Real Estate Investing with Brian Evans Jr.
"Prescreen Your Buyers"
Over the past few weeks, I’ve been walking you through the exact steps that your business must be built around for buying and selling houses. Now it’s time to learn how to prescreen your potential buyers! You must prescreen buyers the same way you prescreen your sellers. The systems are very similar. First you must gather the facts. Just like you gather the facts from your seller, you must gather the facts from your potential buyer. That’s all you’re doing here, is gathering the facts.
The facts that you gather will allow you to make a decision. You can’t make decisions based on stuff that you don’t have facts on. Okay, if you’re using Google Voice, you take the calls, the caller leaves a message and then you call them back. And then you’re going to determine if they’re a prospect buyer or a suspect buyer.
If you’re using PATLive, then PATLive is going to prescreen them and now you’re going to determine based on that information if they’re a prospect or a suspect.
I have an Ultimate Prescreening Buyer sheet that I use for my buyers. We have one when we’re buying, we have one when we’re selling.
Very simply, there’s a whole bunch of stuff on here but really there’s a few star items that you absolutely must get from your buyer when they call. The first thing you need to know is how are you interested in buying? Lease to own, owner finance, cash purchase, you know, what type of buyer are they? You need to know that, because if they’re not a lease option or terms buyer then there’s no point in asking really the other two or maybe even three items.
If they’re an investor buyer, cash-out buyer, then really it’s going to focus only on price. So, you need to know what type of buyer they are, okay.
If they are a terms buyer, then my first question is, “What’s the most you can afford to pay monthly for your new home? Mr. Buyer, what is the most you can afford to pay monthly for your new home? What is the most,” emphasis, okay? You know, if you want to get real funky with it or serious, “What is the most you can afford to put down on your next dream home?”
We’re going to talk about the magic words so I’m not going to get too far into right now, but the next question is, “How is your credit?”
And your credit should be simple. “Is your credit good, bad, or ugly?”
Once you get that information, then it will allow you to determine if you want to go to the next step with them. If they have no money down and a terrible monthly payment and their credit sucks, why even waste the time on asking the other questions?
I guess I should apologize for some of my slang, but you get a lot of junk. So, I’m trying to get in your head that that junk can consume you. Don’t let it! So, my southern slang and annoyances come out in some of that, but it doesn’t matter. Focus on what matters. Focus on the important stuff. Don’t be overwhelmed and consumed by the junk.
So, always get the most important facts first from a buyer, “How do you want to buy your new home? What’s the most you can put down? What’s the most you can pay monthly and how’s your credit; good, bad, or ugly?”
Get those first and then we can move to the other stuff.
So, we’re going to weed out the suspects. They must have at least one of two things, cash or credit. That’s it. If your buyer doesn’t have cash or credit, they’re not a buyer. They’re a suspect and move on. You’re weeding them out. Cash or credit, or both.
If they have cash and no credit, then you can do lease options. If they have credit but no cash, then maybe they can cash you out. If they have a combination of both then you’re going to do whatever you can do.
We sell our properties based on what the market is doing and what the market wants for that house. So, the better you can get at buying, the easier it will be for you to sell. If you can allow the market to tell you what that property will allow you to do, that’s the way to do it. Does that make sense?
Okay, so if you buy all cash you’re stuck selling all cash. If you buy on terms, you can sell cash or terms. So, let the market tell you what they want to do and let you decide based on the numbers that come your way.
Anyone who doesn’t have cash or credit is a suspect. Move on. The only other word I would add here is quickly. Do not waste time. You’re not going to turn a suspect into a prospect. And you can always leave the door open. Let me say that again. Always leave the door open. You simply thell them, “Hey, if your situation changes feel free to give me a call back. But based on what you’re telling me in our guidelines, it just doesn’t work. We can’t do anything for you. You might be better off renting for another year and then come back.”
We have lots of people that come back say, “We spoke to you a year ago. We’re ready to go now.” So, always leave the door open, always, and they’ll come back.
Once again, remember to always get the most important facts from a buyer first! They are:
1. How do you want to buy your new home?
2. What’s the most you can put down on a new home?
3. What’s the most you can pay monthly for your new home?
4. How is your credit: Good, Bad, or Ugly?
This information will allow you to weed out the suspects from the prospects and move you one step closer to closing quickly and getting paid!