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Draw the Line with Seller Sob Stories
As investors who buy homes directly from motivated sellers, we are usually listening to a seller's sad story. It is important to know where to "draw the line". What we mean is, some of us are strictly business and don't even flinch at the saddest of stories. If the numbers don't work, "Sorry. Try another investor."
Others of us want to move these folks in with us and help them start over or consider buying their home and letting them rent it back with future plans to buy it back. Few of us can master being somewhere in between, let's call it the "middleman."
Here's a recent example of what we're talking about
A woman called every ad in the book, including us. She was actually crying as she her story that went like this: She was being evicted from her trailer park on Friday, and she called us on Thursday with only one day to spare. She owned a 40-year old, one-bedroom mobile home free and clear that needed work, and she was behind in her lot rent.
This property does not meet our "buy" criteria. She was desperately seeking a quick sale that day, so she could bail herself out and move into an apartment. Knowing we couldn't buy the place, we made her aware of that and asked her if she had a job, a place to go, first & last, etc.
After further conversation, we learned that she was working, but had no money to move into an apartment and needed someplace to move more than anything. Yes, we were sympathetic. We tried to place her in a boarding house where tenants don't need security deposits, credit checks, or a lease.
When faced with no other options of a place to live, she turned down the boarding house because it didn't allow pets. She has two cats she wasn't willing to leave with a friend in the meantime. It was hard to believe that someone crying on the other end of the phone, begging for a solution wasn't willing to be flexible when faced with no other choices.
Take ten minutes to screen by phone
Here is one important strategy we use to avoid wasting time or money: We get a lot of phone calls from our marketing, and when a seller calls, we determine if a "deal" exists for us or not before we go out for a visit. If the seller is not motivated, there is no reason for a visit.
Many new investors are so excited that they've received a call, they immediately set an appointment, but once at the seller's home, they find that there is no deal. What a waste of time and money. It's one reason why so many new investors get frustrated so quickly. They aren't taking ten minutes to have a conversation first.
Be sure to learn to be a middleman - compassionate, yet discerning. Find a charity; don't be one. And create win/win situations on every deal. This is your living. Do it right - and know where to draw the line!
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