moneynfast 0 Report post Posted January 27, 2003 MichaelC I am alittle lost here. In your manual on page 34 you said that you make offers on property unseen. Lets say you do that, and when you get over to the propety, and you find out it is worth more than what you and the owner agree to. What would you do in this case? Also you have not even done a comparble market analysis at this time. At what point are you going to do your comparble market analysis. If I understand this right that needs to be done before you make and offer to the owner. How can you change your offer at this point since you have already made the offer over the phone. I am referring to those FSBO ads because you have no ideal what area they are in. Just a guest here do you get the address from the owner and run a quick cma on the internet before you go to the property? Please help me clear the waves on this one. MichaelR Share this post Link to post Share on other sites
MichaelC 160 Report post Posted January 27, 2003 Michael, let me clear the confusion for you, because this is important.As you noted, in my book I emphasize that we are not realtors and we should not drive all over town looking at pretty kitchens every time a homeowner suggests they might be interested in a lease purchase.If I am speaking with a homeowner who is seriously interested in doing a lease purchase, one of the main points of interest from both sides, would be the terms. Letting the seller talk first, he throws out some numbers at you: length of lease, purchase price, and monthly rent. (And, yes, we get a specific street address, too).Now, should we argue any of these numbers yet? Probably not because we haven't done a CMA yet.We then go and do our due diligence to determine property values for this property in this neighborhood. We call back the homeowner and make a counter offer, or we can do same via fax or email if you want to put it in writing at this point. Keep in mind this is an offer you are making, not a binding commitment. The offer you are presenting is sight unseen, and it is contingent upon your physical inspection and viewing of the property.So, we go back and forth and iron out a few minor differences and reach an agreement of terms.At this point we have a homeowner who has agreed to the concept and idea of a lease purchase, and who has agreed to the terms of same. Now, and only now does it make sense to go and view the property. You are not going there to sell the homeowner on lease purchasing or to negotiate terms. That's already been done. You are going to see if the property fits your needs. The house and homeowner need to sell you, not vice versa. You are the one in control here, Michael.Let's say you get to the property and, as you say, it's worth more than you thought. Great! Bite your tongue and get the Residential Lease with Option to Purchase Agreement signed.What if you discover it's worth less? The homeowner "forgot" to mention the landscaping was a dump yard and the roof was shot. No biggie. You politely point out these things and you renegotiate the terms to your satisfaction, or you walk.Hope this helps. Share this post Link to post Share on other sites
moneynfast 0 Report post Posted January 27, 2003 Great words MichaelC now it's time for me to get on the phone and get busy. MichaelR Share this post Link to post Share on other sites
MichaelC 160 Report post Posted January 27, 2003 .........now it's time for me to get on the phone and get busy. MichaelR Indeed it is, Michael. I'm holding a spot for you on the Real Deals page! Share this post Link to post Share on other sites
