help! - Posted by karp
Posted by karp on January 24, 1999 at 11:29:27:
Nice job on the cold calls…makes me wanna say “told ya so…” heh, heh…
So Let’s summarize, you have got a motivated seller, a nice house and wait a sec…what’s missing? That’s Right!
A Tenant Buyer.
So find one. Run an ad. Talk to Realtors. With a house like this maybe they have someone who they know they will NOT be able to find a house for as they don’t quite have the down payment.
You could give them a referral fee if they brought you a t/b.
I would absolutly run an ad. I would also absolutly have an out so you dont have to do anything with this house if you can’t find a STRONG t/b.
He’s fine getting his PITI…Well, no doubt! Figure he is more than fine, he is jumping for joy that someone is going to save him paying an EXTRA 2100 per month OR
$25,200 PER YEAR! Rememebr that is above and beyond his new mortgage or rent payment due to his “special family situation”…
Challenge is this:
You were “WOW’d!” by the huge rent. Others will be as well. I think the MOST I would offer him would be around 1400-1500 per month. Rememeber that is a guesstimate, it may be far less. See, I want to have a decent market for T/B’s if one falls through and to do that I may only be able to command a rent of 1800-2000.
On a deal like this I need to have a good spread.
Now as far as option consideration. Yes, you need to find a BUYER not a RENTER mentality. But Ray, you should be doing this anyway. The fact that it is a higher house shouldn’t strengthen your resolve in that department. You want BUYERS not RENTERS.
Anyway, figure out what it would rent for. Ask around. RUN AND AD. Do whatever it takes. My only negative thought is that he has probably told EVERY SINGLE PERSONE THAT CALLED that he only needs 2100 per month as that is his payment.
IF YOU GIVE HIM THAT, you will now have to ask for an even higher rent than even he was able to get…
AS FAR AS OPTION CONSIDERATION: You better make it high enough. I am talking 5-8K fro your T/B. Is 90 days going to be long enough to make sure you get that?
There is anopther alternative here you may want to consider…You may want to work him on the price, see how much af a loss he can take. Then, you may be in a position to just ASSIGN this L/O to another buyer and be done with it.
Kick it around and…
Keep us Posted…