Home › Forums › General › EHTrust/EHT Topics and Creative Real Estate Financing › Scott or anyone, find rb first?
March 25, 2009 at 10:37 pm #5563
You tell rb to drive neighborhoods to find their own property.
How do you handle it when they come back and say I found this house listed for $140,000 but I would only want to pay no more than $90,000, and they give you some reason or another that makes no sense.March 25, 2009 at 11:00 pm #28949
IMO, sellers first, then the RB’s will come.
A lot of the RB’s are unrealstic. Since I’m in Los Angeles, I’ve come across few RB’s that want a $600k property for $2,500 a month. They assume that we’re going to purchase an REO or short sale with all cash and then do the EHT with them afterwards. Again a lot are becoming very picky even though they have less than 3% – 5% to work with.
In August 08′, I had 7 NEO’s under contract and picked up 70 RB’s out of them just in one month! Too bad my SB’s couldn’t do a loan modification since all 7 NEO’s where out of whack in regards to their bad underlying financing. At the time I was shying away from short sales which made more sense.March 26, 2009 at 1:00 am #28950
I don’t usually get this kind of objection, but when I used to, I would turn it back on them sorta like this:
“Mr./Mrs. Future Homeowner, how much are you qualified for?… What? You can’t qualify? Ok, let’s put that aside for now. Do you have your $18,000 ready to go?? What do I mean? Well you need a 20% down payment (if you could qualify) Why so much? You said you wanted it for $90k… minimum down payment is 20% which is where the $18,000 (again, if you could qualify)… OK so you can’t qualify for a loan and you don’t have 20% to put down on a home. Wow, it looks like you can’t really buy this thing… Lucky for you, our program isn’t centered around “buying” today… etc.
Usually, if you don’t find the pain points, make them aware first, and then tell them how our program makes the pain go away, you will get objections like you stated.
LeonMarch 26, 2009 at 2:39 am #28951
How do you handle it when they come back and say I found this house listed for $140,000 but I would only want to pay no more than $90,000, and they give you some reason or another that makes no sense.
Tell them to get lost… NEXT!
Remember, they’re not purchasing the property, they are RENTING. The MAV is the MAV and there is nothing they can do about that.March 26, 2009 at 4:36 pm #28952
I agree with Scott tell them to go buy a discounted property on their own for the price they want to pay. Let them go their head is in the clouds.March 26, 2009 at 7:12 pm #28953
Get the property on an NEO…THEN advertise for RBs. The ad tells them what they will pay and what the MAV is.
I never have RB prospects go out and find properties…what are the odds that they’ll find one that is not listed and where the payments are right, the value is right, the owner will carry and leave his/her equity in tact for 4-5 years and be satisfied with someone else capitalizing on what was once his pride and joy.
You can, of course, do that..but getting the property first and then going after the RB has proven a lot easier for me.
But…(but, although and however) if you ARE going to do that, then tell them exactly what to look for: A seller willing to stay on the loan and leave their equity in tact (if any) for 3-7 years. Now, the only problem with doing that is that they don’t have your knowledge and skill and will virtually never say the right things to a potential SB (but if they do…well… then you’ve hit a home run).
BillMarch 26, 2009 at 9:05 pm #28954
I agree that you should get an NEO first then market for an RB or end Buyer. This will keep you out of hot water too when it comes to practicing real estate without a license. Fine line here but stay far away from it.
The problem I am having and believe others as well is a “matching” problem.
That is when you do find a Seller and sign an NEO the RB does not like the property. This is like going into a store full of merchandise and seeing a lot of nice stuff that you like but only 3 on the shelf are available to you because your credit card has been revoked. If you like the 3 on the shelf than you have something but if the other 15,000 look better then you become discouraged and do nothing.March 26, 2009 at 9:17 pm #28955
But…(but, although and however) if you ARE going to do that, then tell them exactly what to look for: A seller willing to stay on the loan and leave their equity in tact (if any) for 3-7 years. Now, the only problem with doing that is that they don’t have your knowledge and skill and will virtually never say the right things to a potential SB (but if they do…well… then you’ve hit a home run).Bill
That’s why all I do is have them write the numbers down and I’ll call the Seller or the Realtor myself. I had a prospective RB bring me three numbers yesterday, one for sale with a Realtor and two “For Rents”. Now I have to figure out what to do since all three are willing to carry and leave the equity for 3 to 5 years. Two of them are in the right price and payment for the RB. Guess I put them in one and have to find two more RBs.March 26, 2009 at 9:33 pm #28956
That’s why all I do is have them write the numbers down and I’ll call the Seller or the Realtor myself. I had a prospective RB bring me three numbers yesterday, one for sale with a Realtor and two “For Rents” …
Scott I have tried this myself and just this last weekend. I called 10 properties. All except for one said that “could be possible” (in response to staying on the loan) and “I will get back to you.” I have heard from only one and that was his loan officer trying to qualify me for a loan. Are you using the script verbatim? I believe I should get very good results since they really do not have many choices right now.March 26, 2009 at 10:00 pm #28957
Scott I have tried this myself and just this last weekend. I called 10 properties. All except for one said that “could be possible” (in response to staying on the loan) and “I will get back to you.”
What’s this about them telling you, “I will get back to you”? Bull!!!
Don’t even give them the option or choice of “getting back to you”. Ask them the damn question/s, complete the Proposal and send it to them. What are they going to get back to you about if they don’t have the proposal?March 27, 2009 at 2:37 pm #28958
Well the more I call homeowners the more I realize how right you are Scott. I spoke with a few last night and they all said Yes when I just followed the script and kept my mouth shut. I have a few proposals to write this weekend.
I am still having trouble getting the proposal to be accepted since I have sent out a few in the last 6 months. I never hear from the owners again for the most part. I make one follow up call and usually get a voice mail with no call back. When I do get in touch with them, because I am very persistent, I get feedback that it looks too complicated or something to that effect.
Don’t you think there is a simpler way to contract with the seller?March 27, 2009 at 5:30 pm #28959
What are they going to get back to you about if they don’t have the proposal?
I re-read this and I have an answer for this question. They say they will get back to me based upon what I say in the first telephone call. You know the spiel about -Staying on the loan and keeping your equity in place if any in exchange for a full price offer…March 27, 2009 at 6:30 pm #28960
I’ve used Scott/Dave’s cover letter email and it works great. It’s easy to understand and the main points are broken down. I expect encourage the sellers to ask me questions via email and a lot of them do reply back with questions. If they start asking questions, then you’re half way done with the battle of getting a NEO signed since they’re showing some interest.
You should be sending out 100 proposals w/ cover letter FIRST versus 100 NEO’s. Try something different until something works out.
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