The Titanium Vault hosted by RJ Bates III

Is Michael Franke a Closer? | The King Closer Reacts

• RJ Bates III and Michael Franke • Episode 532

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Speaker 1:

All right guys, welcome back to the King Closer Reacts. Today I'm gonna be reacting to the man known as the expert when it comes to pre-foreclosures, michael Franke. So he has a YouTube channel where he posts a lot of valuable information, live seller calls and a lot of information about how to deal with pre-foreclosures. And today, what I'm gonna be reacting to is him talking to a seller who's in pre-foreclosures. And today, what I'm going to be reacting to is him talking to a seller who's in pre-foreclosure and to see how he navigates that conversation, how he handles the seller's situation and whether or not we're going to find out. Is Michael Franke a closer? Let's get started.

Speaker 3:

Hi, is this Rebecca? Hi, rebecca, my name is Michael. I just gotten your information about your place on Moore Street there and wanted to connect with you and see how I could help.

Speaker 2:

Yeah, I was just wondering what the process was and how it all works.

Speaker 3:

Yeah, so we'll have a conversation here and kind of go through your. I was wondering what the process was and how it all, I guess, works. Yeah, so we'll have a conversation here and kind of go through your situation and see if 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 a deeper conversation and at that point, if we decided that we were a good fit, we could write it up and move forward. And if not, no big deal. I can just give you all the resources I have to get you going in the right direction.

Speaker 1:

So very, very common like start to a highly motivated seller that is in a situation like a pre foreclosure. I want to understand how the process is going to play out. What is your process? He did a great job of navigating that, I will say. Obviously he does something different than what I do. He does in-person appointments. That's his objective with this call.

Speaker 1:

So I would assume that a victory in this conversation is a scheduled appointment.

Speaker 1:

The reason why I don't have a problem with that whereas typically you guys know I prefer to get a signed contract before we go out is because this is a pre foreclosure and because it's a pre foreclosure, that is typically a very time sensitive situation. So they, michael, wants to schedule a in-person walk through the property, sit down and go through all of the things that he can do to help them in their situation prior to getting them under contract. So I don't have a problem with the fact that that's michael's process, because it is his process. It's how he's he feels is best suited to handle, uh, the pre-foreclosure situation and solve the seller's problem. So I don't have a problem with that whatsoever. He did a great job of lining out hey, this is how it's going to work. Love how he puts our guard down early on, like, hey, if it's not a good fit, no harm, no foul, I'll give you all the resources that I have. So I really love the start of the conversation, especially considering the fact that we know this is a pre-foreclosure.

Speaker 2:

All right.

Speaker 3:

Well, catch me up to speed on what's going on. How can I help?

Speaker 2:

There you go Well. So we both, my husband and I, both work for your little friend. We're in chapter 13 because I was off 10 months.

Speaker 3:

Oh, I see.

Speaker 2:

Ramsey Hunt syndrome.

Speaker 3:

Oh, what is that? I've not heard of that before. It's like shingles, but it's on the inside of your body on the nerves and stuff.

Speaker 2:

So I had a lot of residual damage and things like that from nerve damage.

Speaker 3:

Are you doing better now?

Speaker 1:

Yes and no, I've been back to work for three months, but I don't think I can maintain it. It's just the pain is coming back, it's intensified by stress. More often than not there's going to be something like this seller situation here that caused them to fall into pre-foreclosure, and it requires a deep level of empathy from you as the closer to really understanding their situation. And I love how you just started off like tell me what you got going on. You know, tell me about your situation. And, as you can see here, this has nothing to do with real estate. This has nothing to do with the condition of the house or finances or anything like that.

Speaker 1:

He's really diving deep into understanding what has caused this and with that open-ended question that he asked, she wanted to talk about the syndrome that she has and the health issues, and so he's keeping her on topic on that to really get a deeper understanding of that. So I really like how he's navigated that Very soothing, relaxing on the phone to the seller and obviously just got her to open up, whereas you know he didn't just say well, tell me a little bit about the property, tell me about the condition, what's the size of the property, what's the age of the roof, these things that sometimes we fall into. That's why I've already leaned towards man. This is Michael's going to have a great conversation here, because he is thinking on a deeper level than the vast majority of closers.

Speaker 2:

I see so we're in Chapter 13 because we have equity in the house.

Speaker 3:

Yes.

Speaker 2:

That's the only reason really that we do and our company is going out of business, as I'm sure you've kind of maybe heard but you'll afraid is on the verge of shutting down.

Speaker 3:

I did not know that.

Speaker 2:

We both work there, yeah, so we're looking and we've had my husband's had this house for 22 years. You know we bought it when he was like 21 and raise all our kids there so obviously emotional stuff there, but hey, shout out to the starting line the shirt that michael's wearing.

Speaker 1:

Uh, that's the same program that me and cassie are part of for our health and fitness journey. Shout out to our friends over at the starting uh, that's the same program that me and cassie are part of for our health and fitness journey. Shout out to our friends over at the starting line.

Speaker 2:

That's pretty cool I didn't know michael was a part of the the family there um, it does 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 the garage you know we just haven't gotten it fixed. I guess normal type shit, I don't know, maybe it's more, but they were just trying. I was just trying to see kind of what the process was, how you know like what percentage you guys usually pay on a house compared to like the appraisal and stuff like that.

Speaker 1:

I don't know so this is an interesting point in the conversation. She's opened up about the health right. She's opened up about the fact that both her and her husband's company is potentially going out of business so they might not have jobs. She's also opened up about the fact that the house has equity. They've owned it for 22 years, uh, and they're in pre-foreclosure. This is a very sensitive subject because maybe there are some refinances along the years there, but probably quite a bit of equity.

Speaker 1:

And so she's really opened herself up and kind of explained a lot to Michael. And now it's like I just want to know the process, which she's already asked. That he kind of gave a good answer, but she's like I want more. And then she got into what does she mean by that? What percent of an appraisal do you guys pay? So now she's kind of like immediately going to how much is this going to cost me to go with someone like you guys in comparison to us just listing the property and trying to get as much as possible?

Speaker 1:

Very interesting turning point right here. I'm very curious to see how Michael's going to handle this, because that's such a broad question and he really doesn't have enough information to answer it. So it's going to be very important for him to give enough to make her feel comfortable, but also to follow this up with a question to get her to continue speaking about her situation and maybe what she needs out of this. That's where you really kind of want to take this, is kind of understand what she needs out of the property.

Speaker 3:

It largely depends on the situation. The worse the house is, generally I want a bigger discount, but we make the highest offer we physically can. Obviously, we're investors. We want to make money, but we also want it to be a win for you and your family. So it's one of those things that it's just a little bit of a trade of equity for speed and convenience, and if it works, great. And if not, that's completely okay great answer.

Speaker 1:

Okay, cause he did give enough information there. I love the raw, authentic, like kind of brutal truth there. Like hey, we are investors, we do want to make money Love that response Also being completely honest. Like hey, we also want to take care of you and pay as much as we possibly can. We want to make money and so we do kind of have a barrier there where you know it's a win for you and it's a win for us. So really solid response there by Michael.

Speaker 3:

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:

be what would be your, your end goal? Um, just to you know, pay off the mortgage on the house and then pay, you know, off our chapter 13, or do whatever we need to do to get out of that so that we can, you know, afford to live on whatever we find after this okay.

Speaker 3:

Are you wanting to stay in blue springs or you wanting to go somewhere else?

Speaker 2:

Um, it doesn't really. I mean, we have one child still in school, so I don't want to move somewhere. That's, you know, horrible schools. But sure, um, or it's unsafe because she's on the spectrum and she's got you know she's autistic, she has bipolar disorder.

Speaker 2:

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 with her if we had to. Of course she works, you know, um, but I mean I, I just don't really know kind of where options are. I think our mortgage on the house is at000. And then I don't want to say our Chapter 13. I don't really know, but I know it's at least $25,000, $26,000. I'm not certain.

Speaker 3:

Okay.

Speaker 2:

And above that. So I don't even know really.

Speaker 1:

So he again great question, tell me about what your ideal outcome? And he just got the seller to completely open up there. Essentially he got an asking price of that because her ideal situation is to pay off the mortgage and the chapter 13. She said 80 and then 25 or 26. So basically somewhere between 105 and 110,000 is what she needs for the property and he knows that. Now it looks like he's staring at Southern Bright comps or his CRM or something that he's got pulled out to be able to have information there on the property. But again, without being invasive, he's been real. He's been authentic and upfront with his questions and what he needs out of this. But by being a great listener and by asking great questions he's got the seller to really open up and divulge a lot of information that as investors we need to know. But the way that he's gone about it has made the seller just feel so comfortable in a short time frame and, quite frankly, the conversation has only been four and a half minutes. I mean excellent job by Michael so far.

Speaker 3:

Just because I'm just don't be offended by the question. Are you current on your payments?

Speaker 2:

So we are a short one payment on the Chapter 13. And our house is included in our Chapter 13 right now.

Speaker 3:

Right. So by missing that payment, they're probably going to hike up the rates and all that kind of stuff. Is that part of the motivation as well?

Speaker 2:

No, my husband just doesn't want to lose the house when he works so hard for it.

Speaker 3:

So we've it's the funny thing that you call it. I primarily help people out of foreclosure situations. We've stopped hundreds over the years and it's kind of my passion thing because back in 2015, I was a teacher and I didn't have two pennies to scratch together and we got behind on our payments and it was a really scary time. So that's kind of why I do it now, because I would have liked to have someone come beside me and guide me through all the options and just be more of a trusted advisor type person that helps me through.

Speaker 1:

Great, great story there. I love the fact that he's bringing up hey, this is my passion. We've helped hundreds of people out of this situation. Why, that's his passion, not just, you know, loosely thrown around. Oh, it's my passion to help people in foreclosure. Hey, it's because I was in this position, I was there. Right, he's putting himself in the seller's shoes. Um, I I love how he's really kind of, uh, building that credibility with the seller right now as to like hey, I am the guy to solve your problem. Right now. You're on the phone with them.

Speaker 3:

We can, we can make this happen so I'm help you to happy to help you do that as well all right.

Speaker 2:

So you know the other. Um, yes, situation is um recently. You know, I don't know if it's recently, but it's his father's past and then my grandmother's past, so our basement is pretty, pretty packed you know, like we have 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 of like you have to get storage, you know, and stuff like that and and we're at.

Speaker 3:

We try to see ourself as a turnkey solution for you. So of course, we could get you a cash offer. That that's the easy part, but a lot of times it's the, it's the finding the next house, it's dealing with the stuff. It's a lot of those small things along the road, um, so if you need any help with that, we have team members that can assist you free of charge. Um, so if you're interested, we can help you with that. Some people like it and some people think it's a little too intrusive, so, um, we just offer it. So what, what's kind of your timeline on this? I mean, is this kind of a less than 30 day thing? Is it a couple month thing? Where is your headspace on 30 days?

Speaker 2:

or I don't, I know, whenever it works out best.

Speaker 3:

So something we could do and I'm just offering this we assuming we can get you a number that you are happy with we could close on the house and give you post-possession time many times 60 days or so and that at least gets the money in your account, lets you catch up any debt that you might be behind on, and then it just gives you an opportunity to breathe a little bit, and then we 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 husband are most comfortable.

Speaker 1:

All right. So I love the fact that he is being solutions oriented. I don't necessarily. This is like the first thing that Michael's done. That I didn't love, and the reason 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 that there's like a lot of stuff in the basement due to the deaths in the family, but she didn't really bring up an objection of like, hey, we're going to need a lot of extra time to get this stuff out. She just said it kind of exists and she would have to find storage.

Speaker 1:

Uh, and so offering that you know, lease back that post-possession time uh kind of felt a little bit unnecessary because I don't know what his exit strategy is, if it's the wholesale or if it's to take down himself and to keep. But that's always a hurdle that has to be overcome on the backside. I wouldn't necessarily want to create that if it's unnecessary. This felt a little bit unnecessary because she hasn't really said like hey, I'm willing to sell it, but I need more time or I need 60 days to be able to move all this stuff out. She just said 30 days. I would have rather seen like to run with that Cause.

Speaker 1:

That's the answer that she gave. That's the first thing that I've really seen and it's not a big deal. I mean, again, he has a process that he follows. That might be something he says, that every single seller that's in this situation and he might have a way to monetize that with cause he has brought up. We can help you find the house. Obviously, I'm assuming he's a licensed realtor he has a brokerage that would help him with that. That could be a secondary way to monetize this lead. That might also be why he's bringing that up as well right, right, um.

Speaker 2:

Well, like I said, I think for us it's just hopefully not like you know. I don't know, I'm just not moving on to that.

Speaker 3:

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 in value. So you, you, you definitely have some upside, which is which is great for you guys.

Speaker 2:

Can I be hold for just a second? I think this might be our lawyer, yeah.

Speaker 1:

I love the fact that he has navigated this conversation. He's really good at pausing and listening. I think overall it's been a very strong call, so this is a prime conversation.

Speaker 3:

This was an online lead that came in. Something you need to understand is I called this person immediately. You can tell that she's a really nice lady. They've just gone through some stuff and there's definitely motivation there. She's kind of on the verge of tears a little bit. So this is kind of our prime type of opportunity and hopefully we can provide a solution to her. Hey there.

Speaker 2:

Hey, michael, I called her as well as.

Speaker 3:

Jason. Oh, what's up, jason, are you on 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 so funny. So, like I told you, we work with people in foreclosure and that's perhaps why Jason was well, he called because of the lead.

Speaker 1:

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 youtube channel. The other thing is you could just be damn proud of, like that's how, on top of stuff, our team is, because that's the goal. I mean, listen, this, this call is, uh, nine minutes in. His team is already calling it. I'm assuming michael doesn't talk to sellers very often. He probably has his team do it. Um, so that's a that's kind of an awesome moment.

Speaker 3:

To be honest with you, I'm actually not mad that they showed that on this but no, we work together so we're both very capable and can can take care of you. But, um well, what? What's your schedule looking like? More than happy to to come out and and take a look and walk you guys through all of your options and walk through every issue you're going through and provide some solutions.

Speaker 2:

Well, we're just vacationing today because there's just a lot.

Speaker 1:

And then I have tomorrow off?

Speaker 2:

I probably have tomorrow off because I have to go to the doctor about getting my paperwork filled back out for my disability and then beyond that, it's normally after 4 or 5 o'clock in the evening when we get off.

Speaker 3:

Is your husband available today?

Speaker 2:

Yeah, he's with me Okay.

Speaker 3:

Are you available this afternoon? I didn't know if that was too soon.

Speaker 2:

I think by time. Well, I don't know if that was too soon. I think we can. I don't know if today would be great, we know, maybe tomorrow in the afternoon.

Speaker 3:

We could. Yeah, I was just suggesting today because I had some free time, but that's no problem.

Speaker 2:

Let me ask. So I just submitted a request for the Buy your House Quick Things and he said that he helps people with our similar situations and setting us up with people that we can't help, and so they have the opportunity and availability to come out this afternoon and look at the house and see what they think, or maybe tomorrow.

Speaker 2:

Yeah, either one works either one, he said, works. He said he has options where they can come up with a price. They can let us stay in the house for, you know, 30 or 60 days to get our stuff together and that kind of stuff hey, there you go.

Speaker 1:

That that lease back post possession time. She it good read by Michael. Now you know you hear her using it when she's talking to her husband about hey, they'll give us more time Again. This is why he's the pre-foreclosure expert right there.

Speaker 2:

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:

Completely risk-free? Yeah, yep.

Speaker 2:

Completely risk-free. Yeah, I guess what time can you guys? Yeah, our house isn't clean.

Speaker 3:

No, that is completely okay. Look, I got toddlers at home. My house is a wreck. I've seen the worst of the worst houses. I promise you, your house is not going to bother me. It's not going to bother me at all. How would? How would 3 o'clock work?

Speaker 3:

okay, yeah, we can do that okay, well, good deal, I will look forward to seeing you then and appreciate you kind of opening up and getting to know you a little bit. So, yeah, well, thank you so much. Okay, well, I will look forward to seeing you at 3. Thank you so much for for taking the time. Yep, thank you All right. Bye-bye.

Speaker 1:

I'm on the video. I wonder what happens next. All right, first of all, he got exactly what he wanted at the beginning, which was he wanted the appointment, and I love how he applied very passive pressure there where it was like you know, I have time available today. I just thought maybe that could work out and it led to him getting the appointment today, not tomorrow. I'm curious. I guess he's probably going to give us a rundown here to wrap up, because we've got probably like two, two and a half minutes.

Speaker 3:

So that is a classic scenario where we are talking completely about her situation. You notice that I didn't really talk about the house. I wanted to know a little bit about what was owed. What's hilarious is that I called her. It was an online lead, it goes to all of us. My acquisition guy called her at the same time and she thought it was her lawyer, and then we were on a three-way call with my acquisition. Anyway, it's funny, but you'll notice that call I was not talking to her about.

Speaker 3:

What's the age of the HVAC? What's the age of the roof? What is the age of all this different stuff? I want to know about the house. I don't care about the house, I care about the seller's situation and of course we're trying to buy the house. We want to buy it at the right price. But at the end of the day, you have to develop that emotional connection. You're not going to develop that connection talking about the stuff. More than likely she doesn't know the age of all that stuff, but she knows her situation and I know how to solve that situation and that's all she cares about right now. You noticed how emotional she was and you noticed that she just wants this taken care of pretty quick. You'll also notice she was trying to push for an appointment tomorrow. These type of situations more than one company is going to call her. So you want to try to push for that appointment as quickly as possible. You don't want to be pushy on the phone but just kind of a little bit nudge trying to get that appointment earlier. But that was a prime phone call with a motivated seller.

Speaker 3:

Remains to be seen what if we'll end up getting the deal and I perhaps could have gone into what type of price she wanted for the house. But she revealed to me she owes about $80K. She had about $20K or so to pay off this bankruptcy. So she revealed to me she owes about $80,000. She had about $20,000 or so to pay off this bankruptcy. So she owes right about $100,000. I'm looking at Zillow right now and it says the Zestimate's right around $256,000. So my guess is we probably could offer around $150,000 for it. But right now all she cared about was her problem and a solution. And I don't want to appear salesy or appear investor-ish. I want to wear my trusted advisor hat. That's how I approach every situation. I divorce my desires and just think about her and her situation and if I can solve the problem at a high enough level, we can buy the house, so hopefully that's helpful. If you want to like, subscribe.

Speaker 1:

Love it. I love that Divorce my desires to solve her problem. That's a great line by Michael. Michael is absolutely a closer. That was amazing. That's one of the best calls I've seen so far.

Speaker 1:

I mean again, it's not my process, it's not what I would want as far as how my team handles it. But we're not pre-foreclosure experts, we don't go on appointments, so obviously we have a different objective there. But from A to Z what he wants in his process I think he checked every single box. I think the emotional intelligence he had there, the active listening that he had, his ability to ask great questions, to move the needle along the conversation, was impeccable. I love the conversation right there. I mean I would show that video to anyone and say, if you're able to have 75 to 80% of a conversation like this, then you're gonna crush it in this business. Because he understands that this is not about the house, it is not about him, it's not about the price, it is about solving the problem and that's everything that we stand for here.

Speaker 1:

I absolutely love it, michael. Great job. Kudos to you, man. I appreciate you creating this content and putting it out there and being open enough to share these types of conversations with sellers and making a difference for people. Man, that was an honor to be able to watch. 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 your stuff. That was incredible. Great job you guys. Let Michael know what you think about his closing style and what you took away from today's video. Give Michael a like on this man. That was incredible. Great job, michael. Definitely a closer. We'll see you guys next week on the King Closer.

Speaker 2:

Reacts.