Fear of talking to FSBO's

just act like they are your friends. They won't bite. Remember, they are probably more nervous with you. And practice does make perfect. This won't bother you on transaction 853!!! Go get 'em.

Along with what Bill said, dealing with the home owner directly will allow you to use an assignable contract. It is WAY and I mean WAY easier to get a contract and assign it to your buyer when you do not have a realtor or use their contracts! Very low earnest money required, usually your terms. You can use a very short assignable purchase and sale contract when you do the deal directly with the homeowner. Not only FSBOs, but pre foreclosures, absentee owners, expired listing, divorce, ETC ETC. This is THE assignment strategy.

Keep in touch,
Michael Mangham
MD Home Acquisitions LLC

You may want to re-visit YTYREP Pg. 270 - Making the FSBO Call where Dean discusses Joe Jurek's method using his Property Features Form.

You could also, role play with your wife like I've been doing lately (have a source of PMLs I'm working on). Believe me; they don't mind critiqueing you. Besides; who knows you better than her?

I have dealt with a few so far and "stumbled" along, but each one gets easier. Just remember that they are MOTIVATED, selling their home and you are selling YOU! There's a reason that it is an FSBO and no agent, right?

You are obviously very personable so, just relax and go for it. We know you can do it!!

calls you'll feel more comfortable doing it; you could start by making calls to homeowners that will probably flat out reject your offer; once you get told to bug off once or twice, you won't feel those butterflies in your stomach anymore! just keep doing it, after a while, it will be excitement instead of fear!

cheers,
Val

Lane, when you get the phone number off the FSBO sign, call them for your appointment/meeting. Try and develop a upbeat tone and attitude to the call and carry it out when you meet them. It still doesn't take all those feeling away but makes it easier. I did door to door sales. I know what you mean as that always was on the mind. Take a phrase from here, modified, fake it until you break it. As one TV show host put it, (not a exact quote), figure out something in your mind that makes you happy, keep it there in the back of your mind throughout the meeting. Example: a bunch of cartoon characters or something that will break that fear and look at the situation and people that way.

We deal with FSBO's all the time and here is a couple of pieces of advice for you.
I always ask the owner why they are selling, it is my first question. They will then take the conversation over for a bit, and all you should do is listen. Let them do the talking. This will be the biggest ice breaker for you.
Don't and I mean Don't ever lie to them. Tell them you are new to investing and you are looking to make your first deal. You never know if the seller has been in the biz with other props for 2 yrs or 20 yrs and if you come across like you are Dean Graziosi, they will know in a minute that you are faking it. Then start ot ask the questions that you have written down. Always be respectful to them because they might have more props to sell or they could be a potential money source for you.
Just be yourself, stay calm, listen and ask questions...Jan

Great response Jan!
I would much rather talk with homeowners than some realtor that has no idea that real estate investing exists!
We always try to help the homeowner out even if we don't get the property under contract. We represent ourselves as their final option, if there is a way they can make more money (there usually is not!)we help them. Such as get it listed,(a realtor referral) attempt a loan mod(broker referral)or refer them to our short sale team. (this happens alot)

Also, (what's your opinion on this Jan) we find that most FSBOs are best for subject tos and lease/purchase (creative financing) strategies. They usually can't sell cheap enough to wholesale/assign the contract. Those have been very rare for us. Usually the reason they are FSBO is they don't have the equity to sell and pay realtors commission.

Michael Mangham
MD Home Acquisitions LLC

you always have such great advice!

"follow the great ones and you will succeed!"

Valerie

I agree with you. I hate having an agent involved for the simple fact they do not think outside the box. They have tunnel vision, and yes you are right again about trying to wholesale the prop. Usually they can't go low enough to assign or wholesale. Once I hear their story, do the math while I am looking at them and nodding my head, I can tell if it is going to be a LO, flip for ourselves or even a buy and hold. Lot of factors to consider when you are listening to them. If we can help them, then that is our main concern and priority, but they are great deals if you have a buyer type LO in the wings...Jan

I have been bloodied so many times, both Jeremy and myself, if I can save a student from the pain I will. Thank you so much for the compliment. It feels great helping people realize their dreams...Jan

Seems like FSBO's are my specialty! My advice is is to first make a friend and then make a deal. Talk to these people like they are good firned and always be straight up honest on everything. I tell them exactly how I will do the deal and what I will make on the deal. I have never had any problems and it always is a smooth deal between the seller, me and the end buyer.

The key to any conversation is staying in control of the conversation. a few tips may be.

- Learn to use embedded commands when speaking to your prospect. Statements like when you sell me your house today. Or when I buy your house. etc.
- Always repeat what they say to a question followed by a positive or negative command. the use of words like really, ouch, oh my are as powerful as outstanding, terrific, and wonderful.
- Pace your prospect. If they speak slow so should you.
- Learn some basic NLP techniques. Understand when speaking to a prospect what you say with your body can make or break a deal.
- Mimic your prospect. people are uncomfortable listening to words they don't use. So if a prospect uses bad grammar don't use too proper of grammar.
- Always accept an offering. When the prospect offers you a beverage they have bought in.

If you want the word for word script I use with sellers let me know.

so much great input already! Jan and Michael ooze wisdom and experience!

As for me I usually have to screen calls during day and at lunch, breaks and right after wk are my phone times, I say my name and indicated I was returning their call, then ask did I catch them at a bad time (because I don't want to compete with dinner, kid's bath times or whatever - I want their undivided attention) then I say "how can I help you". Almost always do they start unloading their burden. If not I'll direct with something like: "Well tell me a little about about your situation, and what your looking to do" in that I usually find why they are selling, if not I do directly ask that questions. 99% of the people that contact me are hurting, in a very distressed situation, most are very embarrassed (especially men that I talk to - it can be a huge ego hit, when they are loosing their homes or feel as though they aren't providing for their family). You have to keep that in mind and handle with kid gloves. Never judge or make another person feel small. We haven't walked in their shoes. Listen to them, be genuine, compassionate and as you listen the deal will present itself (find out their needs/hot button). I literally don't start assessing the money at that point. Right then, my only priority is to see if I can create a way to help that person, taking in as much information that I can to will enable me to do that. As I leave from the conversation I book appt from and appt. Meaning I give them a time range for me to run my numbers, etc. let them know I will get back with them by close of the next business day. And stick to it. You are building something here. they notice!

Alot of these people are frustrated, been raked over the coals of life and looking for anyway out. I love FSBO because I sincerely love helping people and making an impact in peoples lives.

I value my RE Agent dearly, but have had experiences with some that all you feel like in their presence is a push to sell...sell...sell. or buy...buy...buy. Other people feel that to, no one wants something pushed down their throat or feel like they are getting 'screwed' (so to speak - sorry) because of the situation they are in. Why I like the honest, transparent, upfront approach I get straight with the seller. Then all agreements go into writing and why my closes are less than 15 min. Takes assistant longer to make copies. Because everyone knows what's going on and you WILL get leads from your deals. You treat someone right and they'll tell 10 you treat someone wrong and they'll tell 100!

thought i would direct you to an old post to skim through .If you have any questions or may want to do a mock call then pm me and we can set up a time.also may have some other tricks for you.am cashing in for the night as i have been doing paperwork for taxes for toooooooooo many hrs.
word to the wise .........keep up with your paper work on all your deals as you do them,dont fall behind like i did.this stinks !!!!!!!!!!!!!
hope to hear from you lane.
jay

check the link below out

all GREAT ADVICE ABOVE !!!!!!!!!!!!!

http://www.deangraziosi.com/real-estate-forums/everything-else/52766/r-u...

from everyones comments I am getting the assumption that most, not all, but most of the FSBO's are not selling because they are tired of their house and are looking for something new. They are selling because of a financial situation or a job relocation, etc...they just don't want to pay the realtor the commission? Is this correct?

not necessarily. they are aware there are tons of properties on the market, most of which have been there awhile. They are sometimes (most the time) behind in their payments, or NEED to sell immediately because of a change in their situation. They are desperate and see a sign that says I BUY HOUSES - Any condition or INVESTOR PAYS CASH - Can close FAST! and you've just become an answer to their prayers. can't tell you how many times, people will says I know it was a sign....I have been praying for a miracle! Usually if someones calling a I BUY Ad from a bandit sign on side of road, it's highly likely they are motivated. lol

during my pre-REI days. Take in mind that I have no problem making my house payment and I plan on moving within the next 3 years or so. I thought those signs were worthless. That they were a scam and noone in their right mind would call them. I stand corrected. I can see how a desperate person would call them instead of someone who wasn't in a hurry to sell their house.