We deal with lots of new investors. It seems that in 90% of the cases, one of the main aspects of this business that scares new investors is what to say when homeowners call from their advertising.
If you are knocking on the door of distressed homeowners, you would not use the same script that you would use when homeowners call you. In one scenario, you are calling them and in the other, they are calling you. When you are calling homeowners, you need to handle them with kid gloves so they won't shut the door in your face. When they are calling you, they are asking for your help so you can be much more assertive.
It is always easier to deal with homeowners when they call you. You can ask much bolder questions and get to the point faster. We begin by asking them a few basics. Why are you calling? What is your goal: to save or sell your property? How many payments are you behind? How much are your payments? What is your mortgage balance? Are you open to some creative financing? What are the properties in your neighborhood selling for? What type of rehab is needed to modernize and/or bring your property to current market condition? When can I see the property? How quickly are you prepared to move? How much do you want for the property? And so on. Remember, homeowners always think their property is worth more than it really is, so be sensitive.
The bottom line is, do not be afraid to be too assertive. Remember, they called you. By the time distressed homeowners call you, they have probably had several letters, postcards, and possibly a phone call or two from other investors and have finally realized that the bank is going to take their home. Most homeowners are in a state of denial when they are first served foreclosure papers. By the time they get around to calling you, they may be weeks or even days from the courthouse sale. Once the property goes to the courthouse sale, it is lost, the homeowners are homeless and have a foreclosure on their credit report. It is up to you to help them. That is why we are so assertive with our questions. We want to get to the bottom line as quickly as possible so we can help the homeowners.
Whether your goal is buying the property to wholesale, rehabbing it, or keeping it for long term, be sure the homeowners have enough money to start over and that they feel good about the deal. Remember, what goes around comes around and you want great deals to keep coming your way!
Bill Twyford is the Co-Founder and Faculty Head of The Investors Edge University , a company that specializes in training new and seasoned investors in a wide range of real-estate investing techniques through live workshops and seminars
Bill is President of B. K. Ventures, Inc. , a company that specializes in helping distressed homeowners stay in their homes. With some investors taking advantage of and stealing homes from homeowners, he is a fresh site on the investing scene.