Kyle-OH

Hey, I have been focusing on CA's. I market to buy the property(cash offer) and then if the cash offer is to low(which is always is) ... I will offer a CA...... When talking to these sellers, Do you guys go into detail that you will do all the marketing,showing,paperwork on the property and that your services are free (kinda try to sell the idea to them) OR do you keep it simple and say that you will lease their property from them with agreed terms and then when you find a qualified t/b for the property you will notify them... I know there is not some magical place to get leads from but I like some kind of structure and I get very few leads from craigslist,newspaper,expired's per day. I want to work on this more then 1 hr a day.....A lot of people say this can be a full time job and I do not see how it is....I wish it was a full time job because maybe I would see some results.... I am only shooting for 1 CA a month. That's It. To the folks at least doing 1 CA a month. What does your marketing campaign look like? How many hours do you spend each day doing marketing?...

Yes, Thats right. I am having my doubts that I can make this business work and make a consistent living at it. This is not my "normal" frame of mind but when you have been trying to get a lead wrapped up for 4 months straight with nothing. You start to have to wonder. I have access to the MLS and I send postcards to expired listings. I send emails to FRBO and FSBO on Craigslist. (There are not a lot of quality leads on there,bunch of junk) I send letters to Probate Properties. I have called adds in the newspaper as well. The only thing I have not tried is when I see a FSBO sign in a front yard just walking up and door knocking. I also have not tried the "we buy houses" signs. What Gives here? I know every market is different but I live in an area that seems "normal" here in ohio.. What are you guys doing to get consistent QUALITY leads everyday. I desperately want to make this work. And I am willing do to ANYTHING to see that it happens BUT.. I feel like I am beating a dead horse here!!

Don't Mess with that. Go to http://www.feedmyinbox.com/ .....As long as there is an RSS Feed you can get all of the info sent right to your email.... Theres nothing to download and it only sends one email every 24 hrs so your inbox is not completley flooded..... Oh yeh, I have been using it for months with no spam....

While doing my marketing campaign and talking to homeowners, Some questions have arose. I have checked out some Rent To Own websites(some website owners on this board ) and I have noticed that the majority of guys advertise " No Credit Qualifying". Does that mean you do not check their credit at all? As long as they have a steady work history,background check, and the option money to put down then they are golden????

OK...That's a prime example of the kind of deals I have been doing due diligence on. So after running comps in that area, What if the FMV is 200K? That means you are asking 12k over what everything else in the area is selling for. Have you guys had any trouble filling these "type" of deals? I have yet to market a CA so Im not sure what kind of response I am going to get. I am speculating that since I would be marketing a "rent to own" I can ask a little more then the going rate....Am I right?.....On the bright side, you can offer nice rent credits and get a nice option fee at 212K.....

I am getting some motivated sellers but they have either A.Little Equity B.No Equity C. Owe A little more then what the property is worth. Do you guys still take on these deals and just offer no rent credits? Do you take them on and just raise the price even more to allow rent credits? OR Just don't Deal with them at all? Thanks...

I am having a hard time closing a deal! I have been talking to quite a few homeowners on the phone and when I figure out they are interested in my services I then get info on the property. Once I obtain all the info I proceed to tell them I am going to run some numbers to see if we can make a deal work and that I will call them back. Once I call them back and give them the numbers and they are always like" Well let me think about it" OR " Let me talk it over with the wife" and then I don't hear from them again. I am going to start following up with them but what does your procedure look like? Does it look like mine when they call? THanks

What is the best way to determine rent in a market with mainly homeowners?

You make a good point. I keep forgetting that most people don't understand how investors think. Most of the objections I worry about would come from someone who thinks like an investor and has similar experience and education to my own, not the average homeowner. I have a habit of overthinking things, which sometimes gets in the way of anything actually getting done. Gotta work on that. Although, it's good to have all bases covered... I have to laugh because my wife just asked me the same thing two days ago "Why do they need you?". I started naming everything reason I could think off and she was like "OK OK You don't need to sell me on it" .lol Anyway, Don't worry about what your friends and family think. They are not the ones who are MOTIVATED. If they were the ones paying two mortgages working 50 hrs a week and their house was sitting on the market for a year, Then they would understand why people need YOU. Get out there and market!!

Thats what I figured. Makes it easy on us as well. Thanks!

Who Pays Taxes? Homeowner or TB? If its TB , it is structured into the payment each month? Thanks

Diver, Your best bet is to sell it as a cash sell. Then there will be no worries of seasoning issues. If its not a cash sell then find a small local bank that has no problem with you wholesaling this property. You then can refer your buyers to the local bank. Also find an investor friendly title company in your area. The whole point of doing all of this is so YOU can control every aspect of the sell. You don't want to have to rely on someone else. 1. You can assign the deal with just a simple assignment agreement.The only time I would do this is if you were assigning the deal to an investor you have worked with in the past. 2. You can do a simultaneous close.You would use your end buyers money to fund the transaction.This is where the investor friendly title company comes in at. Get the option wrapped up for a $1 or $10 and make sure you get a $2000 dollar deposit from your buyer non refundable. If they are using a bank to fund the transaction make sure they have a preapproval letter with that $2000 deposit.GoodLuck

I wondering that as well...

Nice Jonathan.......I seen a thread that was recently posted here and they are talking about ads very similar to yours....They said they work awesome... What type of response are you getting from these type of "Family Needs Lease House" adds??

fixed...

Trying to think out of the box.... I will let you guys know what type of response I get.....Oh yeh..If you think I could do anything better, let me know that as well.... http://youngstown.craigslist.org/reo/1078609598.html

Can someone explain how we can advertise "no closing cost" to seller, if the seller is still paying for half of the closing company/attorney's fees??? I understand they have to pay taxes but anything over and above is "no closing costs" to me...

What is a reasonable fee to charge per day for a t/b that is late on rent ?

You know whats funny, Is that he could of made an honest living and a nice one at that......But then greed took over...

Hmm, I don't think that is illegal here in Ohio... I worked with a Realtor that ran a family owned brokerage for 40 years and that was part of his strategy . He called it a Price Guarantee to his clients.....The clients would be happy because they would get what they wanted and plus he would make a profit plus commission..... I love how Real Estate is looked at by everyone including law makers... It's like no other...... If someone wanted to sell me a car for $100 that was worth $5000 and the seller was happy.. So What!...Car salesman do it all the time!!! Sorry for the rant...

Hey Kyle, there was a post a week or so ago about rent credits that I replied to where I gave a breakdown of how the rc's are applied, including how it is reflected on the HUD. This goes back to the closing costs as well. Take a look at that and that may help you. Thanks guys

Yeh, I can see where both of you are coming from...I want to provide the best service for the seller and t/b but I can see where "The more I do, the better chance I have to getting pulled into something I don't want later on down the road".....

It has gotten to the point now, If your not wage slaving 9-5 everyday...OR ... If someone does not "understand" what your doing then you are automatically BREAKING THE LAW!!!

Yeh, I think that is what he is saying.. A Purchase Agreement would have to be signed upon the option being exercised BUT like you said you would be out of the picture at that time when doing a CA.... Now, I did not look at it as a refi. I was looking at it as a regular retail purchase. How does the bank look at L/O's as a refi and not a regular purchase? Is it because the owner occupant has been living in the house for a 1-3 years??

Ok My main focus here is CA's....... I know that I am out of the deal as soon as I assign the contract but I just had a few questions..... 1.If the T/B exercises the option to purchase the property, Does the homeowner have to supply the "Official" Purchase & Sales Agreement or does my L/O contract that I supplied act as the final contract? 2. The reason I am asking is because if I tell all my homeowners that they will not have to pay closing costs if the T/B exercises the options where should that state that at? My L/O Agreement or The Purchase and Sales Agreement? 3. How are closing cost structured? What if the T/B does not have the money to pay closing costs?