Although, you can screen for that particualr house, if you advertise the amount down and the payment you lock yourself into into it.
Sometimes you’ll get people with incredible amounts down that you would have never known about if you say 5,000 down or whatever. Also you dont find out the payment they can afford.
If you go back and screen all the calls you can quickly develop a buyers list because you left your ad a little more open ended, and you take full advantage of all the callers. Making them leave a message, then directing them to go by the house and call again will weed out the not so serious, and the looky loos.
I guess it is time to change my bate! I ran an ad this weekend for a house I have under contract and I did’nt get one call. This is what the ad said
“AS IS 4br,1ba,kit, din rm, 1 car gar.
5 Thornton Street.”
I did not put my phone # in the ad, which I think was a big mistake, because I figured if they are serious about buying, than they would get in their cars and drive to the area. I thought maybe this would have cut down all the non serious buyers, but it cut down everyone, YIKES! However, I am running the ad for the next 4 weekends and willbe putting a call into the papers to change the ad today. The ad will read as follows:
“No Banks, Owner will finance sfr
4brs 1ba, 1car gar w/$3,500 dwn
$520 a month -*.”
The mortgage includes PITI,
This house is in a low income neighborhood,where the rents go for $400-$600 a month. The house needs cosmetic work which a contractor stated he will do for $3k. The ARP will be 50k.
Any suggestions are appreciated.
I would like to sell the note at closing. If there is someone who can help me with this please e-mail and let me know what is your discount%.
Re: Some other tips on advertising. - Posted by Bill K. - FL
Posted by Bill K. - FL on June 07, 2000 at 07:51:18:
This is your business right. Then think long term. The purpose of the ad is to get responses. Most who call will not buy this particular property but you might sell them the next one you get. I like to use voice mail requiring them to leave their name and ph number so I can get back to them. This accomplishes two things. I get a list of potential buyers. And I weed out time wasters and realtors because they usually will hang up. When advertising owner financing be prepared to get calls from other investors. They are mostly looking for a no money down deal or a rehab. I tell them I will put them on my investor list and call them when I get a suitable property. Getting back to making the phone ring. Only include positive items in your ad. Take out “1 bath”. Every house has at least one. If it has two put that in. If the house is large say so. If small don’t. Take out “1 car” for the same reason as 1 bath. If most houses have a garage take it out. Instead of $3500 down put “low down”.
Instead of $520/month put “own for less than rent”. You get the idea. Be creative and make the house sound as appealing both physically and finance wise as space will allow. It’s better to spend money on an extra line or two to get a good response than not.
Thank you so much for your advice. The ad was changed early this morning. As i was reading Ron Legrand’s book on Fast Cash etc. etc., he basically said the same thing about creating a database of potential buyers from calls on ads run. I thought that was excellent and this morning I called a gentlemen that called me a couple of months ago on a house I was marketing and he said that he is interested in looking at the present house that I have available. I also got in contact with another gentlemen that is purchasing his first home and is looking for a 2 family house. So I willbe onthe look out for a two family house that meets his criteria.
Shenesa:
David is right on the money, when you advertise “Owner will finance” your phone WILL ring, and ring, and
ring, and ring, (you get the picture).
Not all of those calls are necessarily qualified individuals. Many of them are looking at the owner financing as their “last salvation” to get into a home. If you intend on holding on to the paper, then thats OK, however if it is your goal to take back the owner financing and then to SELL that paper, then you will need a little better quality buyer.
You can screen more effectively for prospective buyers out better (if that is your objective)by outlining what they have to put down in cash and how much their monthly payments are to be OR at the very least use a voice mail service to provide this information to interested callers.
Why should you have to spend time speaking to someone
for 20 minutes who does not have the ability to make your required monthly payment?