Posted by HR on April 23, 1999 at 15:35:24:
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inked ANOTHER lease option!!! - Posted by Matt B
Posted by Matt B on April 23, 1999 at 15:25:46:
Man, I love this business! I just came back from a meeting with a seller that had called my ad. He told me that he had 2 houses for sale, his personal residence, and a rental property. We discussed l/o on the phone and he was very agreeable to the idea. When I went over, he said that his flaky wife had decided not to sell their home. (Women!) This is in spite of the fact that it is a 2 bedroom home and they have 4 kids! So we went over to the rental.
It was a beautiful 3 bedroom, 1 and a half bath house. He had said that he wanted the appraised value of $55,000 for the house. When I saw it, I had a hard time believing that it had appraised so low. After further conversation, it turns out that he had the appraisal done last year BEFORE he put in a new kitchen, bay windows in front and back, new plumbing throughout, updated the wiring, re-landscaped, put new siding up, etc.!!!
So I thought hard about giving him “full retail value” for the house, but I thought, “what the heck, I’ll give the guy a break”!!! He currently has a HUD tenant in there, but no lease with them. I told him to allow them to pay next month’s rent and then issue a 30 day notice. My payments would then begin 1 month after they vacated. (I was feeling generous.) It is currently rented for $595 a month. The loan payments are $420 a month. I negotiated a 50% rent credit with him. $210 gets applied to the purchase price.
I had a really nice, long conversation with this guy. I found a lot of common ground with him by asking questions and shutting up. We talked about the military, (he is a reservist, and I was in the National Guard) being a dad, (we both have boys about the same age. Odd since he is 42 and I am 25!) etc. I spent 2 hours in conversation with this guy. He asked me how old I was. I almost squirmed a bit when I told him that I was 25. I have grown a beard since I have been doing the business full time to add some years to my face. I would think that most people would be uncomfortable giving control of their property to someone my age. I sound extremely business-like when I speak, but my looks could cause some uncertainty, I thought. When I told him my age, he said, “Ha! No kidding. This sure beats working, doesn’t it?” I laughed with him, and told him that it sure as heck does!
As I was leaving, he said that as soon as his wife wised up and wanted to sell their house, he would call me. We really enjoyed each other’s company, so it was a pretty cool day. At one point, when I was explaining the contract, he said to me, “just tell me that I don’t have to worry about the house any more”. So I said, “You don’t have to worry about the house any more.” He laughed, grabbed my pen, and asked where he needed to sign.
Wait a minute… - Posted by Rob FL
Posted by Rob FL on April 24, 1999 at 22:07:51:
…I thought you couldn’t do that where you live. Congrats on your deal. You da man.
and all you did was ASK nicely! - Posted by Jim IL
Posted by Jim IL on April 23, 1999 at 20:28:07:
Matt,
Great job!
I love to hear this stuff!
Today was a good day all around.
We also got a new one “inked” today. This one proved to me that “patience” is the real key.
I had previously called this woman, as I noticed her ad selling and her other ad “Renting” the same home.
she is located out of state, and has problem tenants for a while now. Well, they leave next month, and I’m in!
She did not sound too open at first, so I just listened to her RANT about the tenants, and then got off the phone.
She called back twice this week! I blew off her first call, because the message said, “are you going to buy my house?”.
the second message sounded more urgent, so I called her today! She also told me that she must have had 100 calls wanting to rent it, but that she decided that “letting me be lanlord” was a better option for her, since she was out of state. Her main concern was that we make the numbers work so that I can profit! She seemed really concerned with that.
So, we got her to drop her monthly payment from me a bit and the sale price a couple thousand!
Then,
Via FAX, we got it signed up.
Should be $3k up front, $200/month (maybe more, my wife says my rent idea was too low), and $10k-$15k backend!
She is going to re-carpet and get the broken garbage disposal fixed, and then I’m in there! YAY!
The other deal we got today, (sort of), is only a straight OPTION, but we’ll take it!
This “seller” insisted that she get the price her “appraisal” was for. (at first, I thought, well, she hasn’t said a number, so maybe it is a low appraisal).
But, then she gave me the scoop on the appraisal to which she was refering. It is 2 YEARS old, and has the home at least 15% under valued. (maybe more, nice area)
So, we got that one today as well.
The signs and ads start soon!
And, now, I’m relaxing tonight, having a beer, and waiting until tommorrow to make some calls!
I love this game!
Jim IL
Re: inked ANOTHER lease option!!! - Posted by phil fernandez
Posted by phil fernandez on April 23, 1999 at 19:23:27:
Matt,
Nice job and yet many will say that a lease option can not be done. Guys please take notice of Matt’s deal.
Re: inked ANOTHER lease option!!! - Posted by CarolFL
Posted by CarolFL on April 23, 1999 at 19:12:25:
Makes up for the tough ones, doesn’t it?
Good going!
Carol
Re: Nice one, Matt! - Posted by Stacy (AZ)
Posted by Stacy (AZ) on April 23, 1999 at 16:24:48:
The snow-ball is getting bigger as it rolls…
Great going! No disputing the fact that this is really a people business, and you’re doing the right things.
Stacy