Posted by Mark-NC on January 22, 2000 at 15:25:32:
Phillip,
Its all a matter of opinion. I personally like to find the buyers first. I will run a dummy ad for buyers. ( it’s called the old bait and switch, Car dealers do it all the time) When they call just say, listen Im sorry but that particular property is gone already but we are investors and we get new ones in all the time. Then I will ask them what area are they looking for a home? After they tell me I will say somthing like I think I may be able to help you out, how much money would you have for a deposit, how much could you afford for monthly payments and what is your credit like. If they sound like a good candidate I will find them a property either to flip to them or lease option.
I find it easy to find homes, its the qualified buyers that are harder to find. Another reason for this method that I like is when you have a buyer and a home the whole deal is ready to put together and you won’t have to worry about backing out of the contract with the seller if you can’t make it happen.
As far as worrying about being a licensed Real Estate Agent, thats not a problem. On a flip or a lease option you will be in controll of the property first. You are not selling directly from the seller to your buyer. You need to represent yourself as an investor that buys and sells homes ect.
Egg or Chicken or is it Chicken then the Egg-L/O Question - Posted by Phillip
Posted by Phillip on January 22, 2000 at 10:56:42:
There is a recent post below about how to write a contract for a seller in such a way to not be responsible for payments until AFTER a T/B is located. Included in that thread is a concern about not wanting to appear as a person who is selling real estate without a license.
Some run an AD such as “Three bedroom home for sale rent to own in nice area…” even though there is no actual home available but those interested will call. What do you say to a caller when they ask about the location of the home? The intent here is to gather the names of buyers interested in potential lease options so as to avoid not having a readily available buyer when a deal is LOCATED ready to go.
Or is it better to tie up lease/option deals from sellers and then set out to find BUYERS? There is something in the law about this in that I might be representing myself to the public the same way a licensed real estate agent might, not sure how correct my assumption is.
Get potential buyers, run their credit thru my broker’s office and move from there, or get the houses lined up first and locate buyers while not running into trouble appearing to be a licensed real estate agent.
Re: Egg or Chicken or is it Chicken then the Egg-L/O Question - Posted by Tim - GA
Posted by Tim - GA on January 22, 2000 at 16:32:15:
Mark, I appreciate your comments about finding the tenant/buyers. I’ve had more difficulty however, finding sellers who are motviated to do L/O’s with the spread necessary to make the deal worthwhile.
I am just starting out and was wondering what seems to work best for you in finding the motivated seller. I’m currently making about 30 calls a week from newspaper ads, calling FSBO’s, etc. I haven’t placed a “we buy homes” ad yet, but am considering it.