Here’s what I do, I place an ad in the paper, mind you, I’m Owner Financing not doing a Lease Option.
AD in the paper Reads:
Owner Will Finance
3\2\2
1515 Mockingbird Ln.
(555)888-9999
People call and they will not leave a message, so I make sure of three things.
I’m able to answer the phone myself.
If not able to answer, I have software hooked to my computer that forwards the caller I.D. to my pager, I return the call immediately.
At the very least I return every call on my caller
I.D. asking if they possibly called about the house.
At the House itself put a Big Sign, Open all the blinds
to the House, put some signs up the street.
When people call prequalify them, do they have an adequate Down payment, how long on their job, when are they planning on moving, how long have they lived where they are currently at? etc., etc.
Tell them to go by the house and look if they are still interested to call you back or page you.
Once you have a few people interested, go meet them all at the same time, it will create urgency among the the others.
In the Ad
I don’t put the amount of the down payment, or the amount of the payments because, The down payment, I want as much as I can get, and the payments will depend on the interest rate and I won’t determine that until I
see their credit. I won’t to make sure to structure the deal right in case I ever need to sell the note.
Posted by Mike-DFW on December 24, 1998 at 02:43:37:
Just got a option on a 4-2.5-2 in a good area.
Here’s the info.
Comps out at 96-97k
Seller needs 4750.00 to close on new house
My option price is “loan balance at excersise” about 82k now.
My payment 900.00
No credit because I automatically get the pricipal reduction.
Should rent for 1075-1125
I ran an ad for 10 days asking for 6500 option and 1100/month. Had 18 calls, showed the house 9 times and did not receive a single app. or even a call back.
What do you think? Too high on the option, rent, bad timing with XMAS?
Is there anything else I can do? If they deed the place to me for the 4750, can I do a wrap and call it owner fin?
Posted by SCook85 on December 25, 1998 at 23:59:11:
Mike,
We need to help you get this one done by March. I did not have much luck at all with my ads that I ran last Sunday. I got 3 calls on one of 5 ads. I think you did real well with 18. I might have one buyer out of the 3.
In any event, my concern is that you had all those people coming out knowing what the terms were. I would assume that they all had $6500 option consideration. I probably wouldn’t run that in your ad simply because if I can get more I will take it, and you might have to settle for less.
Did anyone appear to be interested after seeing the property. The holidays could have been a major factor in the reason that they have not gotten back to you.
Is there anything wrong with the home?
What are you optioning the home for to the new buyers?
What type of credit are you offering on the $1100 per month rent?
And don’t worry. Most investors that I know personally take about 3 months on average to market a home. If you don’t do it in one week it doesn’t mean that you are doing something wrong. Be Patient, do things right and in time your deal will happen.
Posted by George on December 25, 1998 at 22:50:58:
Bad location? Bad floorplan? Just plain bad house? The nine people that saw it knew the financial terms up front right? Something about the house is turning them off. Perhaps you’ve overestimated the market rent?
Posted by Joey P SE AL on December 25, 1998 at 01:34:50:
Mike,
I am working on my first lease/purchase right now - secured the option about 10 days ago also. And when I say working, I mean WORKING. I have ran and ad for 7 days in the local newspaper. I have put up a sign in the front yard of the home. I have made many flyers and personally delivered them to the tenants of some pretty comparible ($) rented townhouses. I have talked to the local mortgage broker and became familiar with exactly what I need to do, and oh yes I did ask her for some referals and offered a nice referal fee. I have talked with many many real estate brokers and salespersons in the area and offered them a generous referal fee to help me find a tenant/buyer. To top all of that off, I am asking only about 3% of the selling price as up front consideration, and uh, I’m only asking FMRV for the monthly lease payments. Results so far: Only 3 calls in 10 days (have not even showed the home yet.) I like to think that I did my homework going in on this. I had already talked to several realtors in the area, and they told me that sales were NOT slow in the neighborhood. They also told me that they were actually doing pretty well on renting houses there also. And so I have concluded that Christmas time is NOT the time to try to sell a home (unless you have no other choice, of course.) Please let me know if you have any suceess in the near future.
Posted by Mike-DFW on December 26, 1998 at 24:26:07:
Steve and George
Nothing wrong w/the house. Almost new carpet, either 2 living or 2 dining. Corner lot. Good area, good schools. Master down, other rooms are oversize for the area. At first I wasn’t offering any credit then for the last few to look I offered 200.00 credit.
I am a realtor by trade so I know what the area sells for and what the rents are. This year I have sold 3 houses in the same subdivision.
Steve,
thanks for the info on other investors taking longer, the average market time for this area is 50-60 days for sales.
Well, my phone hasn’t stopped ringing all day Christmas
Eve, and except for the Ice storm that hit Dallas(Virtually shuts down the city) I would probably have that house sold. The day after Christmas I have 4 people coming to look at it.
Posted by Rob FL on December 25, 1998 at 09:12:32:
I think you are right. It seems you have done everything possible to sell the home. Probably if you wait until after January 1, your results will pay off. I would think (scary isn’t it) that few people would want to move right in the middle of the holidays. Also many people are out of town.
Posted by Joey P SE AL on December 27, 1998 at 11:59:13:
David,
Would you mind sharing with me some of your marketing strategies on the home. Also, some background info (size, asking, area, etc?). I still have received only 4 calls in 13 days.