Originally posted on Ebay.com by: usedguruauctions
One of the longest proven ways to get leads as a real estate investor is cold calling FSBO’s out of the newspaper. If you are on a budget and just getting started then you can do this yourself, or if you can at all afford it I highly recommend you hire someone to do it for you.
Step 1. To start with get a copy of your local newspaper and open the real estate classified ads section. Get a sharpie or a highlighter and begin to scan each and ever FSBO (For Sale By Owner) add in the paper.
Of course all newspaper ads are potential investments, however what you are looking for is keywords or phrases that indicate that the seller has some motivations, or is showing signs of flexibility.
Here is an example of keywords to watch out for:
“Must sell” “Just reduced” “For Sale Or Lease” “Seller Financing” “Fixer Upper” “Handyman Special”
Once you spot a potential add mark it with your sharpie or highlighter and keep scanning the paper. Mark as many ads as you can it is better to have to many leads than too few.
It is also recommended that you repeat this step online on a FSBO website. Here are a few key websites to hit:
Do a Google or yahoo search for more localized sites as well. Remember having to many leads is a good thing it keeps your options open and
One more thing I suggest is when you are at your local supermarket grab a copy of the FSBO magazines that are offered for FREE realize that someone paying a lot of money to put their house is a magazine is also a sign of motivation and sometimes this to can yield a great result.
Now that you have your list here is the script with the questions you are going to ask: Make sure you go over the script in detail before you make the first call as there is a lot of improvising that you sometimes have to do.
Hello my name is (Your name here) I was calling about your house for sale, is it still available?
Q. Are you the owner of the property? How is that spelled?
A.Owners Name: _______________________
Q. I have the address listed as (repeat address back to them or in case the address is not listed get it at this point) is that correct?
A. Property Address: _____________________ City: __________ State: ____ Zip: ____
Q. Is there a Cross Street, Subdivision, or Landmark nearby? (Get the general location of the property if you don’t know where it is)
Q. Ok and what number is the best to reach you? if I have any more questions?
Daytime: __________________ Night time: ___________________
Cell Phone: _________________ Email: ___________________
Q. So could you tell me a bit about the house?
Notes: (Take Detailed Notes here on the unique things that make the home valuable.)
Motivated Seller Portion:
After they have described their home to you use this phrase exactly.
“Gosh that sounds like a wonderful home why would you even consider selling it? Write down the reason they are selling and take detailed notes on the conditions and why they are selling.” (This is the most important part of the call as for you the investor knowing the reason and motivation for selling is the key to making an offer that will work for them. Let them ramble on as long an neccessary you want as much information as possible in this portion take detailed notes and maybe even record the call if necesary)
Final Questions (See my guides on great rebuttals if you need help getting this information)
Q: Ok so what is your homes value?
Q: So how did you come to that value?
Q: How many bedrooms does the house have?
Q: How Many Bathrooms:
Q: What is the square footage?
Q: On a scale of 1 to 10 1 being practically condemned and 10 being like new what is the condition of your home?
A: (Circle One) 1 2 3 4 5 6 7 8 9 10
Q: What is owed on the first property?
Q: Is that a first and second mortgage or just a first?
Q: If second what is the balance of both 1st and 2nd
A: 1st Mortgage. ____________________ 2nd Mortgage. ____________________
Q: What is combined monthly payment each month of both payment (Only if they have 2 mortgages) ?
Q: Would you be willing to offer terms or owner financing on the property?
A: Yes / No / Maybe
Q: Would you be willing to lease with the option to purchase
A: Yes / No / Maybe
Q: If I offered you all cash and closed quickly what is your rock bottom price?
Once you have all of this info thank them for their time and tell them you will get back to them and end the call.