When you’re a real estate investor, chances are you’ll run into a seller who has objections from time to time. They’ll have questions or concerns about ‘Subject To’ loans, and while some will be quite easy to answer, some may require a bit more knowledge and finesse.
In my Unlimited Funding Program, you get a lot of information about how you can bypass the banks and purchase investment homes to continue to build your wealth. In my modules, I teach you step by step how to handle common objections when working with clients.
Level 1, 2, or 3
A common mistake people make is answering an objection in a detailed manner, when a short and simple answer would probably have sufficed. You don’t have to blurt out everything you know when dealing with common objections. There are various levels – Level 1, Level 2, and Level 3 – that you can work with in handling any objection.
As you study my modules, you’ll learn better how to handle objections in a professional manner, while keeping you and your client on track. For example, let’s say you are purchasing a home ‘Subject To’ and the owner of the home asks you if he can purchase another home, even if the loan stays in his name on the property.
Now, answering Level 1, you’d simply tell him, yes, he could get another loan from a lender, even if his name is still on the loan. You tell him that he could show his lender the rental agreement, letting him know that someone else is making payments, and that gives them credibility with a lender. You just offer him the basics.
Now, if he persists and tells you he’s afraid he won’t be able to get another loan, you can go to Level 2. You can let him know that you understand and you’ve had other clients with the same concern. You can tell him that you’ll provide the cleared checks and he can show the lender. You can assure him that a lender will be able to credit him a minimum of 75%. That’s handling the objection from a Level 2 standpoint.
If he is still objecting, that’s when you move to Level 3. You go over income to debt ratio with him, and continue to follow what the module says.
Learn the modules
See, if you study the modules well and follow them, you’ll be better able to know whether to handle objections with a Level 1, 2, or 3 answer. You want to keep it short and simple and go deeper only if you must.
I understand that many of you are quite organized and detailed. Those are great qualities when you’re building a business, but you’ve got to learn how to control it when you’re sitting there with a client that has objections. Give him information, but don’t give him a whole seminar when a short answer could suffice. Handle the objection and then keep it moving. If the client isn’t quite satisfied with the answer, he’ll come back to it, but let him have that choice.
Remember, not every objection is a full-blown objection and many simply need a short, simple answer to give some clarity. Over time, the more you work with the modules and the more you practice, the easier it will be to handle objections. As with anything, it simply takes time and practice.