Have you ever received a response from one of your direct mailings but when you reach out to this “motivated” seller, they just were not motivated enough? The home owner is somewhat motivated because it is financially hard for them to keep up with the mortgage payments. You realize as the conversation goes on, they really want you to buy the house from them at market value or for what they owe on the property but there is no equity. Subject-To financing is not the way to go because the mortgage payments are to high and again, no equity. The short sale is a possibility but they are not behind on payments and they already have it listed with a realtor who’s trying to get their commission. It seems like the deal is dead in the water and you really just need to move on.
Don’t throw in the towel just yet! I wouldn’t write off home owners that do not seem motivated enough to fit within your investment criteria. Although I do not wish things will get worst for them and in all honesty hope that things will work out. The truth is, in time “somewhat motivated” in some cases turn into “very motivated”. I just got a new short sale deal from a lead I got about a year ago and it reiterated to me that it pays to stay in touch with your leads. If some of your leads say the home is listed with a realtor, you never know if they will or will not sell. In most cases if a house is on the market for more than it’s worth, chances are it won’t sell. Be patient with every lead you have. Every lead will not turn into a great deal for you but don’t throw away potential leads by writing them off the minute the numbers do not seem to work. I would show compassion and hope that things will work out for them, but if it does not, let them know they can call you back. And even if they don’t call you back, it’s worth taking time to following up with them. Check on them once in awhile to see how they are making out. This has happened to me on more than one occasion, where a lead that seemed like a dead deal turned into something that could work. Although things do not fit your investment criteria now, when the home owners circumstances change it may fit.
Just remember that you’re dealing with people in difficult situations. I can’t be the type of investor that is just after the money. Yes, you want to make money in this business but you should be sympathetic towards individuals that feel they have this heavy weight on their shoulders. If they have exalted all their other options, you are pretty much their last chance to get out of a strenuous situation. Always keep that in mind as a real estate investor.
Happy Real Estate Investing!
3 users commented in " Keeping In Touch With Your Leads "
Follow-up comment rss or Leave a TrackbackI agree with you on keeping in touch, because in time there might come a time, like the one stated, where the owner needs someone that can structure a deal to get them out of their house.
Whether you keep in touch with an email, letter or by phone most will love to have you checking up on them, as long as you aren’t always inquiring about their property.
This is a reminder for me to keep in touch. (K.I.T.)
Well written post!
A way to make the homeowner who wants to keep their house not feel as if you are after just money is suggesting things like “you can refinance”, “ask friends or family members for a loan to pay the defaulting amount”, or “work out a payment plan with the bank”. The first two probably won’t work out, but you show them your helping them with ideas and not pressuring them to sell when their mindset is on keeping the house.
Homeowners that work out a payment plan with the bank to make up the default payments, last a couple of months. Many times they default the payment plan and they finally realize they can’t afford the mortgage. They will think to sell and if you’ve been in touch with them within those months, and didn’t pressure them in the beginning, you have a higher chance of being called over other pieces of mail that came in. The only negative is they might do it at the last minute, but it’s better than no lead!
Jersey Girl,
Excellent post. I appreciate your thoughts on how you can’t always approach the deal strictly from a “what’s in it for me” standpoint. Sometimes the seller’s you deal with feel the weight of the world on their shoulders. And frankly this is a people business, whether we see it that way or not.
Also about staying in touch, again, so true. I had one seller call me a year after he’d already turned my offer down. He was much more motivated after a year of vacancy and wanted to know if I’d still consider the offer I’d made him before.
Good stuff!
…jp
http://REItips.com
Leave A Reply