Posted by JOHNMAN on June 01, 1999 at 19:24:03:
Jim,
Your responses to the objections are very similar to the way I answer sellers’ concerns. That is how I got the one in Hinesville, GA. I just went in with the attitude that I will give it my best shot and if I can’t convince these people, NEXT!!
Johnman
L/O Strategies - Posted by Maurice (Ca)
Posted by Maurice (Ca) on June 01, 1999 at 15:09:25:
Hello All:
In Southern Calif. the market is extremely hot…As a result I’ve put a lot of effort to learn l/o as another strategy for controlling properties… I’ve been looking for motivated sellers in the mostly medium to high price range (pretty homes) & have found a lot of motivated sellers. BUT, I have found them leary of the l/o strategy. Maybe they’re just not motivated enough, or maybe it’s my approach. I am very straight forward with them as to the benefits & advantages, but they seem to still say no. When speaking with the sellers (I only deal with fSBO’s for l/o) I ask them about their home, why they’re wanting to sell, the asking price & the financial information. (this part is always smooth) When I determine that a l/o would be beneficial based on probing them & explain the benefits, they seem get so weary. I am very careful not to use any industry jargon i.e. “lease with an option to buy” - I always try & convey benefits, yet I get the impression that they just don’t understand it & therefore don’t want to take a risk. Common boundaries are: “I don’t want to land-lord”; “What if the sub-lessee defaults”; “What if YOU default”; what if…what if…what if.
I just wondered how some of you seasoned investors have overcome the seller’s fears & concerns…some of your successful strategies, etc. I realize these are broad questions, but I’m sure most investors run into these situations often.
Thanks!
Re: L/O Strategies - Posted by Jim IL
Posted by Jim IL on June 01, 1999 at 15:26:28:
Maurice,
What courses have you used to learn L/O’s?
I frankly have used Legrands, and his covers all the objections you mentioned.
He gives ideas for overcoming them, such as, “I don;t want to be a landlord”…“Mr. Seller, you will not, I’ll handle ALL maintenance as per our contract”
What if the subleasee defaults?..then Mr. Seller, I’m responsible for paying you anyway, so you will get paid, as always, from me.
“what if YOU default?”…Mr. Seller, then you get the house back, but honestly, I do this for a living and to leave you hanging and ruin my carreer and reputation would be silly, over one home and payments.
I have too much at stake to default on anything.
But, also remember that sometimes, you simply will not get a seller to overcome his/her objections, for reasons we may never understand.
When this happens, the seller is simply not motivated enough, and my reply is…NEXT!!
But, always leave the seller with a friendly smile and business card, they may just call you when they don’t sell another way.
Good luck,
Jim IL