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Everything posted by baron14

  1. Hi, It was previously mentioned to use (one dollar) $1.00 as a flex option consideration fee. How would one handle it, if one was doing many transactions virtually, other than mailing $1 bills all over the place? Thanks, baron
  2. Hi, It seems that a seller would accept a non-exclusive option more easily than an exclusive option, but wouldn't it also be easy for the buyer and seller to go around your back and do the deal with a non-exclusive option? So how do you keep the buyer and seller from going around your back, just do an exclusive option? Thanks, baron
  3. Hi All, I was wondering, instead of chasing after sellers and trying to talk them into doing a deal, how does one get sellers to come after you, to tell them more about your potental solutions for them? What about an email that says something like: "Home not selling quickly? If you are interested in selling your house quickly for full price and pay no commission fees or closing costs then contact me." Then when they contact me I tell them about the "lease purchase concept". I didn't want it to sound like an ad, like I'm selling something, but like a regular buyer. Any thoughts? Thanks, baron
  4. Hi Lynn, How are things in your neck of the woods? In my area Baltimore / Washington metro area lease option deals are like finding a needle in a haystack. Prices are rising here and people are looking for cash deals like wholesale, rehabs, buy and hold and creative deals are not common here. Lease options may be better in markets where houses are not moving.
  5. Hi Wildwestinvest! Yes, I would prefer to deal directly with the homeowner but I've had no success with FSBOs & FRBOs. In this area the sellers want CASH and and the landlords want to be landlords and are not interested in doing a lease purchase since the market is stable here. So how are you getting leads in your area? I'm looking now to work at doing CAs remotely in some areas that are more receptive to the LO concept.
  6. Hi...I would prefer to work directly with FSBO & FRBO from Craigslist, etc. but like I said I've had no success finding any leads so I tried contacting listing agents for houses about to expire to see if there is any interest in doing lease option terms. Someone told me that if you get a L/O contract with a Seller of a listed property, then most Agents expect at lease 1/2 of first month's rent or one full first month's rent upfront and then they get the balance of their commission from the Seller when the house sells.
  7. Hi MichaelC, The way I understand it, John Jackson sends out a couple thousand mailings to listed properties. My budget will not allow that now, so I contacted the Agents to see if they had any homeowners that may consider doing a lease option deal. I will then contact the homeowner let them know their Agent said they may be interested in a lease option. Then I will give them the normal lease option explanation: who I am, what I do and the benefits to the homeowner and advise the homeowner to notify their Agent. I'm not clear on what happens if the homeowner continues to try and sell with listing Agent and we then strike up a lease option deal (SLO or CA) with the homeowner and put a T/B in the property on a lease option? Is the listing the cancelled and the Agent is paid when the property is sold or is the Agent paid as a leasing Agent as if the property is rented? Thanks!!
  8. Hi MichaelC, I tried for many months now to contact FSBOs & FRBOs on Craigslist & Forsalebyowner & Kijiji & Backpage & FSBO basically asking would they consider doing a lease option. The FSBOs showed zero interest. There were two FRBOs that showed interest but when they found out I would not be living in the place they were not interested and the other stated they were not interested in doing lease options with a third party. I read that John Jackson had some success dealing with listed properties so I decided to give it a shot and see if any properties that were not selling or about to expire or landlords that would like to be free of the typical landlord and management hassles. One Realtor told me that there was not much interest in lease options in this area. Another Realtor had a house for rent & for sale. Bingo...maybe a lease option deal. This Realtor said yes, the owner would consider doing a lease option.
  9. Hi Steve, The word "investor" has a negative connotation in this area, so where I referenced 'my company' I would use my company's name so they will know this is a business and also stop them from pulling my credit report and background check every time I inquire about buying a property because it will be 'my company's name' signing the contract. Most of the sellers that have listed properties in this area will tell you "go talk to my agent" when you contact them, so you end up right back with the agent anyway. Most of the time the sellers will not discuss anything with you. I will send the seller the information so they will have it in front of them to review and we'll see how it goes. I was thinking the option money can be used towards the commission to help the seller pay the commission since the commission is paid by the seller at closing. Thanks!
  10. Hi Steve.... In my initial contact with the Realtor, I already mentioned to the Realtor that she would get her full commission. So I should just mail the seller and tell them their Realtor advised me the seller may consider doing a lease option and then give the seller the general overview of the process or should I let the Realtor know that I'm contacting the seller as well. I don't want to give them the details and mechanics of the business but the benefits and general overview of what will happen in the deal. What do you think? Thanks.
  11. After find out from the Realtor that the owner would be interested in doing a lease option on the property, I would then tell the Realtor: "I specialize in lease purchasing and I can do a long-term lease where my company will lease the property for a specific period of time and have the right to purchase the property during that time at a pre-determined price. We’ll guarantee the rent payments and cover the day-to-day maintenance and repairs during the lease term. If the numbers don't work for us to lease the property ourselves, we are currently working with several pre-qualified families that are looking for a nice house in your area and may be interested in leasing your house with the right to purchase. If this is something the owner may consider, then please contact me and I'd be happy to discuss it with you." I was thinking if I was doing a SLO, the first part of the message would give the Realtor my plans and if I did a LOA, the second part of the message would show the Realtor that plans for a LOA. Any thoughts on this? Thanks!
  12. Hi All, I asked a Realtor if their seller would consider doing a lease option and the Realtor told me that the owner may consider doing a lease option. The Realtor also asked about my credit, pre-approval, etc., so she seems to think it's for me and I will be living in the property. How do I approach this deal with the Realtor? I know many in this forum recommend doing some lease option assignments first before doing a sandwich lease option. Not sure if this is s good fit for a SLO or not yet. If I go the lease option assignment route, should I just tell the Realtor that I'm a property management company and I have some pre-qualified tenant/buyers that may be interested in the property and they have agreed to make on-time payments and take care of the day-to-day maintenance and repairs during the lease period? I can think of a variety of angles depending on SLO or LOA route to approach it, but I would like to hear the best approach from the pros here to keep things simple and smooth. It would be greatly appreciated. Thanks in advance for the help!! -baron
  13. I see what you are saying now. Even though the Assignment Agreement would wipe out the deal with the Seller and me (after all three parties sign), the Seller and the T/B would both be left holding docs with my name and the Seller's name on it. -Thanks.
  14. Oh I see, Thanks MichaelC and Steve for your expert help!
  15. Hi, I'm trying to get clear up and get a handle on the CA. After you sign all the required docs with the Seller, you then find the T/B, collect your assignment fee and sign the assignment agreement. So do you then destroy the original docs (lease and option to purchase) with you and the Seller and then have new docs (lease and option to purchase) signed with the Seller and the T/B, so that your name is out of the loop? Also, when all three parties sign the assignment agreement, the Seller will know how much profit you made from seeing the assignment fee on the assignment agreement? Thanks, baron
  16. hey jason, I was wondering if you could use a "letter of intent" with the seller with the PRICE,TERM,RENT and when you find the end buyer write up a lease with option agreement between end buyer and the seller and just assign your letter of intent for your % of the non refundable option deposit. of course it would still be credited if option was exercised? Hi, I was wondering how does the "Letter of Intent" differ from "flex option" or option to purchase? With the "Letter of Intent" do you have equitable interest ? Can the homeowner cut you out of the deal with a "LOI" ? Thanks baron
  17. Hi All.. I was wondering is anyone having any success in getting some deals closed using this email approach of asking some general questions to the seller? For the ones having success and making deals, have do you get the seller to cooperate and say "YES" to a CA or SLO?? I tried this email approach with about 20 emails and received 3 responses: a.) One said this is a scam b.) one would not answer any questions but wants me to come look at the property first c.) one said they may consider a rent to own but wants me to visit with them and their attorney for approval and they want a 1 yr max term and only an interested buyer and not a third party. Thanks, baron
  18. Hi All, I was wondering how do you handle the sellers and landlords that require check and background checks in order to do a L/O deal? I've approached them as an individual and as a company looking to do a lease option deal. A few landlords seem like they may be open to a long-term lease but especially the landlords want a to do credit and background check on me or my company. Is there a way to get around this road block or just tell them no thanks and move on? Thanks! baron
  19. Hi Mastamike MA, It's good to hear that you are getting a great response from emailing the CList ads. I've contacted FSBO's on CList with no success. I did get a couple of responses from FRBO's on CList stating they may consider selling at the end of the lease, but once they hear the L/O strategy they're no longer interested. I'm wondering what sort of approach and what do you say to the homeowners to get such a great response? Thanks.
  20. Hi Guys, Hey I've gotten a couple of responses, after sending the first email, from the FRBOs on CList stating they may consider doing a long-term lease and selling at the end of the lease term. But here are some of the road blocks I've gotten from them to stop me from moving forward: 1. "Contact my agent" - (wouldn't the owner know best about their own property??) 2. "Tell me a little about yourself"...."do you live or work around here?" 3. "I need you to fill out an app and need a credit report" 4. "Is this for you or somebody else?" 5. "you must come see the propertry first and meet in person" How do you handle and get past these road blocks to complete a deal?... Or when you hear this type of response just skip and go to the next prospect? Any help would be greatly appreciated. Thanks! baron
  21. Hi, I'm trying to get clear on the approach to the owner for a SLO or CA and how you would transition from one to the other. Its seems like marketing to a FSBO would be a little different than marketing to a FRBO. - FSBO seems more interested in getting Full Asking Price and house sold. - FRBO seems more interested in no landlord issues and cash flow. To do a SLO one would need to get a discount purchase price with some equity in the deal, so you wouldn’t offer to pay FULL Price, right? Do you approach the homeowner first for a SLO and then transition to the CA if the numbers don't work? If you approach owner for SLO instead of Full Price, would you pitch debt relief, cover their payments and house sold at no cost to them? If the numbers don’t work, then pitch the CA…FULL Price, no maintenance issues, your list of qualified T/B’s. I need to get clear on the approach for FSBO and FRBO owners for the SLO and CA deals since these type owners would have different perspectives for their properties. Thanks, baron
  22. Hi Shar, You might want to try FSBO.com and ForSaleByOwner.com -baron
  23. Where do you find these people that are receptive to doing lease options?? I tried for quite some time now to use the information that Pilot provided us to use on Craigslist if we are on a low budget. Hey, thanks for sharing the information Pilot! Anyway, contacted a multitude of people on-line (Craigslist, Backpage, Kijiji, Forsalebyowner) in the Washington DC area and unfortunately, the landlords tell me they just want to rent only. The sellers say they have no trouble in selling their properties outright. a. Is it best to just get some money and do direct mail marketing?? b. Should we get a real estate to call people for us?? c. Should we go after desperate people that are facing foreclosure and losing their home?? d. Should we market to depressed areas of the country where people can't sell their homes and may be more receptive to L/O?? If so, and we do this virtually, long distance, do we need a real estate agent in that location to assist with the deal? Thanks! baron
  24. Hi JHarper Congrats on your sucess! Thanks for the info, tips and motivation you provided. It's helps a lot. -baron
  25. baron14

    Hello :)

    Hi Daro, Thanks for your informative post. I was wondering what sort of message were you using in your two email approach? Are you using CList and FSBO websites? I've tried the two email approach on CList and FSBO/FRBO websites but haven't found anyone serious about doing a L/O deal yet. The sellers say they only want to SELL and the landlords want to only RENT. I was wondering how you found sellers that would consider doing a L/O. Are you finding desperate sellers in depressed areas of the country? I've heard some investors contact people in pre-foreclosue and others say this can be risky if the homeowner doesn't pay the mortgage or get a lien on the property. Thanks for the info, baron
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