Wholesaling/Flipping Ugly Houses: Prescreening Assistance

Ron LeGrand

Feb 03 2011

Part 4, by Barbara “BJ” LeGrand Cockrell

Are you thinking like a millionaire and asking yourself “What Would Ron Do?”

If so, then you already know that your best bet is to get someone else to prescreen your prospects. If you are a registered Gold Club member and haven't already downloaded your copy of the “For Sale By Owner Information Manual” from your member website, then what are you waiting for? Do it now and you'll see that Ron recommends paying a FSBO investigator $3.00 per completed Property Information Sheet.

Even if you are suffering from those self-imposed limitations that Ron warns you against (and which will quickly go away after you get your first “shut up” check), surely your time is worth more than $3.00 per sheet, isn't it? Ron advises that you make sure they provide you at least 15 lead sheets per week. If one such lead could result in $30,000, wouldn't you agree that $45 a week could be a good investment in your own success? Hand that FSBO Information Manual you downloaded to your FSBO investigator and there's your training package.

If you're wondering about how to hire this much needed resource, try Elance.com. The site is all about hiring online workers, otherwise known as “virtual” employees. A good rule of thumb is to actually take on 2-3 virtual assistants to call FSBOs for you. That way, you can train them at the same time and over the next few weeks, see which of the three turn out to be dependable producers for you.

Schedule training with all 3 at FreeConferenceCall.com. Go over the rules and let them call you to test their ability. You can expect that at least one will fizzle out on you. Getting this task done each week is as important to your success as food is to a restaurant. This is your buying machine. If you don't crank up your buying machine, you have no business, no checks, no deals; in other words, you're out of business. So treat this as a vital part of making your business work. Here's the rules you should follow:

Rule 1: Pay - once a week on Friday by check in the mail

Rule 2: Leads - set minimum and maximum numbers they must bring in to stay in your system

Rule 3: Accountability - they must get stars completed on the property information sheet

Rule 4: Timing - they must email leads same day they get them

Rule 5: Follow up - 2 conference calls a week, with face to face meetings as needed

Now, if you need a refresher on how to find your pearls in a bushel of oysters, go to the Gold Club website. In the Webinars/Teleseminars area under the Resources tab, you can locate and listen to these training audios which you'll find right next to the information manual download:

• “How To Find, Train and Pay Someone To Call FSBOs Lesson 1”
• “How To Prescreen FSBOs Lesson 2”

Get your assistant(s) to call FSBOs from the online sources that were provided in my previous Weekly Report article, “Locating Lots Of Leads.” You'll also find numerous other sites in your information manual download that your assistant(s) can use to find a wealth of FSBO prospects in your area.

You WILL Be Tested

Here's your pop quiz:

Do you know the 4 critical ingredients that must be completed on any property information sheet to determine whether it is a suspect or prospect?

Here's your answer:

1) asking price

The problem is many people simply don't ask what the seller wants (since you're dealing with FSBOs) and there is no other place to get the asking price than from the seller.

2) estimated value

What the seller wants and what the estimated value of the property actually is can be two totally different things. Do your homework and get ready to educate the seller.

3) what is owed (mortgage information)

Existing mortgage information is absolute critical information to get. Would it make you uncomfortable if the seller told you it's none of your business? Don't be because you are dealing with a suspect, who will only steal your motivation. The information is easy to get from prospects that are anxious for you to solve their problem. If you are dealing with a suspect you won't like the conversation.

Your income depends on the performance of your assistants. Train them to get debt information which will either be current, in arrears, or free and clear.

4) minor/major repair needs

Both the asking price and the value are critically dependent on this piece of information, and it's essential that you recognize and nail (pun intended) the full extent of, and costs associated with, all repairs - minor and major - that the property will require to insure it sells. The good news? Done right, repairs making a pretty house of an ugly one can net you greater profit than the sum cost of the repairs made. Have you thought about training an assistant to provide comps as well? Do it, and do it right.

Finally, make sure that you do not talk to the seller until after determining his/her status as a prospect as defined by the results of your Property Information Sheet. Having discussions any time before that is non-productive and wasting your valuable time.

Given those rules, it is likely that in averaging 15 lead sheets per week, that perhaps 3-4 will warrant further discussion as viable prospects.

Is there any reason why you can't do this? Nope. GET TO WORK, use what Ron's taught you, and realize your dreams.

Previous articles in the “Wholesaling” series by Barbara “BJ” LeGrand Cockrell:

1) Wholesaling/Flipping Ugly Houses

2) Wholesaling/Flipping Ugly Houses, part 2: Locating Prospects

3) Wholesaling/Flipping Ugly Houses, part 3: Locating Lots Of Leads