Posted by Russ Sims on June 08, 2000 at 12:37:40:
Regarding Mr. Simons: someone needs a nap…
Posted by Russ Sims on June 08, 2000 at 12:37:40:
Regarding Mr. Simons: someone needs a nap…
Another L/O question. - Posted by Marlon (OH)
Posted by Marlon (OH) on June 06, 2000 at 11:41:50:
I’ve been trying to get my first L/O deal for a few months now. It seems like once I find a seller who likes the idea of a L/O, they get turned off once I mention the sublease. I had one lady who was trying to sell her house say she didn’t want anyone in her house that she didn’t check out first. The next week she had an ad in the paper selling her house as a rent-to-own. How soon should I mention the idea about subleasing? Should I wait till we’ve agreed on everything else and then mention it? Also, I think I may be giving out too much info about L/Os in my presentation. I have another seller that I think may try a L/O himself. When should I stop answering questions and just try to get them to sign?
Thanks in advance.
Re: Another L/O question. - Posted by Russ Sims
Posted by Russ Sims on June 07, 2000 at 12:35:03:
Fantastic post from JohnBoy. I had a seller try to take my L/O idea and run with it once…I gave my spiel and 3 days later the property showed up in the RE ads as an L/O. It kind of miffed me (especially because the seller said that she wanted to show my contract to her husband for final approval, so she had the necessary document to do this herself) until 3 weeks later she called and agreed to L/O to me. Guess she got tired of making 2 mortgage payments (she had already moved). What this seller found out is that it’s not easy to orchistrate a L/O transaction.Most non-pros really don’t know how to qualify sellers, and they don’t have a clue as to how to run credit and screen people. Then there’s the risk of missed or late lease payments that they have to deal with, and the risk that a tenant/buyer will trash the home and then split… Too much hassle and worry for most people.
Now I make a presentation very much as JohnBoy suggests. I inform the seller of the many things we do to find qualified T/Bs, and I talk about how we agressively work toward getting these T/Bs qualified for financing…this cements the idea that we provide a unique service and it lessens the chance that the homeowner will want to take this on themselves.
Twice now I’ve had home sellers ask to approve my chice of T/Bs. I agreed to do these “cooperative assignments” but in both cases, by the time I had lined up a possible t/b, the home seller trusted my choice and waived their right to approve the t/b.
Re: Another L/O question. - Posted by JohnBoy
Posted by JohnBoy on June 06, 2000 at 13:09:43:
Sounds like you’re pitching a sales pitch that sounds like you will be occupying the house at first and then dropping a bomb on the seller that you will be subleasing their home.
Try approaching it another way. Explain that what you do is to help people become homeowners.
Mr. & Miss. Seller, if I were to tell you about a program we have that would eliminate your monthly debt immediately, allow you to move on with your lives NOW, and not have to worry about your property, would that sound like something that might interest you? Why, heck yes! Tell me more son! OK.
Let me explain what I do. Basically what I do is to help people get out from under being tied down to their home when it is preventing them from being able to move on and get on with their life. At the same time I help people looking to buy a home that in some cases prevent them from obtaining traditional financing. This could be because of a number of reasons as to why they may not be able to qualify for conventional financing at this time, such as, new on the job, lack of down payment, no credit history, or because of some previous minor credit problems. The people I place in homes are good honest hard working people that for one reason or another just can’t qualify today. But with my programs I can usually get them new financing within a short period of time by putting them into one our programs that fit their needs so they can qualify. At the same time, this works very well with the seller such as yourselves to be able to get on with your life and provide you with immediate debt releif from having to pay a mortgage payment on your property until it sells. Our program guarantees that your mortgage payments are made on time every month until the property is sold to one of our buyers. Regardless of who the buyers we put into a property are, WE personally guarantee that your mortgage payment gets paid every month whether they were to default or not. We take care of all the day to day minor repairs and maintenance on the property so you won’t ever have to be bothered with it. We continue to do all this until our buyer is able to obtain a new loan to purchase the property. One of the best benefits of our program for the seller is, it costs you nothing! No real estate commissions, no fees of any kind. We make our money from our buyers. Your property doesn’t sit on the market for months at a time until eventually a qualified buyer comes along to purchase the property from you while your stuck making these payments every month. You won’t find any real estate agents that will make your payments for you while they list your property. Instead you have to keep the payments up and in the end, after about six months which is the average time a realtor takes to get your property sold, not only are you out of 6 months worth of mortgage payments, but usually you will have to end up discounting your price AND still get stuck paying a 6%-7% real estate commission! The end result is, it costs you THOUSANDS just to get your home sold! With our program, it costs you NOTHING!
Once we agree on a fair price to purchase your home from you, we will then enter into a contract where we lease the property from you for the amount of your mortgage payment with an option to purchase at the agreed upon price. After we’ve done that, we then find a suitable buyer for your home that we can arrange for them to obtain a new loan in the near future so they can buy the property. Once they are able to purchase the property, we actually purchase the home from you and then we sell it to our buyer. Does that sound like something that would benefit you Mr. & Miss. Seller???
Yes? Great, I’ll get all the paper work done up today.
You would never sell me on this young man! - Posted by Mr. Petersen
Posted by Mr. Petersen on June 07, 2000 at 19:42:38:
I’ll call you John Boy like the header says you are, but son, if you want to do a decent business then please “Use your real name” Right off the bat I get a bad vibe from you.
All of that mumbo jumbo along with the fast talk makes you sound like a kaniver to say the least!. I’ve been around the block a time or two Mister, and I worked very hard to get my house. You fools think that you are going to smooth talk us old folks into just giving you our houses! I had one of your type approach me a few months back and I laughed in his face. As a matter of fact I ordered him off the property before I finally called the Police. Turns out he was a con artist trying to get people to just sign over the deed to their properties, just because they had their houses for sale!. Is this what you imbasills do? Are you proud of yourselves? Do you think it proper to just walk in and take someones lifelong assets, and further more do you think everyone is stupid enough to do it for you? Who are you?
Get lost mister and go get a job where you can make money and then maybe buy your own house ligitimately.
Seems like everyone here is a smart alek type from what I read. “DREAMERS”
Mr Petersen (Missouri Retiree)
Re: Another L/O question. - Posted by Leah(ME)
Posted by Leah(ME) on June 07, 2000 at 09:29:32:
Great explanation JohnBoy!!!
Re: Is this post for real? - Posted by eric-fl
Posted by eric-fl on June 07, 2000 at 20:59:14:
Please tell me that you are over-exaggerating your “crusty old curmudgeon” routine to prove a point. You sound like the all too often stereotyped crotchety old man yellin’ at the smart alecky whippersnapper, dagnabbit! I can only assume that the tone, as well as the ignorance of your post (kaniver? what’s a ‘kaniver’? Is that similar to one who is conniving?) is meant to poke fun at the “unmotivated” seller that we “imbassils” (is that a type of fish?) often discuss here. If this post is really a serious one, then you should know you are only making a fool of yourself.
At this point, I would normally rip apart your post, line by line, but in re-reading it, I see that each line is the same, and basically states that you fear what you do not understand.
However, since you did have the mental capacity to find your way on to the Internet and make this post, I will assume you have a modicum of intelligence.
What “John Boy”, and other “Dreamers” on this board are referring to in this type of deal is commonly called a “Lease Option”. The name itself states what it is - a lease, with an option to buy. This does not transfer the deed or ownership, so, in answer to your question, no, you are not just giving the deed away. You only transfer the deed, and ownership, if the investor/buyer chooses to exercise the option to purchase. Both the amounts of the lease, as well as the purchase, are specified in a contract which both parties mutually agree to. If you are unsure of any of the provisions of a such a contract, as always, you have every right to consult an attorney before signing. Surely a man of your age, experience, and esteem would know that.
Now, if you have more questions about Lease/Options, or other viable, legal and ethical Real Estate investment strategies, please try to type a post without coming off like an ignorant back-woods redneck, run it through the spell checker, and you just might learn something. Otherwise, please return to that house you worked so hard for, and hang on tight to it, and everything else you own in this world, until the bitterness eats you alive from the inside out.