Have you ever talked to a seller and heard them say something like this…
“I might be interested in that, but I need to see some more information before I do anything.”
“How does that work? I don’t understand. Can you send me something to look at or read?”
“Can you just send me some information?”
If you’ve ever heard a seller tell you something like that, you’re not alone. Many homeowners will say something similar to this when they don’t understand your creative real estate buying proposal.
Why? Because it’s something new. Something different. A departure from the “Normal” way of buying/selling a house.
As I’m sure you already know by now, the real estate industry, led by agents, mortgage brokers, appraisers, etc. has most folks brainwashed to believe that the only way to sell a house is for the buyer to either pay all cash or get a loan.
They’ve been conditioned to believe that selling your house with owner financing or a lease purchase (aka ‘rent to own’) are ‘bad,’ ‘risky,’ ‘confusing,’ ‘not for me,’ etc.
And that’s for people who have at least heard of these concepts. Believe it or not, most people haven’t. They need to be a little ‘educated’ about these strategies first.
So… what to do?
Well, you have a few options. You could:
- Do nothing and send them nothing. Just tell them you’ll get back to them. This is very weak and won’t get you many deals.
- Send them a contract – either a Purchase & Sales agreement or a Lease Purchase agreement.Yes, that would mean filling out the contract, adding numbers & terms, etc.You’d be getting an offer out, but your negotiating position would be significantly weakened, because you’d be putting out the offer/number first.This may or may not work, but at least it’s better than nothing!
- Follow the advice I’m about to give you here.Keep reading & you’ll see why this is strong and how to make this work to your advantage.
- Use Ron’s rebuttal below. Effective prescreening!
This is RON’s Script When They Want More Info…
Seller – “Can you send me something in writing?”
You – “There’s nothing I can put into writing until we have an agreement and we can’t agree until I see the house and we come to terms. When I visit the house I’ll bring an agreement and answer your questions and then if it’s a go I’ll know what to put in the paperwork. All I need to know now to set an appointment is your confirmation you will consider……. (a lease purchase) – (taking payments for your equity).
Should I come look?”
BUT… Before we go any further, I MUST say this:If you’re getting this type of reaction from a seller, it probably means that they’re just not motivated enough to entertain a solution like what you’re proposing OR you just really haven’t done a good job presenting your solution.
Sorry. Just being real.
But it doesn’t mean that they wouldn’t be open to selling their house with a creative solution. It just means that you’re going to need to work a bit harder through your follow up methods.
The NEXT thing I have to say is that the solution you’re about to learn here is NOT for people who ARE motivated, flexible, and ready to do business. For those people, you should definitely get yourself out to meet them at the house and negotiate a deal!
…Unless that’s just not possible because they’re either out of town or you’re working a market virtually.
Ok! Enough talk. Ready for the Solution??
For those times that a seller just tries to blow you off and ‘request more information,’ here’s what you do IF YOU FEEL IT’S WORTH IT:
1. Send them a simple package. 2. Set an appointment to follow up with them on the phone.3. Use the package you sent as a CONVERSATION STARTER!
What’s In The Package?
Keep it simple. Don’t stress yourself.
Just send a simple package that has:
1. A simple cover letter that thanks them for their time, acknowledges that you may have a solution/proposal that might seem a bit “different,” but is quite real & legitimate.
2. 2-3 offer examples of how you can buy their house.These offers, also called a “Letter of Intent with Multiple Offers” can include: a. An all-cash offer (you don’t have to put in a number, but you’d definitely want to say that it would have to be a low number because it’s an investment) b. An owner-financing offer. c. A Lease Purchase offer.
Make sure you add the benefits for each offer type.
If you have any testimonials, you’ll definitely want to add those.
Close your package by saying that these are some of the more typical offers you can make, but if they have any questions, thoughts, or suggestions, to give you a call or email you.
This entire package can either be emailed to the seller or mailed out to them. Be sure to get both their email and physical address.
The next KEY for success: FOLLOWING UP!
Remember: The Fortune is in the Follow-up! So you’ll want to set up an appointment to follow up on the package you send out. This could be in a day, a week, or a month. You’ll need to gauge this from person to person.
Obviously, you’d want to set up an appointment for a time soon if there’s some motivation & flexibility. If they’re just trying to blow you off or are the typical “I’ll just sell it when the perfect Jesus-like buyer comes along,” then you could tell them that you’ll just give them a call in a few weeks to see how things are going and answer any questions they might have about the information you’re sending them.
So Here’s the Deal:
I’ll be super-nice & give you an example of what an initial 3-Option Letter of Intent looks like (below), but I’m NOT going to write this full package for you. Sorry. It’s enough that I’m giving you this advice on what to do for this situation because it’s beyond the scope of this mentoring program.
In fact, I don’t think that Ron really wants you to do this.
So this advice is on me. These are my ideas & suggestions.
What does Ron want you to do? Only deal with the low-hanging fruit. Only meet up with sellers who are ready to go and/or only send contracts that have been filled out to these sellers.
But finding those motivated sellers who are ready to go NOW (the low-hanging fruit) is getting harder and harder these days…and in this market. There seem to be more sellers who MIGHT want to do business with us, but just need a bit more info, time, and follow-up.
Sending them SOMETHING rather than nothing might just mean the difference between success and failure for a lot of investors. If all you’re looking to eat is the low-hanging fruit, you might just starve.
Remember – most people will do business with you AFTER the 5th or 6th “touch.”
Ok, so here’s what to do next…
Like Ron, I don’t want you to waste your time. I want you to create & develop a simple system that works for you to follow up with these people.
So for those times when you may get stuck, but think you’d like to keep things moving, I’m going to suggest that you create a simple package and make it your standard TEMPLATE to send out to these sellers.
You’ll occasionally need to tweak a tiny bit, but I also suggest that you set it up so that it works for a wide variety of people.
However! Make absolutely SURE that you do ONE thing that’s essential for every “Package” you send out:
Make sure that the each individual seller’s name & property address appears on the cover page that you send out. That’s a requirement.
Everything else after that can be pretty much standard.
So that’s pretty much it!
I hope this helps you with your investing, makes you a TON of money, and gets you a LOT more deals!
It will – if you use this tactic.
So now you’ll feel more confident when a seller tries to blow you off or request more information.
BONUS UPDATE!!: As of May, 2020, I created a very powerful video that you can use to either send a seller who wants more information OR use in your marketing to present what terms means to any seller in a clear and simple way!
What that video?? Ok, twist my arm. I’ll give it to you here:
Check out the powerful Seller Video Here (click me)
Oh – and one more thing… You get to say that you’ve made an offer in your Weekly Report for every package you send out! 🙂
Now Get to Work!
P.S. Ok, I couldn’t help myself. Here’s an example LOI you can use as a template for yourself below….
IMPORTANT DISCLAIMER NOTE: Ron doesn’t like to use these LOIs, so please know that this package is being provided by me as an additional option and resource for you to use. Please disregard this package if you wish to stick to the program as it’s designed.
Example of a Letter of Intent
Here’s an example of a decent Letter of Intent to Purchase real estate. This can be sent to SUSPECTS/Sellers you’re NOT going to meet soon.
Use this as A MODEL for crafting your own letter. You don’t have to name a downpayment.Keep this as simple as possible. Remember: This is a TOOL that is to be used to keep things going, educate the seller on other possibilities, and to START ANOTHER CONVERSATION with them later.FOLLOW UP IS THE BIG KEY HERE!!!
LETTER OF INTENT TO PURCHASE
Date: TODAY’S DATE
Name: <<SELLER’S NAME>> Address: <<PROPERTY ADDRESS>><<CITY, STATE, ZIP>>
Thank you for the opportunity to review and consider your property. Based on the information that you shared with me and what I was able to gather on my own from the local market conditions, I am prepared to purchase your property in one of the following ways:
Purchase Price: $52,500.00, All Cash. Close within 30 days.
Purchase Price: $82,500.00 Down Payment: $2,475.00 (OPTIONAL! YOU COULD JUST LEAVE THIS PART BLANK)
Terms for Remaining Balance: Seller to carry back balance @ 3% APR. Interest-Only monthly payments of $200 with full balance of $80,025.00 due in 10 years.
Purchase Price: $92,500.00 Down Payment: $ 4,625.00 (OPTIONAL! YOU COULD JUST LEAVE THIS PART BLANK)
Terms for Remaining Balance: 300 monthly payments of $ 292.92.
To close in 14 days or less, all we need to confirm is the current status of any encumbrances and repairs. Please let me know which of the offers above looks best to you.
Seller(s) Acceptance: ___________________________________________________________
Seller(s) Acceptance: ___________________________________________________________
Upon acceptance, or if you have any questions, Call YOUR NAME (OR Your Company Name) at YOUR PHONE #
UPDATE!! Ok, due to popular demand and lots of arm-twisting, I’ve changed my mind and made Another, More Complete sample Letter Of Intent Package for you to use as an option.
Use the link below to get access, and Be Sure To Read The Full Instructions!
Letter Of Intent To Purchase Package (access via Google Docs):