Armstrong Capital Newsletter
August 2005
Jeffrey R. Armstrong, President, Armstrong Capital
Well the searing heat of the summer is upon us. It was 107 degrees here
yesterday, I hope it is cooler where you are. In this month's newsletter I want
to give you some more sizzling negotiating questions and one-liners taken
directly out of my “Scripts and Tips” book. The statements below are not meant
to be read directly to the seller but used one at a time with different sellers
until you find one that works for you and that you feel comfortable with.
Below are my top ten things to say to Note Holders in trying to find out if they
really have a need and in trying to get them to accept our price:
1- "Gee that's a great note! Why would you want to sell that?" (see the July
newsletter)
2- “It’s probably nothing that you would be interested in but I thought I’d run
it by you. … Now suppose I could do something like this, and I’m not even sure
that we can, would you like me to go over it with my underwriter?” (To narrow it
down or get a precise quote, etc.)
3- Repeat objections that the seller brings up. “I can understand that this
might be a bigger discount than you expected and while it may not be the best
idea to sell your note at a discount, would you like to hear about why other
people sell their notes?”
4- When negotiating SILENCE can be a wonderful tool. When you are silent the
person on the other side of the line, the seller, may start to tell you more
information that can be helpful in knowing what to offer or which way to go,
full or partial, etc.
5- “Would you like a cashier’s check or a wire?” This question helps the seller
see just how quickly they can get their money even though we have not started
anything yet.
6- (Add up all of the interest, payments, balloon, etc = TOTAL) “When you sold
your property and agreed to hold the mortgage you didn’t sell it for
$_____(TOTAL) did you? The principal balance when the mortgage was written was
only $_____. For the same reason that you are entitled to receive $_____(TOTAL)
over the term of the note has little relevance to its face value. The same as
the payments I will receive upon purchasing the note has little relevance to
what I am offering. So you can see the similarities between what I am doing now
and what you did when you decided to hold the note.”
7- “Would you pay me $100,000 today to get $100,000 _____ years (term of the
sellers note) from now?”
8- “Interest is only rent on my money. The lower the interest rate and the
longer the term, the bigger the discount.”
9- “Let me ask you this. When you were a child how much did it cost you to go to
the movies? _____ and how much does it cost now? _____ do you see that the value
of money today is worth less than the value of that same money yesterday?
Therefore, the cash I have to wait _____ years (term of the note) from your note
will be worth less in the future than it does today. On the flip side, the money
you are going to receive today is worth more than it will _____ years from now.”
10- “I can understand why you don’t want to take a discount and one alternative
I can do for you is to purchase a partial. Imagine having the cash you need now
and retaining the balance of the note!”
Practice some of these phrases and questions in front of a mirror. See which
one’s you feel comfortable with and then try them on the next few note holders
that contact you.
Next month I will continue with the process and I’ll share with you my “Price
Letter” that I will send to a Note Holder when they are interested and want my
prices put in writing.
Keep cool this summer! Talk to you next month!
Jeff
P.S. I will be attending and presenting at the 2005 NoteWorthy Convention in Las
Vegas September 22-25, 2005 at the Tuscany Hotel. Check out
www.noteworthyusa.com for more information on how to register and attend. I will
be doing a couple of pre-convention workshops as well as some convention
workshops. If your niche is real estate secured notes you will definitely want
to attend this convention.
For more great strategies, don't
forget to check out Jeff's informative cash flow books for Scripts, Tips,
Marketing ideas and more! Click
here today!
http://www.armstrongcapital.com/AC Products.htm
Jeff's Newest Book,
Personal Cash Flow Prosperity:
How I Successfully Run My One-Man Note Business
with Tail Ends: How To Keep A Piece Of The Action
is available online for only $67.75 at http://www.armstrongcapital.com/ or by clicking on the "buy now" button below
Also, be sure to purchase Jeff's book combo package which includes his marketing book "Every Single Profitable Note Marketing Idea In The World (almost)" and "Scripts & Tips" for ONLY $75.00 by clicking on the "Buy Now" button below
Jeff Armstrong is president of Armstrong Capital. He is a member of the Million-Dollar Club, a Master Broker, visiting instructor for the American Cash Flow Institute, and the author of three best selling books. He can be reached by calling 818-884-2322, faxing 818-884-1723, e-mail jeff@armstrongcapital.com, or visit http://www.armstrongcapital.com and click on "Note Brokers" for questions and information about his Master Broker services, Mentorship program how Armstrong Capital can help you succeed.
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