A WAY WITH WORDS.............................. - Posted by hot-one

Posted by David M. Elfers on May 13, 2000 at 10:54:50:

I am very new to investing and to CREONLINE. I have read alot of the posts and I found your response posted by jim IL on May 12, 2000 at 16:05:44 to Hot-One on May 12,2000 at 07:11:22 to be very sincere and honest! I’m sure all of the “regulars” of CRE are equally sincere but your response really demostrated a caring that some teachers have and others do not. You gave of your time and knowledge to help a “newbe”. Thankyou very much on behalf of all “newbes”.

A WAY WITH WORDS… - Posted by hot-one

Posted by hot-one on May 12, 2000 at 07:11:22:

OK

OK

Yes, I am a newbie. I have been in REI steadily for a little more than a year. I have read LeGrand’s stuff…

But when it comes down to it I flub when I try to explain a solution to a seller…I know what to do but have trouble explaining it clear & simple.

COULD ANYONE PLEASE HELP ME WITH THIS NEXT SELLER.

Seller needs to move in to their new house sound very very negotiable.
ASking 389K but are very neg.
their open to terms.

Should I ask for the deed?

what should I present?

Thanks folks
hot-one

First Things… - Posted by David Alexander

Posted by David Alexander on May 13, 2000 at 12:22:15:

First.

first you need to listen to the seller and Identify the problem. Once you identify the problem in your mind your going to have to figure out an exit. How are you going to exit the deal and make a make a profit? Once you know this you will know what to offer the seller to solve their problem. That could be a L/O, Getting the deed, Paying Cash, Owner financing, etc. depending on what you are comfortable doing and are able to negotiate.

David Alexander

Keep it simple - Posted by Jim IL

Posted by Jim IL on May 12, 2000 at 16:05:44:

hot one,
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,
Jim IL

Re: A WAY WITH WORDS… - Posted by Soraya

Posted by Soraya on May 12, 2000 at 11:19:18:

Write down (outline) exactly what you want to say to the seller.
Make a list of questions with space for the answers the seller gives.
Take your notes to your meeting with the seller and present your offer.
If seller is motivated it doesn’t make any difference if you fumble around a bit. You have the money and the solution to the sellers problem. If you fumble around a little, that is a good thing. The seller won’t think you are a “slick” investor trying to steal his property.

Worst Case Scenario always keep in mind, real estate is like a bus, if you miss one you get another one.

All you need is practice.
As suggested by the others, practice asking your questions to your spouse or a friend.
Soraya

Re: A WAY WITH WORDS… - Posted by JohnBoy

Posted by JohnBoy on May 12, 2000 at 08:32:26:

What do you plan on doing with the property? Are you going to L/O it? Re-sell it? Try and flip it? Sell on a wrap? Live in it? You need an exit plan before knowing how to do the deal whether it be taking the deed, L/O, seller finance, get new financing, tying it up to flip, etc.

Seller is asking $389k, what’s it worth?

Are they current on the mortgage?

How long have they had it on the market?

Is it listed with a realtor?

When do they need to move into the new property?

Re: A WAY WITH WORDS… - Posted by Laure

Posted by Laure on May 12, 2000 at 07:19:13:

If you keep flubbing up, I suggest that you practice ! You will gain confidence, and you will learn to choose your words better. Find friends, family, anyone…who you can practice with. Make them ask you questions. Choose your subject carefully, you don’t want anyone to discourage you. I practice with my spouse. Also, when I am nervous about meeting a seller, or buyer, I spend some time by myself, going over what I want to say, and how I want to say it. A tape recorder might even help you. Do whatever it takes !

Good luck,
Laure :slight_smile: