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dan332

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Everything posted by dan332

  1. Thanks for this... I will check them out-
  2. Can anyone recommend a company that is cheap and provides reports in an easy to understand format?
  3. dan332

    1,2,3--go!!

    Well, in the meantime, I am testing to see what works. Maybe its the "message" and not the "medium".. ie if its a good deal it should move. Of course I'll continue with signs. But what bugs me about signs is that they are limited to the really local area. I cant see driving more than 10-15 miles to put these up at 5AM every week.. unless I hire a helper. Or enlist the homeowner to do it, with me supplying signs (wont work if house is empty and owner has moved already). And in the newer parts of town, there is really no place that a RTO sign would last more than a day. I'm going to try: -Doorhangers around the neighborhood where we have RTOs (cheap) -Passing same out to hairdressers and nail salons (it always seems to be the women who want a place and bug hubby to get busy on finding the $$). Offering a referral fee -More frequent and eyecatching CL posts Have tried Pennysaver and direct mail to get sellers- I think a waste of money. Easier to just call or email people. To get buyers, dont know how effective these would be. I dont see spending bigger $$ without more houses to move (only have 2 now, but expect 2-3 more soon) Might try leaving stacks of brochures on top of those vending machines for newspapers and RE magazines. What I'd really like to figure out is how to reach buyers in a higher price range. I dont think these folks even glance at RTO signs. So many more expensive properties at good prices out there, but how to move them? Also tested Zillow- its cheap but you pay for eyeballs not click throughs. Might try again, although I suspect most people on Zillow are there to comp their own house, not shopping for one Might also try some unusual stuff like posting in forums, etc.. will probably sub this effort out to pros though.
  4. dan332

    1,2,3--go!!

    How about current #1 way of finding quality T/B's? I get a good amount of calls from bandit signs.. but very few seem to have $$ for O/C Trying Bevs trick of using HTML posts to stand out on CL. I'd sure like to find a practical way to reach people who have some money to put down. I did see a suggestion on a blog somewhere to memorize buyers info off of Realtors sign in sheets at open houses and then call them.. sounded pretty clever, but not sure how practical (or ethical) this is.
  5. We'd be hanging doorknockers where one side would say "we have a house in YOUR neghborhood on RTO so if you have any friends or family you'd like close by, this is a good deal, etc.." The other side would say "If you know of anyone needing to sell their place and they are having a tough time, call us, we have a solution" In both cases offering a fee when we find a T/B. Since we'd hang these on all doors, even those with a Realtor sign out front, we'll probably piss off some realtors.. thats why I asked. Thanks to all for great input... will probably try this and see what happens!
  6. Is there anything that is illegal about advertsing to homeowners in a neighborhood that you will pay them a referral fee if they help find a buyer or seller? I dont want to be accused of "practicing RE w/out a license"!
  7. Jonathan and Michael, Thank You! The fixer really doesnt "need" work, its just that the inside is tired looking. I'm not looking to spend or give up any money myself, I just thought that it might help marketing it if "sweat equity" was mentioned when people call. The idea was offer it at say 320K, with a 25K allowance for improvements, if done. The part that I am wondering about though is quantifying the type, worth, and quality of the work. Might open up a lot of issues that are better left alone. Thanks again-Dan
  8. Potential Deal 1: Might be somewhat overpriced but house on a nice lake, owner out of state, just fired realtor after 6 months, has plenty of equity, and I think he'll be flexible when the time comes. Also 5 minutes from my house. He just wants to sell. The issue: the inside of the house needs updating. I was thinking of getting him to offer a healthy purchase price credit for a handy T/B to update the place. My question: How does this work.. ie how would a price for the work be set, what if the T/B does lousy work, etc.. Remember the owner is out of state (house in Fl, he is in Az), so he cant be checking the work. I think the credit may be a good incentive, plus a good deal for the owner (if they dont buy he'll get improvements for nothing.) But.... is this risky.. are there pitfalls? Potential Deal 2: Owner is open to owner financing to help with the purchase. Is this usually a big selling point? How does it work.. just that the owner takes back a second? Any advice on using this to make the deal more marketable? Any suggestions/advice highly appreciated. Thank You!
  9. Pilot, 90% close is really impressive. Do you mind sharing your main methods for locating your TB's? I see from a previous post that most of your marketing is internet.. I assume this means Craigslist, etc.. right? Any other important sources? Or is the 90% more a result of your hard work to follow up and work with them to repair their credit and find them financing? Thank You! Dan
  10. A "landlord's policy" should be put in place to take care of fire and dwelling. (Most insurance companies will not pay on a homeowner's policy if they found out it's rented) Adam, I assume this landlords policy would also be needed in a CA, correct? Thanks- Dan
  11. What the deal is, is that he is now renting out month to month furnished because he wants to keep his straight sale options open. He'll just boot out the month to month when he has a buyer. :) I thought it was pretty straightforward with a cancellation clause but after reading these words of caution I wont touch this with a 10 foot pole. Thanks for the heads up guys. I have enough worries and dont need to lose sleep worrying about getting slapped with a lawsuit!
  12. I was thinking that the upfront agreement would be that the owner would return the option money FROM THEIR OWN POCKET, plus a sufficient penalty paid to the TBs on top of that to make up for the inconvenience. As long as both parties agree upfront to it, I dont see anything unethical. However, the owner just sent me an email suggesting that the penalty be one month free rent, which in my mind is not nearly enough compensation for a TB to even bother. I was thinking more like a 5K penalty plus the return of option money (coming from the owner, not me)
  13. I just had a potential seller tell me that they would like the option to cancel on the TB during the LO if they found a straight buyer. I told them that the only way I could think of that it could "possibly" be worked out would be if they agreed to pay the TB a cancellation fee written into the contract up front. Any problems with this? -Dan
  14. MC, Thats what I suspected. I was mainly interested to see what the average seller would find when they did a search on RTO or LOs. In all the articles and sites I saw there was no mention of this thing (except Reeds site which seems to be down on every CRE technique.) Even Realtor.com has LO properties on their site, so if the NAR is comfy with them I dont see any problem. Actually I thought the 5% thing might be way to tell a homeowner that they shouldnt be too greedy on the option money:) But no.....that would probably do more harm than good.
  15. Just poking around looking to see what info is out there on lease options and RTO, I came upon a decent article at Wikipedia on "how to sell your home with a lease purchase". One of the footnotes was as follows, which I have never seen before. I've seen discussions back and forth on whether there is a risk or not of LOs being seen as sales, (including on this board), but I've never seen anything mention a % as the basis for how a LO is viewed. Has anybody heard of this 5% thing? -Dan " In many jurisdictions if the total of the initial option money (the option fee) plus the option money from the monthly payments exceeds 5% of the agreed-upon purchase price, the seller must go through foreclosure proceedings if the prospective purchaser falls behind on the payments. If the total option money is less than 5% of the purchase price, the standard eviction process can generally be used. For this reason, lease options typically set the total option money at less than 5% of the price."
  16. Good point. Sellers in the DC area feel as though there is no where else to go then up, being a great job market and all. Uh huh. Florida has one of the strongest job markets in the country and one of the lowest unemployment rates. But prices are falling like Michael Vick's endorsement deals. Unbelievable.. I just had a potential seller ask me the same thing.. ie what if the property appreciates.. "I am concerned I may be losing out on the back end" !!. I told him if he locked in todays price and they actually bought after 12 months he should thank his lucky stars. Maybe I should have asked hm for a fee for the right to cancel the option, seeing he is so bullish!
  17. dan332

    Comps and pricing

    Thank you naked investors for the "intervention".. I dont know what came over me.. must be all the rain every day down here.. my brain is getting soggy. I needed that kick in the pants to wake up..... MC a homeowner told me y'day that he was ready to "reach through the phone and kick some ass" of some investor that lowballed him on his house a few days ago. Gotta respect the guy. If I do a deal with him, can I bring uncle Tony and Paulie walnuts with me for backup???? Dan
  18. Hi, I am hoping to get some input on comping and pricing CA deals. Between Craigslist and calling FSBO signs, there seems to be no shortage of interested sellers. However, it takes a good amount of time to look at the property ownership, look at it on Zillow, Realtor.com, and several other places, and sift through all this and develop fair rent and sale price numbers. I can really do only a few a day like this. I dont know all the neighborhoods well enough yet to make quick proposals without doing this. Is this the way it should be done or is there a faster/easier way? Does anybody ask the homeowner to do some of this? I do ask them if they have an appraisal or comps, and most dont. Yet they still want their price, and I seem to be losing deals because I dont give them what they want. Michael, I know you advocate letting the homeowner fight the market themselves, but sometimes I feel like just playing realtor and giving them what they want and figuring I will take offers (havent done this yet because I dont want to waste time selling, but after losing several deals because we were apart on price.......it is tempting to take this "shortcut"). Also, what kind of premium can a RTO be priced at? It already has to be bumped up by the rent credits , but can it command even more (usually)? I usually start at slightly below "market", and add the rent credits and the O/C. Is this correct? Maybe I should offer to pay a Realtor or an appraiser XXX out of the option money? I am finding I dont have time to make so many proposals and having 3rd party comps might help me close more deals. Just a thought.. worthwhile? Dan
  19. Michael, T/B will look at the numbers again and promised to call me back tomorrow. But she is pretty sharp. If it looks like there is an agreement on numbers, then we'll see if the seller really has $$ to put into escrow. If she doesnt have it now, she probably wont have it 12 months from now either!
  20. Jonathan, thank you.. I will try this! Michael, this is still it.. I had almost given up on this but she called me today. I'll call the prospect again. I think the issue will be whether the seller has any money on hand to put in escrow. Again, Thank you both, especially for the quick response. -Dan
  21. Hi, I have a CA that I have been unable to move, in my opinion because its priced too high. I had a couple of offers below my asking price which I passed on to the owner, but she was not willing to accept because it would not cover what she owed. She just called me and asked me to call back a prospect that made an offer earlier, and offer a price that would be about 10-15K below what she owes. She said if she needs to come out of pocket when the time comes, she would. Should I try to do something with this? I dont know how the T/B can be protected here. I hate to walk away when the owner is willing to deal, but I certainly dont want problems later on. Any way to make this work? Dan
  22. Hello folks, If anyone missed Jim Cramers faceoff with the president of the NAR on the Today show, here is the link... its pretty funny. You have to click on the video 2X to get through the ad. I dont think he has too many Realtor friends right about now! http://www.cnbc.com/id/15840232?video=534767113 Dan
  23. I think this gal could sell ice to the eskimos
  24. True, but unfortunately none of them state that (and they are agents/realtors/prop m). In my area too, is just that 90% of the agents advertising in my area happen to be investors as well and have properties of their own that I end up RTOing for them. BEV! Hmmm....helping agents needing help with their own properties.. now that is making lemons into lemonade!!!!!! -Dan
  25. Hello Dan, I purposely address my emails that way to weed out the agents/realtors/prop mngmts In this case I have not gotten many replies from agents/realtors telling me that the owner of the house is open to RTO I've only gotten maybe 2 or 3 agents/realtors and I basically don't reply. But on the other hand, I have had lots of realtors/R.E Brokers reply which I ended up RTOing the property but "only" because it was their personal investment properties, otherwise I won't go there BEV! Thanks Bev.. I assume that if the original ad states that its a agent/realtor/pm posting it, that you dont even bother emailing in the first place. In this area (Ft Lauderdale), looks like 95%+ of the CL rental postings are by agents -Dan
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