Posted by Dee-Texas on February 19, 2002 at 13:28:21:
If this is a blue collar house this is my answer.
I wouldn’t go down on rent, I would go down on option money…the reason…the option fee you can split, tell them $1450 now and $25 extra a month until it’s paid (make a seperate promissory note with interest). If you go down on rent then why is it any different than rental property? You’re paying taxes and insurance…they couldn’t buy for that, PLUS most that come to me can’t buy from a conventional lender anyway. If you took $100 less per month on a L/O you would lose $1,200 per year. On a two year L/O you would lose $2400.00. Make it easier for them to get in and then they can work to please you.
Most don’t have that amount (a large option fee) and won’t even neogiate with you…they don’t know how…so they pass.
OH…big tip…don’t start rent credits until ALL of the option money is paid. OR only give them $50.00 rent credit it’s still a lot better than they would get with a normal amoritized loan. Usually on a $40K loan only about $20 goes to principal for the first 5 years.
Anyway, my two cents.
Dee-Texas
I am in a rut trying to locate a T/B…any creative ideas?
I am running a classified. I have also called a couple of mortgage brokers to let them know that I would take someone they had to turn away because of poor credit and I will place them in one of my properties on a L/O. They can then work with my T/B to qualify for a mortgage. I’m not sure how effective that will be.
I am also going to go around town after work today and post flyers in grocery stores, laundromats, etc.
Any techniques that you guys and gals can recommend would be much appreciated!
Re: Need Help Getting a T/B in My Property - Posted by GregNorman
Posted by GregNorman on February 20, 2002 at 15:12:30:
BMP,
Increase marketing by putting up signs.
If your getting calls and no takers, remove the option consideration in your ad, drop the rental amount (#1 reason why people don’t call… in my opinion).
Re: Need Help Getting a T/B in My Property - Posted by Taylor
Posted by Taylor on February 19, 2002 at 12:58:02:
Hi Brian,
Run an ‘Owner Will Finance’ Ad. You will receive calls from people who are looking to own. Ask for a sizable down payment, if they don’t have it then pitch the L/O to them.
I think this ad. accomplishes a few things…one you will cast a wider net and have more to choose from. Two, you can do a CFD (ie. Land Contract) if your buyer has enough down payment. Make the term short (2 yrs) amortized over 30. Then there’s the option to do a L/O. If all else fails…rent to cover your payments!
Re: Need Help Getting a T/B in My Property - Posted by Dee-Texas
Posted by Dee-Texas on February 19, 2002 at 11:29:38:
Hi Brian,
Before we can answer, we need to know a few things to help. The area, is the rent comparable to other rent in the area, does it need fixup, or is it ready to move into. If you have a lot of lookers but no T/B’er then usually it’s priced too high, your asking for too much option money or something is wrong with the house.
This time of the year it can be as simple as they haven’t gotten their tax refund yet.
Let us know and we will try to help.
OR are you just asking for marketing ideas?
Great Success,
Dee-Texas
Thanks Dee. I am slightly above market rent, by about $100 but I am offering $200 per month in rent credit. At any rate, I am telling all who call that the terms are completely negotiable and we can work the payment to fit there situation. I am asking for $2900 as an option fee, again telling callers that the fee is negotiable. I am going to lower the rent price in my classified ad by $100. The house is in move-in condition and needs no work. I haven?t got a single person to want to see the inside so maybe my terms are too much.
Thanks Dee. I am slightly above market rent, by about $100 but I am offering $200 per month in rent credit. At any rate, I am telling all who call that the terms are completely negotiable and we can work the payment to fit there situation. I am asking for $2900 as an option fee, again telling callers that the fee is negotiable. I am going to lower the rent price in my classified ad by $100. The house is in move-in condition and needs no work. I haven?t got a single person to want to see the inside so maybe my terms are too much.