In Coach Tim’s Coaching Corner column last month “Showing You Care With the Right Questions” you learned some great ways to keep the conversation going with homeowners in default. This reminded me of a great book I’d like you to add to Alexis’ Recommended Reading – “The Four Agreements by Michael Ruiz.” I’ll address one of the “agreements” in this column. Be sure to look for my future columns where I will pick up the remaining three, and how they relate to the foreclosure investing business.
The first agreement by Mr. Ruiz is “Impeccable Speech”. This means you should be consistent, honest, and forthright with your language. Never state something to a homeowner or business associate one day and then turn around the next day and do the complete opposite. Your integrity is a valuable asset you must strive to keep intact 100% of the time.
Alexis often discusses this during her Conference Calls, her home study and during her 3-day Lab. YOU MUST HAVE and MAINTAIN integrity if you want to be successful in any business, especially the foreclosure investing business!
Let me give you an example.
After finding my lead on the Foreclosures.com Lists I contacted a woman who needed help with her home in default. She was adamant about keeping her home and didn’t want to sell to anyone, period. I could have easily passed her by as a bad lead. But instead I gave her my time, regardless if she would sell me her house.
When I started our conversation my first words were “I’m sure I can help you Linda, if you just take a moment to talk with me.” This was the truth. As I knew whatever she was doing (or not doing) right now was not working! So I asked and listened.
I soon found out Linda was raising her niece and nephew (without any support) and worked full time. Her problem was she had become pregnant unexpectedly and could now only work part time. I gave her suggestions on how to work with her current lender. This lender, however, would not cooperate as Linda had been in default two previous times.
Ok, next, what about your family? Nope, no one had any money to spare, nor did her friends. No one could qualify for a new loan and her income was far too low (according to a great mortgage broker). Linda didn’t have time to list and sell her house as the foreclosure auction notice had been posted on her door.
Now she was panicked. Realizing she had to sell FAST she called me and asked me to come over and buy her house before it was lost to foreclosure. I was open and honest with her when presenting my offer later that day and we sailed through the five day cancellation period here in California. (Do read your State Laws Here.)
Just before we were set to close escrow, another investor knocked on her door offering Linda “a better deal.” Again I was true to my word and told her if it was better she should take it. Linda gave me this other investors contract to review. No surprise, it was full of sneaky clauses and hidden costs to her that she would be in a terrible situation if she took that deal.
Their “better deal” was $10,000 at closing, live in the house until it is sold and then get a piece of the profits when the house is resold. (Alexis has warned us about the sale-leasebacks deals. Do read more about that HERE.)
End of story, right? NOT!
Linda called me about two weeks after she sold to this investor, begging me to help her. Her other investor did not disclose to her that the contractor he hired to fix the house was his “buddy” and his inflated repairs were taken out of her final check. He also forgot to tell her that while she stayed in the house her rent was $150 a day. Long story short, Linda only ended up with the original $10,000 and nothing at the end. My offer gave her $50,000 at close of purchase.
Sad ending, I know. I wish I could have helped Linda more. At this point all I can do is refer her to a good attorney. Moral of the story – stand by your word – whether with a homeowner, friend, family, stranger or business associate. It means everything.
And when you need a help with your “Impeccable Speech” pop me an email.
I’m here to help you…
