first step is to build rapport.
Call the ads in the paper that are in the For Rent section, not the For Sale section. The reason I don’t call the “For Sale” section is that 90% or more of those sellers must get their cash out and a large portion of the other 10% won’t consider something creative. It is not because they don’t want to consider something creative, it is just that they would prefer to cash out and be done with the property. Also, trying something unique will scare most sellers. Call the ads that are for rent, because the #1 and #2 objections for selling on an option have been resolved: 1) they are renting, and 2) these owners do not need to sell or to cash out of the home and they are willing to lease the home.
How to Navigate Successful First Contact with Sellers
The most effective way to contact sellers is by calling them. Immediately tell them your name to start building rapport, and try to keep your voice sincere or soft. Be sure to ask questions appropriate to the area you are calling. What is important to that part of the country? Basement? Pool? Fenced yard? A certain type of landscaping? Updated kitchen or bathroom?
When you begin to regularly respond to seller ads, consider setting up another phone line, perhaps toll free or even a voicemail box just for that particular house or ad. Personally, I prefer for callers to reach a live person, so if they call my office they get someone live. You can always use your cell phone. Even if after hours, they will get a referral to another number where they can get a live person. However, if this is not feasible for you, be sure to check messages frequently and return calls promptly.
The following is a script you can use to call an owner of a rental home. The words in bold are what is said to the owner. Don’t waste the seller’s time asking questions that are answered in the ad or from their description above but do ask questions applicable to your area of the country (e.g. Is it in a flood area? Does it have central air? Has it ever had termites? Has it ever been in a fire? How old is the roof?). Ask whatever might be of interest to you and to find out more about the home.
Script for Calling the For Rent Ads
Hi, my name is ________. I was calling about your home for rent.
Giving your name sounds warmer and will help put the owner at ease with you. It is a great way to build rapport.
Can you tell me if it is still available?
If yes, continue.
When is it available?
Can you tell me a little about the home?
Let them answer some information about the home…or expand some questions off the ad. You are building rapport with the owner. Talk and let them talk. People warm up when they are the ones talking. Listen and sound interested.
When was the home built?
This question gives you insight to any decorating or maintenance problems you might be running into. It will tell you if it might need to be updated. If the house is older, ask the next question; if not, skip it.
Have the kitchen and bath(s) been updated since it was built?
If it was built in the 70s, I might ask if the baths or kitchens are yellow/green/brown or if they have been updated since it was built.
Does it have a garage or basement?
Is the yard fenced?
This may prompt them to ask the question on whether or not you have pets. At this point they still think you are the one that will be living there. I don’t change that direction of thought until enough rapport and trust have been developed. They may ask questions as to how many will be living in the home. These are questions I don’t want to lie about, but don’t want to be totally direct on either. If you say, “I don’t know, I am going to rent it to someone else,” you can be sure they will not show you the home. That would kill the trust and rapport immediately. It is hard to say how to handle those questions exactly. Each time these questions come up, you will be answering them differently based on the owner. Here are some ways you could consider handling their questions to you:
1.Answer them as if you really were going to live there. The answers would be about you and your family (if any).
2.Try to change the subject or slightly avoid the question.
3.Try to answer to your best guess of who might be renting from you later.
4.Just come out with it: “Actually, I am working with a few local families to help them find a nice home in a nice neighborhood, is your home a nice home in a nice neighborhood?” - this works very well and now you have disclosed you are an investor without saying “I am a real estate investor”.
I am not recommending deliberate deception although it may sound like that. I am very honest and straightforward with my sellers but I need to build rapport—not scare them off. I later reveal how this will work after they meet me or when I feel that they are open to discussion about the entire situation. Because everything will eventually be in writing, they will know that you are not occupying the residence before they sign the documents.
If the home sounds like something you would like to own then pop the question. If it doesn’t just be polite and say you will call back later if you are interested. Thank you very much.
Wow, this home sounds really nice, would you considering selling it?
If they say no, then say, “Thanks, but I am really looking for something I can buy.” Leave them your name and number to contact you later if they change their mind about selling.
Do you know how much you would want for the home?
Start to feel out the owner for the type of terms they would consider but be careful not to make any verbal offers. This isn’t the time for negotiation. This is still just the time for gathering information. You need to construct your offer when you are not on the spot.
When could I come and look at the home to see if I would be interested in it?
If the home is available for viewing, make arrangements to go as soon as possible. This shows the seller that you have more than casual interest in the property. Set a time with the seller and keep it. If you must change your schedule, be sure to let the seller know and make alternate arrangements for as close to the original date as possible. This will also show the seller that you are interested enough to be courteous.
Script for Calling Realtors
This script is for rent-to-own buyers to call the listing agents of properties they are interested in to determine if the seller might consider rent-to-own or to see if the real estate agent has any other listings where the seller would consider rent-to-own.
“Hi Sally, my name is ___________ and I was calling about the home you have listed at _________ (the address). Is it still available?”
After they say “Yes, it is.” I would say,
“Can you tell me more about the home? How much is it and how large it is?”
Listen
