Have Property, Need Buyer - Posted by Paul B

Posted by Tom FL on December 14, 1999 at 07:16:10:

FHA guidelines allow for a buyer to receive a gift of up to 3% of the purchase price of a property. This gift must come from a non-profit, normally a 501c3 type corp.

Nehemiah is just such a non-profit (look at www.nehemiaprogram.org). The way there program works is that you as seller give them 4% of the purchase price and they turn around and give your buyer 3%. They keep 1% for the service.

Please understand that I am NOT endorsing nehemiah. Its just another method of being aggressive in marketing.

Check with you local mortgage lenders to find one that participates in Nehemiah. I’m sure they will be happy to provide a further explanation.

Good luck


Have Property, Need Buyer - Posted by Paul B

Posted by Paul B on December 13, 1999 at 01:02:18:

I finally got a seller about to go into foreclosure to deed me her property. I payed up her arrears. Minor rehab is being done this week. I ran an ad in local major paper and penny saver," owner will finance" etc. Very few calls, with only one weak potential buyer I am following up on. I was hoping for a much better response. This property is FMV $75,000, Underlying financing at 49,600, So far I have spent $2100.00, with another $1500 max for minor repairs & carrying costs. I want this property sold. After reading How To’s and Success Stories over and over, I think I am doing the right things, but I feel like things are dragging on. How do I attract more potential buyers, quickly. Maybe my ad needs help. If any of you have any suggestions, other than just being patient, I would appreciate your suggestions. This is my first acquired SFR, so I am prettty stoked. Perhaps I am missing some other selling method, or creative idea that would help me. BTW, I really enjoy reading about your experiences, and success’s. It is motivating, and reinforces that with persistence, the deals will come. Thanks.

Re: Have Property, Need Buyer - Posted by B.L.Renfrow

Posted by B.L.Renfrow on December 13, 1999 at 14:40:18:

Even though activity slows this time of year, people still need homes, so there are buyers out there.

Sometimes just changing a few words in the ad makes a tremendous difference. Try something like, “NO BANK QUALIFYING” in bold, all caps, or “$xxxx DOWN, $xxx PER MONTH.”

Also, do you have signs posted at the house, and a flyer taped in the window? I get quite a few inquiries from those. How about flyers posted on the bulletin boards at the laundromats and grocery stores? Any mortgage brokers in your area? You can offer them a finder’s fee for referring buyers to you who don’t quite qualify, maybe someone who is a little short of the downpayment or needs a few months to fix credit issues.

Don’t just assume there are no buyers because of the time of year. They are out there, you just have to expend a little more effort to find them.

Brian (NY)

Aggressive marketing - Posted by Tom FL

Posted by Tom FL on December 13, 1999 at 09:54:56:

How about this ad?
Seller will give you $7,000
to buy this house. Beautiful
3/2… Call …

Assuming an FHA buyer

Price the house at say $78,500 ( it should appraise for that with no problem) Give the buyer a credit of up to 6% (including non-allowables for FHA) for closing costs. Give the buyer 3% towards the downpayment via Nehimiah or similar program. Do not negotiate the price down. You’re giving great terms.

How the numbers work.

  • 4,710 6% closing costs
  • 3,140 cost of Nehimiah

$70,650 net to you

Now I don’t know if your deal allows this to happen, but I am now approaching all my deals with this as part of my number crunching. It allows buyers to get in to a property with only a couple of thousand dollars.

Also, don’t waste your time with wanna be buyers. Do not show the house to anyone that is not prequalified with a mortgage company. You should talk to the mortgage broker yourself, a phone call is less time consuming that showing your property to every tire kicker.

Also, display these terms on the sign out front of the house.

Good luck


Re: Have Property, Need Buyer - Posted by Steve-Atl

Posted by Steve-Atl on December 13, 1999 at 08:40:45:

I agree with Rich. The time of the season is a factor. I currently have two properties for sale. During the spring or summer, I usually get 4 or 5 calls per day per ad. This past weekend, I only recieved one call. Atlanta is a hot market, but it clearly slows down during the holidays.

You might try the realtor approach suggested by Dave R. The cost of the commission is high compared to paying another month’s payment on the property, but you might get it sold quick. If not, you could go back to your first approach after the first of the year. Good luck.

Re: Have Property, Need Buyer - Posted by Dave R

Posted by Dave R on December 13, 1999 at 07:40:11:


Are you willing to pay a commision to a realtor?. If so you may want to consider doing a fax blitz to local realtors. Type up a one page info sheet with the attractive financing being offered.

Most realtors in my area list for 5% or 6%. But in your situation rather than list with a broker you can offer half that amount to any broker that brings you a buyer. Since most brokers normally receive 2.5% to 3% on a co-broke anyway, this would be enough incentive. For $2250 (3% of $75000) brokers will gladly bring buyers to your door.

I know that the thought of paying a commision is never attractive but if it results in a sale why not?.

Better a slice of the pie than no pie at all.

I’m sure this is not your only option, but it beats waiting for the phone to ring.

Good Luck!

Dave R

P.S. What area are you in?

Re: Have Property, Need Buyer - Posted by Rich

Posted by Rich on December 13, 1999 at 07:38:51:

I’m in a similar situation. I attribute the inactivity to the time of the year. Nobody seems to be looking at real estate two weeks before Christmas. I may be wrong, but I think that’s the problem in my ‘neck of the woods’.
Good luck. - Rich

Re: Aggressive marketing - Posted by cmarshall

Posted by cmarshall on December 13, 1999 at 14:41:17:

What is the Nehimiah program?

Re:I agree - Posted by Tim Jensen

Posted by Tim Jensen on December 13, 1999 at 08:00:18:


You are right on. I am waiting til the beginning of next year to market a couple properties I own. I think the Xmas holiday lag is common everywhere.