Armstrong Capital Newsletter
July 2011
Jeffrey R. Armstrong
President of Armstrong Capital
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July is here and summer is in full swing. I did some bass fishing, hit the beach a few times, had some great barbeques and closed several note transactions as well! I am still receiving lots of comments and positive feedback from my newsletter subscribers on my Examining the Mind of the Note Holder and this month is the final segment Part 3 of 3. There are even more reasons listed and the proven responses for you to use and tweak for your own note business. The Reasons for Not Selling correspond with the Best Proven Responses below. Have you heard some of these responses? I'm know some of the following will resonate with you.
3) - I really don't need the money right now
4) - I like the monthly income
Best Proven Responses:
1) I appreciate that Mr. Seller and that is why we can make you a great offer on your note today. If you begin having "problems" what do you think happens to the risk and value of your note? Do you think the value of your note will go up or down? (Pause) That's correct (or not correct) - your risk increases and our risk also increases which would mean that I would have to pay you less than I can today if you start having "problems" with the note.
2) & 3) & 4) This one can be tough or it can be a fun one. I might joke with them and ask if they would give me some money. Then I tell them how it would benefit them to sell now and get the money into something that will make them more for their kids, their retirement, etc.
What typically stops them in their tracks here is asking them what they do with the monthly income. Are they paying bills, are they saving it, or are they just blowing it? Then you gently point out that at the end of the note unless they have invested it, they will have zero. Whereas if they take a large lump sum they will more likely invest it and watch it grow. Or even pay off their own debt so any income they earn will be theirs to do with as they please.
2) - Need more money, owe money on home
3) - Wary of the companies legitimacy
Best Tried and True Responses:
1) & 2) First of all if you do not set the seller's expectations on the very first phone call you will hear this type of reason many times. You should not hear this on the second phone call, if you do you need to re-examine what you say on your first contact phone call then do it and make sure they know right up front where their expectations should be. If this still comes up when you present the options then ask lots more questions. How much were you hoping for? What were you planning on using it for? How long would it take to come up with the difference? If they need more money due to a wrap-around or AITD, remind them of the reasons they don't like the current wrap. Tied up credit lines, being left with large debt if buyer defaults, less buying power due to debt to income ratios still on their own credit. Sometimes you can show them that they are better off selling the note and bringing money to the table to walk away from the situation.
3) This doesn't come up too often. Explain the initial mortgage purchase agreement and the purchase contract. Explain to them that we actually obtain a title policy at closing and would not be able to just randomly claim ownership of the note if we had not provided money. Simply state that "even if we were to have you send us the originals in the mail and not send you your money, you would simply instruct the borrower not to pay us. You would have an executed agreement that you signed in front of a notary that would show we were liable." Talk about paper trails and offer to close at a title or escrow company or real estate attorney of their choice (and at their cost) if that makes them more comfortable.
The bottom line with all of these responses is to keep the seller talking. There is no one response or one-liner that I can give you that will make the seller says yes every single time, no golden phrase. I think the key to being successful in the note business is getting to know the seller and "really" listening to what they say. In return the seller begins to know and trust me. When I get them to let their guard down I can typically find out what the real reason is they called. Once in awhile they really are "just curious". However, most other times they aren't. Sometimes you will find out the real reason for their call on the first phone call and other times it may take several conversations. Sometimes when I call to follow up I just call to check in on them and say hi without even bringing up their note and I let them bring it up. Then we go from there.
Jeff Armstrong
Jeff's Speaking and Instructing Schedule
Location Date Event
(click for info)Scottsdale, AZ July 22-26, 2011 Real Estate College
Los Angeles, CA Fall 2011 - tbd Secrets of Paper
San Antonio, TX ? Fall 2011 - tbd Note Symposium
Los Angeles, CA December 2011 Marketing Me
Contact Jeff today for information about having him Speak to or Teach your group!
In a few short weeks the very first edition of Calculator Secrets
will be ready for delivery.
You can pre-order your copy today and receive special early order pricing. Calculator Secrets will be sold for a regular price of $97.00. When you pre-order you will only pay the special early order price of $77 and the best part is you will also receive FREE the 76 page E-Book supplement to the publication (regular price $24.99) as a bonus at the time of delivery! Pre-Order your copy TODAY! **
Click here to read more about Calculator Secrets and how to pre order!
In depth and practical, the total "Rainbow Package" of Jeff's books including Scripts and Tips (with new industry documents disc), Every Single Profitable Note Marketing Idea In The World (almost) (with Note Holders Handbook on disc), Personal Cash Flow Prosperity (with 2 audio CD's), the Note Holders Handbook and the Glossary of Real Estate Note Terms. Purchased separately you would pay $216.22.
But that's not all! As a 2011 Special I will also send you the Secrets of Paper 101 audio CD set - A complete recording of the live SOP 101 beginner's workshop (regularly $149) for FREE!!!
You will receive the Rainbow Package of books and the SOP 101 audios (regularly $365.22) today for only $175.00! That's over 50% off!!! What a great way to start and grow your note business. Order TODAY!!! Just click the link below. TWITA!!!
If for any reason this button does not work for you just send an email to info@armstrongcapital.com and we will make sure you can take advantage of this special offer.
Jeff Armstrong is President of Armstrong Capital and was the Editor of the NoteWorthy Newsletter from 2006-2008. A current practitioner in the seller financed note business since 1991 he is a member of the Million-Dollar Club, a Master Broker/Buyer, visiting instructor for the American Cash Flow Institute, Instructor for Nouveau Riche and the author of several best selling industry books. Visit www.secretsofpaper.com to learn about upcoming workshops and events and go to www.armstrongcapital.com and click on "Note Brokers" for answers, articles and information about his Master Buyer services and how Armstrong Capital can help you succeed. He can be reached by calling 800-845-3055, faxing 818-449-4840, e-mail jeff@armstrongcapital.com.
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