Preparing for When Sellers Call - Posted by Mindy

Posted by Brent_IL on January 12, 2001 at 18:05:50:

Although 1% of FMV is widely used to illustrate rent, it’s very dependent upon area. In my area, a plain vanilla rental will go for eight-tenths of 1%. Check out your area before you buy.

Preparing for When Sellers Call - Posted by Mindy

Posted by Mindy on January 12, 2001 at 15:18:15:

Question from a newbie…The town I live in is middle class with most properties ranging from $250K - $400K. Here’s the conclusions I’ve drawn. I want to have a strategy when sellers call me so I don’t turn down deals that are too big or stumble on the phone because I don’t have an answer. Here’s my approach - Let me know if I’m correct:

  1. Sellers call from my area - Answer: Focus on flips since buying a $300K home as a rental wouldn’t work.
  2. Sellers call from outside my area (less expensive homes) - Answer: Focus on rentals if price of home will allow me to get about 1% monthly rent.

What do you think?

Re: Slowly, - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on January 13, 2001 at 19:46:40:

go back to the telephone strategy.

First never discuss the deal on the phone, for several reasons. You do not know anything about the property (on the phone). You also can not tell anything about the financial condition of the seller. He may be rich, or he may be broke or both at the same time, you can not tell on the phone. The house may be a shambles, or it may be impeckable and show perfectly who knows? you sure can’t tell over the phone.

A lot of people in this business do not even take phone calls at all. They use voice mail for ad responses and then return the calls. While not perfect this does have some merit. This will help keep calls from realtors, and competitors to a minimum. Your choice here but think about an answering machine or voice mail services to screen calls.

The only reason to use the phone is to get an appointment with the seller. Get eyeball to eyeball with the seller and then you can get the information that is needed to do business with the seller. Often I used to hear people say that you only need to know a few things to get the transaction done. The things are Who? What? When? Where? and Why? Ask the questions about your sellers situation, and wait for the answers; and then you will have the necessary info to structure a deal that is good for you and the seller.