Doug Pretorius (ON)

OK I see what you're getting at now. Yes I do the same as you, give the seller first AND last. But I require a lot more down. Are you saying that the T/Bs you're putting in place have a total move-in of only $5k??? So that's first and last plus their option money? I thought you meant they have first and last PLUS $5k, even that is low. If that's the case then you really aren't getting much of anything then are you? Like $1400? Ronnie, that's not enough for the knowledge you hold!

Hey Ronnie, sounds like you live next door to me, I think the average price of a SFH around here is $315k and that house would rent for maybe $1600. The vast majority of wannabe T/Bs say they have nothing to put down, not even a security deposit, which is probably why they're being evicted from their mom's basement So what do I do...well first I ignore rent rates. I'm not a landlord and I don't place renters in my homes. I think of myself as a very flexible and friendly bank who helps buyers purchase my homes. So I'm not competing with landlords or their rent rates. I'm competing with banks and their interest rates. With bank posted rates for less-than-perfect credit buyers around the 6-7% range I figure I'll aim low and offer a payment based on 6% interest, with a nice rent credit, and no other fees or qualifying required that's a pretty attractive offer to serious tenant/buyers. As for the T/Bs with no money, I just tell them to come back when they have it. That means that for every 100 calls I get, I end up with maybe 5-10 people who can afford the payment, and out of that 3 or 4 who have 3% or more to put down. 2 of those will actually show up, sign up, and hand over the cash...so it's a race to see who gets there first. On the seller side. I want a minimum of 2% interest spread between the payment I'm getting and the payment I'm making. So once again I aim low and offer them a payment based on 3% interest. I've learned over time that this is the number many sellers offer when I press them for a rent amount, so I know it's available and reasonable, so when I get those sellers who say I'm crazy and they can't afford that I just say "Thank you for your time." Umm...I think that about covers your question from my perspective and market conditions.

I just look for the sellers who have a low payment.

I've always felt that the main point of an SLO is the cash flow. The back end may never come.

Not true! Didn't you hear about the King incident? I heard there were riots in the streets of exclusive gated communities all over Michigan due to the REP brutality.

Whether you're offering a SLO, or a CA, or a pure option, you aren't really offering a service. You are contracting the property and then either sub-letting or assigning your rights. So I don't see how you could be in violation of those terms.

I do OK with FSBO sites, but only certain ones. Most have ancient listings, but in my area the 2 biggest keep their listings updated very well and have more listings than anyone other than Re/Max and maybe Coldwell Banker.

The maximum I can get away with without being flagged, which is about every 2-3 days (it helps not to post in anything the resembles a regular pattern).

Just got the reply, and oh yes that went over so well The only thing offering a CA with better numbers did, was make him even MORE greedy. Now he wants me to find him a cash buyer for $15k more than I originally offered, and he'll generously give me 1/6th of what I would have made on a SLO. Hmm, let me think about that one for a minute...oh wait what's this? 2500 other houses to choose from I told him that as an investor who works just 1 or 2 deals at a time I have to be very picky about where I spend my time, and searching for a cash buyer for a few thousand dollars just isn't worth it. However, my original offer to lease purchase his home stands if his efforts don't pan out. NEXT!

Well if you're going to twist my arm I suppose $9k is better than nothing.

Yes to the latter part of the question. This ad hasn't got any replies, unless you count a few realtors trying to find out what I'm up to.

They just want more rent or consideration than I'm willing to pay, nothing special. And with the 3rd guy I'll do the same. In the meantime I'll go find some more interested sellers to shoot short offers to

Right...well first things first, find a real seller. Of the 3 short offers I ended up sending yesterday and today, 2 came back negative and the 3rd I haven't heard from.

That came out a little nastier than I intended. There's nothing wrong with CAs. I just want cash flow right now. And to be honest, each time I've done a CA I've kicked myself for not doing an SLO instead. There's something magical about that payment coming in month after month

Yes, my liability is limited in the contract. And yes it is an SLO. I'm not going to bother with CAs anymore unless I'm starving.

I'll guess I'll just try it both ways and see how each turns out. For now, this is the basic format of the short offer I've sent. I'm using a bit of Joe Kaiser's cover letter mixed in: Dear Seller, Following up on our conversation earlier today, please allow me to present you with the basic terms of my offer to purchase your property at 123 Main St. on a Rent to Own or Lease Purchase basis. I think you're "dead on" price wise and have no problem offering to pay you your full asking price of $201,500 (that's the $212,000 price you mentioned, less commissions). I've also done my homework on current rental rates and have determined that your suggested range of $900-$1000 is pretty much in line with similar homes, so I have no problem splitting it right down the middle. That's $950+utilities every month, without fail and no matter what. Since I'm an investor and you will be dealing with me instead of a renter, I can guarantee that rent even if my tenant moves out. If there are any problems and I have to evict (very rare) I'll pay those expenses out of my own pocket. The same goes for all of my advertising & travel expenses to locate a quality tenant in the first place. If the property needs maintenance or repair that isn't covered by insurance, I'll pay for that as well. Additionally, I'm offering to set this up on a long term, 3 year commitment. Starting as early as December 1st. Finally, I can offer you a $1,000 non-refundable cash deposit upon taking possession in addition to the first month's rent. And will pay all closing costs when my tenant or myself purchase the home. Thank you for considering this offer. If you have any questions please don't hesitate to email or call. Sincerely, Doug Pretorius

Makes perfect sense to me too, MC. But I gave up trying to understand seller thinking long ago. Oh well for better or worse I've sent them and a 2nd seller a short offer again. I'll let you know how it turns out.

He could...but I'm not worried about that. For one he'll have a buyer-favorable contract in hand. And two, he seemed far more concerned with me guaranteeing the rent than anything else.

Oh I'm sure he'd like all of the consideration too

Yes, calling FSBOs with that antiqued thing called a 'telephone' still works believe it or not So I'm about to send out an offer and I'm debating with myself (and now all of you!) whether to send a Short Offer, or the full contract. To be honest, I haven't had much success in the past with short offers. And when I say "not much success" I mean, zero. I've got lots of complaints that it's not a 'real' offer blah blah blah. I know sending them the contract can be argued over. Could they take it and try to do a deal themselves? I guess. Will they? Probably not. Could they run it by their lawyer/brother-in-law? Sure. And it's fine with me if that makes them feel more comfortable. Does it take me more time to send the full over the short? Not really. I figure I don't have a lot to lose and there are some benefits. But I'll put it to the floor and ask for your thoughts.

Sounds like you're working harder than me as it is, Darin

You're the only one Steve All I've talked to is 4 realtors...I wonder if private individuals actually use the online classifieds anymore.

Yeah, I always have a hard time keeping mind that the purpose of my call is to disqualify the seller not convince them.

If you're home doesn't sell, what's plan B? If you're thinking about renting it out, think again... * Costly vacancies * Chasing your money * Renters trashing the place Instead just let us handle all of the headaches for you, at no cost to you. We're not realtors or property managers. We won't charge you a cent in commissions or fees. We are a residential real estate company specializing in Lease Purchasing. Why Lease Purchase with us? * We can pay your asking price! * We can normally find a tenant/buyer within 30-60 days! * Quality tenants who care about your home! * We guarantee the rent! * We handle repairs! * No cost to you--tenant even pays closing costs when they buy! We can only take on a limited number of homes at any given time so contact us now to see if your home qualifies.

Just a little update. I've confirmed that my email is indeed blocked on kijiji. I can email my own ad from another account but not the email I signed up with lol, weird