Qualifying Leads For Lease Option Pitch
I have just started trying to find sandwich lease option deals here in Southern California (i.e. lease with option to buy from property owner and then sub-lease same property to tenant/buyer w/option to buy). My strategy has been to call classified ads listing homes for rent. When I speak to the owners, I try to pre-qualify them to see if they are interested in signing a lease of two years or greater and if they would consider selling their property at the end of the lease term. If they say yes to the above questions, I tell them that I am an investor who is looking to for "nice homes in nice areas". If they are okay with the fact that I am an investor, I try to schedule an appointment.
The problem I am having is that when I go to meet with the owners that have positively answered the above questions, and they are not very motivated to do a lease option deal. With the southern Califiornia real estate market being as strong as it currently is, they believe their property is worth 15% more than the current comps and they feel they don't need me to guarantee their rents.
I know that the market here is Southern California is very strong, but I believe that there are people out there that are motivated and would be willing to sell their property using a lease option. I just need some help in knowing what questions to ask owners on the phone. I need to be able to identify those owners who are truly motivated from those who are simply curious about what I have to offer. Does anyone have any quick questions that they have found to effectively gauge an owner's motivation ? I don't want to waste anymore of my time setting appointments with people who are window shopping for the best solution for their property. Thanks ahead of time for your help.
-Dfresh
Hey,
Instead of calling sellers, get sellers to call you. Put up ads saying "We Buy Houses" and wait for the calls. The reason being is that most people that call you will be motivated to sell for whatever reason. Also, that way you can screen their motivation over the phone without having to meet them first. For the most part, calling classified ads in the paper and pitching a L/O is usually a waste of time b/c the vendor feels that he/she has OPTIONS.
Hope this helps,
Joe
It sounds to me like you're using the
Conti/Finkel technique. I've heard that pitch a few times before. Nothing wrong with it. Any system will work if you will work at the system.
What you will learn with time, is the difference between sellers/landlords who want to sell on their terms, price, and conditions and those who HAVE to sell.
sammyvegas is right on the money. you won't get far with the owners who are successfully managing their properties and making good cash flow. but, there are plenty of landlords out there who fell into the position by accident and really aren't interested in dealing with it anymore.
If you really want to call landlords then start calling the ones who are currently evicting a tenant. Your odds of hitting the motivation level that you desire are better.
If you really want to call landlords then start calling the ones who are currently evicting a tenant. Your odds of hitting the motivation level that you desire are better.
If you want to take it one step further, get the landlors to call you. I put up 3 bandit signs and left flyers at real estate meetings telling landlords about my "perfect tenant program". If you are interested, then PM me and I will respond. It has worked like a champ...By the way, I started out with the Conti/finkel script just like you, and it wll work if you work it.....
Prosperous investing,
td
The 'perfect tenant' program. Sounds like the Joe Kaiser approach.
I like Joe's stuff. I hope that it is working out for you.
Thanks for all the great ideas. I am using the Conti/Finkel script, and I think I just need to develop better instincts when I am talking to the owners on the phone. I will try to probe a little more.
I am alredy using bandit signs but with a "Cash for your home" message. The results have only been okay so far. Are you suggesting using bandit signs that specifically target landlords? What signs are working well for you?
Thanks
I would think that bandit signs targeting specifically landlords would be a waste of time. You would have to have a high concentration of landlords in an area for the signs to payoff.
Calling and mailing will probably work best for landlords and you will need to target who you are calling on. Out of towners and evictions result in a good return of 'Don't Wanters'.