Posted by Mike inSoCal on September 24, 2001 at 03:08:53:
Matt!!
Where can I buy your L/O course. I heard it’s the best!
Mike
lease option to buy home? - Posted by Mervyn Georges
Posted by Mervyn Georges on April 08, 2001 at 21:43:39:
I am new to the area of lease options so please bare with
me. If someone does not have a large amount of cash to
purchase a home, is lease optioning a viable means. What
percentage of sellers will except a lease option? What is
the best way of finding sellers who don’t mind a lease option? In the future I would like to invest in real estate,
would getting my brokers license open doors for me, such as
enable me to get info that the average investor could not get? Thanks
Re: lease option to buy home? - Posted by Matt B
Posted by Matt B on April 09, 2001 at 09:43:06:
Yes, lease options are a great way to go if you have very little money. I have never put any money into any of the lease option deals that I have done.
Getting sellers to agree to a lease option depends on their motivation. The best way to get the most lease options signed is by getting sellers to call you. Have your marketing do the work of finding the motivated sellers. If you try to just offer a lease option to a seller with a classified ad selling their house, you’ll be wasting a LOT of time.
I agree with Sue that getting a broker’s license can be detrimental to your investing. Also, I never use realtors for anything other than comps. Realtors are not the greatest source for leads for your investing. Your own marketing is. Get sellers calling you with deals. It’s so much easier that way.
Re: lease option to buy home? - Posted by SueC
Posted by SueC on April 09, 2001 at 08:09:47:
Getting your license will mean that you have to disclose in every ad and every transaction that you are a licensed agent, and can cause problems because you are deemed to be the expert in the transaction, so if it goes south,it goes against you. Do a search of the archives, there have been lots of discussions about this.
If you find a good agent who knows what you’re doing and can feed you, then you won’t need your license.
Good luck!
Re: lease option to buy home? - Posted by Dallas
Posted by Dallas on April 09, 2001 at 07:44:44:
The average investor is lazy, so don’t worry about them. A good realtor will provide you with the information you are looking for because they want to sell the property. You may have to educate them on how they will get paid under a sale that involves a L/O. finding the seller that is motivated to sell under a L/O is the part that requires some education and there are a lot of courses out there and a lot of people who have purcahsed them on this site.
Re: lease option to buy home? - Posted by julie
Posted by julie on April 09, 2001 at 12:29:19:
Matt:
What type of marketing do you employ? Do you have an add in the paper? “I buy houses”? I really want to place an add, but there is a lot of competition. A lot of the adds say, “I pay all cash”. How can I compete with this? If I were to buy someone’s house on a L/O, I think cash would win out. Do these people really have all cash?, or is this just the way they advertise?
Thanks in advance!
Julie
Re: lease option to buy home? - Posted by Matt B
Posted by Matt B on April 09, 2001 at 15:47:26:
I haven’t used an ad for a while, but all my marketing pretty much uses the same wording. I use signs (my best lead generator), flyers, business cards, direct mail (my second best lead generator), and whatever else I can put together.
Here’s the best wording to pull in lease option leads-
WE BUY HOUSES
We take over payments
No Equity, no problem
We will buy or lease your house
No commissions/fees
In my experience, the guys who say “we buy houses for cash” usually want to buy for 50 to 60 cents on the dollar. Most sellers understand this when they call my ad since they have usually talked to the other guys first. Adding the fact that I add “no equity, no problem” to my ads shows the seller that I will not be making an offer like that.
My marketing does a lot of work for me already before the sellers call me. They realize that I will be offering something to do with taking over payments. I am often most sellers’ only option when it comes to selling their house, and they realize this. I convert about 90% of the calls I get into deals because of this.
Of course cash would win out. But realize this. I can offer someone full price when other investors are offering a substantially smaller cash deal. I win most of the time!