They fall in love with the financing, not the house… - Posted by HR
Posted by HR on May 31, 2000 at 08:03:40:
I have a cash cow I’ve been playing with. It’s my first, so take my ideas/suggestions with a grain of salt.
I bought this bank reo for $2000. 5 bedroom, lr, dr, kitchen, 1.5 bath. Pretty nice. My original plan was to sink about 10k into it and rent it out section 8. Well, our local section 8 office is run by a bun of management dolts, and they are slow on giving me $900 for a 5 bedroom place. I’ve also put about 14k into it, and I’m shocked to learn its worth about 60k.
I’ve decided to unload it. So, I put a large, florescent orange sign on the front and in my handwriting wrote:
For Sale by Owner.
Owner will help with the financing.
Low downpayment. Low monthly Payments.
Cheaper than rent.
5 bedroom, living room, dining room, kitchen 1.5 baths, alarm system, termite contract, vinyl siding, lots of closet space, and more…
Call Bob Bob at nnn-nnnn for more details.
bob bob (not his real name) is mortgage broker I work with who is fielding all the calls and screening them for who will qualify for a mortgage. I hate getting the 250 million calls on these kinds of ads; I let him to it for the loan, and, since he’s also a realtor, if it makes it into the mls, he will also get a 3% commission. I have no problem with that; he gives me good service.
Stacy, we are showing the house now and it still is a few days away from being done. The carpet is used and I swear has more stains than original carpet color. No one that has seen it cares. We have tile work going on in the kitchen and bath, and its unfinished with grout lines, cracked tiles, etc lying everywhere. The prospective buyers don’t care. The back yard is our storage disaster. They prospective buyers don’t care.
This house, by the way, is also deep into an inner city neighborhood. Most New Orleaneans would not live here; it’s only 2 blocks to the projects. The buyers don’t care!
What has become clear to me is the only thing they care most about is the financing! Phil is right: they fall in love with the financing, but it allows them to own a home, not the ammentities of the home.
I’ve got some guy I haven’t met yet who says he will give me $10,000 down if I will hold the rest. Bring it on! I can’t believe it.
Anyway, this is rambling. In my very limited experience with providing owner financing, the financing certainly moves the property. Let me know your experiences.