option8 0 Report post Posted April 18, 2004 I had an awesome day yesterday! Due to some aggressive marketing along with assistance and inspiration from Adam, I have an even bigger tenant buyers list. (Thank you Adam!) I spoke with one of these tenant buyers on Thursday. They have the necessary cash to put down, specified what they were looking for and need to move within 2 weeks. I had a property in mind for them but also suggested that they drive around looking for FSBOs in the neighborhood of interest to them. They called me back on Friday with an address and phone number. Saturday morning, while I had a few minutes to spare, I called this number. The seller is a tired landlord that just finished evicting a tenant and they decided to sell the house. Since they are already accustomed to renting this property, I told them of the advantages of Lease Option and let them know I have an occupant at the ready.It turns out the property is vacant, needs a little work, is priced below market value, is actually more than the TBs had asked for and they are willing to take a handiman special. I suggested the seller run the idea past their spouse and give me a call back.The call came back in the afternoon that they are willing. The bottom line is, I now have my first CA--- a fast $ 1500.00 in spendable cash within 2-3 days--- with only couple of phone calls and the application of some practical knowledge! AND I haven't even left my house yet! The best part is I spoke with 2 more sellers later in the day on Saturday and have 2 more possible CAs ---- One seller said "When can they come see the house!!!" Every week I love this business more and more. Talk about momentum! (posted with the intent of encouraging everyone of you) option8 Share this post Link to post Share on other sites
-Tony- 0 Report post Posted April 18, 2004 Great Job Option8, One question, how long does it take the average sell in your area to sell (mls or fsbo)? Tony Share this post Link to post Share on other sites
ctrmrz31 0 Report post Posted April 18, 2004 Option8 has the idea! Great way to use your options! Thanks for the encouragement! I really need it because my time has not allowed me to do much work of my own and it really starts to slip when one don't stay in tune or in touch on a daily basis.Thanks!Cruz or Brandon? Share this post Link to post Share on other sites
Adam King (MI) 1 Report post Posted April 18, 2004 Actually, this was all Michael's doing during our "VERY VERY VERY SHORT" three way call. Share this post Link to post Share on other sites
option8 0 Report post Posted April 19, 2004 Tony, One question, how long does it take the average sell in your area to sell (mls or fsbo)? I have absolutely no idea! And frankly, it really doesn't matter. (I don't mean to be harsh here, but this is the truth in my experience.) I take the attitude that every situation is different, every property is a possibility and every FSBO has some motivation for selling. All I do is let them tell me about their particular situation and talk about the fact that "time is money" and "no action is frustration". My goal is simply to provide a solution to get money on the table, get the property occupied and remove the frustration ASAP. I can provide a solution to this property challenge NOW! I can't say it enough...the statistics really don't matter. Every situation is different.The only thing that really matters is the sellers perspective so you have to put on their shoes: Two additional weeks can be an incredible frustration to a seller who has to do something now (in the middle of a corporate relocation or with another house under contract) and, likewise, 4 years can be nothing to a home owner who owns the property outright and isn't going anywhere. (I do know of a house on the MLS that has been there for 4 years!) In order to walk in their shoes, you have to get them to tell you their pain...don't sell, LISTEN! BTW, The seller did inform me that this particular property has been a FSBO for about 5 months. (and lest I seem ungrateful, my thanks to Michael for the assistance!) option8 Share this post Link to post Share on other sites
Gary (MO) 0 Report post Posted April 19, 2004 Due to some aggressive marketing along with assistance and inspiration from Adam, I have an even bigger tenant buyers list. (Thank you Adam!) Option8, Adam had mentioned in another thread about a mailing of about 2000 or so that he was doing. Would it be inappropriate to ask you what you mailed to whom that brought you such good results? (I'm assuming here....it's probably the same one that Adam did?) Thanks! Also, Doug is working hard (also in another thread) developing a marketing thrust at realtors for CAs. As I've read through his posts, I was wondering what your thoughts might be to this idea? Thanks again for the encouragment!Gary Share this post Link to post Share on other sites
Guest Guest_Barry Report post Posted April 19, 2004 Great Job option8!It's good to hear stories from people who are taking action and putting their knowledge to good use! Keep up the good work. Barry "Success happens when opportunity and preparedness meet!" Sellthehousefast.com Share this post Link to post Share on other sites
MichaelC 160 Report post Posted April 19, 2004 Cooperative Assignments>very cool! Congratulations, Option8. One more trick up your sleeve for future use. Share this post Link to post Share on other sites
option8 0 Report post Posted April 20, 2004 Gary,I'm still low budget marketing, so I am doing insignificant mailings. These TBs are from an ad. Remember that when you market a property, some will fit the one currently available and others won't. For the one's that don't fit the properties you have, tell them to drive around and look for FSBOs they may be interested in. Instruct them to call you with the addresses & phone numbers. You get more property leads (and a motivated birddog), more practice talking with sellers, and you just may get a deal. I think that Doug's realtor strategy is a good one. I'm trying to figure out how to implement it in a big way! I'll keep you posted. More encouragement... You can tell your buyers that it is best that you act as an intermediary since you have the specialized knowledge and experience. Many of the sellers I speak with tell me that they have been approached by people who want to take the property on a rent to own or land contract. That means someone got there before me! One of several things dynamics are at play in this situation: 1) their proposal wasn't presented in a manner that made the seller comfortable OR 2) the timing was not yet right. Whatever the reason the seller didn't seriously entertain the proposal and a deal didn't get done. In we come with our specialized knowledge, the correct contracts and the well presented benefits to the seller and A DEAL GETS DONE! option8 Share this post Link to post Share on other sites
option8 0 Report post Posted April 20, 2004 Update on this first CA: After speaking with the seller, I emailed the LO Advantage and FAQ along with a Short Offer Form. I answered her questions over the phone first thing yesterday morning, explaining how she would get top dollar and a great tenant buyer. I then met the buyers and the seller at the property later in the morning. The house doesn't show too well because the previous tenant's stuff is still in there, but it really is a great house. The property is sound, is surprisingly large and bright, all the original unpainted woodwork, hardwood floors, a remodeled bathroom, new roof and a finished basement AND it is priced well below market value to boot! It only needs cosmetic I went prepared with my comps for the buyer (showing the good price for their little bit of sweat equity---most of the houses were 2 bedrooms vs. this 3 bedroom AND the price we have is a little under the average comp in 2 years!). The sellers are getting over their asking price, but in 2 years. I had all my contracts for everyone executed. The seller's sister is a realtor and they want to review the contracts with her before they sign....FINE WITH ME! We have a buyer at the door with cash in hand and they have already rented this place for 10 years. They indicated that if they agree, they will sign before the week is out. I went knowing that no one would sign on the spot. My buyers called back within 2 hours saying "Yes, we want the home". Can we sign on Thursday? So, now the ball is in the seller's court. However it turns out, at least the ball is in play!!! I'll keep you posted! option8 Share this post Link to post Share on other sites
MichaelC 160 Report post Posted April 20, 2004 Option8, two very interesting and informative posts. A few points I want to make here.....Remember that when you market a property, some will fit the one currently available and others won't. For the one's that don't fit the properties you have, tell them to drive around and look for FSBOs they may be interested in. Instruct them to call you with the addresses & phone numbers. You get more property leads (and a motivated birddog), more practice talking with sellers, and you just may get a deal.I may be guilty of taking things for granted on occasion. Therefore it's a good thing when I read something like this. By now we all should be in the habit of building a database of tenant/buyer prospects. As Option8 said, if one property generates 50 calls, that leaves 49 potential t/b's for your next property. File their names, numbers, and needs away for when that next deal is here. You just may quick turn it over with no additional marketing expense as a result of having that database. And the second part of that quote above is that everyone benefits when you put the t/b to work for you. I receive calls all the time from prospective t/b's looking for a property. I'll always tell them to help themselves by reading the FSBO/FRBO ads, speaking with homeowners, and looking at properties. If they see something they are interested in they pass along the info to me and I'll call the homeowner with the good news that I have an interested party for their property, and they want to do business today. Not a bad door opener. Try it.Many of the sellers I speak with tell me that they have been approached by people who want to take the property on a rent to own or land contract. That means someone got there before me! One of several things dynamics are at play in this situation: 1) their proposal wasn't presented in a manner that made the seller comfortable OR 2) the timing was not yet right. Whatever the reason the seller didn't seriously entertain the proposal and a deal didn't get done. In we come with our specialized knowledge, the correct contracts and the well presented benefits to the seller and A DEAL GETS DONE!Yes! I hear this all the time and I'm thrilled when I do because I am assured the deal is mine! Why? Because the other guys went first and pitched their half baked ideas and got into an adversarial negotiation with the sellers. Then, this smooth, polished sweet talker with a tray of lasagne in his hand comes along and pitches his idea about working with the homeowner in a Cooperative Assignment type of deal. My way nets 'em $200K. The other guy was talking about $150K. Who u gonna call? The Naked guy, right? Know your products, talk to enough homeowners, the deals will come. It ain't easy, but it's usually fun and it is productive. Share this post Link to post Share on other sites
Jason (AL) 1 Report post Posted April 22, 2004 Congrats Option8 on your success! Michael said:Then, this smooth, polished sweet talker with a tray of lasagne in his hand comes along and pitches his idea about working with the homeowner in a Cooperative Assignment type of deal. My way nets 'em $200K. The other guy was talking about $150K. Who u gonna call? The Naked guy, right? -- nothin' like a naked guy with a tray of lasagne approaching your doorstep. EAT UP! Share this post Link to post Share on other sites
option8 0 Report post Posted April 22, 2004 another Update on my first CA The seller is now fully on board. Their desire was to put nothing else into the property...so we will use that great home warranty program, paid for by the buyer in exchange for no rent increase in the second year. They really like the idea of using their property to help a young couple get a start. (2 others have been through to see the property since Tuesday, but we are the ones they want to help) Buyers met with seller today with a contractor in tow to look over the property with a clipboard in hand. I couldn't be there, but it didn't matter... Everything is a go with all parties. I just hung up speaking with each one and we all meet to sign the contracts at 9:15 tomorrow morning. YEA!!! I LIKE CAs! option8 Share this post Link to post Share on other sites
option8 0 Report post Posted April 22, 2004 Hurrah! The deal is signed, sealed and delivered with the certified funds already in the bank. The total time from start to finish is exactly 1 week! Wrap your arms around some CAs. They are too sweet! option8 Share this post Link to post Share on other sites
MichaelC 160 Report post Posted April 22, 2004 $1,500 for a few hours work spread out over a week. Not bad at all. And you'll soon learn that most of your CA's will net you more than that, on average. Put the deal together, no tenants and toilets headaches, no responsibilities, no liabilities, and move on to the next one. Sweet, indeed! Share this post Link to post Share on other sites
