Here’s a question for you: Is selling an art, a science or a skill? Any salesperson (and if you are in the note business you are one) that identifies as such knows the answer is all three. Perhaps that is why so many people find it such a challenging and rewarding career.
One of the toughest parts of selling (getting the note older to accept a discounted price) is closing – recognizing that magic moment when the note holder suddenly is ready, even eager, to sell their note to you. Unfortunately, that moment can be hard to see, even for the most seasoned note brokers and note buyers.
Here are some things to look and listen for when interacting with note holders to help you nail the sale.
Visualizing and Ownership Language: Listen to how the note holder describes their need for a lump sum of cash. Are they speaking about it as if they already have it? For example, they might say, “I wonder if I can get that new car I was looking at?”
Follow up, Repetition and Extras: Is the note holder asking for more details about something you have already discussed or a clarifying point that was made (for example, “Now how does that partial option work again?”)? Or are they asking if they might be able to get a little more than you offered or if you can update an option you gave them a few months ago? These are positive signs.
Asking Permission: When you are on the telephone, do they say they have to run the numbers by another person (for example, husband, wife, accountant, lawyer). They might even seek permission from you by asking about other note holders experiences, like how many have sold a partial versus selling their entire note and why.
Questions about Money and Fees: Sometimes when a note holder muses out loud, it really means they ae nearly ready to sell their note. They just want some reassurance that they are making a wise choice. For example, they might say something like: “It seems like a great deal, but it just seems like I’m losing money.” Remind them of the reasons for the discount – that what they have is just a promise to pay and not a guarantee- how selling their note will save them time, money and stress in the long run and that a lump sum of cash in hand is better than those small monthly payments. What you are doing is easing their mind that they won’t have any reason to regret selling their note.
These are just a few of the ways to recognize when the note holder might be ready to sell. Practice listening for these and other signals note holders divulge while you are communicating with them and you will soon see your acceptance rates go up. Be kind, keep safe and stay healthy. Remember success demands action, keep on marketing, it’s going to work! TWITA! (That’s What I’m Talkin’ About!)
Jeff Armstrong of Armstrong Capital has been a note investor and broker specializing in the performing seller financed note industry since 1991. For more updated and current information on how he can help you with your note business, note investments, note appraisals or to request pricing options on a note visit www.armstrongcapital.com to email him and subscribe to Jeff’s Weekly Training & Tips Newsletter.