Posted by Russ Sims on April 12, 2000 at 02:12:53:
Hi Vic: I think it’s all in the spin you put on it: just tell the seller that in order to find the most qualified candidate (t/b), you’ll need at least 8 weeks to sort through and find the t/b most likely to buy the home. I leave the seller with the impression that it’s to their advantage to allow you plenty of time to “cherry pick”. This may sound strange but I rarely have sellers object to 8 weeks…in fact now I am asking for 10 weeks and I’m getting little resistance. Keep in mind that most of the sellers interested in l/o have already resigned themselves to paying at least a couple of months of mortage payments until the place sells or rents…
As far as marketing a home when the seller is still in it, just make sure they know you expect to show the home while they are still there, then schedule back to back showings (or an open house)on one particular afternoon or evening. Ask that the seller not be present. They’ll cooperate…it’s in their best interest to.
Hi! How do you’ll get potential T/B’s to see property that you L/O’d but is still occupied by seller? In other words, if you L/O a SFH, how could you show it to potential T/B’s if the seller hasn’t moved out yet?
Also, what techniques do you use to get the seller to give you possession a month earlier than your first payment? I’ve read many times on these boards that you should try to take possession - say on May 1st, but not actually make any payments until June 1st? How do you convince the seller to go along with this kind of a plan?
Re: How do you find T/B’s for L/O when seller is still in property??? - Posted by GregNorman
Posted by GregNorman on April 12, 2000 at 16:48:37:
Vic,
I’m not sure how the guys below were able to do it (those sellers must have been REALLY motivated), but I haven’t been able to convince a seller to pay after they leave. All of them want to stay until something happens (mainly someone making a payment).
I take the last statement back, I was able to start 60 days after one family left b/c the place needed work. We agreed to arrange for the work to be done and then reimbursed. I told them it would take a while to fix it and l/p it, so I’d need 60 days (b/c ‘I just can’t make a payment w/o someone in there. My profit would go out the window.’) Of course I was able to get the place painted, recarpeted, and the lawn cleaned AND found someone to occupy the place in 15 days (but that’s a rare case… a GOOD one I might add ).
Most who live there, and the place is in good shape, let me show the home once a week (open house or ‘inline appts’). I make them a payment as soon as I find someone (but the owners don’t get any money down). I tell them “That’s where I make my profit”… well, a piece of it anyway.
Whatever you can convince them to do. If it needs work, tell them they need to move out and you’ll need 60 days! Most other times they won’t leave w/o that a payment (besides… the market is too strong!).
Re: How do you find T/B’s for L/O when seller is still in property??? - Posted by B.L.Renfrow
Posted by B.L.Renfrow on April 12, 2000 at 09:03:05:
As Russ mentions, I tell the seller up front I will need 2-3 months before my first payment is due, to allow time to find a suitable tenant/buyer. There is little objection to at least 60 days. If the seller is up against the wall financially, I won’t push for more than 60 days, but since the seller knows I am an investor, and they know what I am going to do with the property, they typically appreciate the fact I am taking enough time to find a decent T/Ber…in fact, I stress that I am not just going to put the first T/Ber who comes along in their house, unless that one is most qualified.
Regarding showing an occupied property, Russ pretty much covered it. I have sometimes shown property with the sellers present…IF the seller knows the property well and is a good salesperson…I just let them do the talking, then I step in when the need arises. Of course, any subsequent discussion about price and terms takes place away from the seller.
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