But before I give you more info on how to talk to owners on the phone, let me remind you, you need to get on the phone! 
In my 15 years of training, I have found that little if ANY real estate trainers (see Gurus to Avoid Here) will tell you to get on the phone. In fact, they will teach you the polar opposite – to NOT bother making outbound calls at all. They will teach you to use their “secret marketing systems” to get owners to call you instead. Why do they teach you to do mailers? Simple. It’s what you want to hear and it sells a lot of training programs.
Sound great? (Yes)
Sound easy? (Yes)
So does it work? (No)
So why do all the Gurus teach you to do mailers and marketing programs? It’s simple. It’s what you want to hear and it sells a lot of training programs. Sorry to say it so bluntly. But it’s the truth. You can read more about why these programs don’t work here:
“There are No Secret Marketing Systems”
Now let me share with you some real feedback from the trenches of our clients in our Coaching Message Board and their experiences on the topic of Mailers to Owners in Default:
Well, I got it on Saturday – literally hundreds of cards, letters, and pamphlets, the majority of which weren’t even opened. They ranged from handwritten notecards with bad spelling to professional multipage pamphlets advocating every conceivable option (legit and illegit) out there. It left no doubt in my mind – trying to get noticed via a mailer is a complete waste of time and money!” – The Cushmans
– Mona Rothstein
There are too many websites, books, tapes and seminars out there on real estate and foreclosure secret buying “strategies” – but nobody is spending time on the People and Sales Skills necessary to make it in this lucrative business. No one – except Foreclosures.com – in both our Foreclosure Forecast articles and top quality training programs.
Now, let’s go over some key questions you need to ask yourself, regarding “what to say and NOT to say” when calling owners in foreclosure.
Here are 3 “hot topics” that will help you today:
#1) It’s All about the Interview:
Do you make recommendations of all the “Owners Options” before you really understand their situation, how they got where they are and what they’ve done to date to solve their problem? You cannot give advise until you get to the TRUTH. And that begins at the beginning. You must develop rapport and ask a lot of open ended questions that start with “who, what, where, how, why, and when”? That is called the interview mode and this is where you must stay until you get the owner to tell you everything, starting at the beginning.
What NOT to Say:
Hi, I understand you’re in foreclosure? Are you familiar with all your options? Let me explain them to you… blah, blah, blah. (The owner has officially gone deaf and hurries you off the phone, with you leaving not knowing a single bit of his story and how he got in trouble in the first place.)
What to Say:
Hi, I know you’re going through a tough time with your house. So how did this happen? Who have you talked to? What have they said? What have you done so far? What is your plan? When will you do that? What will you do if that doesn’t work out? What is your backup plan? (You are now in control of the conversation. You are gathering information that is vital to your future recommendations. You are building rapport by listening and showing a true interest in THEM not just their house. This is HUGE!)
In Summary:
Ask thought provoking questions, and be kind and thoughtful. Even after the seller answers your questions, ask MORE to elaborate on their answers. Never ASSUME you understand their needs. Every person is different, and need to be treated as such. What ever you do, DON’T sound like a person who just came from a “get rich quick seminar”!
#2) Make the RIGHT Recommendation that Serves the Sellers Needs FIRST.
It’s not about buying their house. It’s about finding out what the seller would like to do and then try to make that happen. You are working on their best interest, not yours! In the end, if you help enough people in a selfless way, you will have more business than you know what to do with. It’s the Golden Rule in full force “Do Unto Others and You Would Want Done Unto You.”
What NOT to Say:
Mr. Seller, I am interested in buying your house. You are going to lose it to the auction and I can give you cash for your equity now. What is the least you will take?
What to Say:
Can you afford to stay in your house? (You’ll need to do a financial review of his income and expenses and assets and liabilities to see if he can.) If you can afford it, I will do whatever I can to help you through my many resources. (You refer them to outside parties and do not collect a fee. That is conflict of interest and in some states you will break local foreclosure laws. Read your laws here.) If you cannot afford to keep your home, then we will look for options for you to sell it through a Realtor, where you will net more money then if you sell it to me. (Notice the full disclosure and no “self serving” statements. This is all about the Seller, not YOU.)
In Summary:
Talk about all their options to NOT sell you the house. You’ll quickly find out what their “objections are” so you can answer them, BEFORE you try to close them for the purchase. Plus, you’ll find out “what their hot buttons are”, so you can use those to close them as well. A smart investor gets all the information FIRST, and then has what they need to get the seller to say YES to their offer to purchase.
#3) Only Visit QUALIFIED Sellers, the Phone is Your Friend!
Too many sellers invariably want you to come by their home without making any up front commitment to you. Most of the time the investor did not ask enough questions on the phone, did not get all the information on the seller and did not get an up front commitment from the seller. These visits are a total waste of your time and gas, unless you ask the tough questions FIRST on the phone, and learn that “No” is OK if you hear it BEFORE you set an appointment!
What NOT to Say:
Hi, thanks for taking my call, when can we meet?
What to Say:
Before we meet, I need to understand a few things better. (Now get back to asking questions to really understand how this happened, what they’ve done, and what they need to do, before they sell you the house!) Who is on title to the house? What are your loan balances? Do you have any liens? If so, how much are they and what are they for? If you sell the house, where will you move? How much cash do you need at closing? How did you figure that? If you don’t get that, what will you do?
In Summary:
Work Smart and determine up front that you are going to the home to complete a purchase agreement. Spend your time working wisely QUALIFYING on the phone FIRST and it will increase your chances to purchase a property on your first visit ten fold.
My Final Thoughts:
I know it’s tough to learn People and Sales Skills in the written form. The best way to learn anything, is do try it on yourself, and JUST DO IT! But I also know that learning on “the street of hard knocks” will cost you plenty. Plenty of missed deals, or worse yet, deals you shouldn’t have done and have now buried you financially!
However, you can learn how to approach motivated sellers, what to say, what not to say, the use of timing and blank time on the phone. How to ask the right questions during your interview mode (without sounding like an interrogator) and keeping the conversation going. How to open up people who are totally shut down – and how to find their hot button.
You can learn all the stuff I can’t explain in the written or seminar forum, by working with me for three days in my office, along with seventeen other investors.
Our Mastering Systems Lab is so successful, because it answers all those questions with real life examples happening right in front of you. There are no scripts – this is 100% real deal making in action.
Feel free to email me any questions you may have at: alexis@foreclosures.com, or give Our Consultants at 800-310-7730 x2. They’ll make sure you get going down the right road to prosperity!
– Alexis
