Posted by Vic on March 04, 2001 at 01:14:07:
I read Brian’s post (B.L.Renfrow) above & thought it was his letter.
Sorry about that. It is a good letter though.
Vic
Speaking with seller about L/O - Posted by Jim C
Posted by Jim C on March 02, 2001 at 18:41:24:
I sent out about 25 letters recently to people I found in a pre-foreclosure magazine. I asked them in the letter if they would be interested in selling me their home on a rent-to-own basis, but I didn’t tell them where I found their name.
My question is:
Do I tell them where I found their name and address (which I assume I should) or do I just say that I was driving by and wanted a house in the area? And if I do tell them that I got their name from a pre-foreclosure magazine, how do I not make that sound so bad? I don’t want to scare them away.
And one more thing, any suggestions on speaking with them that will help open their mind so that they will feel confident in what they are doing and comfortable with the whole rent-to-own deal? Some way that makes them still feel in control instead of me controlling them?
The last time I spoke with someone about it, I think I messed it up a bit and drove them away. I lost a little confidence myself and am a little afraid to talk to them about this.
Thank you all very much!!!
Jim C
Re: Speaking with seller about L/O - Posted by Mike
Posted by Mike on March 03, 2001 at 18:56:54:
Just wondering how you located this pre-forclosure magazine. I’m looking for a similar magazine in the Pennsylvania/Deleware region.Your help would be appreciated.
Thanks
Mike
Re: Speaking with seller about L/O - Posted by JPiper
Posted by JPiper on March 03, 2001 at 01:32:37:
The best way to build confidence is to be truthful…authentic. I don’t think this necessarily means that you have to tell everything you know…but on the other hand I wouldn’t make up any stories either.
If I were approaching a guy in foreclosure, I might simply ask him if he were interested in selling his property. No reason to say much more than this. If he asked how you got his name…THEN I would mention that I noticed it in some recent court filings.
You’re learning…so keep plugging away. But stick with the truth in my opinion…people sense when you aren’t authentic.
JPiper
I wouldn’t speak with them about L/O… - Posted by B.L.Renfrow
Posted by B.L.Renfrow on March 02, 2001 at 20:30:42:
…unless you want problems. If someone is about to be foreclosed on, it’s a good bet they’re in financial trouble. Financial problems mean there’s a good possibility of liens, judgments and perhaps bankruptcy down the road, which will play havoc with even a properly structured L/O. Plus, it’s a bad idea to put money into a property for which you don’t control the deed.
If you want to do preforeclosures, look into ways to acquire the deed up front instead of lease optioning.
Brian (NY)
Re: Speaking with seller about L/O - Posted by Richard Roop
Posted by Richard Roop on March 02, 2001 at 19:04:30:
Lost confidence? Keep on chugging! That’s how you learn. There is no such thing as failure, only feedback.
However, I would never expect to aquire a property via a lease option when someone is in foreclosure. Who is going to cure the loan? Once it is cured, are you going to rely on the owner to make the payments? You really can only lease option houses when the financing is current. I don’t like chasing people in foreclosure because a lot of them don’t want to sell, and someone has to come up with cash to cure. (When I do cure foreclosures, the cash is usually coming from my future buyer’s down payment with no promises to the seller to cure until I resell).
For what it is worth, here is a letter I wrote for one of my investor consulting clients:
Dear
My company is looking to purchase several houses in your area. I see in the legal notices that your house is scheduled for public sale shortly.
I’m writing to see if you are interested in stopping the foreclosure process and perhaps selling your house to us. As an investor, I can quickly pay you cash for your equity before it’s lost forever. Even if you have no equity, I might be able to prevent the foreclosure by making up the back payments on your loan.
Call me at ________ and I will be glad share with you some of the options you still have available at this time if you act quickly. You can also call my free 24 hour recorded information line if you’d like to hear a little bit more about how I might help. The number is ____.
There is no cost for my services. I don’t charge any fees or commission. I’m just looking to buy more houses in your area and I’m very creative in solving homeowner’s financial situations. If your interested in selling then perhaps I can make you an acceptable offer.
Give me a call and let’s see how we might work together.
Sincerely,
Re: Speaking with seller about L/O - Posted by Jim C
Posted by Jim C on March 04, 2001 at 01:16:06:
I found it at a Magazine store and I’ve also seen it at a convenience store once, but I forget which one. Their website is www.americanforeclosures.com
They will probably have some more information for you there.
GOOD LUCK!!!
Jim C
Good letter, Brian! - Posted by Vic
Posted by Vic on March 03, 2001 at 03:30:52:
Brian,
That’s a very good, non-threatening letter you’ve written. It’s got a friendly tone to it.
How have you been, by the way?
Vic
Re: Good letter, Brian! - Posted by Richard Roop
Posted by Richard Roop on March 03, 2001 at 12:10:03:
Thanks Vic, but this is Richard and I wrote the letter. I don’t know how Brian has been but I’ve been great!
Richard