Posted by michaela-ATL on January 07, 2003 at 16:42:24:
yes, ed told me a few weeks ago. Well, i think charles was an asset to the workshop. we could hear from someone, that had just gone through the creditline application.
i’m not sure i’d want to work as hard as he does, though 
michaela
anybody want a deal ? - Posted by michaela-ATL
Posted by michaela-ATL on January 05, 2003 at 10:44:36:
Seller: Hi, i read your ad and i have a townhouse for sale.
Michaela: Great - where is it?
s.: It’s close to the ‘Mall of Georgia’. I bought it
new 9 months ago. Haven’t even used the fireplace.
No holes in the walls anywhere.
M.: Why are you selling?
S.: I’m being transferred and have to be out end of
february. The value has gone up $ 6,600 since i
bought it.
M.: What did you buy it for?
S.: $ 139,000 and now it’s worth $ 145,600. That’s what the
new ones are selling for.
M.: How much do you owe on it?
S.: That’s really immaterial.
M.: What are you willing to sell it for?
S.: $ 142,000
M.: You do realize, that all of us with the ‘i buy houses’
ads are investors, right?
s.: er, yes.
M.: And somewhere along the line there has to be some pofit
potential. We normally don’t pay full market price.
s.: Oh, i understand. I don’t expect you to pay the whole
6k in value appreciation, but only less than half of it.
at 142k you have a nice 3.6k profit.
M.: Well, sir, if you compare a new house to one that’s
been lived in, then the new one will be worth more, so
you’re perceived increase is not really there, because
a buyer will always chose the new one, over the used
one, unless there’s a substantial mark down.
s.: well, but this is what i want for it.
m.: But if you were to list it right now at that price and
had to pay commission and closing costs, if you actually
got a full price offer, then you’d walk away with
substantially less.
s.: well, that’s why i’m calling you.
m.: well, i appreciate you for calling, but i will pass on t
this deal.
So, anybody, that would like to have his ph#, i still have it on my cell phone and i’m hapyy to give it on.
I’m sure he’ll talk differently at the end of february and somebody who’s better at negotiation, might turn this into a deal. The way the market is in Atlanta and since it’s an hour away from me, I have no interest in contacting him in february.
michaela
My response would be… - Posted by rm
Posted by rm on January 05, 2003 at 21:44:44:
M.: What are you willing to sell it for?
S.: $ 142,000
[My approach]
Great! And you’d like to be moved out by February, right?
Yes.
So… what if you’re not able to sell by then?
No point in arguing what it’s worth.
Better to find out how much pain he’s willing to endure, probe it a little more, and then figure out when to contact him again.
Re: anybody want a deal ? - Posted by ScottS
Posted by ScottS on January 05, 2003 at 20:31:46:
Myself,
I see a lot of negotiating yet to be done.
I’ll be the first to admit the phone is not the place to negotiate but I don’t even see the terms of the underlying finaning coming into question yet. This could turn out to be a major cashflow producer with thw right loan underneath.
My standard answer is “Sir, there are ways we can give you what you ask for, evwen with little equity. What’s a good time to come and visit?”
It’s a people business and I do my best when I am “at the kitchen table.” (Just like my buddy Joe Kaiser teaches).
Not convinced yet at the lack of deal there.
ScottS
Re: anybody want a deal ? - Posted by Jim FL
Posted by Jim FL on January 05, 2003 at 17:02:00:
Michaela,
I think those of us who market rather heavy and/or consistently get calls like this weekly.
I understand the urge to answer quickly and with truth.
I too deal with that, and don’t always hold up under the pressure.
I fact, just over the last few weeks I had an occassion to visit with another investor out of state and work with him.
While there I was taking the calls that came in.
We of course got a call like this one, except it was another investor.
He was obviously trying to call the “New investor” in town and feel him out.
The guy called with a house worth something like $260k.
The caller said he’d carry paper, and sell it for $275k or some rediculous number.
When I made some noise about that he said, “or I’ll sell it for $252k cash!”
WOW!! WHAT A DEAL?!?!?! Where do we meet and sign!
NOT!!
This time I simply could not hold back, because frankly, the tone the guy used made it obvious he thought he was calling a newbie and playing a joke.
After his CASH price, I lost it and replied with:
“Do you REALLY think I’d be DUMB enough to invest a quarter million dollars for less than $10k in equity? If you think this is a good deal, then PLEASE give me your full name and number, because I surely can sell you a TON of houses with numbers like this.”
MORON!
Sheesh!
Most times these kinds of calls come from owner occupants who just don’t know any better, so I go light on them.
This guy however was just plain stupid for calling and wasting my time. I too was not real smart, in that I wasted my time humoring him.
Oh well!
My student/friend thought it was rather funny the way I just said what I felt to the seller.
But hey, with every “Bad call”, or is it 30 “Bad calls”, we get one good one, which makes it all worth it.
Take care,
Jim FL
**Last I heard, the sellers house was still for sale…hard to believe, when he is asking more than market value, or willing to GIVE AWAY so much equity! 
Here’s one I love… - Posted by Stew(NE)
Posted by Stew(NE) on January 05, 2003 at 15:58:06:
Great Post
I had a guy call on my “We buy Houses” ad, Who started the conversation with, “I got a house for sale on 84th street and I will sell it to you but not if you are one of those guys who will buy if for less and sell it and make a bunch of money off of it?”
What I wanted to say: Oh no, let me buy it at full market value and sell it for less.
What I said: What is the address of the property?
Him: I won’t tell you. (For any newbies, This response means he is not a Motivated Seller) I rather give it to my kid and let him live in it than sell it like that?
Me: Did you try to sell it already?
Him: No, not really.
Me: Are you behind on your payments?
Him: Behind? I have never been behind in my life?
Me: Is there anything else you want to ask?
Him: No.
Me Goodbye. Thanks for calling.
What he didn’t know was that I knew the house he was talking about and he had been trying to sell if for 5 months FSBO and with a realtor. The problem was it was on a main street and you had to make a beeline at 30mph out of the driveway to “merge” in to traffic.
I use to be a telemarketer. Rich Dad, Poor Dad talks about taking jobs to learn skills not just to work for money. After getting cussed out numerous times, switching a conversation around is easy.
Good advice - Posted by Kristine-CA
Posted by Kristine-CA on January 06, 2003 at 24:17:21:
rm: I like the “find out how much pain he’s willing to endure.” While that’s a little graphic, it really is what we are doing when we are trying to figure out motivation. Not motivated to sell today? Maybe tomorrow…I often forget to find out this part. Sometimes I continue to keep in touch, but I don’t probe very much. Very good point to ask “what if.”
Sincerely, Kristine
Re: anybody want a deal ? - Posted by michaela-ATL
Posted by michaela-ATL on January 06, 2003 at 09:46:38:
Scott,
you’re right. Somebody approaching him idfferently or at a different timeframe may get different results.
For me - the location of the deal wasn’t of interest at all, so i wasn’t that concerned with probing further.
Call me lazy, but i don’t want to work that hard and spend time on everything, that might or might not turn into a deal ;-).
Furthermore i have to consider Atlanta’s economic situation. There are plenty of deals on the buying side, but very difficult on the exit strategies.
I’m not saying it can’t be done - sure it can, but the market is incredibly soft. Investors can’t sell, can’t rent and end up giving their nice properties to section 8. I see familiar long time investors names in the foreclosure notices every month.
Houses, that would have created a bidding war 2 years ago have been sitting on the market for 12 months.
I wouldn’t dream of doing a low-equity deal here. there are lease-options with ‘0’ down, rentals with 2 months free rent.
I’m very, very picky about the properties i’m taking on.
michaela
Re: anybody want a deal ? - Posted by David G (OR)
Posted by David G (OR) on January 07, 2003 at 16:40:20:
Most of the time they say, “I don’t know how much profit you needed to make ($5000 seems pretty good to me)”.
They waist my cell phone minutes - I need help shooooing them off. What do you normally tell them?
David G.
Re: anybody want a deal ? - Posted by michaela-ATL
Posted by michaela-ATL on January 05, 2003 at 18:47:02:
Jim,
you’re right - most of my calls are from not really motivated sellers. And someone with great negotiation skills who is determined to make a deal might turn these into deals.
For me, i’m not planning to stay in atlanta and the market is really tough on the exit side, so i’m picking and chosing which deals i want to do.
michaela
Re: What deal ? - Posted by michaela-ATL
Posted by michaela-ATL on January 05, 2003 at 12:10:38:
but i alwasy have to keep myself from getting obnoxious. Part of me thinks ‘duh’ and ‘do you really think i’m an idiot’, but outward i’m trying to stay respectful, because maybe they really don’t know any better. I remember when i bought my first house (not an investment) and was happy when the new houses sold for 10k more than what i had bought mine for a year before. I really thought the value of my house had increased. Also, to the average working person 3 or 6k is a lot of money. A lot of people don’t save any
and a few k seems like a nice chunk.
It doesn’t always work, though, sometimes i do get a little obnoxious
michaela
exactly - Posted by michaela-ATL
Posted by michaela-ATL on January 05, 2003 at 11:59:47:
just thought i’d add a little humor. The seller obviously thinks, that he’s offering a great deal.
michaela
Re: Good advice - Posted by rm
Posted by rm on January 06, 2003 at 08:56:49:
I prefer to probe than to continually follow-up.
While I do both, it’s helpful to know what a person’s biggest concern/biggest goal is.
Doing both seems to yield the best returns.
Re: anybody want a deal ? - Posted by Jim FL
Posted by Jim FL on January 07, 2003 at 17:06:59:
David,
That is an easy one.
First, we don’t know for sure there would be $5k in profit, but yes, that is a rather small amount and does not fit into our business objectives.
I think I’ll have to take a pass and wish you luck in selling your house.
Should things change at all in the future, feel free to give me a call.
Click!
Simple.
Be honest, straight forward and be in control.
Take care,
Jim FL
Re: anybody want a deal ? - Posted by Kristine-CA
Posted by Kristine-CA on January 06, 2003 at 24:43:27:
Come on out to Bakersfield. It’s cheap, it’s fun. No Victorians, but plenty of craftsmen bungalows. Even some good ones. Then there is coastal CA. You’d love Ventura and what’s left of shack towns on the beach (and there is not much left, let me tell you.) Any plans yet?
Sincerely, Kristine
Re: anybody want a deal ? - Posted by Nate(DC)
Posted by Nate(DC) on January 05, 2003 at 23:13:03:
just curious…where ya headed? back to Germany?
NT
A suggestion - Posted by rm
Posted by rm on January 05, 2003 at 21:50:49:
Post your income goal for the year right at your phone.
When you feel like you’re talking to a seller who’s not motivated, look at your income goal.
Will you reach by talking with this person?
If not, get off the phone.
Politely.
A guy like this could be calling you to take 20k less if the right things happen…
or he could be calling a competitor- because you weren’t nice.
Life’s WAY too short to be spending this kind of time and energy reacting to people’s ignorance.
Hang up the phone… NEXT!
Sellers and reality - Posted by Kristine-CA
Posted by Kristine-CA on January 05, 2003 at 13:15:05:
Michaela: I have the same problem–trying to keep from making snide remarks. However, where I am, I really believe most people don’t know any better. They honestly believe they have equity when they don’t. They honestly don’t know the cost of selling because they didn’t read their closing docs when they bought–because lender funds were brought to the table to pay for everything. They honestly believe that the asking price for the house next door is what it sold for and that appraisals are selling prices.
There is so much ignorance out there about finances, it’s astounding. It’s why we are a nation of debtors. Many who walk around saying they are debt free don’t think of their mortgage as debt. Easy to do if there is appreciation. Reality sinks in when you don’t live in it anymore and it costs money to live somewhere else.
However, these kinds of calls confuse me still. Where I am the rents are too low to even consider taking these properies via lease or subject-2. Especially since so much of the financing was sub-prime, no money down loans. What’s a seller to do, I wonder?
Sincerely, Kristine
Re: anybody want a deal ? - Posted by michaela-ATL
Posted by michaela-ATL on January 06, 2003 at 08:08:05:
Kristine,
I saw bakersfiled on the map the other day, when i was driving from santa ana to las vegas. Pretty small town it looks. I remember driving through barstow, thinking of sheeril crowe’s ‘leaving las vegas’ and the line ‘head of to barstow for the night’ and wondered why someone would leave las vegas and go to barstow for the night- hm.
Anyway, i really need to move to a large city, because i really like the cultural diversity, that Atlanta doesn’t offer. 2 musicals a year and you have to buy tickets 6 months ahead. doesn’t work for me
Would love san francisco, maybe hawaii? can’t be in the snowy regions.
i’ll just have to play it by ear whenever i’m ready. still have a bunch of lose ends to tie up here. sometime this year.
michaela