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Eddie Speed is a long-time contributor to the NoteWorthy Newsletter and the note brokering industry in general.  He is the founder of NoteSchool and holds classes, seminars, and mentoring sessions to help people succeed in the note business.

My dad used to sell real estate. When showing properties, he would ask a few questions of the people he’d meet. After some friendly chat, his casual but often most-revealing question was, “What kind of hobbies do you have?” or “What do you like to do for fun?” More than a few people would admit that they like to look at houses on Sundays.

Dad knew immediately that he shouldn’t waste any time on them.

He knew that you can spend hours showing property, meeting would-be buyers in person, spending time with them on the phone, and emailing them updates, all the while selling yourself along with the property. You can then discover that you’ve wasted your time on leads that lead you nowhere.

It’s smart to determine upfront whether the property browser is a serious prospect or a Sunday-afternoon window shopper. During his or her first sign of real interest, you should ask four basic questions: 1. How’s your credit? 2. What’s your current employment status or work history? 3. How much down payment can you afford? 4. What do you pay now for housing and to whom? (And it’s okay to ask if they’re paying on time.)

This quick, initial “checklist” eliminates the property browsers who have no intention to buy anything from anyone at any price. It also weeds out most of the would-be buyers who can’t afford the property in the first place. It allows you to discern whether a person might be a good prospect for seller financing.

With some preliminary screening, you’ll know whether you should invest your time with a prospect, whether you’re selling property or buying a note. Sometimes it’s good to say goodbye.