Home > Rants and nightmares > Phone calls from prospective buyers

Phone calls from prospective buyers

Phone calls from buyers who inquire about a property for sale

At least once each week, I get phone calls from buyers that inquiry about a property I am marketing for sale. Sometimes several per week.

I have developed a trained ear to decipher the purpose of the phone call and sometimes I have to ask questions to determine the motive of the alledged prospective buyer.

After 18 years I learn from what the buyer does Not say and the questions NOT asked.

I know what questions they should have asked.

If the buyer does not ask right questions, then I need to direct the conversation

and ask questions to find the buyer’s motive, level of experience and how much money they have for a down payment.

I need to know this to without being offensive or insulting

and also the buyer needs to feel that I am trying to help the buyer reach their objective.

This is a fine line and must be delicate but effective to get the answer.

Often the buyer does not want to divulge personal information.

Sometimes I have to ask the same question several times but phrased differently.

As an example, I need to know if the caller has enough money to buy the property

I ask “What percent do you expect to the the down payment” and I know it will require 30% and the buyer says 20%

But the caller frequently says

I have enough but can get other money if necessary

So I ask the question again several minutes later in the conversation

Sometimes I say that the seller only wants to show the property to buyers who have the ability to buy …

What % down payment did you expect?

This is often a chess game because the buyer just wants info on the property and I need to determine if this is doable.

Today I got a phone call from a lady in Austin wanting the seller to finance 70%

Several minutes later discovered that her down payment was coming from a private lender

wanting his 30% loan for the down payment to have a first superior position

to the sellers 70% financing in second position behind the lender of the down payment.

She found a person to loan her money for the down payment who wanted first position above the seller.

However, the seller needed to use his money to pay off his bank.

She had found and 8 plex in San Antonio  where the seller agreed to this second loan position, but for only a six month loan period then the loan would be due and payable. The 30% down payment would come from a private lender who wanted a first place mortgage.  One third of the seller’s  2nd mortgage loan would come from his management of the property after it was deeded and the seller would keep all rents collected for those six months.

Which would amount to approx 35% of the the seller’s loan then the other 65% would be due six months after the closing date.

The rents collected by the manager seller would not be used for other fixed expenses such as taxes, water, insurance etc etc.

The buyer said that she would have a million dollars in six months from other real estate deals

I suggested she just sign a contract to close in six months, but she needs a small deal to happen in order to get the million dollars.

The conversation seems circular and it took several minutes to get to the bottom line. She seemed to talk in financial circles.

I wished her luck.

If you are wanting to sell without my help … then I wish you good luck.

Categories: Rants and nightmares
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