Need Pointers On The "pitch" To The Homeowner
Hello to all,
So I received a response to one of my targeted mailings from a homeowner in pre-foreclosure.
I think I did a bad job of pitching the homeowner on what I could do for them. It sounded cold to me and I think I might have turned the homeowner off.
Basically I said that while there was not a lot I could do about the loss of their home, there was a lot I could do for them in terms of helping them avoid having a foreclosure on their record, and helping them move out of the home and get a new start. I mentioned that I could negotiate with the bank to avoid the foreclosure, and give them moving money, but it kind of fell flat when I said it.
Can anyone provide pointers, a scripted role-play, advise of any kind on how best to approach a homewner in this situation and what points to make with them to get a meeting of the minds? I agreed to call the homeowner again tommorow after he discusses my services with his wife tonight (which sounds liek a "no" to me but I at least have one more chance to talk to the guy).
They owe $38K on their mortgage and the home is probably a $120K ARV!!!
I've just got to get this one!
-presley
A basic tip: Next time make sure you pitch your program to all owners of the property. Especially to the wife. Women usually are the ones that can make or break the deal.
Hi Presley,
A lot of time a good way to start is to ask them to tell you what they would like to see happen. Listen, listen, and then listen some more. This is the time that they will open up and tell you more details that you would believe.
After that you can tell them . . . Well based on what you just told me, here your options. And then start negotiating from there.
If you are trying to SS this one and there is a $82,000 spread, I can gurantee you that you will strike out on the SS. The bank has no reason to offer you a discount.
You could bring the payments current, offer them some moving money, and if they want a chunk of their equity, give it to them in the form of a note. You can make monthly payments to them, quarterly interest payments, etc. Even if they wanted $40,000 of their equity, you could give them that in the form of a note with a low interest rate. This will still leave you $40,000 + on the back end.
Do you see how that could work?
BAMZ
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"Never Buy Anything . . . Unless Someone HAS TO sell!" (Donald Trump)[ Edited by BAMZ on Date 11/06/2003 ]
This is just a guess, but it sounds like you are just the first to tell him exactly what he is dealing with. You may still get the house. If they call you back, assume the sale. Don't show any attitude or depression about your offer being low. You are their only chance to get another house in the near future(no foreclosure on their credit) and fullfilling that need for them costs money. Big money. Don't be down on yourself when you hear their disappointment with your offer, expect it. It doesn't mean they won't accept it, it means that it's hard to swallow.
hope this helps,
clear2close
[addsig]
This is just a guess, too, but IF there really is that much equity in the property, you probably won't get it anyway.
First, unless they are truly and completely upside down, they should be aboe to simply refi and pull themselves out of the problem.
Second, if that option is unavaible, the first experienced investor they call will offer them a straight cash offer and that'll be that.
To paraphrase John Locke here, subject to is all I do, unless it's a really, really good deal. Then I get out the checkbook.
Roger
the_acrobat,
Glad to meet you.
If you need a pitch then you should consider selling items door to door, there are plenty of good pitches out there. I think Kirby & Fuller Brush have one to name a few.
If you are interested in becoming a professional creative real estate investor then you will learn that a well scripted presentation based on knowledge in this industry will get the job done for you.
Otherwise as raj says get your check book out.
John $Cash$ Locke
To answer your question, buy "How to make big money in foreclosures without..." by Peter Conti and David Finkel.
That will give you a good primer on negotiating techniques.
[addsig]
As Bamz said, the key is to listen.
What good is a perfectly scripted presentation that falls upon deaf ears?
Listen to what they say, try to infer what they want vs. what they need vs. what is feasible.
Then, tailor your presentation to address those needs.
Be truthful. If you are pitching BS, they'll know it.
you said the ARV is $120k - do you mean FMV? if the home needs repairs then i assume you're considering how much is lost to that?!
also, i must be the only one who read this differently. are you saying that the mortgage balance that's going to foreclosure is 38K, or are you saying that's what they're behind in payments?
if the latter, short sale that pappy. if the prior then i have to agree with raj, you better have some cash to deal with the big boys because they could probably just refi or equity out and get it taken care of. also, beware of other liens on the owner/property.
either way, good luck!![ Edited by jackman on Date 11/06/2003 ]
the_acrobat,
The power of a scripted presentation.
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&sid=112
Just consider what it can do for you.
John $Cash$ Locke