Distressed Property Blog

Let’s talk shop today.

Today’s advice is about active listening. No, no… this is no Oprahesque-feel-good-chit-chat / Kumbyaya-drum-circle advice; this is sales talk people, so listen up.

When you, as a person in a position to invest in a distressed property, sit down to strategize your next investment, remember that behind every distressed property is a distressed property owner. This person may have simply gotten in over his or her head because he or she threw caution to the wind and took big risks, but this person may also be dealing with some heavy stuff. I know from first-hand experience that there are a lot of distressed property owners out there that would have been able to hold it all together had some tragedy not struck. A lost job, a disease or injury, a death in the family—these are only a few of the situations in which many distressed property owners find themselves. So how does that knowledge affect your game plan?

It’s simple. Sure, you want to make money. Sure, you know the market and you know the way these things work. But don’t be a bull in a china shop. The first thing you should do is listen—not sell. Understand the distressed property owner’s situation. Be empathetic. Reassure them that you understand that even thoughtful, responsible people get into bad situations. Once you understand the distressed property owner’s unique situation, then it’s time to offer some suggestions.

This is not a hard sell approach. Rather this is you counseling the distressed home owner. Can you help them negotiate their way to a short sale where everyone wins? Explain to them the process, and gently demonstrate that you have done your homework—that you know lenders and you know the market. But most of all, let the distressed property owner know you are in his or her corner.

Once you convince the distressed property owner that you are on the same team, it will be amazing what you can accomplish together, but it all starts with being a good listener.