Armando: The fact is, you do not have to screw people to make money in real estate. That is horrible! So, now I am going to show you the beginning process of how to do an ownership take over. Let us go and find a house. Hello!
Male: Hey, Armando.
Armando: How is it going?
Male: Good. How are you?
Armando: Good. It is an amazing house you have here.
Male: Is it not?
Armando: Yes. So, you called me and I understood that is part of your payments.
Male: Yes.
Armando: My question for you is this -- how far behind are you on your payment right now?
Male: Right now, it is just one payment. I mean, just last payment basically but that puts me about $2,000.00 behind.
Armando: Plus taxes and insurance.
Male: Yes.
Armando: Now, did you see the negotiation strategy I just used? He said about it is about $2,000.00. So, homeowner is naturally going to lowball himself, so I said plus taxes and insurance. And he goes, yes! So, watch how I go, and I build on that to make the problem even larger in his head than what it actually is. So, how much do you owe on the property?
Male: Right about $220,000.00 but it is worth more like $325,000.00.
Armando: As you could see, we have a problem. He feels that the property is worth more than what is actually worth because I pulled comparable and it is actually worth $300,000.00. So, we have an instant problem. He thinks it is worth more than what it is. So, what I have to do is I have to start increasing in his mind the margin of profit, so that I can do this ownership takeover. I have got to make it makes sense for him.
Okay, I have done some comparables in the neighborhood and it is actually worth close to the $300,000.00. So, here is a thing. Is $300,000.00 unless you are doing closing cost and you start having this year’s taxes because you told me the payments was $2000.00 a month. You did not enroll taxes and you did not enroll insurance, you are not scored in. So, that means, we owe all this year’s taxes and insurance. You see? Plus your closing cost plus your realtor fees on a $300,000.00 piece of property. That is a lot of money. That is not going to leave you very much money to walk away with if anything plus any kind of repairs because most homeowners want to own a house in perfect condition. Does that make sense to you?
Male: Yes.
Armando: Let me ask you a question. What is it here that you are really after? So, what I am doing in his mind is I am reminding him by a simple negotiation technique, I am reminding him to reflect on why the hell he needs to sell his property to me and sell it right now.
Male: I guess, I kind of a way. I do not know. I am behind on payments. I mean, the times are tough right now and I lost my job, I got laid off. I am also looking for more jobs. I just do not want to screw up my credit in the mean time. Because I know, I wanted to -- I will be back in my gallery at the barn and I will have a job but in the meantime, I do not want the house to be foreclosed on. I do not want to screw my credit completely.
Armando: Right. And what happens if you start missing credit payments right now? It will screw up your credit. And right now, if you do not have absolutely perfect credit, there is not a bank in America that is going to grant you a loan. And the thing is, as you are counting, and the fact that you are going to get a job in a month or two. Do you know that for sure?
Male: Not the way things are on the others.
Armando: It could be three or four months.
Male: Yes.
Armando: It could be five or six months.
Male: Good.
Armando: I have known people who go out looking for a job they are here with us nine months later. Their house is going to foreclosed on. So, what I want to be able to do is I want to be able to help you. The best way it seems I can help you is I could take that problem of $26,000.00 a month off of your mind. Right?
Male: Yes.
Armando: If I get the problem of $26,000.00 off of your mind, then that will be huge for you, right?
Male: I agree.
Armando: And the other thing is this, you saved your credit.
Male: Yes.
Armando: And if I can do those two things. If I can save your credit and take that monthly problem off of your mind, do you think we can do a deal?
Male: If you can do that, yes.
Armando: If I can do those two things?
Male: Yes. I mean, that would make a difference to me. Yes.
Armando: All right, perfect. So, watch your e-mails tomorrow, so I can explain to you how this process works. You go, “I cannot afford $2,600.00 a month.” That is no big deal. That is no problem. We are going to get somebody else who can afford this $2,600.00 a month.
But you see what he just did. I just had him do two things. I had to do him admit that he needed to get out of his payment and he wanted his credit saved. So, here is the beautiful thing, he does not looking out to sell me the house. He is not looking to make a profit form the house. He is simply looking for me to save his credit and help him to get out from underneath to get away from that payment. Again, do not worry if you can make the payment because we will put somebody in place to make that payment. So, stay tune to your e-mails tomorrow and I will show you some really critical stuff on how this process continues to work.
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