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Lexie(UT)

LPA for FRBO

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I am new to the board and have simply been browsing, but yesterday I actually got up the guts to call on a few FRBO. (Scared me near to death) I didn't do as well as I hoped but I didn't close the door completely I got her address and told her I would send her out more information about Lease Purchasing.

 

So now I am looking over the LPA and it seems that this is what I want to send her, but it is more geared towards FSBO's and not FRBO's. Would you just change the wording so it applied more to a FRBO? What would you say?

 

Any help would be greatly appreciated.

 

Lexie(UT)

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Lexie, first of all congratulations! That first step can be difficult and frightening. It only gets easier, though. Now that you've gathered momentum, don't lose it!

As for the mailing, personally, I think it's fine as is. But, tell me why you think it might need some rewriting, and what you had in mind.

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Well for one it starts off "Are you trying to sell your house", then it goes on to say the three ways that people usually do it. Only thing is I called this Homeowner who was only interested in renting. I asked her if she would be interested in renting it for a time and then selling it to me in the futuer. She said that they might be interested in selling it, hadn't really thought about it. She wan't extremely motivated to sell. So I just kinda felt that sending her out the LPA with the first question "Are you trying to sell" just didn't quite fit her situation.

 

Don't get me wrong MC I think it's great and works wonderfully. But for rentals? Have you used it in this situation?

 

Lexie(UT)

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IMHO, Lexie, I think that the LPA would actually work BETTER for FRBO's because so many people out there renting really don't want to rent, they'd rather sell. It takes a very special investor to hold property and rent it out without getting burned out. Many try, few succeed. Dealing with renters who don't care is just a major pain in the gazitza and very expensive, too.

 

At least around here (Va Bch, VA), the majority of people with rentals were at one point trying to sell their homes. Despite the fact that we're in a hot seller's market, for whatever reason the house didn't sell, or maybe the owners didn't like the contingencies, or their buyer's contract fell through, or the owners didn't have enough time to sell the house & go through inspections/appraisals/closing, etc., and the owner needed to move on so they put it up to rent to at least cover the payments so they could build up enough equity to turn it over to a realtor and cover their commission. Whenever I look in the paper and see a house with a $1600-$1900 payment and 4-5 bedrooms, I'm willing to bet that someone doesn't have enough equity to sell via a realtor without coming out of pocket. That's nearly a $300,000 house around here, with a lot of fancy extras. A pretty good opportunity for me, really, either to L/P or do a CA.

 

I think the opportunity is far greater for me to be calling on FRBO's, but, just like you, I'm scared to call them 'cause I know they're going to say 'yes' ;) In fact, there are 3 houses within 5 blocks of me (one just 4 houses down the street!) that went through that - up for sale, didn't sell in the first week, and are now up for rent or now rented (btw, MC, the one up for rent is through a management company, otherwise I'd probably have called).

 

Now that I've admitted all that, guess who I'll be calling tomorrow morning during Ethan's Saturday morning cartoons... :) (Ethan is my noisy and loveable 2-yr-old).

 

Anyway, if I were you, I'd leave everything in the LPA just the way it is and hit the landlords hard. I'm planning on doing that myself, a little here and there as I can afford it mailing to them, and making "warm" calls like crazy.

 

-Naomi

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Jump on in there and edit that LPA to make it appropriate to your audience.

 

Are you tired of dealing with Tenants and Toilets?

 

Did you want to sell but resorted to renting?

 

Put your rental on autopilot and maybe even get it sold AT TOP DOLLAR!

 

 

option8

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Lexie(UT):

 

I also wanted to have a different LPA for FRBO's. So I used the same theme that MC did and changed it to fit what I thought a FRBO would want to hear. Option8 makes a good point about tailoring it to your audience. I would only add that you should use your words. It is easier to sell an idea when you are comfortable with the words that are used.

 

Anyway, here is an example FRBO intro to the LPA. Hope it helps.

 

Are you trying to rent your property the traditional way, scheduling appointment after appointment, only to have candidates not show? Do you end up finding a marginal tenant who doesn’t care for your property?

Are you wishing that you could do away with the day to day maintenance issues and rent collection problems?

Perhaps you contacted a local management company, only to discover that you have to pay high commissions and still organize your own maintenance and repair contractors.

If so, it’s time to consider. . . . . . . . . . .

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