theaussibloke

I wanna use Michaels Cs marketing phrase "family needs house with purchase option" to market for a SLO. I dont have a list of TBs but in my market housing affordability is becoming increasingly beyond the means of many people and there is a chronic shortage of places avilable for rent. people are living in caravan parks and sheds etc so I know there are plenty of TBs out there ready for me to grab. Im goin to use the phrase in a message typed on a sticker and past that on the back of an envelope and mail it to places for sale. It'll have this message on it: "Dear friends; If your house has not sold by the time your agreement with your agent expires, I know of a family who wants a lease a with a purchase option. If this works for you phone M xxxx xxx xxx or E xxxx@xxxx.com.au' My idea was to say to them when they call me; sorry mr/s seller but they have found a place now but I can find another family etc etc. What do you think of this script??? ..... come on talk to me, thanks - the aussi bloke.

The reason I asked this question is because when I get my comps for a CA or a SLO for that matter, I have no way of knowing if the sellers place is a top of the range, average or a bottom of the range place. Suddenly my comps don’t seem to be of any use to me any more do they? If I asked the seller to get their own comps (on the basis they know where on this scale their place is) they are either going to get some appraisals (high) from agents, be selective in the use of their comp figures or tell me they want ‘x” dollars for it. Where do I go from here???? Come on experienced people, I’m in a bind here, help me out. Thanks the aussie bloke

Hi; When I do a SLO I do my own comps and make the seller an offer based on my comps, so far so good. When I do a CA I get them to do their own comps to show me how much their place is worth, is that right or have I got the wrong idea completly. thanks aussie

Hay Doug; far be it for a newbie like me to be giving you advice but a response that a bloke down here uses to sellers who expect you to help them for free is: Seller....Seems to me your going to make a lot of profit on this..... You: lets hope so...can you imagine doing business with a company that plans on making regular losses... or your right but it sounds to me like you'd be more comfortable doing business with Enron (or some other high profile company whose gone broke). .... (we have several to choose from.) phone rings ......what can you do for me etc. you ......... tell me about your problem but bear in mind that whatever I do is within the context that I do this for a living.

Thanks for that Michael and Doug much appreciated. It occured to me last night that I should talk to my solicitor about a "promise-not-to-take-me-to-court" type clause in my docs I sign with the owner. .......topless chicks with tatoos?.....ooooooaaaaahhhhhh come on in.

Hi all; Suddenly found myself doing due diligence on potential TBs for a CA and found my self asking how much is enough. I would like to know the extent of due diligence done by forumites as I'm trying to work out how much is enough. I can appreciate the laws are different in different places but I would imagine the principle of "duty of care" exists in most places. Under the proceeds of crime laws here you can loose your house if the tenant uses your property for criminal purposes. I would'nt be real happy if the owner took legal action against me for negligence to recover the value of their property if they had it confiscated after I told'em the TB was a suitable tenant. Trouble is; I dont want to do that much DD that no TB qualifies. PS; In my speil to the owners I told them that I vet the tenant at my cost. Any thoughts & experiences appreciated - thanks - aussie

Hi all; Just wondering whats meant by first and last months rent? I notice when you blokes do CA's you mention these payments. Does this mean that this is all a TB pays is first and last months rent plus option consideration? Here a tenant normally pays a bond + 4 weeks rent in advance. For this reason I'm not keen to mention option consideration to the seller as this would be onerous for the TB. just wondering what the story is? hope someone can enlighten me here. cheers.

Hi all; I would like to get some information on postcards please. Am I right in thinking that the post cards used in LO are a little different to the traditional post card, and that the post cards used in LO are a card of aobut 8x5 size with a picture of our business card or logo on the front with our message on the front and/or back? Would love to see a front and back of a few cards just to get the idea. Thanks for any help anyone can give me. Thanks - Aussie

Hi all Interesting post Maichael; I've been running an ad "I find perfect tenants 4 U 4 Free" in a local newspaper that covers about 8 suburbs for $20 a week. Only had 2 calls in 8 weeks, neither wants to sell. Read somewhere that a consistant message is essential. Been thinking about doing a SLO but the only protection here is a caveat against the title. Not much when the bank takes the lot if the seller went broke.

Thanks for that Michael I will keep that in mind, appreciate that.

Hi all; I've been reading about having a farming area for RE investing. There seems to be a lot difference in what I've read. Some say 2000 homes and others say 20,000 homes. What size is the farming area of people on the forum and how far do you travel to do busienss. would appreciate some feed back here - thanks

Thanks Michael; I appreciate that. The situation is a little different here in that the way the lawyer advised me and set up my contracts. I get an option on a lease on the property from the seller and sell that option on the lease for what I can get to the Teanant buyer. The problem I have here is that under the residential tenancies act (statute) it is traditional for a landlord to get a bond and a letting fee. In this case I am offering half of what I think I can get from the TB to the builder in lieu of this in order to get him to do a deal. This may not be the right thing to do but I guess I just want to get a deal done. I have purchased your pack which you sent me a while ago and I have sent the lease purchase advantage to several enquirers. Thanks for your help Michael and I will modify my text accordingly.

Hi people; I recently emailed about 50 builders with this message: Hi I’m Kevin; I’m a Rent To Own specialist. If you build and rent out homes; I can find you qualified rent-to-own buyers who will pay you full market rent and full market price no questions asked. They will move in to your property as soon as your property as soon as it’s ready. They’ll also do the day-to-day maintenance at their own cost. These people think like buyers not like tenants so they are much better quality. Cash flow from day one No more marketing costs No more property management costs and one has come back to me with this email: "tell me more, because we might be able build a business around this." Looking forward to hearing from you. THis is what I was about to email him back: " The way the arrangement would work for you as a builder is that: * I will find people who want to rent to buy and select the most suitable tenant buyer. * They would take a lease for 12 months with the right to purchase at any time during the option period. * The purchase price would be next years price plus a bit and this will be nominated on the paperwork. * In lieu of a bond and letting fee they will give you an up front non-refundable option fee so if they dont buy you keep it. The worst outcome for you is that they may not buy, in which case we simply do the same thing again. You and I would enter into an agreement whereby I take an option to lease the property. I will then find a suitable tenant buyer and assign my interest to them and sign them up on a lease document which a lawyer has drawn up for me." Question: Am I just giving him all the info he needs to do this himself. The concept is relative unknown here so should I send this as it could lead to multiple deals?? I.e the bloke is a busienss man and needs information to make a decision on. My pulse is starting to race. Would love to get some here please

Hi; Whenever I read about markting my busienss in RE on this forum and other articles I read, people seem to use adverts such as "I BUY HOUSES." I've also read about other types of deals such as flipping etc. This has caused me wonder what the situation in the US is when it comes to tax as many of deals I've read about never seem to refer to tax in the examples. In the land down under we have to contend with capital gains tax, goods and services tax, stamp duty etc. For example, to PURCHASE a $300k property in my state it would cost about $28k in these sorts of taxes and settlement (closing) fees etc. This makes it very difficult (as I see it) to run an ad such as "I BUY HOUES" as to buy and sell a house for $300 and then sell it runs to about $30+K and this certainly affects, in as i see it, an ability to flip it, sell the option etc. Sub 2 seems to be nearly impossible as the banks hold the title deeds to a property for as long as thers a mortgage over it but Im trying to find a way, but apart from CA and LPing we seem to be restricted in what we can do here cos of taxes. Could someone please give me an idea of what the situation is in the US so I can tell if there are real differences between here and there or am I just making excuses to myself. Thanks all aussie

Thank you all for your help. Certaintly appreciated

Hi all; the other day I went to see some people who were selling their house FSBO. This is the second time I've agreed to go see someone and they just wanted to "talk about it" They said "they are thinking of renting their place out and they will try to sell it for a while longer but if that dosent work they get in touch with me." I'm getting sick of this line and the lesson here for this newbie is they are not yet motivated enof to do the deal and I am being controlled by them not the other way round. This first script is what I sent them via the FSBO website email is: "Would you like to sell your property on a rent-to-own basis. I can help you with this free of charge. You will get next years price plus a bit more and a rental premium. You will get a tenant who will treat your property like it’s theirs because they intent to buy it. The tenant buyers will do all the day-to-day maintenance at their own cost. You wont have to lose money by going to an agent or discount your price. Email me. Thank you - Kevin Piggott The Rent To Own Consultant XXXX XXX XXX. PLEASE INCLUDE YOUR PHONE NUMBER The script below will be the script I am thinking of using to try and prevent the seller from calling the shots. It mostly comes from a post by another person on forum. “Before I come over to your house, I need to know what you need for a sale price and what rent do you need to cover the mortgage? I would like to do some research and make sure this is in line with what I think I can get before we go to the next step. Also I need to know; if the numbers work for you, are you prepared to go ahead with this when we meet because I hav’nt got the time to come to yours until you decise you're going to go ahead with it. As part of my duty of care to the tenants I will need to see a copy of both your drivers licence and a rate notice from the city council or a copy of the title deeds to the house when I come over.” My question is, Will this second script ensure I stay in control and is it a bit too direct, confronting and off putting. I would also appreciate some feed back on the first script too as I suspect I may be giving them an RTO lesson. Thanks for your help and have a great year.

Thanks Adam; I'll do that

Hi; I have just got off the phone to a bloke who is interested in RTO. I said I'd do some research and get back to him. His property is under offer from a buyer. Should I leave it for a few days to see if he accepts the offer he's been given or should I do my research and get straight back to him with the figures. Thanks in advance aussie

dianafontanez; One question I forgot to ask please. When you say "Hi Mr. ____________! I am looking to purchase a home but would like to rent it out first. Would you do a rent to own?" how do your then change from have him think your going to rent to own his place to telling him that your going to assign it to someone else or do you also do SLO's ???? thanks aussie

dianafontanez - that is excellant. Your absolutely right. You made me realise that I hand'nt learnt what I read from Konti and Finkle on negotiation. Michael C: The way it works here in that I sell my option to the TB, is the where I make my money. The good thing about this is that the seller dosent know what I've been paid but my area of concern is that they could develop and expectation that they get something for the option I take on the lease of their property. I'll be offering $1.00 for the option just to make legal. Telling the seller that he'll get one price while the TB pays another price will be the tricky bit. Somebody got a phrase for me to use here? Just wondering how my approach compares to Bev the magic lady's way of doing things. I'd give her my christmas present just to listen in on one of her phone calls. On another matter and far be it for me to be giving anyone on this forum advice but if it helps anyone I have some words to use to a seller if they are not motivated enough and you want to move on. This is a phrase I learnt from network marketing. "maybe this is something that is not the right time for you now. I'll call you again in ______ to see if it's a better time for you is that a good option for you" This is called “taking it away” from someone who dose’nt really want to do the deal.....yet. cheers aussie

Thanks Micheal C; the $295k was his net price and I would have made the sale price to the TB for $300k to allow for rent credits which the market would have handled as we are in a hot market but it is begining to come off slightly. I did't disclose anything about rent cedits as I did not want to give them a course in RTO. This is a key question for me, how far does disclosure go, when does it happen when your dealing with people who dont even know about the concept. My intent was to disclose it when talking face to face so I could address their concerns. Thanks for your comments Michael, anyone else???? aussie

Hi all; I sent out a speil to home sellers via email thought FSBO websites. A builder responded "skeptical but willing to listen" as they hand'nt yet decided to rent or sell their 2 investment houses. I responded with: I believe the best you could expect is: Your NET price: $295,000 Rent: $250.00 per week The lease on the property would be 12 months. This compares with selling through an agent as seen here: Selling through an agent Selling Price: $275,000 (this is the price their property was advertised at on the website) Agents Commission @ 7% or $19,250.00 You net: $255,750.00 Selling Rent to Own Selling Price: $295,000.00 Your Net $295,000.00 Or $255,750.00 versus $295,000.00. By selling rent to own you are $39.250.00 better off. Which option do you prefer? You pay no commission and no settlement fees. Tenant buyers do the day-to-day maintenance. The way it works I will take an option on a lease on the property for an agreed time which I sell to a Tenant Buyer I vet and select. The tenant buyer can purchase at any time during the lease period. If I cannot find a suitable tenant buyer within the option period I will surrender my option as I will not be leasing your property. I have a number of tenant buyers on my books which I will contact when we sign the agreements. The lease I use is in your favour which I will go over with you in detail when we meet to sign the paper work. The lese has been prepared by a property lawyer. The option to buy is in the lease. With this arrangement all 3 parties win. Best of luck with your properties if Rent to Own is not suitable for you. end of message. All through the postings on this forum is the strong message of disclosure and dont be a motivated buyer. My questions are: Have I said too much if so what should I have not said. Is there anything I have not said but which I should have said. Your feed back is welcome and thank you all in advance.

Thanks for your feed back people, I appreciate it. I quite like the advert "I buy houses" which a number of posters seem to use but my problem is as I see it anyway, and some pelase correct me if I'm wrong, is that this is fine if you do sub 2 which I have been researching but there are a few problems with that technique here. I cant see how that advert would apply to CAs only which is my strategy, ie get good then expand which incidently; is Michael C's advice. I reckon that one of yours is greeat Michael, thanks.

Hi all; Could you all please give me your feed back on this advert. It's going in local suburban newspapers " Make $500 for referring a home owner who sells by Rent To Own. PH xxxx xxx xxx" I want your feed back as I may well run this ad indefeinately and I need to get it right. with this ad I'm trying to: 1 get home sellers to come to me. 2 generate enquiries from TBs and develop my buyers list. 3 market my business. My confidence level and knowledge restricts me to CAs at the moment. Have yet to get my first deal. SLO's will come later. thank you all

Thank you all for your thoughts and I'm sorry about being late saying this but heart attacks do tend to get in the way of a budding investors new life. I'm sure I missed something as I couldn’t actually see the ad Steve uses. Steve could you please repost your ad again? thanks I guess too I should have said that I am coming at my investments here purely as CA's. I'm taking Michael C's advise of get good then grow into other types of deals as my strategy. Thanks again for your help aussie