Handling The Initial Phone Call
By Paul Esajian on October 4, 2013
Every new lead you get is a new opportunity to make money. As soon as someone contacts you, either from a mailing received or from something they saw online, you are on the clock. From the initial phone call, you need to gather as much information as you can. It is not enough to simply get information about the property; you need to find out about the seller. You can know all of the pertinent information about the property, but ultimately it is the seller who has to agree to the deal.
Every deal should be worked to its utmost capacity. That being said, at some point you have to know when it is time to move on. With your initial phone call, you should immediately sense whether or not your seller is serious. Ask direct questions about their motivation, timeframes, market knowledge and property value. Listen to what they have to say. Having a script for your lead is a good idea, but it is more important to listen to the answers and ask questions based off what they say. Sellers will usually tell you what they want to do if you listen to the answers.
Your longest conversation should be your first one. This is where they are the most willing to share information. You don’t need to get them to answer every question about the property, just some general information in regards to the mortgage and if there are any liens on the title. You can find most of the information about the property online or from the MLS. It is more important to make sure everything is in place. Is there a relative that has ownership interest in the property? Is it a short sale? Do they need to sell quickly and if so, why? How much would they be happy walking away from the property with? The more information you can get from the initial phone call will give you an idea of how much time you should spend moving forward.
You have to assume that the seller has spoken with at least a few other investors who are asking the same questions. You can go so far as to not ask any questions about the property and instead ask only questions about them. Ask how they got in their current situation and what they want out of the transaction. You want the seller to feel comfortable with you. They do have options and what you never want is to work with a seller for months and have them walk away from the deal weeks before the closing. You can rush the seller to sign a contract, but eventually they will find out if you are trying to mislead or deceive them in any way. If you are upfront with them, they will usually be upfront with you.
The sooner you can find out the seller’s motivation, the sooner you can have a grasp on what kind of deal you have. The most important thing you can do with new leads is listen to the answers. You will have plenty of time to talk, but for the initial conversation, you should listen the majority of the conversation. The seller will tell you what they want to do and then it is up to you to figure it out from there.