Epiphany? - Posted by JeffB (MI)

Posted by Bobbie on March 02, 2006 at 21:08:39:

I agree with Java(OH). Been there, done that. It’s a pain in the side and is very costly. The % on sales (downpayments, monthly payments, etc.) adds up very quickly and can turn into a bookkeeping nightmare.
I ask for a cashier’s check for down payment and CASH for title transfer.
I walk out the door with a smile on my face.

Bobbie :slight_smile:

Epiphany? - Posted by JeffB (MI)

Posted by JeffB (MI) on March 02, 2006 at 17:12:03:

I had an idea today. When talking to the PM of one of my favorite parks, they mentioned that so-and-so buyer a few months ago was so cash-poor that they had to use a credit card to cover their initial month’s lot rent + security deposit (a little over $1000).

So I asked the question, is that allowed normally? She said sure it is. So now I’m going to encourage ALL my buyers to pay their $1000 to the park on a CC. That leaves more money down for yours truly!

Taking this a step further, has anyone got setup where they can accept CC payments? I wouldn’t want to do it on a monthly basis, but let’s say for example I decide I want $2500 down on a home (which would be located in fantasy land mind you)… anyway, I could take $1000 cash and the balance on a VISA/MC. They only charge 2% I believe, which is nominal considering this is all funny-money anyhow.

Re: Epiphany? - Posted by jeff

Posted by jeff on March 04, 2006 at 18:57:49:

my experience is that most buyers i deal with dont use credit cards and if they do, the cards are already maxed out.

Re: Epiphany? - Posted by Joe C. (AR)

Posted by Joe C. (AR) on March 02, 2006 at 20:04:20:

I tried an “internet version” once. Getting set up to do cc transactions online. Same experience as Java. Not enough volume to justify the cost.
In addition to what CR said. They can usually also get a cash advance which doen’t cost you anything either.
Joe C (AR)

one word: - Posted by Steve-WA

Posted by Steve-WA on March 02, 2006 at 17:41:45:


Re: Epiphany? - Posted by CR Smith

Posted by CR Smith on March 02, 2006 at 17:39:03:

I have no idea what it involves to get set up to be able to accept credit card payments, but it seems like it might be easier to encourage the buyers to call their credit card company and request those credit checks. They’re easy to get–my credit card company is constantly sending them to me. The only problem is they usually have an activation fee associated with them, but that would be at the buyer’s cost (as opposed to your costs of getting set up to accept cc payments, as well as them taking a percentage from you).


Re: one word: - Posted by JeffB (MI)

Posted by JeffB (MI) on March 02, 2006 at 18:51:54:

I’ve done one that way through Paypal, BUT, it implies a certain level of sophistication that I know not all my buyers possess. Perhaps that is a function of my screening, but… If I had one of those slider carbon things with me when writing up a deal, wouldn’t that be a big advantage to get some actual real cash up front?

I don’t think it’s hard to get set up with a merchant account. I may look into it… if I use it once it will be worth the hassle.

Re: Epiphany? - Posted by Java(OH)

Posted by Java(OH) on March 02, 2006 at 19:58:35:

Finally something on this site I can respond to because of experience(haha). I have my own appraisal business and used to take credit cards-what a mistake. I signed a three year contract to get the good rates and software for receiving credit cards over the phone and when I was out in the field. It was several hundred down and then monthly payments for the software, plus it was a minimum monthly payment of $20 and 2.5% of all transactions. This did not pay off for me and I was stuck paying around $60 a month even when I didn’t use it. When the contract was up, I got out. My 2 cents, stay away from it. Get the whatever cash you can and call it a day. Hope this helps. There might be new products and/or better companies out there now-this was 2 years ago for me.
-Dan Coffey

Re: one word: - Posted by Bill in GA

Posted by Bill in GA on March 10, 2006 at 10:21:49:

That word being said …

I’ve worked extensively with paypal both personally and within a large scale corporation. The corp I work for contractually has to accept paypal, but tries to avoid it whenever possible. The transaction costs are just too high when working in any kind of volume.

Also, it is very easy with paypal for a buyer to demand their money back if they have a gripe. This tacks on a good bit of risk that I’m sure you would like to avoid.

If you absolutely are sure you want to accept paypal, here’s a tactic you can try. My wife accepts paypal for her online business, to good effect, but then again she’s not dealing with any high transaction volume. One tactic that we’ve discovered is, to try to prevent problems, have two different banks. The first bank is linked to your paypal account; you collect payments there. Frequently withdraw this money, as CASH. Then deposit into your second bank, breaking the paper trail. That way, if paypal decides to suck a payment back out of your account, they’re sucking from the bottom of the glass.

Best of luck,

  • Bill