Re: Finding Retail Buyers in a Buyer’s Market - Posted by William Flood
Posted by William Flood on May 24, 2007 at 20:01:49:
If you are in a position to do so, there’s a really good twist on the lease option tactic that works really well.
Advertise in the for rent section, and keep the rent within market rates…perhaps just a tad high, but don’t overdo it. Offer a lease option, basically gratis. Structure it so that, if they pay their rent on time you offer a nominal rent credit, but one that will help to build their down payment or closing costs. Run the lease option for a year or two.
Then, at the end of the year, have a conversation with the leasee stating you really want to sell the house and help walk them through the buying/financing process. While never guaranteed, in essence, you put a built-in buyer in there when they rented.
You want to put a pretty good renter in there because you want to help them with the buying/qualification process. If they have lousy credit and can’t qualify for anything, the rent credits aren’t going to do much.
The trick to all of this is focusing intially on a tenant. It’s combined with staying away from the high-dollar tactics you’ve probably seen with the lease-option guru types, that often eliminate 2/3rds of who might be interested in your property. The downside is that you won’t cash out for a year.
Feel free to contact me to chat about this concept. I use it all the time.