Posted by Troy J. Big Pond on November 07, 2000 at 19:02:26:
Thank you
DISCUSSING OPTIONS - Posted by Farrah Big Pond
Posted by Farrah Big Pond on November 06, 2000 at 09:38:00:
DO YOU TELL THE SELLER THAT YOU ARE A REAL ESTATE INVESTOR? ME AND MY HUSBAND SPENT ALL DAY YESTERDAY LOOKING AT HOMES AND THIS PARTICULAR ON WAS THE AD IN THE PAPER READ " MUST SELL- LEASE PURCHASE- NO DOWN, CLOSING PAID- VERY MOVIATED SELLER. BUT WHEN WE MET WITH HIM IT WAS A VERY CUTE FIXER UPPER 2/1/1 WE SAID WE WERE REAL ESTATE INVESTORS HE WOULDN’T LEASE OPTION WITH US , WANTED TO KNOW OUR CREDIT, AND WANTED US TO GET A FIRST MORTGAGE ON IT AND ALMOST EVERY DEAL WE HAVE TRIED TO DO HAS BEEN LIKE THIS PLEASE HELP!!!
Re: DISCUSSING OPTIONS - Posted by Bill Gatten
Posted by Bill Gatten on November 06, 2000 at 20:45:06:
Hi Farrah,
If you’ll stop posting in CAPS, I’ll add to Toolbar’s advice.
You’re looking for deals to suit you, rather than looking for motivated sellers who need you. No good! Bad thing! Understand that if you go deep sea fishing expecting to catch a catfish, you’re going to be disappointed every time. It would serve you well to call first and ask what kind of fish they have in their pond before you pack up an get your mouth all set for fried catfish.
Call FSBO?s, For-Rent, For-Lease and For-Lease Option ads, and say this:
FOR FSBOS:
Hi, I?m I looking or folks who are selling on their own who might be interested in perhaps getting a little more for the property by letting someone come in an take over the payments for a couples years before refinancing and paying off your loan. Oh really? Why not? Is that right? Well, a lot of our clients felt that way at first until we explained our program to them. I see?well would 6:00 this evening be good for you, or would 6:30 be better.
FOR LANDLORD AND OPTIONORS:
Hi, I was calling about your ?for rent? ad. How much IS that rent anyway? Is that right? (as in ?eeeyuz THAT right??) Well is that negotiable at all? No? Well, let me ask?is the house in pretty good shape? Oh good. About how old a house would you say it is? Really? Have you owned it all that time? No?only about five years huh? Well let me tell you why I/m calling: actually, I?m looking for a rental property in that rental range where I might be able to come in and pay, say, $1,000 per month instead of the $900 you?re asking?if I could get some tax benefits and the right to, perhaps, buy the house in 3 to 4 years. No! Seriously! Yes, I know, this sounds too good to be true?but how abut meeting at the property in, say an hour–or would an hour and a half be better for you?and I?ll explain it.
Note that if you know the rent, you know the property?s value (rent is usually a standard percentage of fair market value (from .75% to 1.1% is most areas). If you knew the value and when it was purchased, you know about how much negative or positive cash flow the owner has and what his hot buttons are (just by knowing what your market has done in that period of time). If you under the PACTrust, you also know that if the property is worth upwards of $100K or more, you can get much higher rents than he can, because of knowing how to deal with co-beneficiaries in a land trust instead of renters. In other words, with the PACTrust, you can give them all the tax benefits and they?ll pay a lot more per month (you can also get even more by also giving them half of the future appreciation potential, half of the loan?s equity build up and all the fee simple rights in real estate ownership). In addition, they have to pay for all of the costs of maintenance, management and repairs in order to qualify for tax deductions under IRC Sec. 163(h)4(D): so you?re freed-up from all of that as well.
Bill Gatten
Re: DISCUSSING OPTIONS - Posted by ToolBar_SC
Posted by ToolBar_SC on November 06, 2000 at 12:44:57:
STOP going around and looking at houses!!! Start finding motivated sellers instead!!!
When you see an ad like the one you mentioned, call the seller on the phone and pre-qualify them. Know you have a deal BEFORE you go look at the house and talk to the face to face.
Let your fingers do the walking first; even if you happen to be driving by and see a For Sale sign in the yard. Call them, pre-qualify them, and then go see them after you know you have a deal.
Lots of luck and keep reading this board to get the knowledge you need.
ToolBar_SC