Posted by Scott (ATL) on September 08, 2003 at 06:35:27:
Barry,
Thanks…I don’t mind doing owner financing if the deal is right and like you mention it is just an ad no commitment. Thanks for the idea! I do place “flexible owner financing” on my flyer. I’ll let you know how the “reworded” ad does.
Scott
Amount of phone calls from ads? (Marketing a L/O) - Posted by Scott (ATL)
Posted by Scott (ATL) on September 07, 2003 at 20:46:27:
Okay, I’m curious how many calls you get from your classified ads for a L/O or in my case I advertised “RENT TO OWN”…My previous investments have been rehabs to retail although I used a technique for one rehab from Bill Gatten that got me a buyer (about 5 calls on a one week run) but the deal fell apart and I used a realtor to finally sell it. Anyway, while my partner and I did fine on the first one and “lost” on the second my third by myself is a great deal and is now fully renovated. However, my ad that ran this weekend (AJC and Forsyth County News for those in Atlanta) has only brought in ONE phone call! That stinks! Am I just expecting too much or because of the home inventory glut in Atlanta I’ll have to “wait”?
I wanted to create a little competition by only doing one appointment but if I don’t get callers I’ll be out of luck creating the “frenzied” atmosphere.
The ad reads
RENT TO OWN!
4Bd 2.5Ba
$1,795/mo
###-###-####
24 Hr. Rec. Msg.
www…
I?d let you guys see the phone number and web site but you?ll screw up my marketing effectiveness counters! 
I know the home is in the “higher range” for our area but the rent is competitive with others in the subdivision. Since our paper is littered with classified ads similar to mine I guess I don’t stand out.
I’m just curious what you have experienced with your lease/option (rent to own) ads. Should I just be patient or what? I do have signs up (just put them up today though) I’m not worried yet but I expected at least 5 calls today.
Thanks,
Scott
Re: Amount of phone calls from ads? - Posted by Scott T.
Posted by Scott T. on September 08, 2003 at 11:02:22:
Hi Scott, (nice name)!!!
I am located in North Gwinnett County (Buford), and was wondering if you own the property, or are you in the middle of a sandwiched lease option? The reason I ask is that I am considering selling my personal home FSBO and was also considering selling on a lease option or possibly with owner financing…but have never done this before, and to be quite honest, am a little intimidated about trying this on my own…but I think I might could make more $$ over time by doing the l/o or seller finacing. Also, what types of feedback are you getting on any ads ran in the AJC, Gwinnett Post, ect…
Thanks for your response,
Scott T.
Re: Amount of phone calls from ads? ) - Posted by michaela-ATL
Posted by michaela-ATL on September 08, 2003 at 07:26:12:
Scott,
you’re not alone. I don’t know the market in the suburbs (Forsyth) too well, since I concentrate on in-town, but it’s really slow here. You may want to re-consider your monthly rent. It seems really high. I would think anybody, that can afford that payment, can afford to buy right now.
I ahd a house, that was appraised at 270k and had an add : 6K down - no qualifying, and got no calls. I finally sold it on agreement for deed for 3k down - no qualifying. yes, I’m taking a chance, but I won’t have to carry the house and he’ll refinance within 1 year.
It’s not easy to create any kind of frenzy, the way the atlanta market is. If you don’t get a lot of calls, you can’t put them off for 2 weeks and then have them all together.
michaela
a lot of calls, no buyers! - Posted by Jim FL
Posted by Jim FL on September 07, 2003 at 22:17:04:
Scott,
I agree with Barry.
When I run classified ads to sell houses (this is rare for me), I too place them under “homes for sale”, and will run two ads.
One says:
RENT TO OWN
Bad Credit Okay!
Nice 4 Bd/2 Ba-$xxx/month
LOW $$$ moves you in!
xxx-xxx-xxxx
and the other ad;
Area-4 bd/2ba NICE!
Priced to sell @ $xxx,xxxx
Financing help available!
E.Z. Qualify! Bad Credit Okay!
xxx-xxx-xxxx
Both seem to pull well.
However, after checking stats this weekend, I have not sold a house in 6 mos from a newspaper ad, or a flyer.
100% of my houses have sold via signs.
So, here is a way to generate more traffic to your house.
Get a nice sign for the yard, and a tube for flyers, with some limited info about the house. (forces them to call for more)
Place another sign, and some flyers in the front window, just in case the others go AWOL.
Place up directionals, leading to and from the house at major intersections and locations near the house for sale.
Make up flyers with the same info, and hang them in major discount dept. stores, like Walmart, Target, K-mart etc…dollar stores and laundymats are good as well.
Also, make up some road side signs, with a simple message on them, and a phone number.
forget the “24 hour recorded message”…too long for me.
You can screen and sell better live with people, and if you miss a call, return it.
This takes more time on the phone, but you will screen out tire kickers better than a message.
Stick with the multiple showing scenario.
I love competition, because when 10 families all want the same house, you can bet some of them will come up with more cash to “outbid the others”.
Works like a charm.
I try to leave as little info out there as possible, other than the key words to drive the phone calls up.
Monthly amount is key, along with possible terms and a phone number.
Everything else, they can get from me live on the phone.
HTH,
Jim FL
Re: Amount of phone calls from ads? - Posted by Barry (FL)
Posted by Barry (FL) on September 07, 2003 at 21:55:38:
I’ve had the same problem in my area with L/O, even on B&B properties. I’ve advertised the lease/option, rent to own, with terms and without. I find I get the best results in the for sale section with Owner may help finance. You are not committing to anything. Prequal them and depending on downpayment and credit, cash out or convert them to a L/O.
Hope This Helps,
Barry (FL)
Re: Amount of phone calls from ads? - Posted by Scott (ATL)
Posted by Scott (ATL) on September 09, 2003 at 07:17:10:
Scott,
I?m the owner of the property. I rehabbed it and rather than retailing (selling outwright) I decided to keep and inventory of properties. I like the idea of cash flow!
Anyway, I haven?t completed a L/O either so I?m a little ?nervous? but I have to learn sometime. Your personal residence is probably a great place to start as you live there. I live in Sandy Springs and have to drive out to Cumming (not too bad a drive outside of rush hour) so it is a little more difficult for me.
When I first posted I had received one phone call (no message just 1 call) on Sunday but on Monday I received 3 call and 2 messages. So, a little better. I think the key is to advertise the heck out of the property because if people don?t see your ad then you?ve got no chance. The AJC isn?t cheap and I?m not sure my ?marketing counter? is working the way I want so I can?t really tell you yet if all my calls have been from the AJC ad or the Forsyth County News ad (only on Sunday). I did get a realtor with a potential buyer from my www.forsalebyowner.com ad but I think that is it from the internet ads. I?m going to try the thriftynickle and creative loafing as well just to increase exposure.
And, yes, Scott is a good name isn’t it
Re: Amount of phone calls from ads? ) - Posted by Scott (ATL)
Posted by Scott (ATL) on September 09, 2003 at 07:15:00:
Michaela,
Very true. The rent is competitive in the area (subdivision) and the other currently listed are strictly leases not L/O. However, like you mention tons of houses and since there is a lot of “easy” conventional mortgages out there I’m closer to competing with all the other Realtor listed homes.
I may have to lower the rent to find a buyer but I’ll let it go another week and see what happens before tweaking the numbers.
Thanks!
Scott
Re: a lot of calls, no buyers! - Posted by Scott (ATL)
Posted by Scott (ATL) on September 08, 2003 at 06:46:36:
Jim,
Great suggestions! However, I work a 8AM-7PM job (One day I’ll be out of that grind) and I’ve got to send them to voice mail. Your point about limiting the amount of information is interesting…I do have a sign with a tub and flyers. I state
This beautiful, completely renovated 4 bedroom, 2.5 bath, 3,684 square foot home is located on a cul-de-sac in the exclusive Polo Golf and Country Club. This home has a full basement, cedar closets, hardwood floors, large master with Jacuzzi tub, huge deck and fully fenced spacious back yard.
The rent for the home starts at $1,795 and depending on which program you choose, up to $400 of each rent payment will be credited towards your purchase!
Flexible Owner Financing also available.
I also have about 6 pictures on the flyer. Too much info? What do you think? My website has the same info except the pictures expand and are in color. I plug a few more benefits of rent to own on the website but I’ve found not many people seem to go to the web site anyway.
I hear a lot of good things about signs but my experience with signs has been minimal. I’m probably not putting enough out. I see signs for other investors all over the place near this property. Maybe I should contact them and see what their response rate is…of course they are “I buy houses” signs not “I sell houses”.
The keywords like “priced to sell” and “EZ Qualify” catch my attention. Maybe I need to litter my ads with more of these. Our paper is expensive too…so the more “buzz words” I ad the higher the price but I don’t have much of a choice.
The flyers in stores sounds interesting too.
Thanks and I’ll give some of your ideas a shot…I’ll let you know what I find.
Scott