This is a true story. It was an average Tuesday morning. I was sipping on my Monster Ultra White while checking emails when my first call of the day came in. I answered the phone enthusiastically. However, what I heard turned my stomach.
“Listen, I don’t want a bunch of B/S. I would just like to know how much you will give me for my note! But there are always strings attached to this crap!” – Nameless Note Holder
How can you as a note professional turn this unhappy note holder into a note seller?
I’m going to walk you through how to turn this statement into a positive. If you can master the art of turning negative remarks into positive responses, you will be a true negotiating master.
When negotiating, both positive and negative comments give you an opportunity to build trust and rapport with note holders. In fact, a negative comment that turns into a positive conversation will have a dramatic improvement on your note holder conversion rates (both getting them to verbally accept a price and in closed transactions). This is exactly what happened for me.
Step 1: The initial response. Think of your response as an FAQ. This is your chance to address a concern that others may not have. If one note holder feels this way, you can be sure others feel the same as well. The wonderful thing about answering the phone these days is that you can have an actual conversation. This is the moment to address the issue and turn that concern into trust.
Start off by putting their concern into context as a direct question. Restate and reframe their concern as a question, but nicely, and describe the reason you think this note holder has an objection. They will be free to clarify this in their response.
Next, in the same statement, answer that question. Frame your reason in a way that shows how it benefits the note holder.
Here’s my actual response.
“Hi Nameless, I assume the strings you’re referring to include people you have contacted are asking detailed questions about your note.”
Then, explain the reason and how it benefits the Note Holder:
“The reason for this is that providing a price without having any detailed information about the note will be inaccurate and either disappoint you or be wildly over optimistic. If I asked you to tell me how much my shoes cost, wouldn’t you want to know the brand, style, etc? Better yet, wouldn’t you want to confirm their quality by actually seeing them for yourself? If you just want a ballpark figure, I’m sure any novice note investor can provide that without any “strings” attached. If, however, you want a professional accurate opinion, any Note Investor worth their salt is going to ask you about how the note came about, the terms of the note and even ask to see a copy of your note.”
Step 2: The second response, your statement may not move them to respond. If it doesn’t you can feel confident you responded well. However, if it does it may come across as a bit defensive or rude. Considering the initial comment was rude. However, have no fear. This is where you get the one-two punch of winning them over.
In this case here was Nameless’s response.
“Well why don’t you just ask. I am interested in selling my note but I do not want every Note Buyer bombarding me for copies and information. Can you understand this concept?”
Unfortunately, this comment comes across belittling. However, his concern is valid. Fortunately, I recognized that and only addressed the concern, ignored the rest, and communicated a clear next step.
Here’s my response.
“This particular phone call is only connected to me and will not trigger an onslaught of calls from other note buyers. I’m the guy that writes the check and makes all of the final decisions. If you have a few minutes, I would be happy to ask you a few questions and talk through what I would need to give you accurate professional options and prices for your note.”
Step 3: Don’t pressure, give them some time. If you have reached a mutually pleasant conversation now is the time to offer a way of resuming the conversation by asking if they have time now or would like you to call back when they have the note and closing statement in front of them. This is the early stages of a relationship. In this case the Note Holder indicated he wants to sell his note, he is interested in pricing options, and he is willing to have a conversation. By any measure they are now a qualified lead.
Here was Nameless’s actual response.
“Thanks. I didn’t mean to be rude. I just do not like to be bombarded. Jeff, I’m going to keep your info and give you a call in after lunch and be sure to have the note ad documents in front of me.”
Longer story short, I ended up buying his note and helped him get the cash he needed. Turning negative comments into positive relationships is all about the response. It doesn’t have to be an “art”. Instead follow this simple formula. Also, remember that while you cannot control the other person’s response you have complete control over your own. People will recognize your professionalism and if you address their concern, they will be much more willing to work with you as they now have a bit of insight into your professionalism and character. 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.