Episode Transcript
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Speaker 1 (00:00):
All right guys,
welcome back to the King Closer
Reacts.
Today I'm gonna be reacting tothe man known as the expert when
it comes to pre-foreclosures,michael Franke.
So he has a YouTube channelwhere he posts a lot of valuable
information, live seller callsand a lot of information about
how to deal withpre-foreclosures.
(00:22):
And today, what I'm gonna bereacting to is him talking to a
seller who's in pre-foreclosures.
And today, what I'm going to bereacting to is him talking to a
seller who's in pre-foreclosureand to see how he navigates
that conversation, how hehandles the seller's situation
and whether or not we're goingto find out.
Is Michael Franke a closer?
Let's get started.
Speaker 3 (00:48):
Hi, is this Rebecca?
Hi, rebecca, my name is Michael.
I just gotten your informationabout your place on Moore Street
there and wanted to connectwith you and see how I could
help.
Speaker 2 (00:57):
Yeah, I was just
wondering what the process was
and how it all works.
Speaker 3 (01:03):
Yeah, so we'll have a
conversation here and kind of
go through your.
I was wondering what theprocess was and how it all, I
guess, works.
Yeah, so we'll have aconversation here and kind of go
through your situation and seeif we're a good fit to work
together.
And if we decide that we are,we can set up an in-person
appointment where we can have adeeper conversation and at that
point, if we decided that wewere a good fit, we could write
it up and move forward.
(01:23):
And if not, no big deal.
I can just give you all theresources I have to get you
going in the right direction.
Speaker 1 (01:30):
So very, very common
like start to a highly motivated
seller that is in a situationlike a pre foreclosure.
I want to understand how theprocess is going to play out.
What is your process?
He did a great job ofnavigating that, I will say.
Obviously he does somethingdifferent than what I do.
(01:51):
He does in-person appointments.
That's his objective with thiscall.
So I would assume that a victoryin this conversation is a
scheduled appointment.
The reason why I don't have aproblem with that whereas
typically you guys know I preferto get a signed contract before
we go out is because this is apre foreclosure and because it's
(02:14):
a pre foreclosure, that istypically a very time sensitive
situation.
So they, michael, wants toschedule a in-person walk
through the property, sit downand go through all of the things
that he can do to help them intheir situation prior to getting
them under contract.
So I don't have a problem withthe fact that that's michael's
(02:34):
process, because it is hisprocess.
It's how he's he feels is bestsuited to handle, uh, the
pre-foreclosure situation andsolve the seller's problem.
So I don't have a problem withthat whatsoever.
He did a great job of liningout hey, this is how it's going
to work.
Love how he puts our guard downearly on, like, hey, if it's
(02:55):
not a good fit, no harm, no foul, I'll give you all the
resources that I have.
So I really love the start ofthe conversation, especially
considering the fact that weknow this is a pre-foreclosure.
Speaker 2 (03:08):
All right.
Speaker 3 (03:10):
Well, catch me up to
speed on what's going on.
How can I help?
Speaker 2 (03:12):
There you go Well.
So we both, my husband and I,both work for your little friend
.
We're in chapter 13 because Iwas off 10 months.
Speaker 3 (03:22):
Oh, I see.
Speaker 2 (03:23):
Ramsey Hunt syndrome.
Speaker 3 (03:25):
Oh, what is that?
I've not heard of that before.
It's like shingles, but it's onthe inside of your body on the
nerves and stuff.
Speaker 2 (03:32):
So I had a lot of
residual damage and things like
that from nerve damage.
Speaker 3 (03:37):
Are you doing better
now?
Speaker 1 (03:40):
Yes and no, I've been
back to work for three months,
but I don't think I can maintainit.
It's just the pain is comingback, it's intensified by stress
.
More often than not there'sgoing to be something like this
(04:04):
seller situation here thatcaused them to fall into
pre-foreclosure, and it requiresa deep level of empathy from
you as the closer to reallyunderstanding their situation.
And I love how you just startedoff like tell me what you got
going on.
You know, tell me about yoursituation.
And, as you can see here, thishas nothing to do with real
(04:26):
estate.
This has nothing to do with thecondition of the house or
finances or anything like that.
He's really diving deep intounderstanding what has caused
this and with that open-endedquestion that he asked, she
wanted to talk about thesyndrome that she has and the
health issues, and so he'skeeping her on topic on that to
(04:46):
really get a deeperunderstanding of that.
So I really like how he'snavigated that Very soothing,
relaxing on the phone to theseller and obviously just got
her to open up, whereas you knowhe didn't just say well, tell
me a little bit about theproperty, tell me about the
condition, what's the size ofthe property, what's the age of
(05:09):
the roof, these things thatsometimes we fall into.
That's why I've already leanedtowards man.
This is Michael's going to havea great conversation here,
because he is thinking on adeeper level than the vast
majority of closers.
Speaker 2 (05:24):
I see so we're in
Chapter 13 because we have
equity in the house.
Speaker 3 (05:29):
Yes.
Speaker 2 (05:30):
That's the only
reason really that we do and our
company is going out ofbusiness, as I'm sure you've
kind of maybe heard but you'llafraid is on the verge of
shutting down.
Speaker 3 (05:41):
I did not know that.
Speaker 2 (05:42):
We both work there,
yeah, so we're looking and we've
had my husband's had this housefor 22 years.
You know we bought it when hewas like 21 and raise all our
kids there so obviouslyemotional stuff there, but hey,
shout out to the starting linethe shirt that michael's wearing
.
Speaker 1 (06:01):
Uh, that's the same
program that me and cassie are
part of for our health andfitness journey.
Shout out to our friends overat the starting uh, that's the
same program that me and cassieare part of for our health and
fitness journey.
Shout out to our friends overat the starting line.
Speaker 2 (06:08):
That's pretty cool I
didn't know michael was a part
of the the family there um, itdoes need work, like uh, you
know there's, it's like there's,you know kids being there and
different stuff.
You know so many windows in thegarage you know we just haven't
gotten it fixed.
I guess normal type shit, Idon't know, maybe it's more, but
(06:30):
they were just trying.
I was just trying to see kindof what the process was, how you
know like what percentage youguys usually pay on a house
compared to like the appraisaland stuff like that.
Speaker 1 (06:43):
I don't know so this
is an interesting point in the
conversation.
She's opened up about thehealth right.
She's opened up about the factthat both her and her husband's
company is potentially going outof business so they might not
have jobs.
She's also opened up about thefact that the house has equity.
They've owned it for 22 years,uh, and they're in
(07:04):
pre-foreclosure.
This is a very sensitivesubject because maybe there are
some refinances along the yearsthere, but probably quite a bit
of equity.
And so she's really openedherself up and kind of explained
a lot to Michael.
And now it's like I just wantto know the process, which she's
already asked.
(07:24):
That he kind of gave a goodanswer, but she's like I want
more.
And then she got into what doesshe mean by that?
What percent of an appraisal doyou guys pay?
So now she's kind of likeimmediately going to how much is
this going to cost me to gowith someone like you guys in
comparison to us just listingthe property and trying to get
(07:46):
as much as possible?
Very interesting turning pointright here.
I'm very curious to see howMichael's going to handle this,
because that's such a broadquestion and he really doesn't
have enough information toanswer it.
So it's going to be veryimportant for him to give enough
to make her feel comfortable,but also to follow this up with
a question to get her tocontinue speaking about her
(08:09):
situation and maybe what sheneeds out of this.
That's where you really kind ofwant to take this, is kind of
understand what she needs out ofthe property.
Speaker 3 (08:22):
It largely depends on
the situation.
The worse the house is,generally I want a bigger
discount, but we make thehighest offer we physically can.
Obviously, we're investors.
We want to make money, but wealso want it to be a win for you
and your family.
So it's one of those thingsthat it's just a little bit of a
trade of equity for speed andconvenience, and if it works,
(08:45):
great.
And if not, that's completelyokay great answer.
Speaker 1 (08:50):
Okay, cause he did
give enough information there.
I love the raw, authentic, likekind of brutal truth there.
Like hey, we are investors, wedo want to make money Love that
response Also being completelyhonest.
Like hey, we also want to takecare of you and pay as much as
we possibly can.
We want to make money and so wedo kind of have a barrier there
(09:13):
where you know it's a win foryou and it's a win for us.
So really solid response thereby Michael.
Speaker 3 (09:21):
Well, kind of tell me
about what your ideal outcome
would be.
Are you guys?
What's kind of your timeframe?
What would be your end goal?
Speaker 2 (09:39):
be what would be your
, your end goal?
Um, just to you know, pay offthe mortgage on the house and
then pay, you know, off ourchapter 13, or do whatever we
need to do to get out of that sothat we can, you know, afford
to live on whatever we findafter this okay.
Speaker 3 (09:50):
Are you wanting to
stay in blue springs or you
wanting to go somewhere else?
Speaker 2 (09:54):
Um, it doesn't really
.
I mean, we have one child stillin school, so I don't want to
move somewhere.
That's, you know, horribleschools.
But sure, um, or it's unsafebecause she's on the spectrum
and she's got you know she'sautistic, she has bipolar
disorder.
(10:15):
There's a lot going on, you know, yeah, yeah, um, but I mean we
do have options.
Like my mother-in-law has said,she can get a weekly, you know,
a three bedroom apartment withher if we had to.
Of course she works, you know,um, but I mean I, I just don't
really know kind of whereoptions are.
I think our mortgage on thehouse is at000.
And then I don't want to sayour Chapter 13.
(10:36):
I don't really know, but I knowit's at least $25,000, $26,000.
I'm not certain.
Speaker 3 (10:42):
Okay.
Speaker 2 (10:43):
And above that.
So I don't even know really.
Speaker 1 (10:48):
So he again great
question, tell me about what
your ideal outcome?
And he just got the seller tocompletely open up there.
Essentially he got an askingprice of that because her ideal
situation is to pay off themortgage and the chapter 13.
She said 80 and then 25 or 26.
So basically somewhere between105 and 110,000 is what she
(11:11):
needs for the property and heknows that.
Now it looks like he's staringat Southern Bright comps or his
CRM or something that he's gotpulled out to be able to have
information there on theproperty.
But again, without beinginvasive, he's been real.
He's been authentic and upfrontwith his questions and what he
(11:35):
needs out of this.
But by being a great listenerand by asking great questions
he's got the seller to reallyopen up and divulge a lot of
information that as investors weneed to know.
But the way that he's goneabout it has made the seller
just feel so comfortable in ashort time frame and, quite
(11:55):
frankly, the conversation hasonly been four and a half
minutes.
I mean excellent job by Michaelso far.
Speaker 3 (12:05):
Just because I'm just
don't be offended by the
question.
Are you current on yourpayments?
Speaker 2 (12:12):
So we are a short one
payment on the Chapter 13.
And our house is included inour Chapter 13 right now.
Speaker 3 (12:23):
Right.
So by missing that payment,they're probably going to hike
up the rates and all that kindof stuff.
Is that part of the motivationas well?
Speaker 2 (12:32):
No, my husband just
doesn't want to lose the house
when he works so hard for it.
Speaker 3 (12:36):
So we've it's the
funny thing that you call it.
I primarily help people out offoreclosure situations.
We've stopped hundreds over theyears and it's kind of my
passion thing because back in2015, I was a teacher and I
didn't have two pennies toscratch together and we got
behind on our payments and itwas a really scary time.
(12:56):
So that's kind of why I do itnow, because I would have liked
to have someone come beside meand guide me through all the
options and just be more of atrusted advisor type person that
helps me through.
Speaker 1 (13:10):
Great, great story
there.
I love the fact that he'sbringing up hey, this is my
passion.
We've helped hundreds of peopleout of this situation.
Why, that's his passion, notjust, you know, loosely thrown
around.
Oh, it's my passion to helppeople in foreclosure.
Hey, it's because I was in thisposition, I was there.
Right, he's putting himself inthe seller's shoes.
(13:31):
Um, I I love how he's reallykind of, uh, building that
credibility with the sellerright now as to like hey, I am
the guy to solve your problem.
Right now.
You're on the phone with them.
Speaker 3 (13:45):
We can, we can make
this happen so I'm help you to
happy to help you do that aswell all right.
Speaker 2 (13:51):
So you know the other
.
Um, yes, situation is umrecently.
You know, I don't know if it'srecently, but it's his father's
past and then my grandmother'spast, so our basement is pretty,
pretty packed you know, like wehave stuff that we've not been
able to go through.
That's so much going on yeah,yeah so I mean, there'd be a lot
(14:12):
of like you have to get storage, you know, and stuff like that
and and we're at.
Speaker 3 (14:17):
We try to see ourself
as a turnkey solution for you.
So of course, we could get youa cash offer.
That that's the easy part, buta lot of times it's the, it's
the finding the next house, it'sdealing with the stuff.
It's a lot of those smallthings along the road, um, so if
you need any help with that, wehave team members that can
assist you free of charge.
Um, so if you're interested, wecan help you with that.
(14:41):
Some people like it and somepeople think it's a little too
intrusive, so, um, we just offerit.
So what, what's kind of yourtimeline on this?
I mean, is this kind of a lessthan 30 day thing?
Is it a couple month thing?
Where is your headspace on 30days?
Speaker 2 (15:02):
or I don't, I know,
whenever it works out best.
Speaker 3 (15:04):
So something we could
do and I'm just offering this
we assuming we can get you anumber that you are happy with
we could close on the house andgive you post-possession time
many times 60 days or so andthat at least gets the money in
your account, lets you catch upany debt that you might be
(15:26):
behind on, and then it justgives you an opportunity to
breathe a little bit, and thenwe also assist with people
finding their next house.
So sometimes people like that,sometimes people don't.
I want to do the transaction.
However, you and your husbandare most comfortable.
Speaker 1 (15:43):
All right.
So I love the fact that he isbeing solutions oriented.
I don't necessarily.
This is like the first thingthat Michael's done.
That I didn't love, and thereason why is because he asked
what her timeline was.
She said 30 days.
She didn't really say like, hey, I need a lot more time.
She did bring up the fact thatthere's like a lot of stuff in
(16:07):
the basement due to the deathsin the family, but she didn't
really bring up an objection oflike, hey, we're going to need a
lot of extra time to get thisstuff out.
She just said it kind of existsand she would have to find
storage.
Uh, and so offering that youknow, lease back that
post-possession time uh kind offelt a little bit unnecessary
(16:30):
because I don't know what hisexit strategy is, if it's the
wholesale or if it's to takedown himself and to keep.
But that's always a hurdle thathas to be overcome on the
backside.
I wouldn't necessarily want tocreate that if it's unnecessary.
This felt a little bitunnecessary because she hasn't
(16:50):
really said like hey, I'mwilling to sell it, but I need
more time or I need 60 days tobe able to move all this stuff
out.
She just said 30 days.
I would have rather seen liketo run with that Cause.
That's the answer that she gave.
That's the first thing thatI've really seen and it's not a
big deal.
I mean, again, he has a processthat he follows.
(17:10):
That might be something he says, that every single seller
that's in this situation and hemight have a way to monetize
that with cause he has broughtup.
We can help you find the house.
Obviously, I'm assuming he's alicensed realtor he has a
brokerage that would help himwith that.
That could be a secondary wayto monetize this lead.
That might also be why he'sbringing that up as well right,
(17:33):
right, um.
Speaker 2 (17:34):
Well, like I said, I
think for us it's just hopefully
not like you know.
I don't know, I'm just notmoving on to that.
Speaker 3 (17:43):
No, we won't let that
happen.
Good thing is that since covid,the last three years, real
estate's gone up quite a bit invalue.
So you, you, you definitelyhave some upside, which is which
is great for you guys.
Speaker 2 (17:57):
Can I be hold for
just a second?
I think this might be ourlawyer, yeah.
Speaker 1 (18:07):
I love the fact that
he has navigated this
conversation.
He's really good at pausing andlistening.
I think overall it's been avery strong call, so this is a
prime conversation.
Speaker 3 (18:21):
This was an online
lead that came in.
Something you need tounderstand is I called this
person immediately.
You can tell that she's areally nice lady.
They've just gone through somestuff and there's definitely
motivation there.
She's kind of on the verge oftears a little bit.
So this is kind of our primetype of opportunity and
(18:42):
hopefully we can provide asolution to her.
Hey there.
Speaker 2 (18:47):
Hey, michael, I
called her as well as.
Speaker 3 (18:49):
Jason.
Oh, what's up, jason, are youon the phone?
Are you with her?
Yeah, are you on the phone?
Are you with her?
Yeah, I'm on the phone.
That's so funny, that's sofunny.
So, like I told you, we workwith people in foreclosure and
that's perhaps why Jason waswell, he called because of the
(19:11):
lead.
Speaker 1 (19:13):
So I guess Jason's on
his team.
Hey, as well as these words,like you could be embarrassed
because you're recording this.
You're posted on your youtubechannel.
The other thing is you couldjust be damn proud of, like
that's how, on top of stuff, ourteam is, because that's the
goal.
I mean, listen, this, this callis, uh, nine minutes in.
(19:33):
His team is already calling it.
I'm assuming michael doesn'ttalk to sellers very often.
He probably has his team do it.
Um, so that's a that's kind ofan awesome moment.
Speaker 3 (19:42):
To be honest with you
, I'm actually not mad that they
showed that on this but no, wework together so we're both very
capable and can can take careof you.
But, um well, what?
What's your schedule lookinglike?
More than happy to to come outand and take a look and walk you
guys through all of youroptions and walk through every
issue you're going through andprovide some solutions.
Speaker 2 (20:05):
Well, we're just
vacationing today because
there's just a lot.
Speaker 1 (20:10):
And then I have
tomorrow off?
Speaker 2 (20:12):
I probably have
tomorrow off because I have to
go to the doctor about gettingmy paperwork filled back out for
my disability and then beyondthat, it's normally after 4 or 5
o'clock in the evening when weget off.
Speaker 3 (20:27):
Is your husband
available today?
Speaker 2 (20:29):
Yeah, he's with me
Okay.
Speaker 3 (20:32):
Are you available
this afternoon?
I didn't know if that was toosoon.
Speaker 2 (20:34):
I think by time.
Well, I don't know if that wastoo soon.
I think we can.
I don't know if today would begreat, we know, maybe tomorrow
in the afternoon.
Speaker 3 (20:44):
We could.
Yeah, I was just suggestingtoday because I had some free
time, but that's no problem.
Speaker 2 (20:50):
Let me ask.
So I just submitted a requestfor the Buy your House Quick
Things and he said that he helpspeople with our similar
situations and setting us upwith people that we can't help,
and so they have the opportunityand availability to come out
this afternoon and look at thehouse and see what they think,
(21:11):
or maybe tomorrow.
Yeah, either one works eitherone, he said, works.
He said he has options wherethey can come up with a price.
They can let us stay in thehouse for, you know, 30 or 60
days to get our stuff togetherand that kind of stuff hey,
there you go.
Speaker 1 (21:31):
That that lease back
post possession time.
She it good read by Michael.
Now you know you hear her usingit when she's talking to her
husband about hey, they'll giveus more time Again.
This is why he's thepre-foreclosure expert right
there.
Speaker 2 (21:46):
Now we've closed all
the deals and everything and
there's no commitment.
So we don't go that way.
We don't go that way, yeah, yep.
Speaker 3 (21:54):
Completely risk-free?
Yeah, yep.
Speaker 2 (21:56):
Completely risk-free.
Yeah, I guess what time can youguys?
Yeah, our house isn't clean.
Speaker 3 (22:01):
No, that is
completely okay.
Look, I got toddlers at home.
My house is a wreck.
I've seen the worst of theworst houses.
I promise you, your house isnot going to bother me.
It's not going to bother me atall.
How would?
How would 3 o'clock work?
okay, yeah, we can do that okay,well, good deal, I will look
(22:24):
forward to seeing you then andappreciate you kind of opening
up and getting to know you alittle bit.
So, yeah, well, thank you somuch.
Okay, well, I will look forwardto seeing you at 3.
Thank you so much for fortaking the time.
Yep, thank you All right.
Bye-bye.
Speaker 1 (22:39):
I'm on the video.
I wonder what happens next.
All right, first of all, he gotexactly what he wanted at the
beginning, which was he wantedthe appointment, and I love how
he applied very passive pressurethere where it was like you
know, I have time availabletoday.
I just thought maybe that couldwork out and it led to him
(23:00):
getting the appointment today,not tomorrow.
I'm curious.
I guess he's probably going togive us a rundown here to wrap
up, because we've got probablylike two, two and a half minutes
.
Speaker 3 (23:12):
So that is a classic
scenario where we are talking
completely about her situation.
You notice that I didn't reallytalk about the house.
I wanted to know a little bitabout what was owed.
What's hilarious is that Icalled her.
It was an online lead, it goesto all of us.
(23:32):
My acquisition guy called herat the same time and she thought
it was her lawyer, and then wewere on a three-way call with my
acquisition.
Anyway, it's funny, but you'llnotice that call I was not
talking to her about.
What's the age of the HVAC?
What's the age of the roof?
What is the age of all thisdifferent stuff?
I want to know about the house.
I don't care about the house, Icare about the seller's
(23:53):
situation and of course we'retrying to buy the house.
We want to buy it at the rightprice.
But at the end of the day, youhave to develop that emotional
connection.
You're not going to developthat connection talking about
the stuff.
More than likely she doesn'tknow the age of all that stuff,
but she knows her situation andI know how to solve that
situation and that's all shecares about right now.
You noticed how emotional shewas and you noticed that she
(24:17):
just wants this taken care ofpretty quick.
You'll also notice she wastrying to push for an
appointment tomorrow.
These type of situations morethan one company is going to
call her.
So you want to try to push forthat appointment as quickly as
possible.
You don't want to be pushy onthe phone but just kind of a
little bit nudge trying to getthat appointment earlier.
(24:38):
But that was a prime phone callwith a motivated seller.
Remains to be seen what if we'llend up getting the deal and I
perhaps could have gone intowhat type of price she wanted
for the house.
But she revealed to me she owesabout $80K.
She had about $20K or so to payoff this bankruptcy.
So she revealed to me she owesabout $80,000.
She had about $20,000 or so topay off this bankruptcy.
So she owes right about$100,000.
(25:00):
I'm looking at Zillow right nowand it says the Zestimate's
right around $256,000.
So my guess is we probablycould offer around $150,000 for
it.
But right now all she caredabout was her problem and a
solution.
And I don't want to appearsalesy or appear investor-ish.
I want to wear my trustedadvisor hat.
(25:22):
That's how I approach everysituation.
I divorce my desires and justthink about her and her
situation and if I can solve theproblem at a high enough level,
we can buy the house, sohopefully that's helpful.
If you want to like, subscribe.
Speaker 1 (25:40):
Love it.
I love that Divorce my desiresto solve her problem.
That's a great line by Michael.
Michael is absolutely a closer.
That was amazing.
That's one of the best callsI've seen so far.
I mean again, it's not myprocess, it's not what I would
(26:01):
want as far as how my teamhandles it.
But we're not pre-foreclosureexperts, we don't go on
appointments, so obviously wehave a different objective there
.
But from A to Z what he wantsin his process I think he
checked every single box.
I think the emotionalintelligence he had there, the
active listening that he had,his ability to ask great
questions, to move the needlealong the conversation, was
(26:24):
impeccable.
I love the conversation rightthere.
I mean I would show that videoto anyone and say, if you're
able to have 75 to 80% of aconversation like this, then
you're gonna crush it in thisbusiness.
Because he understands thatthis is not about the house, it
(26:45):
is not about him, it's not aboutthe price, it is about solving
the problem and that'severything that we stand for
here.
I absolutely love it, michael.
Great job.
Kudos to you, man.
I appreciate you creating thiscontent and putting it out there
and being open enough to sharethese types of conversations
with sellers and making adifference for people.
Man, that was an honor to beable to watch.
(27:07):
I love that shit.
That was amazing.
Great job, michael.
You are definitely a closer man.
I love it.
I want to watch more of yourstuff.
That was incredible.
Great job you guys.
Let Michael know what you thinkabout his closing style and
what you took away from today'svideo.
Give Michael a like on this man.
(27:30):
That was incredible.
Great job, michael.
Definitely a closer.
We'll see you guys next week onthe King Closer.
Speaker 2 (27:37):
Reacts.