New To Pre-forclosures
My wife and I are starting to invest in real estate and primarily would like to pursue pre-foreclosure short sales in the shoreline communities in Connecticut. I subscribed just the other day and have quickly discovered that there is a lot of knowledge and experience in this forum. Any of your thoughts or recommendations would be greatly appreciated. Currently, I have been going to the local town halls and finding lis pendens and then mailing letters with no results. I have found that when I knock on doors the initial response of the prospective seller is positive; however, they all seem to want to handle the foreclosure on their own. So far I have been unable to get to the point of making an offer. I know I have to keep trying, but if you could share a pointer or two to help me get to the next step I would greatly appreciate it.
Thanks in advance
If making money with foreclosures was both easy and a sure bet every time, no one would bother with other forms of investing or even a job.
When dealing with individuals in foreclosure you will be dealing with feelings of:
- insecurity,
- fear,
- anxiety,
- anger,
And, of course,
- depression.
These feelings also cause people to make poor money management decisions.
These poor decisions can lead to heavy debt loads, and start a vicious cycle of fear, anxiety, and panic that never seems to end.
Your customer simply has feelings of helplessness and hopelessness and they are so overwhelming for your customer that many literally stop functioning in the real world.
Once you recognize the above facts you will be a much better negotiator and be able to help more people facing foreclosure.
The first thing you have to do for your customer is to help them realize, understand, and accept that no situation is hopeless.
With just a little guidance from you, they can overcome this foreclosure.
Know Your Customer
Determine their PAIN! Is it?
High payments
Behind on note
Ugly House
Bad Tenants
Concentrate on their pain, Build your solutions around their pain, and Give them a solution to their pain.
Key Points to Determine their PAIN! In a conversational manner with a foreclosure customer, ask the following questions:
How much do you owe & to whom?
How much are you behind?
If you sell your home what do you, plan to do?
If you can’t sell what do you plan to do?
If I could make this problem go away for you, what would you do?
#1 They must like you
#2 They must trust you
I agree with everthing JohnMichael has said and he seems to have answered your question more than adequately. Only one thing to add:
Remember, your prospects are both embarrassed and probably still in a denial stage. They still think they can handle everthing themselves and something miraculous is going to take place and like magic "puff" the problem will go away.
John Michael is right, find their true level of pain and then offer solutions. You seem to have the drive to persist until you succeed. Good Luck.
Dave
[addsig]
JohnMichael & Dealfinder
Thanks for the advice on determining the client’s pain. I find it difficult sometimes getting people to “open up” on the phone, so I think I will concentrate on door knocking. I find talking to people face-to-face make it easier to build rapport.
Thanks