Posted by Kristine-CA on December 21, 2010 at 10:08:55:
Glad to hear it. Just in time for the holidays!
Framing a cold call… - Posted by Rick
Posted by Rick on December 10, 2010 at 13:08:44:
Hey guys,
I’m wondering, when you cold-call do you position yourself as a retail buyer or as being in the business of buying and selling property? I understand that the latter way is completely up-front and I have no problem doing that, just looking for pros and cons of both methods.
Thanks,
Rick (WV)
Curious… Framing a cold call… - Posted by JT-IN
Posted by JT-IN on December 10, 2010 at 21:26:37:
I’m curious as to what kind of cold calling you are doing? Are you working from some source of info of motivated sellers; foreclosure info, other public info, or merely calling at random…? Depending upon who you are calling, and why, would help to tailor the presentation.
Re: Curious… Framing a cold call… - Posted by Natalie-VA
Posted by Natalie-VA on December 14, 2010 at 12:45:42:
Hey JT,
It doesn’t look like the original poster is going to follow up, so I’ve got one for you…
How do you work a call where you’re calling to get quit claim deeds from heirs after a tax sale?
I bought a property at tax sale about a year ago, and the settlement agent I worked with at the time was going to sell me title insurance, never did, and subsequently went out of business. It seems there are some insurers who will do this in Virginia on a case by case basis, but I suspect that they’re going to want some quit claim deeds. They are looking through the file now.
So, back to my question, how have your worked these calls? I don’t have such a great deal on this property that I can pay six heirs a bunch of money. $1000 each might not even be possible.
Just looking for your thoughts and experiences.
–Natalie
Re: Curious… Framing a cold call… - Posted by Kristine-CA
Posted by Kristine-CA on December 14, 2010 at 16:36:33:
Hi Natalie. I’ve make a lot of offers to heirs or other parties to get quit
claim deeds. I write first, and follow up with a call. The letter explains
the situation (that I bought the property and am now the owner), that
there is missing paperwork, and that, although they have no
ownership, I am seeking their help in order to help me gain clear
ownership. I also explain that I’m trying to avoid a quiet title action, a
costly lawsuit where they would have to be named, etc.
I always offer $100, making it clear that the payment is not for their
interest (since they have none), but for their time to get the deed
signed and in the mail. I send return fedex mailers with labels I’ve
prepared with my account number. I give them the number to call so
they can have the package picked up at their house…and the locations
of all nearby fedex drop boxes. And when necessary, I arrange for a
mobile notary service to go to them, paying the service in advance so
there is no cost to grantor.
It usually goes just fine. However, I had one set of heirs, 2 elderly
sisters and a brother. They had no ownership whatsoever, and knew it.
I had copies of letters, contracts to purchase the property and,
amazingly, cancelled checks that they had each endorsed and cashed
20 years ago when they inherited half from a brother who died
intestate. They then forced their sister in law to buy out their half. The
probate attorney failed to prepare and record a deed.
They would not sign for $100 or $1000 or any amount. They
consulted bad family friend attorneys, etc. and were given all kinds of
bad and inaccurate advice. I named them all in a quiet action and won.
The law suit totally stressed them out, even though it was explained
that they did not have to respond, etc. In the end, it wasn’t about
money, it wasn’t about fear of signing anything. It was about the fact
that the entire family hated the sister-in-law whom they were forced
to deal with when their brother died. I got email after email explaining
all her wrong doings and how their mother, god rest her soul, hated
her too. And they let me know they hated me for being willing to deal
with her heirs now that she was dead.
So there you have it. IMO, no amount of good letter writing or win-win
offer is going to get past that. 
Re: Curious… Framing a cold call… - Posted by JT-IN
Posted by JT-IN on December 14, 2010 at 13:16:40:
Hi Natalie:
I actually prefer to have someone else handle this for me, they are negotiating on my behalf… they are quite good at it. I usually establish some parameters with my rep here that I am willing to pay x amount… If he can get their signature for free, then he earns all the fee… but usually some mix of the two… small amount to signors and more to my rep. But this is just how I prefer to go about it.
Based on what you mentioned, and without having full details here, I would approach them individually as opposed in a group… and on the pretext that there was a clerical error with the paperwork. Simply ask if for compensation to them for their time and trouble, would they be willing to execute some paperwork… that you would pay them 50 (or 100 bucks) for their autograph…? Kind of make a joke about… that is about what Michael Jordon gets to sign his name… ha-ha. Or they have a chance to get paid like Michael Jordon this once… 50 or 100 bucks for 10 seconds of work.
If they are hesitant to do so… then I would go into this speil… that the problem is going to get taken care of one way or the other… and if they are willing to work with you to do so you would be happy to pay them the cost of the lawsuit if you didn’t have to file it… blah, blah.
And then finally… There are two ways to fix the problem, 1) file a lawsuit against all those involved, OR 2) (preferred method) is to pay them a small spiff (fee) for executing the necessary documentation, which would save you the cost of the suit and them the hassle of being dragged into the middle of the mess…
Of course if I knew the gorey details of what the nature of the problem was there could be other ideas of how to approach. I guess it all depends on exactly what you will end up having to do to fix the ommission if they don’t sign off…? This could alter the recommendation some.
Re: Curious… Framing a cold call… - Posted by Natalie-VA
Posted by Natalie-VA on December 15, 2010 at 14:33:46:
Thanks Kristine. I was hoping you would chime in. It’s funny how something you do is “just another day in the office” for you, but totally foreign to me. I’m sure there are a few things I deal with routinely that might make you hesitate if it wasn’t in your regular toolbox.
Thanks again. I may pick this up with you again in a few weeks.
–Natalie
Re: Curious… Framing a cold call… - Posted by Natalie-VA
Posted by Natalie-VA on December 21, 2010 at 08:35:51:
No gorey details except that there were 6 heirs. I was previously told that it was doubtful that they would insure a tax sale title where multiple heirs were involved. Good news though…they called me back and agreed to insure it. Thanks for your help.
–Natalie
Re: Curious… Framing a cold call… - Posted by Natalie-VA
Posted by Natalie-VA on December 15, 2010 at 14:29:12:
JT,
Thanks for your thoughts. I may pick your brain a little bit more when I find out what (if anything) the title company is going to want in order to insure me. I like the idea of having someone else work it on my behalf with me paying them x amount of money.
–Natalie
A few things? - Posted by Kristine-Ca
Posted by Kristine-Ca on December 15, 2010 at 18:27:00:
Hi Natalie. A few things that would make me hesitant? You’ve got to
be kidding. Most things that you do, that agents do, that rehabbers do
are things I’m more than hesitant about. While I can understand a lot
of it technically, I wouldn’t be good at most of what you do.
I’m not shy of marketing, legal problems, title problems, find missing
sellers, etc. I like getting deals under contract. But I’m a basket case
when it comes to working with agents. I just backed away from
accepted offers on two different properties in the Bay Area. I just can’t
wrap my head around the big $$ and the many, many issues some
municipalities have.
When you are ready to contact the heirs, please do not hesitate to call
on me to brainstorm a little. I’m happy to help.
Great news… but - Posted by JT-IN
Posted by JT-IN on December 21, 2010 at 11:17:56:
The only caveat I would suggest is that you “READ the POLICY” after they issue it. In other words, make certain that it does not list liens not extinguished by a tax sale as an exclusion. Also suggest that you have a detailed discussion about the listed exclusions with the title agent, to make certain that they definitely say that they will cover the potential issues that may arrise in expunging the interests of record.
Good luck and happy holidays.
Re: A few things? - Posted by Natalie-VA
Posted by Natalie-VA on December 21, 2010 at 08:36:41:
I found someone to insure title, so all is well.
Thanks for your help and thoughts.
–Natalie
Re: A few things? - Posted by michaela-CA
Posted by michaela-CA on December 15, 2010 at 18:38:56:
“…different properties in the Bay Area. I just can’t
wrap my head around the big $$ and the many, many issues some municipalities have…”
Boy, can I sympathize with that. That’s the reason I’m moving back to Atlanta in 2 weeks. I’m missing rehabbing so much and the prices here are still so out of whack, and dropping, that I don’t see myself doing any of that in the near future.