Sometimes, on the surface, a real-estate investment lead seems like it is absolutely a no go. Sometimes even upon a second glance, it’s a no go. They’re worth a second look, though.
Why look twice?
We have had people call on occasion who want to sell their house. Reasons can range from taking a new job and having to move, all the way to they just can’t afford it anymore. The reason doesn’t really matter to us, because if someone is calling us, they need help. We strive to help everyone that we can.
The deciding factor on whether or not we can help someone always comes down to numbers. We do wear our hearts on our sleeves for people in bad situations, but we also have to think about what the business can handle. We have to look at the big picture. When the numbers work out and we are able to help out, those are our great days!
It is not really about how much money CAN we make, but more like how much do we HAVE to make on a project. We certainly can’t jump in with both feet knowing that we will lose money. That’s how you run a business into the ground and don’t help anyone at all. That has to be on the forefront of our minds in making decisions. We have people who depend on us, and we cannot get emotional about helping someone when the business cannot support it.
Do we help everyone?
Unfortunately, we can’t help everyone. That doesn’t mean that we don’t look over the prospect closely. Sometimes we have someone call, and the initial numbers just look terrible and like a horrible idea. However, we take a second glance, ask for help on those numbers and if possible, make an offer that is fair to all parties involved. Obviously, if someone needs $100,000 because they owe $99,999 on their house, we are not going to call and offer them $70,000. If that is what the numbers work out to, we politely have to explain that we are not in the position to help them. It doesn’t make for a good day, but it is part of this business.
If a seller needs $100,000 and our numbera say that we can offer them $110,000, then we would make that offer. If they do not accept that offer, we have done what we can do.
Might as well tell the truth
I don’t want to talk anyone out of selling or buying with us, but I won’t lie to them either. If they are asking way above what I know to be fair, I will explain that with the information I have so far, we may not be able to match that figure. I don’t say, “WHAT?! Are you out of your mind?!” Because they are not! They are looking at their needs and interests and most likely don’t do this everyday, all day. They are not being stupid or greedy, they just don’t know.
I don’t get ugly with them, but I am honest with them. I will not say, “Wow! You only want three times what it’s worth! Everybody will want that!” and then never call them back. That poor person will be thinking they can get a boo-coodle of cash that they really can’t get and they will end up losing big in the end, waiting because a professional of sorts told them a lie. That’s not fair.
And now for some advice
If you’re thinking of doing what we do, keep in mind that every prospect deserves a second glance. I have seen one very recently that on the surface looked like a bad deal and something that we couldn’t do. I am waiting for final numbers as I type, because appearances can be deceiving. How terrible would it be if I had told them, “Sorry we can’t do that.” then had the numbers come back that we actually could? That’s why they all deserve a second look. I still don’t know for sure if we can help or not, but I do not want to make “that” phone call until I have to.
By the way, I like to text or call potential sellers (not every 5 minutes) just to let them know you’re looking at it, and they are not forgotten. If you told them, “Give me a couple of hours,” and it has been a couple of hours, just shoot a text to say that you’re still working on it, and will call back asap! It really builds trust and rapport.Hermann says please like and share!