The concept of a sandwhich L/O is for newer higher end houses where there are smaller equities. Sure it may work where there is a larger equity. But if you were a seller with 20-50% equity you would not want to walk away with little down. The typical T/B can come up with 3-5% so a 60-90% loan doesn’t solve the problem. If you promise to give them their price and get a new loan you have to perform.
Follow up is most important and sellers circumstances change. You will have success if you get a seller that can wait or carry some financing. And you have to think of the sellers needs. Mostly they want debt relief. The more equity they have the more cash they want. You have to discover what they truly will do and what you can do. You can offer them their price and get someone else to pay you more. But you still have to have the product to get them to sell to you. That product is your word and the hope that you will do what you say. The partially qualified buyers help you fullfil your obligation. You still have to convince the seller. It is a Field of Dreams. Buy it and the T/B will come, partially prequalified.
Stick this in Your L/O gun (2 Parts) - Posted by J. Ray (TX)
Posted by J. Ray (TX) on February 05, 2001 at 23:48:03:
THIS FIRST PART IS JUST A STATEMENT, THE QUESTION IS AT THE BOTTOM
I used to work for the world’s LARGEST wholesale software distributor selling over the phone and remained in the top 1% (out of 170 reps) according to my boss for the 3 years in which I was with them. Most reps averaged 00.3 sales per hour whereas my average was about 1.00 sale per hour (over 3 times the average). I’m not saying this to brag just to help others that what I’ve found to work is FOLLOW UP, FOLLOW UP, FOLLOW UP and be HONEST and DON’T THINK OF YOURSELF, ADDRESS THEIR NEEDS. Money is a natural bi-product of anything you love doing. Make helping others priority and your needs will be taken care of. Guaranteed!
THE QUESTION
I’ve been calling sellers in TX like there is no tomorrow in Texas and realize that FOLLOW UP is the key. I ran a dummy L/O ad to see what kind of buyer response would be generated also and now have a buyer’s list of folks who some have been approved for financing from 60-90%.
A question I have for the CREONLINE community however is How could I turn around and use that as ammunition when approaching sellers. (i.e. telling that some of my buyers are already 60%-90% apprvd for X amt.) Could a situation like this work to convince sellers to sell to me. What would I say to a seller to make them say “OK” to a short term L/O deal who otherwise might have turned down a L/O deal. I HOPE this made sense.