Telephone Script:
For me it is a given - a relationship with a potential seller must be established before one gets into the question and answer mode of investing.
As an investor, you must ask questions. Some are more difficult that others, but all will provide the information necessary to determine whether you should make an appointment to see the property.
I’m ___________. May I ask your first name?
Please tell me about your home. What is the square footage of the house? Size of the lot? What kind of layout does it have? (i.e. split foyer, two-story, ranch, etc.) How many rooms? Full and half-baths? What kind of garage? What special features does it have (mature trees, large lot, privacy fence)? What appliances are included?
1. What is your asking price?
2. Would you mind explaining to me how you arrived at that price?
3. Do you have a mortgage on the home?
4. What is the amount of the existing mortgage?
5. Who is your lender?
6. What are the terms, the interest rate and monthly payment?
7. Is it assumable?
8. Do you mind me asking if you’re current on all your payments?
9. Are you willing to assist in the financing? (Most of the time this question results in a negative response. Do not be surprised.)
10. Do you need cash at the time of closing? How much? (If possible, try to uncover how they might use this money.)
11. Could the down payment be spread out over a period of time? (If the response is maybe or yes, ask how long. You might suggest 48 to 60 months.)
12. How long have you owned the property? Your home sounds very nice. I’m curious, why are you selling?
13. What do you like most about it?
14. What do you like least?
15. Are there any rental properties in your neighborhood?
16. Do you know what the rent is?
17. In comparison, what would rent be on your property?
Let me ask you, if I was able to buy your property for cash and close quickly, what is the very lowest price you would consider taking? (This leads the seller to believe that you could pay cash if you wanted to, even if you really can’t.)
If a real estate agent is involved, you will want to ask them:
1. Do you own investment property?
2. Does your firm manage rental property?
3. Suppose I bought this property, would you consider managing it? At what rate?
4. What is the vacancy rate in this area?
5. If the property is currently being rented ask this question: In your experience, is the current rent on this property above market, below market or just right?
6. Do you have good investment properties for sale? Maybe you have some physically distressed or owned by someone anxious to sell?
7. Are you willing to take some or all of your commission in the form of a note?
Some of this information may be obtained from where you learned of the property. You do not need to ask questions in which you already have the answers. There are some questions that need additional information. For instance, you may know it is a 3/2, but the layout of the house is important to know as well.
[ Edited by JohnMichael on Date 09/01/2004 ]
You added this in the article section right??
These are relevant questions but I would reccomend establishing a rapport with them before launching into a script or list of questions.
I think this script is great - although my approach would try to make it a conversation instead of a question and answer session.
Quote:
On 2004-09-01 10:24, joel wrote:
You added this in the article section right??
I may have?
For me it is a given - a relationship with a potential seller must be established before one gets into the question and answer mode of investing.
Sorry for not stating such.