baron14

Hi, I've been hearing about lease flipping lately...flipping the lease contract. How would the investor be beneficial to the seller or what value could the investor add for the end-buyer? In my area the landlords have a long line of renters lined up to rent. The sellers already advertise on Clist, newspaper or with signs. The renters already look in the paper, CList and signs for homes for rent. So what value could the investor add for the seller or the end-buyer in Lease Flipping? Thanks baron

I emailed only the FSBO and FRBO properties on CList, Backpage, Kijiji and Forsalebyowner. The sellers that did respond were not interested in L/O, but wanted to sell now and be cashed out. Most of the FRBOs said they will continue to rent and wait until the market goes back up before they will sell. As I previously mentioned, a couple FRBOs said "maybe they would consider" but only if I myself were to L/O and live in the property, not my T/B. Thanks Chris_MA, I will use your advice to see how it works out. If not, I will work on the pre-forelcosure lists. These sellers may be more motivated to get rid of their property than the Clist properties.

Hi birtane, Thanks for your reply. I've used pretty the same thing...two email approach....somthing similiar to "will you consider a L/O"..."I have buyers, no maintenance hassles, top rent".... to CList and ForSalebyOwner. I've emailed hundreds of FSBOs and FRBOs with no success yet. A couple of FRBOs said they may be interested in L/O, but once they understood that I would not be living in the property myself, they no longer had any interest. I'm marketing in the Washington DC metro area. I see that you have gotten some good reception to L/O in Georgia. maybe I will try the Detriot area. There should be some motivated sellers there, you think. Thanks.

Hi birtane, Congratulations on getting stated with Lease Purchasing. Good to hear you had success with finding sellers and buyers on CList. How did you approach the sellers on CList to get them to agree to doing a lease option deal with you and what state are you located? Thanks! baron

Hi Junior, Yes, I've received messages similiar to that and even worse from sellers. Do like I did...grow thick skin. Don't Give up! Stay positive and listen to all the helpful and savy people here on this site. Just keep going to reach your goal.

Thanks John for sharing that excellent information to help those that are still working just to get this biz off the ground and up and running!!

I've had sellers tell me they will not work with investors nor sell to an investor. Now I tell them that I have buyers and help homeowners to sell or lease their home for top dollar.

Paying the Realtor.... How much should one pay the Realtor if: 1.) A realtor provides you with lists (not their listings) of expired listings or listings of motivated sellers on MLS? 2.) If YOU contact the Listing Agent and ask them if their seller will do a L/O and the seller will do a L/O, then the Listing agent is paid a rental commission by you, right? 3.) I know that it's slower, more time consuming and costly, but is it better to just mail a letter directly to the homeowner/seller from the list? Trying to figure what to pay these Realtors. Thanks! baron

Hi Chris_MA I used my full name and phone number in the 1st email as you advised and have noticed more positive resposnses using this technique. What I don't understand is why a few propsects say they are interested or may be consider doing a LO, but after the 2nd email, I don't hear from them again. I'm wondering why they go from warm to cold. Anyway, I'll keep at it.

Hi Lynn (FL) Hey you mentioned the 2nd email that is listed below is basically what you use as the phone script AFTER your 2nd email to the FRBO. What kind of 2nd email do you send the FRBO? After the seller gets my 2nd email, I no longer hear from them, even though some state after my 1st email, they may consider renting then selling at the end of the lease. Some think I am trying to "sell them on some kind of service". Maybe I'll focus on telling the FRBO "call me to see if your house qualifies for my qualified T/Bs" in my 2nd email so that the ball is in their court. Thanks baron14

Hey Chris Thanks for that Great informative Marketing 101 Lesson! I like the way you break it all down and analyze the pychology of it. There are a lot of great tips I will put into use! This is a great forum that MichaelC has provided for us. Thank you all for sharing and helping the less experienced newbies!! P.S. Congrats on picking up that $7500 check and note! Way to Go!

Chris, I re-worded the 2nd email becuase I didn't just want to copy MichaelC's email. I thought he provided it for us to use as a framework or guide to tweak it for our own email. Also, if all of us on the forum use the same email on Craiglist list, it will get flagged by Craiglist. I like the 2nd email that you tweaked and provided. It' seems very clear and concise to me. I'm not a very creative person. I will test it. I was debating between a generic "we buy houses" 1st message. Getting seller property information and situation. Then give 3 solutions: cash, sub2, L/O or direct approach..."would you consider selling at the end of the lease" or "would you sell your house on a lease purchase for Full Price". Maybe I over think all of this, that's why I need the help and learn from the pros from this forum filled with creative and smart people. Thanks Chris and all that helped!! baron

Hi All, Hey I would like to have my 2nd email approach message reviewed and critiqued. I've gotten a couple of responses from FRBO off Craigslist, stating they may be interested in doing a lease option. When I send them the 2nd email and the Seller LO Benefits attached, I don't heard from them anymore. What is wrong here? Thanks baron ---------------------------------------------------------------------------------------------------------------------- Hi, Thank you for your reply. Your house sounds like it may be just what I’m looking for. Please let me explain. I help homeowners rent their houses on a long-term lease with a quality tenant at no cost to them. We are not Realtors and charge no commissions or fees to you. Currently, I'm in contact with several prescreened tenant/families who are looking for a nice house in your area to rent now and buy later. Your property seems to fit our needs quite well. These families will pay full market rent or slightly more and take care of all the day-to-day maintenance/repairs for the right house. All they ask for is an open-minded homeowner willing to rent the house to them on a “rent-to-own” basis. Is it okay, if I refer these tenant/buyers to you? It doesn’t cost you anything. We get paid by our tenant/buyers. Any interested prospect is subject to your final approval. You decide who lives in your house. Not us. If you are interested in no more problem tenants, late payments, maintenance calls, vacancies and evictions, then please feel free to contact me. I'd be happy to speak with you and answer any questions you may have regarding this matter. -----------------------------------------------------------------------------------------------------------------------------------------

Hi, I am thinking of using this script for the 1st email to FRBO on Craigslist to try and generate some leads. Could the "pros" please critique it? Thanks, baron14 ------------------------------------------------------------------------------------------------------- "Hi, I’m interested in your house for rent. What I'm looking for is a nice house in a good area to rent now and buy later. If all rent payments were made to you on time, at the first of each month, would you consider selling your house at the end of the lease period? If this is something that you would like to discuss further, please contact me. Looking Forward to hearing from you. Signature" ------------------------------------------------------------------------------------------------------

Hi All, I would like to know if anyone else is having good success with getting CA leads from Craigslist? I've emailed the two email approach to about 350 FSBO/FRBO sellers on craigslist. Mostly no response from the FSBOs. A couple FSBOs respond to say they want to sell only and a few FRBOs respond to say they just want to rent only. I did get two FRBOs that said they may be interested after I sent them the second email. I sent them the proposed offer for their prices they requested and never heard from them again. Could you please critique my proposed offer for the Sellers to review and discuss? Also, I know it may be more costly, but are others getting better results marketing for CA leads from newspaper ads or expired listings or leads from the MLS? Thanks baron14 ------------------------------------------------------------------------------------------------------------------------------------ Hello ___, Following up on our earlier discussion, please allow me to present you with the basic terms of my proposed offer to buy your ______ property on a lease purchase basis. This agreement is entered into between the Parties, Seller(s) and Buyer(s), below in consideration of and subject to the following terms and conditions. Parties: Buyer and/or assigns and Seller (Owner) This agreement just states that I, or one of my Buyers, subject to Seller’s approval, can “rent-to-buy” your house within 60 days of the signed agreement. Buyer has the right or option to buy the property for $___ cash and / or lease the property for $___ per month. Lease Term: 2 yr. Period: Agreement Valid For 60 Days Seller understands Buyer is working as a principle in the transaction for a profit. If the property needs maintenance or repair that isn't covered by insurance, Buyer will pay for maintenance or repairs up to $350. All closing costs will be paid when I, or my Tenant/Buyer purchases the home. Buyer will refer his Tenant/Buyers to Seller for Seller’s final approval, at no cost to Seller. Seller may continue to market the property and the property is not tied up. If you find a Tenant/Buyer through your own efforts, then you may cancel this agreement. Upon Buyer’s decision to exercise his option with this agreement, both parties agree to move forward with the necessary standard lease and purchase and sales agreement. Thank you for considering this proposed offer. If you have any questions please don't hesitate to email or call. Sincerely, Signature Lease Purchase Specialist ----------------------------------------------------------------------------------------------------------------------------------

Oh I see. You just carry over or "flip" the existing owner financing to the end-buyer. Since a lot of homeowners want cash now, is there a way to get a pure option on the property, then sell for a profit to a "credit challenged" end-buyer?....getting them financed in this tight money economy seems like it would be difficult. Thanks, baron14

Hi Johnathan, With the advertising: Owner Finance 3BR Homes Problem Credit OK! 772-XXX-XXX When you advertise "Owner Finance" do you mean - If you are doing a CA L/O with the homeowner, then you would owner finance part of the assignment fee with the T/B? and If you were doing a pure option with the homeowner, how would you do the owner financing with the end-buyer? Also, in this tight money economy, how does one get the credit challenged buyers financed and how do you structure owner financing for them? Thanks, baron14

What About this?? 1.) Have T/B sign and have notarized a Promissory note to me for $XXXX, upon receipt of the contracts. Once I receive the promissory note. I send contracts to T/B. T/B will send option money when he receives the signed lease and option agreement from me. 2.) Have some sort of a "general terms" short offer signed agreement sent to T/B. Once I receive the option money from T/B, then send the complete "real" signed contracts to the T/B. Would #1 or #2 make any sense and work? Any thoughts? Thanks, baron

Hi D-Lee, So I guess one would get the homeowner to vouch for you to the T/B telling the T/B that you a a "real person". Then you first sign the contract and mail to the T/B. You said "wrong" contract. Would you send a contract such as one with important missing clauses or something?? Would you just sign and send the Lease Agreement only? Then when you received the cashier's check or M.O. in your name, then send the signed Option Agreement to the T/B? Then assign to the homeowner? Thanks, baron

Hi Joe, how are you! Hey I want to know in doing out of town deals, how do you get the T/Bs to send you a cashier's check or deposit in your account the option money. Most are leery since we are far away and have not met in person, only on Internet and the phone. There are a lot of news stories on TV about real estate scams especially on Craigslist. It seems that you are doing this without a title/escrow company to seal the deal. So do you have the T/B sign the agreement then mail it to you with the option money and you in turn sign the L/O and mail back to the T/B? Thanks, baron

Hi, 1. Yes, I can get the homeowner to show the property. 2. I guess I am concerned about being squeezed out of the deal. In the past, I did a regular option deal and the buyer met with the seller...guess what...never heard from them again. The seller just said nice doing business with you. 3. I thought a T/B would be leery about giving info and SSN to a "stranger" on the Internet. Most won't and the couple that did do it, their credit was so shot that it didn't matter anyway. 4. a.) I can try to get T/B complete rental app for me to get credit report...if not... b.) then I should I have the T/b bring their own credit report with driver's license for ID to the seller. Then I could give the seller some direction and advice as what to look for qualfying the T/B. 5.) I thought I would assign the lease and option to purchase back to the seller because if the seller has all the pieces of the puzzle, they may cut me out of the picture. A lot of sellers have asked me repeatly for the "paperwork and agreements" to review. They seemed more interested in seeing the paperwork/agreement than in the details of the deal and in doing the actual deal. If I do, I probably will never hear from them again, so I just complete basic option with the seller and do the lease and option to purchase with the T/B. Is there any way to make this smoother or safer? Any thoughts? So I should: - Have T/B sign lease and option to purchase and mail to me. - T/B make cashier's check/M.O. to me and give to seller. - Seller sends me my option fee - I sign L/O and assignment and mail to seller. Thanks, baron

Hi All, I was wondering what is the best way to work a CA deal out of state. I know one could have the homeowner show the property to the T/B, but how would one work the logistics of getting the credit history, rental history and collecting the option payment (getting paid) from the T/B? Since I'm a "stranger" to the T/B, would I have the T/B provide their credit report, driver's license, rental history and option payment face to face to the homeseller? Would I have the homeowner sign and notarize an agreement to send me the option payment received from the T/B? After the T/B inspects the property then have T/B complete lease and option to purchase agreement and then sign to me. Then I sign the agreement and assign the agreement over to the homeseller, after I receive my option payment fee? and send to me I'm not clear on the steps for the homeowner, T/B and investor with an out of state CA. Thanks, baron

Hi Randian I used the same subject line the H.O. used in their Craigslist ad. I though it would be familiar with them and they would open the email. Yes one said I was lying also, because in my 2nd email with more details, I mentioned had prospective end-buyers instead of leasing/buying the property myself. ...and some just want me to some the agreement first for their review. Thanks!

Hi BEV! Thanks for the input! I like the personal approach. Maybe some thought I was like a "salesman" trying to sell them something. They're only focused on getting their house sold or rented. Guess I'm more analytical and not that creative. That's why I need help from smart and creative people like you. I will implement this approach and let you know the results. Thanks BEV!

Hello! I've been enailing to CL. More responses from FSBO than FRBO. I'll tweak the a message a little to say that I'm a company that helps homeowners and homebuyers and leave out the "I have prospective buyers". Maybe they think I'm some "average Joe" off the the street. I'll test and see what hapens.