be a matter of convincing them that you can scratch their itch, but how quick, surely, and reliably you’ll do it.
A good approach is to figure out where to wave that big, giant “itch” scratcher, so that the ones that need scratching will raise their hands and scream, "Scratch me!
Meantime, all good scripts have one thing in common and that is addressing objections before they are made. The better you are at meeting objections, the easier and more elegantly you’ll be able to close on prospects without having to do much “convincing.”
That said, even though you’ve got a big, giant “itch” scratcher, and it’s the perfect solution for the prospect, the prospects do need to know that your big itch scratcher isn’t just a rusty wire brush on their open wound.
Otherwise, you will be doing a LOT of convincing. Todd’s course has helped me understand which direction to show off my big, giant “itch” scratcher, so I’m not dealing with prospects that need “convincing.”
Hope this helps. Good luck!
Jay
Jay - thanks for the reply.
When I said convincing, I think I was misleading. When speaking with potential leads, and they tell me they have this mortgage they cannot pay, or they want to move but want to sell the house to get rid of the mortgage, all I say is
“Well what if I paid your mortgage every month, would that be something you would be interested in.”
They say “uhh, absolutely, tell me more.”
I have decent knowledge on the subject, and I believe my presentation is solid, I was just wondering if there’s an all-inclusive script somewhere that would handle all the objections and logistics.
I’ll check Todd’s site out, thanks again
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 than being in front of an objecting prospect.
The basic script template I follow:
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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.
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Tell them about you; what you’ve done; with whom you’ve done it; and whom likes you (testimonials/references/affiliations).
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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.
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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).
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Inspect the house. Ask for everything you see to be included in the option price/lease/sale/etc.
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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.
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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.
This really isn’t enough nuts and bolts, but maybe there’s something you’ve not read before.
Hi,
I decided to add my 2 cents while Lebron dismantles Cleveland. :biggrin
I believe javipa essentially gave you everything you needed.
As for objections: you need to answer the ones they “don’t” ask.
They may not ask you:
“How am I protected if you don’t pay the mortgage?”
"How long have you been in business?
"How do I know this is on the up and up? I heard stories about those “investor guys.”
These questions will come up later while they lay in bed. Smoke them out early on!
Great advice being offered here. I’d add this: before you start in, it’s important to build some type of rapport first. Find something out about the seller and see if you can find some things in common. IE, something like, “where are you moving to when you sell this house? Dallas! Wow I went there twice last year” or something down those lines. This is an important step because people do business with people they like.