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Updated over 10 years ago, 03/26/2014
Please help me avoid angry yellow letter callers
ok. So. I sent out about 700 yellow letters this month. I feel like I need a better script. I say to people do you have a house to sell? I don't really like asking for names and addresses up front because people usually get angry thinking you should know their name and address already.
Anyway once I determine that the caller has a renovated house and it looking for retail value. I say oh I'm sorry we are more so looking for houses that may need repairs. Then I say can you tell me your address so I can take your name off my list? I get a NO.
Sometimes people say things like....aww you're looking for houses for nothing...well I guess some people have to do that for a job....
And I kind of feel bad after those calls. Can someone help me. Is this normal ?
The more times you hear the word "no", the closer you are to success.
You cannot control how people react to you. Those types of responses are people you don't bother wasting time on. On to the next one!
Just tell them to have a great day and if they ever need anything else, don't hesitate to call and tell them bye.
You will always have angry callers, just comes with the territory.
I would never tell them you are more looking for houses that need repairs. You would be surprised how many people will call you back in 6 months because they have found themselves in a distressed position.
If you tell them right off the bat that you only buy properties in physical distress, they will throw your card away and when they are in a distressed situation, you won't be the investor they call.
You can't create motivation. Many times my partner and I will actually explain our buying formula to them. We will tell them exactly what our expenses are and how much we need to make for it to be worth it. If they are motivated they will respect you being honest and just be happy you helping them out of a bad situation.
Good luck!
Originally posted by @John Horner:
You will always have angry callers, just comes with the territory.
I would never tell them you are more looking for houses that need repairs. You would be surprised how many people will call you back in 6 months because they have found themselves in a distressed position.
If you tell them right off the bat that you only buy properties in physical distress, they will throw your card away and when they are in a distressed situation, you won't be the investor they call.
You can't create motivation. Many times my partner and I will actually explain our buying formula to them. We will tell them exactly what our expenses are and how much we need to make for it to be worth it. If they are motivated they will respect you being honest and just be happy you helping them out of a bad situation.
Good luck!
Ok. So if I don't tell them I am looking for properties that need repairs or people in distress, how do I get the unmotivated sellers off the phone? What do I say. I have no idea what budget I'm looking to spend...but I could make one up.
I dont have realtor to send people to and I am not looking to buy subject to or lease option. So what do I say to get unmotivated sellers off the phone and stil make it so that they may call me later on.
Is the issue being vague about what you do and what you are looking for? just saying "i'd like to buy your house. call me at 555-5555" will lead to many inquisitive phone calls.
Being to the point will eliminate the unmotivated sellers from wasting your time.
If you aren't willing do to LO's, look for someone to partner with that is - it gives you someone to send leads to that aren't good for you at that time, the homeowner feels like you are trying to help rather than pushing them off the phone, and the partner pays you a referral fee if they get a contract so you get your marketing paid for. That's why I partner with wholesalers, there is no reason those leads should die, if they are motivated but you don't want to do the solution they need, know someone that is! If you only have one exit strategy for a lead it takes a lot longer to get a deal.
@Misty W. is right.
Even if you don't buy sub2's or seller financed deals, those are the holy grail for buy and hold investors, so you can very easily pass those off for an assignment fee.
The goal should not be to get them off the phone. If you are at a computer look up the comps really quick, and give them an offer at 60-70% of ARV minus repairs. Of course they are going to be turned off, but you would be surprised how many call you back.
Be careful asking realtors for a referral fee. Most states require a license to accept payment for real estate related services.
We actually just closed a deal on a flip property that we offered $57k. He told me he had offers as high as $68k so he would not sell it for that amount. 2 months later he called and asked if my offer was still good. We signed the contract, found a buyer, and did a double closing 3 weeks later.
I just don't want you to limit yourself to straight wholesales. You can assign a number of different contracts.
@John Horner I was thinking about explaining my buying formula to sellers. Are you generally doing this in person? over the phone? in a customized follow up letter?
In my market I am usually 6 figures apart from the number the seller has in their head so I was thinking providing them with a breakdown might at least "soften the blow"
@Kay H. You are in a big city, do not BS with sellers, be direct with the seller and let them know you are an investor make the benefits of working with you clear. Let them know that IF the benefits of working with you do not appeal to them that listing with an agent is the best option. I find that sellers respect the honesty and some tell me they will hang on to my information or refer me if they know someone that could benefit from my services.
Like other people already mentioned you can't create motivation so don't waste your time or their time. But you are better off if the seller comes away with the idea that your are an investor with integrity that has their best interest in mind.
Start with the address. "Do you have a property you are selling?" "What's the address"? If they say you should know already, be honest and say that you send hundreds of letters. If they won't tell you the address, you can say that you can't go any further or make an offer and say thank you for calling.
You are not looking for properties needing repairs. You are looking for properties on which to profit. There are dozens of ways to profit on buying and selling properties. Find out the address, what's going on with the property (if anything) and ask the seller what they would like to see happen. I rarely make offers to sellers anymore who don't have an asking price or who don't know what they want to get out of the property.
Some people have privacy issues or are paranoid so you have to feel out whether or not they are motivated or just angry or crazy. Or bored and lonely. This is the price of giving strangers your phone number. :)
@Mike S. ,
I explain the formula whenever I feel it is fit. If they are appalled at my number then I explain what I am seeing for comps in their area, the holding, financing, closing, realtor commish, rehab costs, then explain what percent we need to make a profit.
Like I said earlier, typically if they are motivated, they are just happy you are helping them. We closed a deal last week and the lady told me she knew that we were going to make $100k off of her house but she didn't care because she just needed to get out. Keep in mind she had over-valued her house by about $60k and didn't take into consideration any of our costs, but my point is she was OK with it.
what about when calleers say my husband is a realtor and its listed on the MLS. is there anything I can do with that?
Originally posted by @Account Closed:
Start with the address. "Do you have a property you are selling?" "What's the address"? If they say you should know already, be honest and say that you send hundreds of letters. If they won't tell you the address, you can say that you can't go any further or make an offer and say thank you for calling.
You are not looking for properties needing repairs. You are looking for properties on which to profit. There are dozens of ways to profit on buying and selling properties. Find out the address, what's going on with the property (if anything) and ask the seller what they would like to see happen. I rarely make offers to sellers anymore who don't have an asking price or who don't know what they want to get out of the property.
Some people have privacy issues or are paranoid so you have to feel out whether or not they are motivated or just angry or crazy. Or bored and lonely. This is the price of giving strangers your phone number. :)
So how do you determine if you go out to see a property or not? Sounds like you make the offer over the phone, correct? I dont have access to the Mls though. I have someone I work with who has access, but it not as quick as that. is there a quick way I can give an offer without mls access?
How do you end the call? Do you offer on every call?
Originally posted by @Kay H.:
Say you'll take a look at the listing and see if you want to make an offer. I get a fair amount of calls for listed properties, usually from the agents because the seller called them and told them about the letter they received. It makes sense that they call. They actually have property for sale and someone sent them interest in buying it.
Originally posted by @Kay H.:
Originally posted by @Account Closed:
You are not looking for properties needing repairs. You are looking for properties on which to profit. There are dozens of ways to profit on buying and selling properties. Find out the address, what's going on with the property (if anything) and ask the seller what they would like to see happen. I rarely make offers to sellers anymore who don't have an asking price or who don't know what they want to get out of the property.
Some people have privacy issues or are paranoid so you have to feel out whether or not they are motivated or just angry or crazy. Or bored and lonely. This is the price of giving strangers your phone number. :)
So how do you determine if you go out to see a property or not? Sounds like you make the offer over the phone, correct? I dont have access to the Mls though. I have someone I work with who has access, but it not as quick as that. is there a quick way I can give an offer without mls access?
How do you end the call? Do you offer on every call?
I don't go out to see a property unless I know we are the same page about price or until I'm in contract. I look at very few properties I don't close on.
I don't have mls access other than the public one. I have lots of data accounts for comps. You'll need to figure out where your data will come from in order to know values and to do comps.
There will always be an angry caller. Maybe you need to find a better list or niche to send the yellow letters too.
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We buy houses cash or terms!
If you either...
Have a house that needs repairs and cant sell....OR
Have a pretty house and no work needs but little equity...
CALL ME! I am a private investor and I will not waste your time!
I will give you an offer QUICKLY, usually in 1 business day of walking through the property.
I will pay cash or buy the property on terms that we can both agree on.
The big thing here is, DO YOU REALLY WANT TO SELL THIS WEEK?
I will give you a written offer THIS WEEK!
Call me 
626 318 0599.626 318 0599
Please don't ask me how much I will pay for your houses over the phone, I need to walk through the house.
Would you buy a house over the phone? lol
Please call me as soon as you get this letter,
Thanks!
Suzy and Bob Richardson
626 318 0599
@Brian Gibbons - I like your letter above. But it seems to imply that you will make an offer on every house. There have been some that I wouldn't take for free.
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Originally posted by @Bryan L.:
Hi Bryan,
Depends on your list, your market, etc.
Where I live pretty houses are expensive. Rehabs are far an few between. And theres great competition for Rehabs, big players with huge marketing budgets.
So I am fishing for thin deals for Sub2, ILC or Lease Option Assignment Acquisition with that letter.
The big thing here is "TALK TO THE HOME SELLER LIKE A PERSON. with the letter"
@Dev Horn what do you think?
Originally posted by @Account Closed:
Originally posted by @Kay H.:
Originally posted by @Account Closed:
You are not looking for properties needing repairs. You are looking for properties on which to profit. There are dozens of ways to profit on buying and selling properties. Find out the address, what's going on with the property (if anything) and ask the seller what they would like to see happen. I rarely make offers to sellers anymore who don't have an asking price or who don't know what they want to get out of the property.
Some people have privacy issues or are paranoid so you have to feel out whether or not they are motivated or just angry or crazy. Or bored and lonely. This is the price of giving strangers your phone number. :)
So how do you determine if you go out to see a property or not? Sounds like you make the offer over the phone, correct? I dont have access to the Mls though. I have someone I work with who has access, but it not as quick as that. is there a quick way I can give an offer without mls access?
How do you end the call? Do you offer on every call?
I don't go out to see a property unless I know we are the same page about price or until I'm in contract. I look at very few properties I don't close on.
I don't have mls access other than the public one. I have lots of data accounts for comps. You'll need to figure out where your data will come from in order to know values and to do comps.
Thanks! You've been very helpful. How would I find data accounts for pulling comps? and if I make an offer to a realtor don't I know put myself in a position where I would have to put money down?
Originally posted by @Brian Gibbons:
If you either...
Have a house that needs repairs and cant sell....OR
Have a pretty house and no work needs but little equity...
CALL ME! I am a private investor and I will not waste your time!
I will give you an offer QUICKLY, usually in 1 business day of walking through the property.
I will pay cash or buy the property on terms that we can both agree on.
The big thing here is, DO YOU REALLY WANT TO SELL THIS WEEK?
I will give you a written offer THIS WEEK!
Call me 626 318 0599.626 318 0599
Please don't ask me how much I will pay for your houses over the phone, I need to walk through the house.
Would you buy a house over the phone? lol
Please call me as soon as you get this letter,
Thanks!
Suzy and Bob Richardson
626 318 0599
So this is your yellow letter or post card?
The letter looks like it would do a good job cutting out the time wasters and people looking for a free appraisal, have you tried this in L.A. or just in the other markets you deal with?
Originally posted by @Kay H.:
Thanks! You've been very helpful. How would I find data accounts for pulling comps? and if I make an offer to a realtor don't I know put myself in a position where I would have to put money down?
I have title company accounts and accounts with some local providers. Others use Real Quest and other national companies.