Sometimes the ads are too good! Sellers needed! - Posted by Jim IL

Posted by Sebastian Mellone on June 06, 1999 at 19:24:08:

Brian(NY) thnks for your respond.Yes i agree that the closing fees are expensive. This is what i was told by more than one broker and an appraiser.Not to long ago i asked a friend of mine what it cost him to close on his house, he said about $8,000.00 plus. his closing took place maybe 7 years ago here in BKLYN NY.The appraiser broke it down for me on paper showing how much each expens costs (wish i could find that paper)he said that it needed to be tuned a little bit but that he wasnt that far off. Thats why it blows my mind when i read about doing a net net offer to intice the seller to sell his property to you. How can you? When it would cost so much out of pocket money(roughly $10,000.00 Going back to your statement Brian(NY)Must be expensive property your selling.I was told that it made no differance if it were a one family house or a multi-unit like a fourplex or six-unit the closing costs would be the same.All this info.comes from people who have been in the real estate business about 20 years or better.The so called experts.I dont think they would be pulling my leg.They have nothing to gain by it.

Sometimes the ads are too good! Sellers needed! - Posted by Jim IL

Posted by Jim IL on June 04, 1999 at 01:17:06:

Hello all,
Pardon me while I “vent” and “fish” for ideas.

Sheesh! I had a problem over the last few months. We could not seem to get enough buyers fast enough.
Then, I played with my ad in the paper, and now we have a ton calling everyday.
I actually now have MANY more buyers than I have properties.
I know a lot of it has to do with the time of year. (school getting out and everyone is READY to move)
But, this same phenomena does not apply to sellers…at least not yet.
So, I’ve re-read all the “how to” articles on finding motivated sellers, and not houses.
But, I seem to be at an all time LOW in finding sellers. (okay, it has only been slow for a couple weeks…but, buyers are calling saying, “Jim, did you find me a house yet?”)
So, what are others here doing to find sellers? (I am using all the methods taught in the courses and articles here already)
I need to find some homes that I can get on a L/O or a low to no down Land Contract.

I honestly thought we had our buying machine at top speed, but now the brakes are locked up!!

We have noticed that the demand from our buyers is strong in one particular area of town, and have revamped our marketing to that area.
We passed out flyers door to door, posted flyers/business cards in the local businesses, and even went FSBO hunting, and vacant house hunting, in addition to the classified ads that run constantly.
But, this week, we met with only one seller, and he was not as motivated as our telephone screening had determined. (He’s gonna call us back in a “while”…or we’ll call him in 30 days to “check in”)

PLEASE, let me know any ways that you all have found to be successful in finding these motivated sellers.
My “sellers ad” is not working lately, (although it did work, so it will stay in print) and I need new/more ideas.

Thanks for any feedback,
Jim

P.S. Of course, like everyone else, my buyers list is saturated with T/B’er types, and not people who have a lot of cash or pre-mortgage approval. So, we really need L/O candidates the most. (I can smell the deals closing, IF, I can find some more sellers)

Name your Price I NEED HOUSES - Posted by Mark R in KCMO

Posted by Mark R in KCMO on June 04, 1999 at 15:12:16:

Taxman says I need to buy more houses - Ugh, I’ll pay upto full price with the right terms. Call to see if your home qualifies willing and able to close tomorrow XXX-XXXX

Re: Sometimes the ads are too good! Sellers needed! - Posted by Tim

Posted by Tim on June 04, 1999 at 15:02:48:

Jim:

I’m not trying to be so presumptuous as to add my 2 cents where the likes of Piper and Sandy(FL) since I am a newbie (no deals under my belt yet but working hard at it.) But just a few questions. All the people who want to buy, where are they living now? Are they all renters who are looking to buy? Still living with the folks? Do they own a house and are looking for ways to creatively upgrade, downsize, change areas etc.? Does part of you pre-qual involve asking them if they currently own a home? My point is, if they are current homeowners, maybe the house they are trying to move out of is just what some of your other buyers are looking for.

Again, I am no expert, just a thought.

Tim

Focus on Sellers - Posted by JPiper

Posted by JPiper on June 04, 1999 at 12:43:59:

Just an observation.

It appears to me that you’ve changed something. You’re now allowing your buyer’s to drive your marketing for sellers. I think this is a mistake.

Here’s an example. In my area I can think of certain locations that might be highly sought after?..probably most buyer’s of any type would like to buy in these particular areas. The problem is that finding a seller who would sell on creative terms in these particular areas would be difficult if not impossible at this point in time.

My attitude is that people who need to buy on terms because they aren’t qualified for bank financing aren’t people who can be choosy. It’s not like they can just pick out any old area and expect to find someone who will take a few thousand, their credit problems, and a promise that maybe in the next few years they’ll have shaped up enough to buy the house.

Here’s reality. There’s ALWAYS plenty of buyers out there who are interested in creative terms. You can build all the buyer’s lists you want. And if you HAPPEN to find something in an area where you have some buyers already?.great. But focusing your attention on finding locations that these unqualified buyers WANT is misdirected attention. Some buyers?.particularly these buyers?.are often unrealistic in their expectations on the house, the area, etc.

I don’t spend one minute worrying about finding a buyer for a deal with creative terms. I can run an ad and get huge numbers of calls. I can move a deal on creative terms VERY quickly?.I don’t need a buyer’s list to do so.

I’d focus your attention on finding sellers WHEREVER they are. I wouldn’t allow myself to be directed by buyers?.because they may be directing you in ways that will reduce your capabilities of finding deals. If you HAPPEN across a deal in an area where you have a buyer then more power to you. But don’t try to find houses for buyers. Find motivated sellers?.wherever they are.

JPiper

Re: Sometimes the ads are too good! Sellers needed! - Posted by SandyFL

Posted by SandyFL on June 04, 1999 at 08:03:22:

OK Jim… you can’t post something like this and then
NOT tell us what ad you are using to find buyers…
I think it is the creol by-laws, you better check.

WHAT DOES YOUR AD WHICH IS WORKING SAY??? (I am just a little bit curious)

And is there any way, you can apply what is working in that ad, to the one you are using to attract sellers? I think we need more details.

Sandy :slight_smile:

Re: It’s Point of View - Posted by Bill Gatten

Posted by Bill Gatten on June 07, 1999 at 16:11:11:

Jim,

Great post as usual. And I agree in principal. However… what I do ('just did it for the dozenthteenth time ten minutes ago, as a matter of fact) is let the Wannabes pay for all of my advertising and marketing for seller-carry properties.

The potential buyer pays me a Locator Fee to seek out properties that may be PACTrust™ opportunties (OK, I’ll do a Lease Option too… if I have to…because or your relentless input and insistence…I have Brochiks and Kaisers courses). The prospective buyer comes into the office and “designs” the house they want, and pays me to find it for them… on their terms. I agree that if I find the house, I credit them the Locator Fee against any consulting fees they will owe me at COE, and if I can’t find the property, I return 100% of their money, less the actual costs of the newspaper ad and postage for any mailings they will have directed me to handle on their behalf.

Obviously, I will get properties that they don’t want or I’ll get two that they do want, but they can only handle one of them. This covers my advertising costs and gets me properties for free that I can put in the hands of other buyers… who, like you say, are a dimea dozen.

Bill

Thanks again, (for the nth time) Jpiper - Posted by Jim IL

Posted by Jim IL on June 04, 1999 at 16:04:18:

As always, your advice is GREAT!
Thank you, and you are right.
Already talked to a seller today, and set up a meeting tommorrow.
I am simply going to keep marketing as we have been, and perhaps a little more agressively. (more flyers and post cards, etc., keep making the calls, and less time concentrating on “what the buyers want”.)
So, thank you sir.
As always, this site is the place I need to keep coming for clarification and motivation.
On to find some more sellers…

Jim IL

Excellent advice, as usual. (nt) - Posted by Stacy (AZ)

Posted by Stacy (AZ) on June 04, 1999 at 13:28:58:

.

Re: Sometimes the ads are too good! Sellers needed! - Posted by Jim IL

Posted by Jim IL on June 04, 1999 at 10:49:33:

Sandy,
Nope, the ad for attracting buyers cannot be applied toward sellers, darnit anyway!
But, here it is:

No Banks Needed
Move in as you buy
No Closing Costs
xxx-xxxx

In the chatroom one night, some of us were discussing ads, and I came up with this one and ran it the next day.
The reponse has been overwhelming.
Try it, you’ll like it.
Thanks, and have a nice day,
Jim IL

Re: It’s Point of View - Posted by JPiper

Posted by JPiper on June 07, 1999 at 18:43:59:

Bill:

Not a bad idea?..but one that seems perilously close to requiring a broker’s license, at least as I understand your idea.

This would seem to meet the typical criteria of “performing for another” and for “a fee” that is generally the preamble for licensing acts. It seems like I recall that you have a broker’s license, so this may not be a problem for you. Finding a property for a potential buyer and collecting a “locator fee” I’m guessing is probably one of the enumerated acts that when “performed for another” and for “a fee” falls under the licensing act in California. But you go through enough gyrations with this “locator fee” regarding it’s collection and return that I would hesitate to say anything really definitive without the benefit of seeing the document that controls it.

In my state though, I would be reluctant to use this technique, as ingenious as I think it is. I know you well enough though by now to know that you’ve undoubtedly checked all this out.

JPiper

Re: Sometimes the ads are too good! Sellers needed! - Posted by Sebastian Mellone

Posted by Sebastian Mellone on June 06, 1999 at 09:04:55:

My question is HOW CAN YOU (the seller)AFFORD TO PAY THE CLOSING COSTS? In Brooklyn NY where i live the closing costs for the buyer are just over TEN THOUSAND DOLLARS. Do you add them to the purchase price? If so is that the correct procedure? I hope someone would respond to this. I am new to all this creative investing and eager to learn. Thank-you in advance Sebastian mellone

Re: Sometimes the ads are too good! - Posted by SandyFL

Posted by SandyFL on June 04, 1999 at 11:24:16:

Jim, that is a good ad. I am sure it does attract alot of attention. How do you further pre-qual them, once they call?

SandyFL

Closing Costs - Posted by B.L. Renfrow

Posted by B.L. Renfrow on June 06, 1999 at 10:40:17:

Must be awfully expensive property you’re selling…and I thought it was bad upstate!

First, if your’re the buyer, then you attempt to negotiate for the seller to pay all closing costs; likewise, when selling just write it into the contract that the buyer will pay them. Will that work? I’m sure it would, given enough motivation. However, the best I’ve ever done is split 50/50 or get the other party to pay up to X amount. Just write it in your contract and act like that’s the way it’s always done. If they call you on it, then start negotiating. If you’re flipping, let the seller pay half and your buyer pay the other half.

Your figures seem high, even if you’re selling a $1 million property. What costs are you including? Up here, transfer tax is 0.4% of sale amount, the various filing and recording fees amount to about $50, if you record a mortgage it’s .05% of the amount, attorney fees are around $500. If there’s a recent survey, it’s cheaper to just have the surveyor update it rather than do a whole new one - cheaper too. A survey locally runs about $500. Then there’s title insurance, typically paid for by the buyer. What else is there? If a buyer is using a commercial mortgage loan they’ll stick you with various committment and processing fees, as well as the lender’s attorney charges, so it pays to shop around.

This is a rather quick reply, but I don’t think I left anything out. Hope this answers some of your questions.

Brian (NY)

Re: Sometimes the ads are too good! - Posted by Jim IL

Posted by Jim IL on June 04, 1999 at 21:22:31:

Sandy,
Honestly, I have yet to make a set way of pr-qual’ing the buyers as they call.
I so far, basically ask them questions, like, "what can you comfortably afford per month?"
We try to see if they have ever applied for a mortgage and if so what happened?
We ask them what made them call the ad, and what they expect?
We give them a basic idea of what our “program” is all about, and see if they are interested.
Then, we set a time to see the home, usually the same time as others. Multiple showings seems to work best to get buyers wanting to move faster.
Oh, we also ask about job history, and if thier job is new, what they did before.
Mostly though, we listen to the buyers. they seem to call and do all the talking after we explain that the home is “Rent to own” and what that means.

So, if you have a set way of pre-qual’ing buyers on the phone, let me know, I’m always open to new and improved things. That is what brought me to this board in the first place you know.

Have a nice day,
Õ¿Õ
Jim IL