UPDATE on our deal... ;) - Posted by Justin-IL

Posted by Millie I. on January 14, 2000 at 19:07:05:


Don’t use idle words in an expensive Ad. Every word must give info or help sell: Try something like:

Renovated 4BR, 1.5 bath cape cod w/ 2 car gar (1 acre lot) in nice NE suburb. Newer roof, furnace, carpet, appliances. Financing/Closing help available for qualified buyers. Call 111-111-1111(cell)/222-222-2222 (7-10pm).

The important thing is not to commit to giving everything away. What if you got a buyer that can pay all the way? You should not encourage him to pay minumum, and let you take all the risks. Also don’t promise anything you can’t deliver, it could come back and bite you legally.

Best of Luck,
Millie I.

UPDATE on our deal… :wink: - Posted by Justin-IL

Posted by Justin-IL on January 13, 2000 at 22:31:49:

Some of you saw my post about the deal I’ve got in the works. Thanks to everyone who responded. This is the plan I’ve come up with:

Place an ad in the paper for 3 weeks offering owner financing with 8K down, purchase price of 80K. My thinking here is that putting the downpayment in the ad, I will have “pre-screened” the potential buyers. (Thanks Michael Morrongiello for this great idea). I don’t want to waste my time with anyone who doesn’t have a downpayment.

When people call, I will pre-qualify them over the phone. Find out how much they have to put down, what their employment situation is, what their credit is like, etc. Then I’ll give them the address of the house.

At the house, I’ll have some applications tacked to the door, with instructions to complete and fax to me. (Bingo Bango Bongo style). :slight_smile:

In the meantime, I’m going to contact several mortgage brokers and tell them what I’m doing. Then when I find my buyer, I’ll set up the financing, collect the downpayment, and hold a second for the rest of my profit. Yeah!

I am going to market the house like this for 3 weeks. If I don’t have a buyer by then, I’ll close and take title. Then I’ll re-assess, and either continue to market it owner-financing or market it as lease option…

As for the marketing, I’m going to run ads in the local paper and the thrifty nickel. I’m going to print flyers and put them in stores, etc. I’m also going to take digital pictures of the house and put them on my website. I’ll reference the website in the ads and flyers, and program a script so they can apply for the house online.

What do you think? I’d appreciate any and all feedback…


Justin and Amanda

Re: UPDATE on our deal… :wink: - Posted by Justin-IL

Posted by Justin-IL on January 14, 2000 at 09:53:30:

Hey everyone, thanks a lot for the ideas!

I am going to take your advice, Millie and Bud. I have yet to put the ad in the paper, I’ll put it in this afternoon.

What would be a catchy headline I can use in my ad? My original ad read something like this:

Owner will finance with $8,000 down.
Perfect Northeast neighborhood, 4 bed, 1.5 bath, 2 car att. garage. Won’t last long, call Justin today!

What’s a good headline I could use for my ad that would convey the fact that I’ll help with financing or downpayment/closing costs? I’ve got to come up with something good by this afternoon…

Thanks again, we really appreciate the input!

Justin and Amanda

Re: UPDATE on our deal… :wink: - Posted by chris

Posted by chris on January 14, 2000 at 04:00:40:

Hi guys. I remember that you said the owner would not give you the keys. Could you convince him to do an open house for a day? I just read this book and it has some really good methods to sell your property using highest qualified bidder strategies among others. If you want to check it out it is:

How to Sell Your Home in 5 Days by William G. Effros for $12 at Amazon.com.

Not always ideal - Posted by Bud Branstetter

Posted by Bud Branstetter on January 14, 2000 at 02:25:23:

Personally, I don’t like putting the down payment amount in the ad. It most certainly does screen them. In fact it may eliminate buyers. In the perfect world of the note buyer a 10% down is what is needed. Few will have it. In the world of the mortgage broker there are 3% FHA, 5% or even no money down loans to good people. You say that you will carry your profit and that is good news for everyone, if you have to. My philosophy is to first find someone that wants to buy the house. Then figure out how to get them financed with what cash they have or can come up with. It may be selling a note or it may be a new loan with you carrying part. You could also do a two stage technique where you have them call a voice mail and after your speal say you call back those with the largest down first so be sure to leave a message as to how much they can commit to their next home. Oh yes, put a sign in the yard as part of your marketing plan:).

Re: Tips on Quick Sale of house - Posted by Millie I.

Posted by Millie I. on January 14, 2000 at 24:59:39:


To save time, lower risks, and help experdite sales: Don’t owner finance, get your money out now.

1)Call several lending institutions to find out what programs they have for first time buyers. Tell them you are the seller. Sometimes they may print out samples of how 2 or 3 loan programs work based on the info on your house, showing amount of down payment, loan amount, closing costs, and monthly payment, etc.

  1. Call local city or county planning and development departments, and find out if there are government programs that help first time home buyers with down payments and closing costs. Get details, qualifications, application procedures, maximum down payment they would pay, maximum interest rates and price of house acepted.

  2. Now you put the ad out describing your property and add ‘Financing & help with Down Payment/Closing Costs available for pre-qualified buyer’. When the buyers call, you have a house for sale, with several options of loans available, and financial resources to help them make it to closing. You can always structure the deal to fit a winning package. The loan officer will be more than happy to help you, especially if you keep bringing qualified buyers to him.

Most first time buyers have no idea how to get a loan or find government help, you do that for them, and your house will sell quickly.

I just sold one house that way. I am having the loan company prepare the loan package for the sale of another house to be listed this weekend.

Try it, you’ll like it,

Best of luck,
Millie I.

Excellent Plan. - Posted by Stacy (AZ)

Posted by Stacy (AZ) on January 13, 2000 at 23:16:42:

Justin, I don’t remember the numbers in your deal, but if you don’t sell it in a month or so, you may want to consider continuing to market to retail buyers, but also sign a listing agreement with a realtor. Find one that will list your property in the MLS for a discounted commission (1%) or a fee ($500), and this will give you more exposure. Make sure the listing agreement allows you to sell it yourself without paying a commission. You can raise the price somewhat to cover the commission. Keep in mind, if another realtor sells it, you would also owe that realtor 3%.

For those starting out, sometimes a wad of cash is the best thing, even though it may be less on paper than if you would carry the financing.

Just an option…