Posted by Lori Samson on June 17, 2001 at 24:09:02:
“Payments to commence upon procuring a suitable sub-tenant”
That keeps you from having to pay until you get some money down from your tenant buyer.
Lori
Possible LO, what should I do? Matt B? - Posted by Nathan(oh)
Posted by Nathan(oh) on June 14, 2001 at 15:48:00:
I finally got a call on my ad today and it was a seller in a town about 10 minutes from where I live. I don’t know too much about the area cause I focus a little north of this area, but I know it is a growing and prosperous area. She is selling her 2br 2 story for 40k which is the loan payoff. They actually pd. 42250 when they bought it. It has been completely remodeled in the past 2-3 yrs and was appraised for 49k before that. The pmnts are 413 piti @8%. They are building another house and that is why “they just want out.” I used Matt B.'s script for presenting lo’s and set an appt. for tuesday night at 8pm. Their new house won’t be finished for 4 months, but she said she could move whenever needed. I mentioned taking over payments in 3 months and she said it sounded ok, but they would need to go over it all. So anyway, I am wondering how I should present this to her in person. This is really my first lo deal and I am a little nervous. Should I have more than one offer ready? Should I be worried about her calling other investors? I am pumped but nervous as well. Any help or guidance would be much appreciated. Thanks as always guys/gals.
Nathan
Re: Possible LO, what should I do? Matt B? - Posted by Greg Schultz
Posted by Greg Schultz on June 21, 2001 at 11:04:07:
Matt…could you point me to your LO script? Please.
Thank you
Greg
Re: Possible LO, what should I do? Matt B? - Posted by Matt B
Posted by Matt B on June 14, 2001 at 17:29:17:
I would assume that since you used my script, the owner said that they are interested in doing a lease option, right? OK, before you go there and take a look at the place, go to http://www.creonline.com/mm-51.html and print out the FAQ list and substitute your name or your company name on it. Give this to the sellers after taking a look at the property.
Tell them that this just answers some common questions about the type of deal that you described over the phone. If they are interested, ask if they’d like to take a look at the paperwork. If yes, then show them the lease option agreement and fill it out as you explain it to them. That way, when you get to the end, you will have a completed agreement and will simply need them to sign it.
That’s the short version of how I approach these. Of course, read Lori’s advice. You need to make sure that the numbers work for you. Good luck and let us know how it goes!
Re: Ahhh… my first L/O deal - Posted by Lori Samson
Posted by Lori Samson on June 14, 2001 at 17:16:16:
I am sitting here remembering my own first deal. Yes, you are going to be nervous. That’s ok, we all were on that first one. You’ll get through it. You may have to fake it till ya make it!
Get all the details when you go and tell them you will have an offer for them in a day or so. Then run it by here and get some feedback from everyone if your really nervous. The important number you need at this point is what is the most you can sell it for and how much are the payments (PITI) compared to what you can get for rent from someone. You’ll get what you want down from your tenant/buyer if you stay within reason. So, the down payment isn’t a concern at this point. Are they asking for anything down or have you gotten that far yet?It is a concern if they are wanting several thousand down and you know you could only get a few thousand down from your tenant/buyer.
Don’t be worried about her calling other investors. Most people wouldn’t know how to find an investor unless they have seen a bill board somewhere. She does then let it go and move on. As long as you don’t sit on this for days you’ll be fine. It’s only the desparate seller that is offering the house at a ‘steal’ that you need to worry about someone else coming into the picture. If you have one that is really under market you could put an option on it to tie it up for a week while you look into it more.That might give you enough time to flip it to another investor if you wanted to do it the easy way out.
I like to approach the seller with the idea that I will ‘try’ to see if I can help them. I like to make them feel nervous about IF their house will fit my criteria. Make them want YOU!
BTW- My first deal agreed to on a Monday and I did an open house the following Sat. and had one of the people viewing it leave the house to go to the grocery store to get their money orders. They came back with their money in hand and I went home with 2500 in my hands! 5 days and I made $2500! That was a few years and a lot of deals later… that’s made me love lease options!
Lori
Should I go for the deed first? - Posted by Nathan(oh)
Posted by Nathan(oh) on June 16, 2001 at 10:38:55:
hey Matt, thanks as always for your response. When I talked to the owner, it was the wife and she said everything sounded ok, but she also sounded a little confused. I tried my best to do it without intimidating, but she seemed ok. I am worried that her husband may not like this, but hey we could play the what if game all day. So anyway, should I try to get the deed instead of lo? The numbers aren’t the problem because it was worth 49 before they spent 5-7k fixing it up. So I think this might be a good bargain. Going to drive by it today. Anything you do before your presentations to get pumped up? I know I’ll be nervous. Also, thanks for the use of your faq.
Nathan
How should I structure it? - Posted by Nathan Hangen
Posted by Nathan Hangen on June 16, 2001 at 10:41:54:
The wife said their new house would be finished in 4 months, but would move when needed. How should I structure it so that I don’t have to pay for a few months, but can still find a tenant and get them in it quickly?
Thanks
Nathan
Re: Ahhh… my first L/O deal - Posted by wayne
Posted by wayne on June 16, 2001 at 24:23:11:
This is music to my ears…as some of you know…I posted a email basically venting, whining, moaning, and being a little baby from a dose of reality…now I know how I can take advantage of a preforclosure deal that I called on…I can lease option the property and then just find me someone to sublease to…and get some cash with a lease option consideration…woohooo…I hope it works.
wayne
Re: Should I go for the deed first? - Posted by Matt B
Posted by Matt B on June 16, 2001 at 15:30:34:
Sure, try for the deed if you can and are comfortable with that. If you can explain that better to the seller, why not?
As far as getting “pumped up” for a meeting, I really don’t do much. Maybe I’m getting old (28 is right around the corner) or I’ve done too many of these, but I just really relax and have fun when I go on an appointment.
I have been told that I “exude confidence” so that may have something to do with my success rate. I simply know in the back of my mind that I am offering the seller a solution to their problem. If it doesn’t work for them, well, I wish them luck in selling their house and leave. I never have any emotional attachment to ANY deal. They need to sell, I don’t need to buy. If the numbers don’t work for me, or if the seller is uncomfortable with the numbers, hey, it’s not a deal for me, and I’m not going to waste any more of their time.
Really, all I do is talk to the seller like I’m their buddy. I let them tell me why they are moving, all about their current situation, the weather, their job, anything. I just relax and “get together with an old friend” when I meet with sellers. The thing that comes across clearly is that this is NOT an act. I am not trying to be a pushy salesman. If they like the deal, they’ll sign. I don’t really care one way or another.
I am completely genuine and have spent most of my “meeting time” with sellers talking about the new job they just got transferred to, or whatever. I don’t get “pumped up” for a meeting. I just go and talk to them. I offer a solution to their problem as though I am just a friend helping out. (Hint: Although I am in business, this is still the way I come across because it is true! If I can help, I will.)
Any way, I hope that helps to some degree.