Posted by Mark (SDCA) on June 05, 2000 at 11:25:40:
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The best answer to give a seller when they ask… - Posted by George
Posted by George on June 04, 2000 at 01:27:45:
How do I know you are going to make my payments ? (Subject to transaction) Remember we are not promising anything here only agreeing to make the payments. How do you satisfy the customers inquiry here?
George
Just Another Great Reason For 3rd Party Collections… - Posted by Scott (AK)
Posted by Scott (AK) on June 04, 2000 at 15:20:52:
I use third party collections for all my accounts. I carry statements for about 5 of my acounts along with me in my briefcase.
When a seller asks that question first I say "Mr Seller, it looks to me, that is a question you will continue to ask of every person until you home actually sells for CASH. Even if you rent this home you will continue to ask, How will I know they will make their payments?
What I am prepared to do is show you the payment history on other accounts we have in place. Sort of my companies credit report if you will. I have statements here from five accounts we presently have going and they are of various lenghts. I will not show you the names on the accounts so as to protect the privacy of my sellers but you are free to look at the statements.
Furthermore, I also have some referal letters here from clients you can look at also."
When I lay those statements on the table and liken it to my companies credit report, I have NEVER had a seller back out. It’s quite powerful and a nice little tip I learned from JPiper.
Joe Kaiser turned me on to the third party collection and it’s something I have been thankful for since my very first deal.
Sometimes people say the service is expensive in their area. I look at it as if they become one of my employees, I just don’t end up with the headache of employee taxes and all. Plus I do believe it still is cheaper then having a secretary handle this stuff.
Not to mention when a T/B goes to get a mortgage they can take the statement from their account along.
I can think of just so many reasons the service is worth the money.
Oh, just one last thing, you make your Escrow Agreemnt say the fees of the service are to be split 50/50 and you just cut your costs in half. For this I use another Joe Kaiser tip. I go set up the system, then after about 2-3 months of the sellers seeing the system work and they are getting paid, I bill them for their half of the setup fees.
Check them out and use the info and service to your own benefit in any way you can.
Hope this helps
Scott (AK)
Re: The best answer to give a seller when they ask… - Posted by Jim IL
Posted by Jim IL on June 04, 2000 at 13:26:43:
George,
Johnboy had the best way to handle this, and frankly, that is what I do as my first approach.
If the deal is a good one that I REALLY want to get signed, and the seller STILL has a problem after I explain as Jonhboy said to, then I have done this;
Offer to sign a “Quit Claim deed” to be held in escrow should I fail to make the payments.
I usually put in the purchase agreement that if I fail to make any payments within 60 days of the due date, the seller has the right to record the quit claim deed and I’m out of the picture.
The funny part is that I have singed these in front of 5 sellers and all 5 “Quit claim deed;s” are in MY file cabinet.
Basically the seller just wanted to hear more about the fact that I would perform.
It worked for me, and since I do not plan on defaulting, then I aqm safe.
Besides, where is my file cabinet anyway?
Have a nice day,
Jim IL
Just like JohnBoy says… - Posted by B.L.Renfrow
Posted by B.L.Renfrow on June 04, 2000 at 08:48:26:
…and EVERY seller will either ask this question, or at least think it. So you should address it directly, dripping sincerity and sounding reassuring.
I also point out that I work in a small town, so if I fail to honor my agreements, it wouldn’t be long before EVERYONE in town knew it…which is true, in my case.
You can also provide a list of references: previous deals (if there are any), or if not, people like an attorney, banker, CPA, etc. If they are still not convinced…next deal!
Brian (NY)
Re: The best answer to give a seller when they ask… - Posted by JohnBoy
Posted by JohnBoy on June 04, 2000 at 03:35:31:
Well Mr. Seller, you will have a signed contract with me that makes me liable to you to perform according to the terms of our contract. If I don’t make the payments as agreed, I’m out of business. My reputation is destroyed over this and I wouldn’t be able to continue making a living with my business. This is my business that makes me a living. If I stop making payments I’m out of business. You would end up taking me to court and get a judgement against me that would intitle you to garnish my wages wherever I end up working. So for me to not perform as to our agreement just isn’t an option for me to even consider. My reputation is much more critical to me and for my business than not paying you.
If the seller is “MOTIVATED”, problem solved!
Speaking of which… - Posted by Brandi_TX
Posted by Brandi_TX on June 07, 2000 at 02:44:27:
Seems to me you said you had some info to send me on this topic. LOL, maybe you should get a “3rd Party Information Distributer” that could get info like that out a little faster?? (consider this paybacks, hehehe)
Brandi_TX
Re: Just Another Great Reason For 3rd Party Collections… - Posted by Monique
Posted by Monique on June 04, 2000 at 19:13:18:
Scott,
Are you using a local company for 3rd party collections or a nationwide service. I’ve seen people refer to www.paymybills.com. Are you using someone like that?
Thanks,
Monique
Re: The best answer to give a seller when they ask… - Posted by JohnBoy
Posted by JohnBoy on June 04, 2000 at 13:43:10:
I had a good laugh on that one Jim! Pretty soon you’re going to need a bigger filing cabinet. LOL
Who knows? You made decide to take one of those quit claim deeds and record it. Here ya go Mr. Seller, you got your house back. I don’t want it anymore! LOL