need help finding high end buyers (long) - Posted by Terrance Hamel
Posted by Terrance Hamel on February 16, 2001 at 20:12:41:
I’ve had a property tied up for 4 weeks on a L/O contract and have not found a qualified buyer to act on it. The seller is moving in 2 weeks and she cant afford double payments. If we cant move it, she wants to use a property management company to provide a tenant to cover their payment. I don’t blame her; I want to be her SOLUTION, not her PROBLEM. She has had great faith in me, but I can tell its waivering.
This is a basic assignment of interest deal. Here are the specs:
Appraised 235k 4/00
Option cons: 13k (9k to seller and 4k to me)
Monthly pmt: $1925
Rent credit: $300
Option price: $230k up to 3 years
Loan Balance: 199k
Loan Int: 10.5%
Loan Pymt: $1825
10% Seller financing and outright purchase available.
I’ve put up bandit signs on posts and high on telephone posts in major traffic areas. In the nicer areas, the signs come down; the scruddier areas stay up. Most of my calls are from the scruddier signs and conincidentily, lower income people. I’ve never got a call from a sign in a nicer neighborhood, probably because it doesnt stay up long enough. I put the signs up every Friday after 5p. Even on weekends, the signs come down in the nicer areas. The signs read:
DESPERATE - RENT2OWN - PHONE
or MOTIVATED - RENT2OWN - PHONE
or MOTIVATED - RENT2OWN - ADDRESS - PHONE
I’ve also a consecutive 2 week ad in the local paper under the FOR RENT section. 2 calls. It reads:
AREA (a must by the paper), RENT2OWN, 1925 PMT, 300 RentCR, MUST GO, OPEN HOUSE SAT/SUn 1-3p, PHONE
I’ve placed fliers in apts, but got hate calls from apt owners and after almost getting caught by a cop for tresspassing (owner was present and questioned me), abandonded that idea. That particular apt was low end anyway and I shouldnt have wasted my time there. Not all apts are low, but most are.
I’ve placed tear off fliers in credit unions. Got the stink eye from a few, so no fliers there. No calls.
I’ve placed fliers at new auto dealerships. No calls, still new though.
Fliers get placed at shopping stores near telephones while I am in the area. No calls.
I place bandit ‘arrow’ signs near the property on major streets the night before open house and always an hour before open house. The signs sometimes come down, even during open house.
I have a hanging sign in the owners yard. A flier box is filled with the terms plus optional terms. It is like a plant and needs a weekly refill, but still… no calls.
I have been contacting local companies that have big salaried employees to ferret out potential buyers that are relocating. I have found thus far, that it is all on contract and requires proposal submission to get on their ‘vendors list’. I am wondering if that is a dead avenue.
I have 2 people which qualify out of the 50 people that I have had contact with. Both saw the signs near the property and attended the open house. They each have about 20k NOW and say they can afford the property, but I only heard from one of them.
The one prospect is a vet and has a F/C on record which affects him getting financing, but he says he will be eligable for 6.x financing in 6 months through a special provision (dont recall the provision). I had an investor/loan officer speak with him and although they’d never heard of it, also said that even if it were true, buying out a L/O requires one year of occupancy as it is considered a refinance.
This prospect also is being careful to get into the home correctly, as they got F/C on due to high payments and an emotional attachment the first time. They dont want to make the same mistake again. I dont blame them. He is also having a RE agent/fellow churchgoer act as a buyer agent for him. The buyers agent wants to be at the next open house.
So I really could use some help with finding these high end buyers, whether it is fixing what I am already doing or learning to do something else. Thanks.