picky lease option question - Posted by eric-fl

Posted by Phillip on July 08, 2000 at 18:41:33:

What is your level of success using your current methods with voicemail, discussion of money required and so on? How does this compare with a live operator taking calls?

picky lease option question - Posted by eric-fl

Posted by eric-fl on July 07, 2000 at 14:40:00:

I am getting set to do my first L/O deal, and have a picky question about it. I have several classified ads that will be running, as well as a website I created for the house (www.gethomesonline.com). The ads point to a voicemail number and the website, the website points to the voicemail number or email.

My plan is of course to contact those who are interested enough to call or write, and pre-qualify them over the phone. The terms I am offering are 3k option fee, 900/mo, 12 month term, and a 95k purchase price. I have mentioned the monthly rent, but not the option fee AMOUNT in either my ads or the website. I plan to discuss that once they have contacted me.

My question is this: should I mention the option fee amount during the initial phone screening, or wait until the showing appointment to bring it up? Both the voicemail and the website will mention that there IS a fee, so it won’t be a surprise anyway. Obviously, if they ask, I’ll answer, but what if they don’t? Is this better to mention during screening, or wait until after they’ve seen the house and created emotional attachment?

Re: picky lease option question - Posted by Ben (FL)

Posted by Ben (FL) on July 07, 2000 at 15:55:18:

I like JohnBoy’s advice. It is alway’s a good idea to ask questions, then shut up and listen.
One other suggestion. Instead of calling it an option fee, I always explain that the the down payment is really called option consideration and it serves a couple of purposes. First, and most obviously, it goes toward the purchase price of the house. Second, consideration or something of value is necessary to fully “validate” the option contract. Then I make sure they understand that since they have paid the consideration and the contract is in force, then until the option agreement expires, I can sell the house only to them, even if someone else offers me more money. That seems to make people feel better about forking over more than the ywould if they were paying a deposit for an apartment or rental house.

Re: picky lease option question - Posted by JohnBoy

Posted by JohnBoy on July 07, 2000 at 15:28:01:

Hi Eric,

I wouldn’t waste much time showing property unless I had an idea on how much they had to put down as option consideration. Unless I was willing to let someone in with little down I wouldn’t bother. I like asking them during the phone screening process how much they can put down. You never know, they may say $5k, $7k or $10k. I’d sure hate to miss out on that extra down stroke if they had it and were willing to put up that much. This also eliminates a lot of wasted time showing a property to only find out they have nothing or very little to put down. Unless of course you were willing to work with that depending on the tenant/buyer.

Re: picky lease option question - Posted by charley hipple

Posted by charley hipple on July 07, 2000 at 15:05:28:

i will have a voice mail box set up just for a particular property that i have advertised in the paper. i like a 3 min. outgoing message capacity and no restrictions on the # of calls i can receive. the outgoing message tells the location and directions, info. on the house, and any other details you think are pertinent. Also, tell them to go look at the property first and if they like it from the outside, then tell them you’ll be happy to set an appointment (Sunday open houses are nice so that you can meet everyone within a 3 hr. time frame; much easier on you). i always state the terms, option amount, etc. so you don’t waste your time with people that can’t or aren’t willing to come to your terms. I have heard others who have stated that you should take it subjectively, based on your conversations with a l/o candidate to see what he/she can afford. this may be a good idea as well. who knows, you may get more than $3k option. If you have more than one or two properties you’re trying to l/o, talking with everyone on their initial call may prove to be very time consuming. just my thoughts, hope it works out for you.