Posted by Colleen-WA on March 11, 2002 at 14:45:52:
I’d like to see it, too, please. thanks.
Everyone Wants ALL CASH!!- Frustrated! - Posted by DougW
Posted by DougW on March 10, 2002 at 10:36:51:
I’ve been actively advertising for a full month now, in several newspapers, with display ads, classifieds, and just did a great looking full page ad. I have spoken to 25 sellers only one of whom would even consider a lease option. That deal did not work out. I’m getting very frustrated and a little nervous about the cash outlay.
It seems every seller wants all cash. In terms of motivated sellers, I’m striking out so far. Maybe I should come in with an all cash approach. But , if I were to go to a hard money lender, they would only do a 65% LTV typically. I could probably come up with enough of my own cash for a combined offer of 80% of FMV on the lower priced homes. This could work assuming I could resell the property quickly to a qualified buyer.
Am I nuts? It just seems that in my market cash is the ultimate king. I have read practically every post by Merle and I like his method but I don’t want to buy and hold yet. I want to buy and sell until I have enough cash to safely buy and hold through my corporation.
Sorry for the rambling post , but I am looking for a little feedback.
Doug
Re: Everyone Wants ALL CASH!!- Frustrated! - Posted by John
Posted by John on March 11, 2002 at 06:53:13:
Just tinking…seeing you want to basically flip at this time …why not get a property under contract and assign it to someone else for a couple of grand? (or more if possible)
J.
Re: Everyone Wants ALL CASH!!- Frustrated! - Posted by JohnBoy
Posted by JohnBoy on March 10, 2002 at 18:09:05:
It also sounds like you are giving to much information out on the phone if you are talking about doing a L/O with them. You need to bring that up when you are sitting face to face with them! Not over the phone.
They always say they WANT all cash. The question is, what do they NEED???
WHY are they selling? WHEN do they NEED to get it sold by? WHAT will they do if they don’t get it sold by the time they NEED to get it sold by? If someone says something like, “well, we’ll probably have to just rent it then”, that is your cue they may be or will be motivated in the near future. Then go talk to them face to face and build some trust with them. Then sit down and offer a SOLUTION to their problem now, instead of having to wait.
Those that say they aren’t in any hurry to sell or say they will just stay where they are if they don’t sell are the ones that have no motivation to sell.
Bottonline, you’re NOT going to be able to close deals over the phone! You can only use the phone to screen callers and determine what their motivation may be to sell. THEN you go to them and get facr to face with those that may have some motivation to sell now and work out any solutions at that time! Don’t try to do it over the phone because most people don’t understand this stuff, they don’t know who you are, and a confused mind always says NO!
So instead of trying to sell your needs to them, find out what their needs are first! Then go see them in person and sell them on your needs that will solve their problem to get them their needs!
Re: Everyone Wants ALL CASH!!- Frustrated! - Posted by Craig (IL)
Posted by Craig (IL) on March 10, 2002 at 12:07:59:
What do your ads say? My ad is titled" “FAST CLOSE” (centered, bold) and is attrracting buyers who are in trouble and are, as we say, “motivated.” My ad also states: “no commissions, no fees, no realtors.”
Yes, I also get other sellers calling curious, figuring it never hurts to call. I dont’ worry about unmotivated callers; I understand their position and pleasantly inform them I’m not who they are looking for.
Re: Everyone Wants ALL CASH!!- Frustrated! - Posted by Doug ON
Posted by Doug ON on March 10, 2002 at 11:58:22:
Don’t worry. Cash is king in EVERY market, not just yours.
Finding motivated sellers is HARD! I mean c’mon! Did you honestly think with just a few ads over one month that you’d suddenly be fighting off a seller horde? If it was that easy, 1% of those who learn about CREI wouldn’t be the only ones doing it.
And don’t think finding people willing to sell at a 20%+ discount will be any easier, unless your in a tremendous buyers market.
Give yourself some credit, you’ve talked to 25 sellers in your first month and one of them was somewhat interested. Those are great numbers! From my little bit of experience, I can estimate for you that if you keep this up for another 2 months you will get at least one deal in that time. Which I would imagine will pay for all of your marketing?
Besides ads, what other marketing are you doing? Business cards? Flyers? Postcards? Bandit signs? Networking? Building a birddog network? Expired listings? Tired landlords? … ALL OF THE ABOVE?
Getting up close and personal… - Posted by Jesse (CO)
Posted by Jesse (CO) on March 11, 2002 at 07:19:35:
Hi JohnBoy!
Still working on my ‘phone skills’ here. But the more I talk to sellers, the more I realize that when they’re truly motivated, they’ll talk. It’s all a matter of asking questions. Even personal ones like: what do you do for a living?, how much to you make?, one guy was so motivated, he gave me his soc. sec. # to give to a mtge. broker partner even though I tried to dissuade him (I told him he could speak directly with the broker) but he insisted he had no problem with it. This partner later told me it’s just a matter of asking the ‘easy’ questions upfront and then by that time, they’ll pretty much answer any question you ask.
I usually start off asking questions about the house &/or where they saw my ad, then go on to motivation if they haven’t mentioned that already. Some ppl are a little more taciturn and I guess with those ppl, it’s just a matter of brushing off the uneasy silence until they tell me to ‘shut up’. Had one guy who was just answering ‘yes’/‘no’. He finally got fed up and said: “so, are you going to buy my house or not!” LOL There was no real deal… wanted full price, now, and had repairs that needed to be done. I told him it wouldn’t fly.
I have a ‘lead sheet’ for questions on the house and motivation of the seller. Some ppl, I’ve turned down because I saw no deal. I’m wondering if I had asked the right questions over the phone or even gone to their house, whether I’d have closed on the deal.
Jesse (CO)
Re: Getting up close and personal… - Posted by Devon (Buffalo)
Posted by Devon (Buffalo) on March 11, 2002 at 10:09:31:
Hi Jesse, would you mind sharing your Lead Sheet? Thanks,
Devon