the B E N E F I T S! - Posted by Redd(CT)

Posted by Lazaro on June 19, 2001 at 19:55:00:

a. The closing is much faster (benefit for the seller).
The benefit for you is that you get the property at
a VERY good discount price.

b. The benefit for the seller is that he gets some cash
up front and makes more money on the interest of
note. The benefit for you is that you get in with
a small down payment. Then you could sell it on a
L/O with a larger down payment. This would give you
you some money for your pocket.

c. The benefit for the seller on a “subject-to” is that
they get out of the home. This normally happens in a
foreclosure, divorce, second home, or any seller
that is VERY motivated. The benefit for you is
you just take over their loan.

d. If you get funding from both the seller and a
lender the benefits are for the seller are:
The seller gets more money at closing and still
has a note with interest(probably a second). The
benefit for you is that you can get in with VERY
Little down.

e. On a L/O the benefit for the seller is: The seller
gets some option money. The seller also makes some
money on the rent for the term of the lease. The
benefit for you: can get into the home with little
down, You can do a sandwich L/O. Might want to
read more posts and How-To-Articles for how to do it

f. To my knowledge a L/O is the same as a “selling with
an option.” Lease Option is a lease and then the
you have the option to excercise the option. Refer
to e.

the B E N E F I T S! - Posted by Redd(CT)

Posted by Redd(CT) on June 19, 2001 at 11:42:27:

I was reading a post by SteveS(CPA) and I like his idea about presenting the seller with the benefits of each offer:

So, I would like to throw out this question to CREON readers:


a. all cash offer (close is usually very fast I assusme)

b. high price offer: small downpayment and taking their equity in installments.

c. buying “subject to” or w/ a land contract

d. split funding

e. LO (I know there is an article on this board pertaining to this)

f. selling on an option

please participate in answering.

thanx in advance

Re: the B E N E F I T S! - Posted by SteveS(CPA)

Posted by SteveS(CPA) on June 19, 2001 at 23:27:57:


First off, I want to thank you for reading my post. I’m not sure everyone does and I do appreciate it.

Now off to the benefits. When explaining the benefits of an offer you have to explain the benefits from each seller’s prospective and every seller will have different needs. So the explaination of the benefits will have to be different. for example: I’m working on a business deal right now where the Seller has a very high net worth, but he is looking for ways to pay for his two son’s college education without selling something and getting hit with an even larger tax bill than he’s already going to have.

One of the offers we made him is to gift his son’s more than $100,000. We may make it a scholarship or something and we’re still working on it, but can you see how you have to tailor the offers to each individual seller. When presenting your offers and I always try to have three. Tailor them to be as specific as possible. i.e. this offer will pay all you back mortgage payments and give you $2,000 to move or this offer will give you $1,000 per month income and save you xxx amount in taxes from capital gains or this all cash offer will give you the cash now, but you’re going to get a big hit at tax time.

Besides having a business plan; the way you present the offers, I believe, is more important than anything else you can do in real estate investing.

Because you can have the best laid plans, the most aggressive marketing and the best team in place, but if you don’t know how to present your offer in a way that a Seller can see, touch and taste the benefits of your offers then even the most motivated Seller will likely say no.

I hear a lot of questions about how to find motivated sellers and I rarely here any questions on how to present offers in a way to motivate the Seller into signing on the dotted line. If you have your business plan down cold and your presentation is first rate. You will find yourself becoming very successful very quickly.

I hope this helped. Good luck and best wishes.