Posted by randyOH on April 02, 2003 at 15:02:46:
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Is L/O market dead (for selling)? - Posted by randyOH
Posted by randyOH on April 01, 2003 at 07:57:36:
Are any of you having trouble moving your L/O deals? My market seems to have suddenly died (small town OH). I am not even getting calls on my ads. I am thinking about going back to regular rentals.
If anyone has run into this problem, how are you dealing with it?
Also, what do you think the problem is? Do you think it is temporary? Maybe war-related or the economy. Or do you think it is a more permanent change in the market. Maybe easy money is making it possible for anyone to buy the regular way, thus no demand for L/Os.
Appreciate your thoughts.
Randy
Re: The problem is us - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on April 01, 2003 at 18:14:05:
I also am in a small town in Ohio. (McArthur).
The problem is not the market it is me. I often pay too much for property and hope the end user will do the same. Once in a while somebody does just that and it just further compounds the problem.
As has been mentioned in other posts, cheap money works against us in the case of L/O. Poor quality users are also a problem.
The results can still be very good if we take time to work smarter not harder.
Hey Brian, good to see you posting again.
Why not go… - Posted by osirus
Posted by osirus on April 01, 2003 at 15:27:37:
with the flow? You wrote:
“”“Maybe easy money is making it possible for anyone to buy the regular way, thus no demand for L/Os.”“”
If that is the case; then why not get your buyers financing and cash out now?
Re: Is L/O market dead (for selling)? - Posted by B.L.Renfrow
Posted by B.L.Renfrow on April 01, 2003 at 14:26:39:
Maybe. Although I haven’t done a recent L/O, my small-town experience mirrors yours. I don’t think it’s a temporary problem. Rather, as you suspect, I think it’s due to the fact that almost anyone who can fog a mirror can obtain a conventional loan these days (OK, not quite, but you get my drift).
Therefore, 9.5 out of 10 folks who can’t obtain a conventional loan are the chronic deadbeats and liars whom I wouldn’t want to L/O to anyway.
I don’t think this is as big of an issue in market with higher housing prices, where it can still make sense financially for someone with credit problems or whatever to lease option for a period of time. In my community, the mean home sale price is about $53k, and with those prices, it’s far easier to qualify for a regular loan than in higher-priced locations.
In fact, a local investor had decided to give lease options a try here – after I had some success with them in the past, when no one else was doing it. However, he’s abandoned the idea and gone back to straight rentals, as he just couldn’t find qualified T/Bers with enough option money.
In this environment, maybe it makes more sense to either rent, or sell on a land contract – but those face essentially the same issues as the L/O, although for those few buyers who actually do have a downpayment and can make the higher monthly payments, it’s more attractive than lease-optioning.
Brian (NY)
What specifically does your ad say? - Posted by Shawn J. Dostie
Posted by Shawn J. Dostie on April 01, 2003 at 12:06:22:
Word for word. You can’t sell it if they don’t respond.
Shawn(OH)
Coshocton
Re: Is L/O market dead (for selling)? - Posted by Joe (Oh)
Posted by Joe (Oh) on April 01, 2003 at 11:54:36:
I’m also in the ohio area (cincinnati) I hope the market hasn’t dried up for selling on L/O, I was just about to start this soon…
Now I’ll prolly have to learn the “Hot new thing” but by then it’ll have cooled down before I get it under my thumb
So…what part of Ohio are ya in? and is the L/O drying up for anyone else around the country??
Re: Is L/O market dead (for selling)? - Posted by sonibiren
Posted by sonibiren on April 01, 2003 at 08:25:23:
Hi Randy,
Where in OH are you? I am in Cleveland, OH.
Re: Is L/O market dead (for selling)? - Posted by soni
Posted by soni on April 01, 2003 at 08:24:02:
Hi Randy, where in OH are you? I am from Cleveland, OH.
Thanks Ed… - Posted by B.L.Renfrow
Posted by B.L.Renfrow on April 01, 2003 at 21:52:51:
Gotta get back in the habit of coming to this site more often than every couple months! Guess my priorities got skewed…
Brian (NY)
Re: The problem is us - Posted by randyOH
Posted by randyOH on April 01, 2003 at 20:21:02:
Ed,
You may be right. Maybe my price is just to high. But I have never run into that before. I have never had a tenant/buyer question my price. Nevertheless, that may be my problem with this one.
Thanks for your thoughts.
Randy
That makes sense, but… - Posted by randyOH
Posted by randyOH on April 01, 2003 at 20:15:50:
I just can’t seem to sell anything as a FSBO. Around here, the people that are in the regular market want to work with a realtor. So the only way you can sell is through a realtor and pay the 6% which kills your profit.
That is why I thought the L/O thing was so great. You could get top dollar for the house and not have to pay a commission. Great exit strategy.
So I am hoping that there are still people with messed up credit that need to go L/O and they will come back out when the economy picks up a little.
Thanks for your thoughts.
Randy
Re: What specifically does your ad say? - Posted by randyOH
Posted by randyOH on April 01, 2003 at 20:04:10:
Hi Shawn,
I run very small ads to save money.
Uhrichsville, 3 BR, big yard, rent to own, $2,000 down. And my Ph #.
Any suggestions?
Thanks,
Randy
Re: Is L/O market dead (for selling)? - Posted by Brad
Posted by Brad on April 01, 2003 at 22:38:39:
Joe, what part of Cincinnati do you invest in? I’m in southeastern Cinci
Brad
Re: Is L/O market dead (for selling)? - Posted by randyOH
Posted by randyOH on April 01, 2003 at 19:56:20:
Soni,
I am in Uhrichsville about 100 miles south of Cleve.
Regards,
Randy
What are we, 40 miles apart? - Posted by Shawn J. Dostie
Posted by Shawn J. Dostie on April 01, 2003 at 20:32:10:
My ad that I got about 20-40 cals on each time I ran it said word for word, “Owner will finance NO Banks. #br 1 Bath home in Coshocton. Call now (740)622-6388”.
The first thing I saw in your ad is rent to own. In my mind, that creates a negative connotation. Secondly it stated $2,000.00 down. I do not believe in putting any concrete rules into effect… yet. Someone may have $5,000.00 and you’ve lost money. Or someone may have a MH to trade, or a 4x4. Your ad should be out there to generate phone calls period. Your existing property may not fit their needs now, but maybe your next one will. This is creative finance, be creative. People with bad credit know they have a problem, you don’t need to beat them over the head with it. If some one calls with 10k down and you could get them financed, would you neccessarily L/O them? L/O is just another tool. When you do get a call, ask open ended (can’t be answered yes or no, requires explanation) questions. Don’t tell them what you want, ask what they want. When they ask about price, tell them that you will be fair to them but it depends on their situation and you have a few questions about their current situation so that you can structure the deal to their best advantage.
Good Luck,
Shawn(OH)
(Coshocton)
Re: Is L/O market dead (for selling)? - Posted by Joe (Oh)
Posted by Joe (Oh) on April 02, 2003 at 09:48:06:
I dont invest yet, but want to real soon, I hope I get worthy calls on my L/O ads. I’d hate to have to cancel my agreement (45 day escape clause) just cause I cant get anyone willing to buy on a L/O due to this gloomy economy.
I’m going to cinreia this thursday to talk to someone who is presently doing/pursuing L/O deals. They should be able to tell me whats up.
Oh, almost forgot, hoping to invest in the northwest part of the greater cincinnati area. I’m located right where the I-275 and Hamilton ave exit is.
Yep, about 40 miles - Posted by randyOH
Posted by randyOH on April 02, 2003 at 10:27:29:
Shawn,
I may try your approach.
The reason I put $2,000 down in my ad is to cut out the calls from people looking for no money down. I just don’t want to waste my time with people that have absolutely NO money.
I have tried the open-ended approach on the downpayment and it just does not work around here. When I ask “how much can you put down,” the answer, without fail, is between $0 and $500. In some cases, they can do more, but they are trying to get in with the least amount possible down.
I have also tried ads that just give the price and say land contract. I guess you would not show the price. The problem I see with this is you are going to get a lot of calls from people wanting to buy your house for $20,000. Again, a waste of time.
But I am looking for answers and I may try an ad like yours. Not much to lose.
Thanks,
Randy
Re: Time Wasters - Posted by Stacy (AZ)
Posted by Stacy (AZ) on April 02, 2003 at 11:41:51:
Randy, the time to worry about limiting those time-wasters from calling on your ads is when you are having no problems selling your houses. When you’re not having luck getting them sold, you should be trying to get everyone to call, and speaking to them all. Yes, it wastes some time, but that should be the least of your worries if you have to continue to pay holding costs on vacant houses.