July 2016

Keep on calling until they say 'No!'

Just because you haven't heard back, doesn't mean they aren't interested in your offer.


I was all set to talk about co-wholesaling. By that, I don't mean daisy chaining the crap out of a deal and "adding $5,000" on top like so many pathetic newbie pretender wholesalers attempt to do. I'll never understand why they always think that is just another $5K in the deal?


So, we'll save co-wholesaling for another post. This month I'd like to talk about follow up.


I had a lead come in on 7 June. The seller told me they invested a lot of money in the house, but the tenants destroyed it. I suspect the owners thought they could "rent it and forget it," but that doesn't work in real estate. They had owned this house 30 years and it was free & clear. I've also discovered that when properties get debt free, the owners often become a bit more relaxed on dealing with it. There's no loan so why raise the rent!! Personally, I believe rent raises help to keep your property in good condition. If the tenant has to pay an extra $100 next month, the landlord better fix that.....


I called the seller on the 9th and she asked me to call back at 10am on Friday, the next day. I did, but got her voicemail. The next time I spoke with the seller was on the 15th. I offered her $125K and she said that "sounded a bit low." Low compared to what? is what I always wonder. This is nothing more than a simple objection. I used one of my handy objection handlers for this particular situation and said I'd call back the next day. I did, and she said her husband had to make the decision (yet another simple objection), but he didn't have a number yet (another objection!).


On the 21st she called and left me a message, "My husband wants $155K." I'm sure he does, but he'll never get that from me. Because she actually did counter, I felt comfortable that we would be putting together a deal shortly. I decided to check in with my current favorite buyer to see what he would pay for the house so I know what my negotiating range would be. He came back at $155K.


On the 23rd I did a follow up call and the seller said she was out of town until Monday. I called on the 27th (Monday) and 29th, but it went to voicemail both times. I then tried *67 to see if she just wasn't taking my calls, but again I got voicemail. I never get frustrated in these situations though. Rarely have I lost the deal just because I can't get a hold of the seller. I understand that life happens. Selling a free and clear house one has owned for 30 years isn't the priority. That is back burner stuff.


On July 5th the seller called me. I offered her $130K and she said she would talk to her husband that night. This is the old Defer to the Higher Authority objection - easily handled. However, she did say she'd call me back the next day which sounded promising.


On July 6th she did in fact call which was a bit surprising. We talked about my $130K offer and she insisted her husband wanted $150K. As much as I hate to split the difference and do it 50/50, that is where we ended up. I closed her at $140K which meant I had a nice $15,000 wholesale fee in my future. But then....


Escrow docs went out and the sellers hadn't returned them by the 19th. I followed up again, but again got voicemail. On the 20th, I started researching her husband since I hadn't actually ever spoken to him. I figured if I could get him on the phone I might be able to talk to the higher authority. Luckily, she called me the same day and said she'd been sick, but would get docs back to escrow by Friday, which she did.


Life happens. Don't get frustrated and don't take it personally. Just keep following up and leave pleasant voicemail. If the deal is meant to be, it will close. I did a similar post on this topic back in April 2015. Comments/questions are always appreciated. You can post them below.


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