Posted by Copper on March 06, 1999 at 07:26:12:
I think you better read or reread the articles here…
They offer so much and the only cost is your time…
“Rent-to-Own” Ad - Posted by LS
Posted by LS on March 05, 1999 at 09:26:50:
Help!! Had some air time on some local radio stations so I ran a very short( only 10 seconds) ad for folks interested in Rent-to-Own. Within 3 days I had close to 20 calls !! Now what do I do ? How can I find houses for these folks?
I contacted a local “so-called” real estate attorney who never heard of a sandwich lease option. Anybody have any advice.
Thanks,
LS
Re: “Rent-to-Own” Ad - Posted by HankM
Posted by HankM on March 05, 1999 at 14:38:37:
Others have given you good advice on what to do, I only wish to offer an observation …
By soliciting buyers before you have inventory I think most would agree that you are over the line with respect to what constitutes being a “broker” … what that means is that if you need a license to be one you’re probably breaking the law and the local realtor association will start hounding you.
I’m not saying this to dissuade you, just to point out a potential problem.
Good Luck!
Hank
Re: “Rent-to-Own” Ad - Posted by RS
Posted by RS on March 05, 1999 at 14:14:38:
Well, this is what I would do if faced with the same circumstance. Hopefully , you’ve screened your callers and know which ones have cash (and how much) to put down. You should also know what kind of houses these folks are looking for. When they call, simply say that you don’t currently have anything to match their criteria, but you are finding new properties by the day, and that you expect to be able to call them soon with some prospects. You’ll have a nice buyers list that you can use for a while. Then start calling FSBOs and enquire about selling under a L/O.Don’t mention a down payment at first. They may bite without it. If you feel you must, offer to sweeten the deal with a substantial down. Simply say something like this,“Sir/ma’m, If I could secure this deal with cash, would that make a difference?”(remember, cash talks!). If they say “yes”, then simply ask “What is the very minimum you would consider to make this happen?” Let’s say they say “$1500”. Well, by now you know that several of your prospective buyers have at least $3500 so you are nearly there! Next get your tenant/buyers into the house. If they like it, take the $3500 and give $1500 to the seller. Guess where the difference goes? If you’ve added even 5% to the selling price of a 100k home, you’ve just collected 2K with another 3K due upon close (unless you arrange for a rent credit). This is to say nothing of any positive cash flow you can work out on a monthly basis.
Also, read Joe Kaiser’s article called something like “One little post card, 7 deals” in the money making ideas heading.
Good Luck!
RS
Re: “Rent-to-Own” Ad - Posted by Lynn (AL)
Posted by Lynn (AL) on March 05, 1999 at 13:26:46:
LS,
Start calling all the FSBO and FRBO ads in the local paper. Ask the owner if they would be interested in selling you their house, but letting you rent it for a short time. Most people will say “No”, but a few will say “yes”. Then go look at the property, get an agreement signed, then call the peole who called you back with info about the property(s). Just give them the address, let them drive by and look at it from the outside, and tell them to call you back if they are still interested. If they call back, they’re ready to do the deal.
Good luck.
Lynn (AL)
How would you secure property? - Posted by Tim
Posted by Tim on March 05, 1999 at 22:28:14:
My question to RS or others would be, How can you prevent the potential tenatant/buyer by passing you and negotiate the deal with the original owner?
Thanks for responses
Tim
Re: How would you secure property? - Posted by RS
Posted by RS on March 06, 1999 at 10:21:27:
Hi Tim: You really can’t keep the prospective tenant/ buyers (or sellers for that fact) from doing a back door deal. Sooner or later, it’s bound to happen. Maybe there’s a legal way to prevent this from happening. I just expect people to act honorably and figure the worse thing that can happen is someone gets a nice home due to my efforts…I can live with that.