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Last Updated: May 14th, 2012 - 22:24:01 |
Once you meet your prospective seller, get him to focus his attention on you. To do this you need a planned presentation.
At times you will have the feeling that the people you are talking to aren’t listening to you; their minds are on other things. Even as they are talking to you, they are searching for the miracle that will rescue them. And they are still asking themselves: What is in it for me? You must focus the prospective seller’s attention on what you have to say.
Demonstrate your interest in the seller’s predicament. Give him a booklet or information about seminars on the ways in which your business can help. Give him something that will help solve his problems. If you are solving the seller’s problems and talking about benefits he will attain, you will have his attention.
Remember, too, that you must demonstrate the benefits you can offer are superior or you will just be an also-ran. Why are your services more valuable than those of your competition? Think this over and be prepared to demonstrate your superiority. When your prospect is convinced by your benefits and demonstrated superiority, he will sell his distressed property to you. If you wan to succeed in this business, you must be solving problems. Think about what makes you different. If your services are different, you will be successful. The prospective seller will not be convinced until you demonstrate that you can solve his particular problem better than any other competitor can. In summary, analyze your prospect, try to visualize the individual and understand what motivates him, and then tailor your presentation to suit him.
CAUTION: SOME DOS AND DON’TS
To emphasize the necessity of doing your homework and to give you some pointers for the all-important planned, individually tailored presentation, we offer some dos and don’ts.
- Don’t argue with the homeowner, even if he or she is wrong. Remember time is on your side.
- Do keep in contact. Sellers will rarely make up their minds the first time they receive your letter, or even the first time you meet them.
- Do ask questions. Estimate your repair cost before you make a money commitment.
- Don’t get discouraged if the homeowner brings his payments current (cures the loan). Keep an eye on the default list. Many of these owners, a surprising number, will be back in default within the next six months. By then they will have more debts to pay.
- Do caution the homeowner that, if he or she signs an exclusive “Right to Sell” agreement with a real estate broker, a commission will be due and deducted from the proceeds of the sale.
- Do appraise the property. Does it need paint, carpet, wallpaper, linoleum, repairs? The seller, in most cases, knows whether the home has serious structural problems. If you are not careful, these sellers will take advantage of your ignorance. Keep in mind that the prospective seller is obligated to take care of himself and his family. He is not interested in making you wealthy. Your contract should include various cancellation or escape clauses to allow you to reject the purchase if you do discover serious structural problems.
- Do expect a no to your first offer.
- Do leave the door open for new talks with the owner if you get an initial rejection.
- Do tell the owners that time is of the essence and that you have limited capital that must be put to work.
- Do tell the homeowner that foreclosure causes other credit problems if the bank or savings and loan association reports the action to the credit bureaus.
- Do remind the homeowner that each day the situation gets worse; payments are further behind, late charges are accruing, and property taxes and penalties are adding up.
- Do get all the owners to sign the purchase contract. Review the Grant Deed to make sure you know who owns the property and what the legal description consist of.
- Do be Mr. Good Guy, the man in the white hat. Yes, you’re saving them from foreclosure and embarrassment.
- Do think about the financing for the new buyer before you put the house up for sale. Financing is the most important part of the sale.
- Do review the default list daily.
- Do establish an attitude that tells the world: “I know it can be done.”
Once again, remember the millionaire’s secret of success: prepare – prepare - prepare; do your homework – do your homework – do your homework.
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