Posted by Bud Branstetter on April 26, 1999 at 12:44:36:
It is best to put in the for sale section. In the for rent if you want “see forsale ad.”
I would phrase it with the house first, then “on one acre horses allowed”
L/O - now what? - Posted by Tracy
Posted by Tracy on April 26, 1999 at 09:43:43:
I got my first l/o under contract almost two weeks ago. The owners moved out yesterday, out of state. Upon inspecting the empty place, I noticed a lot of things that I had not before, such as all the nail holes in the walls, banged up corners, etc. This place is out in the country, and part fenced off for horses.
My problem is in finding someone to l/o it from ME. My monthly rent is a little on the high side, although the seller is still going to have to pay out each month himself. I also got the purchase price for a little less than he owes, but still not GREAT. I figured that since the lot is large(1 acre) and equiped for horses, that the place would go pretty quick. It has not so far. I have consumed $100 in newpaper ads and have not recieved many calls, none serious. I do not have a payment until June, but don’t want to make that of course.
The contract that I used with the seller is Bronchick’s. I have to give the seller a letter after inspecting the place once they are gone. I am playing with the idea of rejecting the house since it needs some work inside that I do not want to pay for (time or money), and am getting a poor response from ads. Really the only thing going for the place is the 3/4 acre of horse area. The house is just okay.
What do you all think? Recommendations?
Thanks,
Tracy
Re: L/O - now what? - Posted by Dave(MI)
Posted by Dave(MI) on April 26, 1999 at 20:14:28:
I realize the upcoming L/O payment is your main concern, however I would suggest a free advertizing campaign to boost yor chances of finding a serious tennant. Buy the local papers from the surrounding cities and look for the companies who charge a fee to prospective renters they usually read like this ( !-800-pay-rent $85.00 fee) call the number and tell them that you have a property for rent with an option. they do it free where I’m at! and what’s even better is there are 5 or more to advertize for you in every area! hope this helps a little Dave(Mi) 
Re: L/O - now what? - Posted by Bud Branstetter
Posted by Bud Branstetter on April 26, 1999 at 12:36:48:
Tracy,
Similar experiences when the owner doesn’t get any cash when leaving. You can’t withhold because he left it dirty. An aggressive appoach would be to doc his payment for the cleaning repair costs. Maybe be nice and do it monthly. I will make sure my master lease has such a clause.
I would reduce the rent to get people calling. The option consideration hopefully is enough profit if you can’t get a positive monthly. Raise the price and offer more discount for additional monthly option consideration, I’ve used 200 credit off the price for each additional 100 monthly. That is after I adjust the price to cover the credit. People love a 100% return. Have you advertised rent credit available. That is if they have over 5% option cash.
Re: L/O - now what? - Posted by JohnBoy
Posted by JohnBoy on April 26, 1999 at 11:53:05:
What does your ad say?
What is your monthly payment?
What is your option price to buy for?
What is the property worth today?
Give us some of the details and we can see what options you have to get this baby moved!
Re: L/O - now what? - Posted by Redline
Posted by Redline on April 26, 1999 at 11:32:47:
Right now I’m going to defer to the others here because I’m not sure what you can do. Yes, you can probably reject it due to inspection but I’m not sure that’s the best method.
From what I’ve seen here there should’ve been one of two things done:
- Either L/O it outright and take the hit - being 100% sure (of course) you could find a tenant. Alot of people here do that. Sounds like you were never really sure you could find someone, however.
- L/O effective with you finding a tenant. This would’ve covered you in your current situation.
I’m sure there’s good advice to follow,
Good luck,
RL
numbers - Posted by tracy
Posted by tracy on April 26, 1999 at 12:29:57:
My ad says this in the rental section:
RENT-TO-OWN Hooper, 1 acre horse property, blah blah blah $1200/mo call xxx-xxxx.
My monthly payment is $1100
My option price to buy is 138K.
If the house were in town, with a normal size building lot, it would be worth 120-130K, and if rented would rent for 800-900/mo.
Of course it is worth more because of the 1 acre.
I am planning to call today and put an ad in the homes for sale section also.
The outside of the house is well taken care of for the most part.
Tracy
Re: numbers - Posted by JohnBoy
Posted by JohnBoy on April 26, 1999 at 12:47:12:
Try this ad,
NO BANK QUALIFYING! RENT TO OWN
NICE! 3bd/2ba Country Home (or whatever # of beds & bath you have)
$1200 Mo. Call xxx-xxxx
When you get someone interested in the property then give them an option of putting up the entire amount of option consideration and you will clean up the place OR if they would rather do it themselves you’ll knock $500 off the down payment amount and still credit that against the option price if they exercise. You’ll be amazed at how much work someone will be willing to do themselves to save an extra $500 to come up with. Then you don’t have to bother with it and put any of your money into the deal getting it all cleaned up.
I had one simular to what your describing. The place looked great until after she moved out. Big heavy dirt stains in the carpet where the couch was, hundreds of nails still hanging out of the walls, scuff marks along the bottom of the walls, and a filthy kitchen that needed the appliances cleaned out. My tenant took as is for knocking $300 of his option consideration and purchase price, plus he could move in immediately instead of waiting another week for me to clean it up. That was more than worth the headache to me! 