Small town.....hard to get down payment.....ideas? - Posted by Dee-Texas

Posted by dewCO on January 14, 2001 at 18:02:11:

Maybe it’s just the post Holiday season, I’ve over spent my budget lull! Let them make the down in installments, but make sure you specify that while it is separate and apart from the regular monthly rent, it is “additonal” rent and failure to pay will result in eviction, same as not paying the monthly rent.

Small town…hard to get down payment…ideas? - Posted by Dee-Texas

Posted by Dee-Texas on January 14, 2001 at 13:04:30:

Hello All,
I have three houses that I am L/Oing at the moment. All of the houses are 3/1.5, CH&A…two are outside of the city limits. I live in a town of 9 thousand…many blue collar workers.
The monthly rent on these houses are equal to all of the others in town. I ask for $1,500 or $2,000 down…no takers. Usually I have my houses L/O’d in two weeks tops. I can’t figure this out. I have many calling but none really qualified or that have the down.
What can I do different, ideas?
I’ve even offered to let them pay out some of the downpayment. But I’ve got burned twice doing that.
Thanks to All,

Re: Harvest season? - Posted by Eric C

Posted by Eric C on January 15, 2001 at 15:59:16:

Hi Dee -

Something that has worked for me (during the early spring - tax season) is to work the tax refund angle.

Many, if not most, of your potential customers in small towns will be expecting LARGE refunds; especially those folks who meet the qualifications for the EITC (Earned Income Tax Credit). The majority of these same people will have $2K - $5K to use for automobiles, bills, etc.

Current regulations (as I understand them) REQUIRE all recipients of State assistance programs (housing, medical, etc) to spend their refunds within 30 days. They cannot purchase anything of value, cannot hold it for investment, cannot put it under the mattress.

Sometimes, they are required to show receipts for their purchases(along with copies of their tax returns) to demonstrate to the interested agencies that the money truly is gone. If it is not… they can lose all or part of their “benefits”.

Car dealers, new mobile home sales offices, and others have learned to utilize both the timing (tax season) and the regulations (encouraging spending) to their benefit.

Please note, I’m not taking a position on any issue here, other than to tell you that there will be money for downpayments (and other things) available in your small Texas town in quantities that may boggle your mind. (You don’t have a bank in your town that can cash all those checks, believe me!)

What you do with the information is your business.


Eric C

PS - just remember that just because someone has the money for a “reasonable and negotiable” downpayment doesn’t mean you shouldn’t screen them carefully.

Re:…hard to get down payment…ideas? - Posted by Ron

Posted by Ron on January 15, 2001 at 15:55:42:

I also live in a sm town of 9000.
I’ve taken personal property as down payments. A car, boat, or any thing of value. I once took an Airstream camper from the wife’s mother in exchange for a $2000 down payment and found that it booked at $6000.
Often the family can help. But you have to put the seed in their mind.

Small town./hard to get down payment/ideas? - Posted by Bud Branstetter

Posted by Bud Branstetter on January 14, 2001 at 22:55:08:


Would you be able to get any better response if you advertized “no bank financing” and sold them in a PAC trust arrangement. From what you have said these are probably not houses that would help them write off the interest and taxes but it may give them more pride of ownership. You can ask for half the appreciation if they don’t have enough down.