Posted by Ed Garcia on November 29, 1999 at 10:15:27:
James Todd:
Jim, it’s called SELLING YOUR DEAL.
I’ll tell you how I work my investors. I do what you call a reverse sale. I start out
by asking them negative questions that I know that their going to have.
I explain to them that they should be looking at deals under the worst case scenario.
with that in mind, I ask them the following questions.
(1) What is the worst thing that can happen to this loan?
Answer: The borrower won’t pay.
(2) If the borrower don’t pay, what do you own the property at?
Answer: 65 cents on the dollar.
(3) Can you buy at 65 cents on the dollar?
(Now keep in mind Jim, that most investors understand real-estate deals, that’s
why they invest in them. But they don’t have the time, or can’t find the deals.)
Answer: No
(4) If you could find a deal at 65 cent on the dollar, would you buy it?
Answer: Yes
I think you can see where I’m going. I ask them several more questions and when I’m done
they feel comfortable because I walked them through the negatives, got them past that, and
then focus on the positives.
I show them the return their going to get, which is more than they can get at the bank.
I show them how safe their loan is, because it is so well secured, we actually hope the borrower
don’t pay us so we can have the house.
There is more to it than this, but I think this will give you a taste of what you have to do.
Good Luck Jim,
Ed Garcia