Lease Option Cold Calls
I would just like to thank everyone on this wonderful website for all of the information that is shared. I would have to say that without this information I would not have taken any steps toward the wonderful life of Real Estate Investing.
Now to my story:
I have been doing "Cold Calls" to all of the FSBO's in the local newspaper and I have not gotten a single lead on a Lease/Option deal. I have tried to season the numbers for a few months and I've tried the number right out of the newspaper. I can't seem to get any good leads. I have been doing this for about 6 months. I don't know where to turn. I'm very short of money and I "had" a plan to do at least 1 L/O deal a month. Can anyone help with a new, low cost (under $100.00), idea to generate leads or maybe a script to help with my "Cold Calls"? I am a very self motivated person and I understand that every "NO" is another step closer to a "YES". I would just like to know if there are any technics that can be shared or maybe an easier way.
Thank you in advance,
Mike
Maybe you can share what you are saying currently, maybe there is a better way to spruce up your existing quasi-script.
[addsig]
Here is my script:
Hi……I’m calling about the house you have for sale. Do you still have it? Did I catch you a bad time?
My name’s Mike……….yours?
Hi (Name) can you tell me a little bit about the house? Address/Area and Description
Sounds like a really nice house, (Name), why in world would you sell it?
Does it need any repairs?
(Name) if you were to get paid all cash for you house what would be the least you would accept?
Do you know how much the house would appraise for?
Do you owe anything on the house (Name)? How much, roughly?
How much are the payments (Name)? Is that the whole payment (PITI)?
(Name) if I told you I have plan where I can guarantee your payments and the maintenance until the house is sold, do you think that’s a plan that you’d consider?
Would you like to hear more about it?
If your house qualifies, and I’ll know that when I come out to take a look, I’ll lease your house with an option to buy, at a price that we agree on, I’ll guarantee your maintenance and your payments until the house is sold. Then, I’ll be putting a tenant/buyer into the house and allowing them time to qualify for a loan. When they do qualify they will buy your house and you’ll get paid. It’s that simple. There’s no Realtor fees, you won’t have any repairs or tenant headaches, and you still get all the tax write offs.
Based on that (Name) do you think I should come out and take a look at your house to see if it qualifies?
Sounds pretty good to me, how do you get them to call you? Maybe if they are calling, it would help to just go there and talk face/face?
[addsig]
At what point in the script do you typically begin to detect a 'no' coming on?
I think you need to identify first if they are motivated...why they are selling. If they seem to have motivation [they really need to sell] then I would meet with them to review the condition of the property and practice your negotiating skills. If you build a rapport and they are motivated then you can ease into the option of the L/O. I wouldn't do this over the phone. If they do not want to L/O but would sell you the property at a deep discount, would you be able to still purchase it or flip to another investor?
I find the best negotiations happen when you can meet them in person and build a rapport. Good luck
FYI
I was reading your script and I think I would hang up on you after the first few questions.You sound like a telemarketer. You're leading up to your point and your talking to much and the seller knows it. He is probably trying to figure out a way to hang up on you. Just get to the point. and talk about stuff that will make his eyebrow go up. If he is motivated, you will know it right away.
For example
you should know the guys first name already
and just say Hey Bob my name is John and I am very very interested in buying your place on blah blah street. (Dont say anything at this point
this is point that his eyebrow goes up if he is motivated. Listen how he reacts, NOW he's listening to you and he is not trying to figure out how he can hang up. Then find out all you can about the place and the existing financing, then do your qualifying. You will have some rapport at this point because the guy realizes that your not a telemarketer.Just do your prequalifing and If it sounds good then you tell the guy how he could benefit from a well structured lease option or whatever deal you wanna pitch. Keep that guys eyebrow up all the time.
You will know right away from the first question if he is motivated or not.