Calling FSBO's

[Norm Chrostowski]

When calling FSBO'S, what does one say? Now don't get me wrong I certainly have an idea, but just checking to see if I'm on the right page?...get property info, and conversationally try to gauge motivation. Do you tell them your an investor, with buyers in place looking for homes in their area. I thought someone might have a magic "line/phrase" they use. Again just covering my bases...thanks

[Ryan Webber]

99% of FSBO's are a waste of time to find a wholesale deal. Well let me say FSBO's with a sign in the yard and who are doing marketing. I have gotten some deals that had little tiny FSBO signs in the window, but normally if there's a sign in the yard then its not a deal.

They are good practice, though, for the real deals. Getting comfortable asking sellers questions and listening is something you need to learn to do, and practicing on FSBO's is as good as anyone. Its not as important that you use the exact right words or even ask the right questions necessarily. What's important is that you get the information you need.

The primary information you need is how much equity they have and their motivation level. Equity and motivation. That's what wholesaling is all about.

Try to determine the equity they have by how long they've owned the property and/or what they owe on the property along with the estimated repairs factored in. "How long have you owned the property?" is a simple enough question that many times leads to a rabbit hole of information.

If they bought it last year, then I know its probably a no deal, but if their grandpa owned it for 25 years and left it to them when he died then I know I'm talking to someone with equity. Many times people will freely tell you if they owe anything on the property and how much they owe if they do owe anything.

Repair estimates can be determined by asking "How's the roof? the plumbing? the kitchen?" or "Does the bathroom need any updating or remodeling?" Most of the time they will understate the repairs needed so factor that in. It will be uglier than they portray it as.

As for trying to research IF they have equity without talking to the seller directly, it depends somewhat on your market. In my market, which has been fairly stable with a 3-5% appreciation rate over the last 20+ years, a house that was bought over 10 years ago will normally have enough equity for me to be able to buy it at a low enough price to wholesale it. So when I'm researching a property, if the last deed date was before 2000 then I know I have the potential of equity.

Now determining motivation is garnered from asking "When do you need to sell it?" and/or "How much do you need to get for it?" The answer to these questions gives you a very good idea of what they're motivation level is.

You are looking for MOTIVATED sellers with EQUITY. The best call is from someone who says "Yeah my dad paid it off years ago before he died and I need to sell it as soon as possible."