Posted by BR on May 26, 2001 at 07:27:33:
explain that you only get paid when you perform…closing the deal with your buyer, and that you have money invested in the property(repairs)that will be lost if you do not see the deal through to closing. You should put together a credibility kit as mentioned above.
Subject to sellers with cold feet… - Posted by DaveOH
Posted by DaveOH on May 25, 2001 at 06:36:14:
Hi all…
I found a couple in a nice part of town who are overencumbered, and want to get out from under their payments. Actually, I should say that they found me… the seller picked up one of my little I-BUY-HOUSES cards from a local convenience store counter. Anyway, I met with them last night, and the wife (who is the only one on the loan) seems like she’s ready to sign. The husband is not sure, and he wants to talk to someone who has sold their property subject to before. This is my first subject to (and they know this), so I don’t have anyone to refer this guy to. I have another one across town, but I just signed her up Wednesday, so she’s no good for this.
I’m just not sure what question I haven’t addressed for this guy that would be answered by some other seller, but I told him I would try and find someone for him to talk to.
So, any of you subject to investors out there have a seller that would be willing to talk to this guy?
Thanks again, and Successful Investing!
-DaveOH
Re: Subject to sellers with cold feet… - Posted by B.L.Renfrow
Posted by B.L.Renfrow on May 25, 2001 at 10:49:59:
What this guy is asking, one way or another, is, “How do I know I can trust you to do what you say you’ll do?”
Having him talk with another investor’s seller still wouldn’t answer that question for him. I’d talk with him some more, trying to find out EXACTLY what his concern is. Perhaps he’d be reassured by some local references, like an attorney, accountant, banker, public official or the like. If you know any of these people, perhaps they’d be willing to attest to your character/honesty/stability or whatever the guy’s concern involves.
While I wouldn’t hit him over the head with it, I’d gently point out their alternatives, and the effects thereof. Discuss how selling subject-to to you beats foreclosure, listing with a broker, FSBO, or whatever else they might be considering.
But keep in mind that many sellers in foreclosure, or headed there, are anything but rational, and will often reject a perfectly valid solution. All you can do is try, but if they don’t want to cooperate, move on, but keep in contact with them.
Or, if the wife is the only one on the deed/note, just deal with her and leave the husband out of it!
Brian (NY)