Posted by TRandle on November 21, 2000 at 14:32:40:
Jim,
Yes, I’m still anxiously awaiting the opportune moment to say “Look, I do this for a living!”. Contrary to LeGrand, I couldn’t ever bring myself to lie about my “status” so to speak when I was part-time.
It’s been just over a week now and the “Freedom” is just starting to hit me, and yes, it’s awesome. We’re still trying to figure out how to get Kel to Atlanta because her parents (our only overnight care choice) are unavailable. I tried to coerce Alcorn to cover since he claims he may not make it, but he wasn’t biting. This year when you go on your card binge, please let me know so I can join you. See you there if not before.
When calling on properties, should you identify yourself as an investor? If so, at what point during the call should this occur? Should you be straightforward, such as, “Hi, my name is…I invest in real estate and was interested in the property you had listed.”
I ask this, because with the proliferation of books and seminars on investing, most advising calling on the FSBO’s listed in the papers, many FSBO’s are receiving 10-20 calls by investors offering “lowball” offers as soon as the paper is delivered.
This may create a foul stigma in the mind of the seller for investors calling on the propery, even if they have numerous creative methods to propose outside of the lowball offer.
Re: Inform the sell that you’re an investor??? - Posted by T Jent
Posted by T Jent on November 27, 2000 at 24:36:20:
What purpose does it serve? The seller’s ego is involved. The moment you identify yourself as an investor he’s going to think he’s set the price too low or else how could you make money off him. Always simply present yourself as a guy who likes his house and wants to live there. If he asks you what you intend to do, just tell him that. It’s immaterial and none of his business.
Never seen the need to identify myself as a “real estate investor”. I have found though that sometimes I will run into a wholesaler where at that point it obviously becames advantageous to identify yourself as an investor.
All a matter of going with the flow of the conversation.
Re: Inform the sell that you’re an investor??? - Posted by TRandle
Posted by TRandle on November 21, 2000 at 12:17:00:
HT,
I agree with Jim in that I don’t open with “Hi, I’m an investor and I want to steal your property”. However, I almost always work it in later in the conversation depending on where it’s headed. By then I’ve developed some rapport with the seller and the fact that I’m an investor helps them understand some of my probing, perhaps unusual, questions as well as my potential solutions to their problem. Typically, being an investor is not an issue.
Sounds to me like you’ve answered your own question. If FSBO’s are telling you that they’re getting 10-20 calls from investors offering “lowball” offers as soon as the paper is delivered, I certainly wouldn’t call and tell them I’m an investor in my opening statement.
When I call on FSBO’s, I don’t mention that I’m a real estate investor anymore than I would mention any other type of occupation. “Hi, my name is . . . I’m a truck driver and I’m interested the house you have for sale.” - or - " Hi, my name is . . . I’m an engineer and I’m interested the house you have for sale."
At some point in the conversation, it may come up, at which point I’m truthful with the seller, but I don’t necessarily volunteer the information. What’s important is that they have a house to sell and I want to buy a house. If, during the course of the call, I determine that they aren’t motivated enough to warrant setting up an appointment with them, I mention that if their circumstances change to give me a call.
Just my 2¢.
I’d be interested to read how others who visit here handle this issue.
By the way, I think that investors who make lowball offers over the phone probably have a pretty low closing ratio. I try to determine the seller’s level of motivation over the phone, but all of my offers are made in person, except with out-of-area owners.
Re: Inform the sell that you’re an investor??? - Posted by Houserookie
Posted by Houserookie on November 27, 2000 at 06:52:35:
I agree and I disagree. : )
If a sellers is motivated, s/he will do anything
to get rid of the property.
I know there are people here that focus only on
motivated sellers. And in no way is this a problem.
In my case, I tell sellers that I want to buy
his house. I may want to make some improvements
or I may just resell to “motivated buyers”
that could otherwise not buy elsewhere.
This gives assurance that you are bringing
something of value to his already exhausted
efforts. AND THAT YOU ARE NOT JUST THERE TO
CAPITALIZE OFF HIS MISTAKES.
Re: Inform the sell that you’re an investor??? - Posted by Rob MacFarland
Posted by Rob MacFarland on November 21, 2000 at 12:29:59:
A call to Mr. Seller last night to say that I was interested in his property. He asked if I was an investor and I told him “Yes” … albeit still learning. He was interested in “my approach” because (as you said) he had received several calls from other “investors” and I assumed had received some “low-ball” offers … I told him that my philosphy (re: Robert Shemin) was that I was always looking for a “Win - Win” situation if there was one to be found. In this case he had a property that is currently vacant (used to be his mom’s), far from his home and nothing but a money pit to him. I live nearby and would like to own it. Explaining to him that there were more ways to buy a home than just a dollar figure … (I never even mentioned an offer) he agreed to travel about a hundred miles to look at the property together this weekend. I’ll let you know what happens.
~Maj Mac
