Posted by Jim IL on February 05, 2001 at 24:26:14:
Jim,
First, if the sellers are willing to sign now, but reluctant because they have no where to move to “yet”, then get them to sign NOW!
Just place an addendum or extra clause in the agreement that states your possession of the home, and payments from you will not start until they leave.
You may also want to include in that that the sellers pay YOU rent for the time they are in there, as well as maintain the home, utilities until they move out.
Perhaps even setting a time limit on this, and something stating that IF the sellers fail to comply, the agreement is null and void.
NEVER, EVER give the sellers time to change their mind about signing when they are so ready.
If the deal is a good one, you might also want to help them find a place to move into.
Either buy one yourself that they can afford, or locate a place for rent from someone else that fits there needs.
And, as far as answering questions about what you will do with the home, your management of it when renting it and selling it, just tell them that your company handles all that, and these things need not be there worry.
That is after all “why” you are buying from them right?
To solve there problem and take away all those possible headaches concerning the home.
Just be honest with them, but don’t lay out all the details of “how” you do business with them.
Ease there concerns, which it sounds like you have somewhat, and all will be fine.
Now I know that we should be dealing with motivated sellers…and I do!. They call me and are interested in selling their house because of various reasons. The one I’ll talk about today concerns one I looked at this afternoon and left without a signed agreement! Here’s the details:
Seller has a nice house on a Golf course that they need to sell. Husband lost his job and they call their current situation “Overextended in debt” I make the appointment to see the house and offer up my multiple offers to them. They look everything over and like them all especially the “Subject To” offer! How bout that… They have great credit and are willing to sell to me subject to!!! (I thought this never happens when sellers are concerned about their credit rating) Who Knows?.. Anyway…
They really want out of this but…They need to find a place to rent before they move out. Problem… They have 2 dogs & 3 cats and are having difficulty finding a landlord that will allow this many pets, let alone only one. This made them hesitate on signing up this deal today at the house, but said that as soon as they find a place (Which they are going to start tomorrow) they will call me and get it signed up. Wife & Husband said it is a big relief to know I want their house and that I am available to buy it.
What do you think? Will I ever hear from them again?..
During my visit as you all probably well know, the questions come at you. You know the ones,
What are you going to do with the property?
When will you sell it?
What happens if you don’t make the payments?..and so on…
I have the answers to these questions and have no problem giving them the information to them with very unrevieling detail, but what are good answers to give the sellers when they want to know just a little bit more than you want to tell them?.. Questions like:
If you’re going to sub lease my house to someone I’m sure you’ll get some up front money from your tenant for security right?
Now since they are assuming this I presume that they understand the rental side of the business and am curious as to what kind of answer to give them on this.
I think that by answering too many questions will educate them enough to perhaps have them turn around and do exactly what I want to do! Get that upfront cash!!! and monthly cashflow!!! and finally that backend profit!!!
How can we avoid all of these informitive answers? I know we just can’t say “Hey Mr Seller!!! SHUT UP ALREADY AND SIGN THE AGREEMENT!”
Your valuable and educated input is greatly appreciated.
Re: What are the right answers? - Posted by Russ Sims
Posted by Russ Sims on February 05, 2001 at 24:33:54:
As to the question “If you’re going to sub lease my house to someone I’m sure you’ll get some up front money from your tenant for security right?” I would simply tell them that that yes, I do collect up front money from my t/bs: Since I am ultimately responsible for the property, I am the one who collects the deposit…a property management company would do the same thing, except that they would charge you 10% of the monthly rental to provide this service.I don’t.
I have found that when sellers ask this question, they are looking for an affirmation that you are protected. They want to know that you have a safety net if your t/bs don’t perform.
I actually divulge quite a bit of information to the sellers if they press me on a lot of details. Of course I don’t tell them how much I’m going to mark the property up, or what I’ll charge for rent, but the more complex I can make my job sound, the more convinced they are that they want nothing to do with trying it themselves…this seems to work for me and your willingness to talk about what you do shows you’ve got nothing (well, almost) to hide.