Posted by B.L.Renfrow on March 27, 2000 at 17:01:20:
It is three pages long, so it’s a bit lengthy to post. However, if you want to email me privately, I can fax it to you or send as an e-mail attachment (if you use a Mac and can open Claris files). I am not home today, so I could take care of it tomorrow evening.
Brian
Loss for words - Posted by Todd
Posted by Todd on March 26, 2000 at 19:45:22:
I have an ad in the paper today… basically it says
Lease/Option N Cityville
start with $3500 down
call xxx-xxx-xxxx
I’ve gotten quite a few hits from that today… however, I do not own the house yet, I should be closing on it by May. (offer accepted and have all them signatures…)
what should I tell the people that call? noone seems to understand the Leasepurchase concept at the time of calling either… should I be going into great lenghts at this time to describe it? how should I handle this?
Thanks
Re: Loss for words - Posted by Todd
Posted by Todd on March 26, 2000 at 21:29:47:
is it ok to ask them if they think they might be in a position to purchase a house within a year or 2?
Re: Loss for words - Posted by Todd
Posted by Todd on March 26, 2000 at 21:27:12:
wow! thanks for the fast and helpful responses.
I guess thats kinda the beauty of the lease/option, it seems like there are lots of ways to make it work for everyone!
more suggestions are always appreciated.
Additional tip… - Posted by Russ Sims
Posted by Russ Sims on March 26, 2000 at 21:10:17:
Rather than give the option fee amount in your ad, why not let the market determine it? I like Legrand’s simple question “Mr. Smith, how much are you willing pay to get into your next home?”. You might have in the back of your mind a figure like $3500, and then someone will tell you they’ve got $5000.Great! Take it!
You might also think about printing up a “Frequently Asked Questions” sheet for prospective tenant/buyers. I give one out every time I show a house…clears up a lot of confusion.
Russ
Re: Loss for words - Posted by Laure
Posted by Laure on March 26, 2000 at 20:16:11:
I have a hard time with education also. Almost all of my callers know “contract for deed”, but not L/O. I just say it is very similar and point out the similarities and differences. I also have them on my webpage for those with computers. Do you explain? YES ! First I ask them if they have the “down payment” (they understand that term) If they don’t, then don’t waste your time. If they do, then go into what the house is like. Explain that you are looking for a “BUYER” and not a Tenant. That you are interested in helping them attain financing, and L/O does just that.
Good luck. The more calls you get, the better you will get at it. Last house I L/O, I only showed it one time, and the guy took it. If you don’t get a taker within 4 showings, you’re not doing your work on the phone. I almost always have the house gone on the second showing.
Good Luck,
Laure 
Re: Loss for words - Posted by B.L.Renfrow
Posted by B.L.Renfrow on March 27, 2000 at 09:44:10:
Todd,
I agree with Jim…99% of them won’t have a clue, so whatever answer they give you is meaningless.
Instead, the questions I want answered on the phone are, do they have money available for the option consideration, and if so, approximately how much; do they have a source of income; what is their present housing situation; do they have credit issues which will make financing difficult or impossible.
The trick, of course, is getting the answers to these questions over the phone without making the caller feel as if they’re being interrogated. I just try to work the questions into the conversation, and thent let them talk. It’s not easy, but you will get better with practice.
Of course, when they call all they want to know is where is the property, and how much down and how much per month. You can eliminate some, but not all, of the flakes by doing things like using an answering machine or voice mail to screen out the unmotivated, and by writing down or even practicing your responses to callers and developing a conversational style which doesn’t sound scripted, but allows you to get right to the business of getting the info you need. There’s nothing I dislike more than spending 10 minutes on the phone with a prospective T/Ber, only to find out he doesn’t have a dime to his name or he only wants a mini-seminar on how L/Os work!
Brian (NY)
Re: Loss for words - Posted by Jim IL
Posted by Jim IL on March 27, 2000 at 24:14:36:
Todd,
Forget asking the callers that. It is a waste of time. Most do not really have a clue about that. This is why you take an application. You can determine better in most cases what they can do in a year or two. If you cannot, find a friendly mortgage broker to work with. I have one, and now it is procedure for me to take a 1003 loan application with the final application from me. I then just take this to my beoker who can tell what he can or cannot do for the T/B’er.
And, frankly, if they have enough option money to put up, who cares.
I will take that, and then try to help my T/B’er clean up or do whatever it takes to get the loan. But, just in case, I am paid anyway.
Also, many people who are trying to do a L/O with you assume they cannot get a loan anyway, so most will say “no” to your question.
Hope that helps,
Jim IL
Re: Additional tip… - Posted by B.L.Renfrow
Posted by B.L.Renfrow on March 27, 2000 at 09:29:19:
Hi Russ,
Great idea about the Q & A sheet…I do exactly the same thing, and I find it almost completely eliminates call-backs with the common questions! I just keep it on the computer, and print it out on bright yellow paper matching my business card, and I give it to the prospective T/Ber along with a one page description of the property. Works great…
Brian
Re: Additional tip… - Posted by Dave
Posted by Dave on March 27, 2000 at 14:15:57:
Brian,
Could you post your Q&A sheet?
Dave