Re: L/O - What’s the benefits to the seller? - Posted by Matt B
Posted by Matt B on March 14, 2001 at 15:39:53:
OK, Greg, I guess I can give you an answer based on that. When you start doing your marketing (putting up “we buy houses” signs, running ads, putting up flyers, etc.) you will of course get calls from sellers in all sorts of situations. I prefer doing lease options simply because they are very easy for me to pitch to the right type of seller and very easy to sell to a buyer.
Of course, a lease option does not fit every situation or need of a seller. For instance, if a seller calls me and tells me they are 2 months behind on their payments and they just want to “dump” the house, many times, I will offer a “subject to” deal. I will not put money into a house in that situation unless I am being given the deed for it.
On the other hand, if a seller is current on their payments and is open to taking payments for their equity, but does not like the idea of a lease option, I will then offer a land contract deal. This way they can receive payments and I still get a creative, no down deal that I can put a buyer into and start making money from.
It all depends on the seller’s needs and their situation. It does take a while to learn how to fit the right type of offer to the specific situation, but that really isn’t something a newbie needs to be greatly concerned about. Just getting out there and using some of what they’ve learned is what’s most important. Too many people buy course after course and use them for nothing but expensive dust collectors, thinking that they’ll break them out “some day” and actually try one or two things from it.
I hope this helped you a bit. I know I wasn’t very specific on each situation that a particular type of deal would apply, but this should help explain a little bit why different types of deals work for different types of situations. All no money down of course!