Keep it simple - Posted by Jim IL
Posted by Jim IL on May 12, 2000 at 16:05:44:
First, what is your name?
I have to tell you, we are all like family here, the “Regulars” of CRE.
When I read a post and want to respond, responding to a name that sounds like a real person makes me feel better.
Try using your name, that will help.
When someone uses a name that is obviously an attempt to remain anonymous, I have a tendency to not read or respond to the post. (many of those contain negative remarks, so I avoid them.)
But, since this post may actually help others with the same question, I’ll respond anyway.
So, here we go;
You say that you have a full and good understanding of the techniques you want to use when buying?
That is a good thing, and will carry you thru.
Remember, when talking to a seller, they are NOT well versed usually in “Creative Real Estate”, and they only have one thing on thier mind.
That is, "I have this problem, and need a solution."
So, your job is to seek out the info that spells out that problem specifically.
Listen to the sellers first, and gather as much info as possible. You will have to endure them telling you many details that are frankly irrelevant, but that is part of the game. It is your job to filter out the info you need to make an offer that works for you both.
Once you have the sellers problems outlined in your head, and you have an informal plan for your end, then you can present some options to the seller.
I usually address them by saying, "okay, so your selling because (whatever the reason), and my program will solve that."
Example: The seller cannot afford the monthly payments, so your L/O offer will cover them.
Then briefly explain the advantages to the seller of going with your plan.
Also explain as simply as possible what your program does and what happens.
Like with a L/O, they get payments from you, or the lender does, and they have NO worries about bad tenants or late payments etc.
Do not overwhelm the seller with REI lingo and flash. Talk to them like you would a friend or neighbor.
Do NOT hear there problem and whip out a stack of legal forms and say, "sign here, this will solve the problem."
Big UGLY legal forms turn off a seller.
Tell the seller what it is you are willing to do, and how that solves the problem at hand.
Ask them if they have questions or concerns and answer them simply.
Once the seller sees that you can and will solve the problem, they will sign, if they are motivated.
When asking questions of sellers, make them open ended, leaving the seller plenty of room to give you more info.
And, be yourself. Do not go in and try to “fake” your way into a deal. Most people can see right thru that anyway.
And, DO NOT get emotionally attached to the outcome.
Keep your head in the game, and know that Yes, you are here to solve the sellers problems, but ONLY IF you can make a profit in the process.
The idea of practicing is a good one. Honestly, I do not practice with relatives and friends, because they cannot seem to get serious, and I am distracted by telling them what I am doing.
The BEST practice is to go out and talk to sellers.
After you do a few, take notes on them each and see where you did well and what you left out.
You can always analyze what you did afterwards, because hind sight is always 20/20.
If you encounter the same objections over and over, then you now know what you have to ovcercome and can better formulate a solution.
I know this was long and not very specific, but frankly, with the details you provided regarding this seller, it is difficult to give you a “plan” or “outline” to use here.
Hope this help a little,