Jason (AL) 1 Report post Posted August 25, 2007 What I do is open their eyes basically. ...and how is that accomplished (verbally?)...seeing that you don't give the "I'm here to help" approach. Share this post Link to post Share on other sites
BEV! 0 Report post Posted August 25, 2007 What I do is open their eyes basically. ...and how is that accomplished (verbally?)...seeing that you don't give the "I'm here to help" approach. Simple.. lets do an example.. Lets pretend you're in the market for a brand new car (lets say... a BMW 2007) Lets also pretend you found one at a dealer close to your house and you're very excited about buying it.I happen to call you that same day to chat with you and in our conversation you mentioned that your gonna purchase a brand new BMW tomorrow for only $150KI then congratulate you and share with you the news about the sale that's going to take place at that dealer over the weekend where you will be able to get your BMW for $50K less!!Wow, of course you'll wait for the weekend if it means saving $50K on the car of your dream wouldn't ya?.. I did not even pitch you with anything, all I did was opened your eyes BEV! Share this post Link to post Share on other sites
Alex 0 Report post Posted August 25, 2007 Bev, first of all I want to thank you for taking the time to answer some of these questions...guess you haven't forgotten where you come from with all your success Perhaps I should try netowrking with some builders as this may be a nationwide scenario. Just out of curiosity, do you ever price your houses at a price that takes into consideration the estimated appreciation of that property/market? Do you place a premium on the rent? Again, reading threads like yours and many others on this website has become addictive, and I want to thankyou for your selflessness, although it must feel good to gloat ....much deserved. Share this post Link to post Share on other sites
BEV! 0 Report post Posted August 27, 2007 Just out of curiosity, do you ever price your houses at a price that takes into consideration the estimated appreciation of that property/market? If I understand the question, then my answer is.. "Depends on the market, on a sellers market I do estimate appreciation which is why I don't do over 12 months lease and because by now I know my market like the palm of my hand.. but in a buyers market like right now, I am even going below market which homeowners either go for it or they don't (as long as they don't lose money) "A good example of this would be the email I got last night (see below) Do you place a premium on the rent? Again, if I understand the question correctly lol, my answer is... " Premium rent for the homeowner or the T/B's?" If is for the homeowner (cash flow) then Impossible.. period!... if it is for the t/b's (rent credit), then yes, specially in a buyers market Here's one of many emails I get after I approach FRBO and tell them what my terms are (price/rent/credit ect), this is their first reply to me..---------hiIam the owner of the house and the house is still available for rent. The house is brand new and no one has lived in it. I will consider lease to own.I will be showing the house on sunday from 10am till 4pm to everyone. -------- My reply to that email was something like...... -----Thanks but I'm not interested in viewing properties for rent, I'm only interested in viewing it if you are certain you want to rent to own it with the terms we discussed earlier----- His reply 7 days later.. -----Hi BevI have been thinking about what you said and now I am determined to rent to own my house. I would like to know what do I have to do to start this process. Thanks---- Guess where I'm going tomorrow with my agreements and pen? BEV! Share this post Link to post Share on other sites
sukrpunch 0 Report post Posted September 7, 2007 Bev, Out of curiosity, did you sew that deal up? Chris Share this post Link to post Share on other sites
kah5683 0 Report post Posted September 8, 2007 Here's one of many emails I get after I approach FRBO and tell them what my terms are (price/rent/credit ect), this is their first reply to me..---------hiIam the owner of the house and the house is still available for rent. The house is brand new and no one has lived in it. I will consider lease to own.I will be showing the house on sunday from 10am till 4pm to everyone.-------- My reply to that email was something like...... -----Thanks but I'm not interested in viewing properties for rent, I'm only interested in viewing it if you are certain you want to rent to own it with the terms we discussed earlier----- His reply 7 days later.. -----Hi BevI have been thinking about what you said and now I am determined to rent to own my house. I would like to know what do I have to do to start this process. Thanks---- Guess where I'm going tomorrow with my agreements and pen? Bev: Thanks for all your postings. Have spent the last few days devouring this forum and a lot of your postings. Great stuff - learning a lot. I'm a bit confused... Are you saying that in your first email to this FRBO that you are mentioning "what my terms are (price/rent/credit ect)"? Because you say next that their FIRST reply is "hi Iam the owner of the house and the house is still available for rent. The house is brand new and no one has lived in it. I will consider lease to own.I will be showing the house on sunday from 10am till 4pm to everyone." If so, what is it you say in the first email to FRBO's? TIA, Kevin Share this post Link to post Share on other sites
BEV! 0 Report post Posted September 15, 2007 Bev,Out of curiosity, did you sew that deal up?ChrisYes, is contracted Indeed!! The funny thing is that I'll be showing it tomorrow for the first time and the t/b insists on putting down a lil' more than my asking OC, they're insisting on putting $50K down Oh, and on top of that, this homeowner got me an FRBO referral ( family member ) last night to do an RTO I don't know about the rest of you, but is been a very busy month for me here .. whewww! BEV! Share this post Link to post Share on other sites
Jason (AL) 1 Report post Posted September 15, 2007 Nice goin', Bev! I don't know about the rest of you, but is been a very busy month for me here .. whewww! Is that from counting all that cash? Share this post Link to post Share on other sites
sukrpunch 0 Report post Posted September 17, 2007 Yes, is contracted Indeed!! The funny thing is that I'll be showing it tomorrow for the first time and the t/b insists on putting down a lil' more than my asking OC, they're insisting on putting $50K down Wow, $50k, eh? That's awesome! Now, do you get all of that or do you only take your fee out of that? If you did get all of that and the Seller saw $0, wouldn't that raise an issue with the final sales price, as the Seller basically just "lost" $50k of their equity (if any available)? If you don't mind, I also have a few more questions that were borne out of this 16 page posting (yup, I read it all! ). Is official now, I finally met with this other builder late tonight and signed every house and on some of them I'll be doing consulting on This posting was from 2004, I believe. So in this instance, you met and signed multiple properties with one builder/Seller...some of which you CA'd and the rest you were merely consulting. Is that the correct assumption? If so, why did the Seller enter into a CA on some with you and only consult on the others? Outside looking in, it probably would have been more profitable on his/her part to do the LO's all himself, right? Met a "Senior Loan Consultant" that will do all my pre-quals for all the TB's for free Again from 2004, I believe. I'm aware that you have the t/b prospects bring their own info to the table (3 credit reports, landlord/employer referrals, etc). Few questions here:-Do you still have a mortgage broker/loan consultant pre-qual your t/b's?-If so, I assume this an added service to the Seller to determine whether or not the t/b's credit can be cleaned up and they can purchase the home w/in the LO period?-I assume you ask the t/b's permission before acquiring this information? homeowners are calling me very frequently asking me if I can please take over their payments and put me on title right away, I can't believe how many people are losing their homes to foreclosure. -Do you find yourself working more with foreclosures than just straight up, "clean" FRBO's?-Do you do LO's with Sellers who have an ARM (and leg ) as opposed to FRM? If so, how does the ARM affect the rent price and credit?-Further to those two questions, do you/have you coordinated an LO where the Seller was behind on his/her mortgage payment? If so, can you please explain how you handled the arrears payments? TONS of questions, I know and I apologize!! I've been reading mucho books and been keeping up with this forum. I've been taking the newly acquired knowledge and have been building a plan of attack for my new market. I'm looking to hit the ground running there and want to be as prepared as I can be for 'unique' scenarios. TIA! Chris Share this post Link to post Share on other sites
BEV! 0 Report post Posted September 17, 2007 ..Wow, $50k, eh? That's awesome! Now, do you get all of that or do you only take your fee out of that? If you did get all of that and the Seller saw $0, wouldn't that raise an issue with the final sales price, as the Seller basically just "lost" $50k of their equity (if any available)? I rearely experience situations like this but when I do run into them, I only get my FULL option share. The rest we all work it out (owner / TB) This posting was from 2004, I believe. So in this instance, you met and signed multiple properties with one builder/Seller...some of which you CA'd and the rest you were merely consulting. Is that the correct assumption? If so, why did the Seller enter into a CA on some with you and only consult on the others? Outside looking in, it probably would have been more profitable on his/her part to do the LO's all himself, right?You're asking me about my 2004 deals?!! I can't even remember what I had for breakfast today I'll try my best here..... good luck! Lemme see.. I think this was my very first deal (or second). I was so nevervous haha!Keep in mind that when I work with builders/agents/realtors/investors, I "only" RTO their "personal investments properties". Builders / Developers are the most busiest creature on this planet by the way, therefore even if they knew how to put a successful LO, they have no time to do it nor to advertise or show their personal investment properties. Of course they can hire a property management for their properties to rent out their houses but why would they if they can have a professional do a CA from start to finish on their personal properties for FREE which is way better than any property management could ever do for them?... Now why in the heck would I do CA on some and Consulting on others? Simply because since the builders heard of my CA services, they wanted me to do all their private investment properties and forget about renting out to ordinary tenants but the properties were way too many for me to handle specially on my first deal (I was a newbie and had no idea what the heck I was doing haha!) so I told them I would try and do as many as I could but with no guarantee as to how long this would take (it was a very hot sellers market). Builders offered me their private agent for my assistant so I trained him.The agent and I were marketing all these brand new houses and who ever got tb's for which ever house was it. If the agent got the tb for a certain house, I would do consultation with him to put the entire deal together.Comprende? -Do you still have a mortgage broker/loan consultant pre-qual your t/b's?Back then I had it just for a few deals.... every single mtg broker/loan that offers their svc to me never last, I guess is because they do this as a side job and don't make enough to stay in biz or don't have the time to stay in biz because they all come and go almost every day..(even though lots of them promise me they will be around for ever but they're out of biz within months) so the answer is "nope". Do you find yourself working more with foreclosures than just straight up, "clean" FRBO's?I only do CA with FRBO 100% (but this doesn't stop these desperate families coming to me for help. Some of them are FRBO that I had contacted in the past for the RTO but they wanted to talk it over with their spouse first so few months later they're losing their home and ran out of options so they call me to take their house asap)Further to those two questions, do you/have you coordinated an LO where the Seller was behind on his/her mortgage payment? If so, can you please explain how you handled the arrears payments?I've never done a CA with a FRBO in this situation (to my knowledge). But I almost did not too long ago and I backed out pronto! BEV! Share this post Link to post Share on other sites
abohlig 0 Report post Posted September 21, 2007 This is a FIRST on me! few days ago I went to get a 2007 beautiful house under contract.As usual, everything went smooth and very fast.Owner very motivated and very happy.The day of our meeting to close the deal with all parties, I had the owner fill out a very small profile form which I usually do but had forgotten to do it with this owner at our first meeting.It turns out that after filling out that profile form, I found out that the owner had not made a mortgage payment for the past 7 months!!! I have the t/b about to sign all the agreements when suddenly I said.. "DROP THAT PEN AND STOP EVERYTHING" Heck, the house was already in pre or foreclosure! The owner said, yeah but the t/b can still move in .. I asked the owner if he was gonna pay the past dues, he said nope...So, uhmm, I'm like "we're out of here" BEV! Bev, What questions do you ask in your profiling form? This sounds like a situation that could really get ugly in a hurry. Have you found a good way to be sure your seller is good with the bank so you stop this sort of thing before it even starts? Alan Share this post Link to post Share on other sites
BEV! 0 Report post Posted September 23, 2007 Bev,What questions do you ask in your profiling form? This sounds like a situation that could really get ugly in a hurry. Have you found a good way to be sure your seller is good with the bank so you stop this sort of thing before it even starts?Alan That's the best thing about the SIAFI (Set It And Forget It) technique. (also known as CA) I do what I feel is needed to do from my part which is have the owner fill out a form with the basics of the property, like..- Home Addy- Size of home- What's the lowest price you'll take for your house? (If you only knew how much power this question gives me) - What's the lowest rent amount you'll take for your house? (If you only knew how much power this question gives me also) - Contact info (email, cell etc)- etc But within those questions, I purposely blend in these other questions which are the ones that raises the red flag if they answer "no".. - Does the property have electrical power on? (if they say "no", this is a bad sign)- Does the property have water on? (if they say "no", this is a bad sign)- Is the yard being maintained regularly? (if they say "no", this is a bad sign) - Are you current with your mortgage payments? (I've had LOTS of owners answer "NO" to this) - Have you been late on any of your mortgage payments in the past 10 months? IF so, how many times?- Has mtg payment been sent for this month? If so, on what date? Yes, this form always gets filled completely by the owner with no questions asked nor problems.Of course they can lie about any of these but if I see that they answered "no" to any of the above first 3 questions or I see that the property is not well kept (yard etc), then I stop and don't go any further.. I politely tell them their property does not meet our requirements but also let them know I can still help them as a consultant if they wish. BEV! Share this post Link to post Share on other sites
kah5683 0 Report post Posted September 23, 2007 Bev: 2 Questions: When do you have the profile filled out, and is this in person or email/fax, etc.? Do you do a lot of consulting work this way (if they don't meet your "requirements")? How do you determine what to charge them ( payment equal to 1 month rent, 1/2 month, etc)? (sorry, couldn't count) TIA, Kevin Share this post Link to post Share on other sites
BEV! 0 Report post Posted September 25, 2007 ..When do you have the profile filled out, and is this in person or email/fax, etc.?I have the owners fill out the profile form "after" they fill out and sign the agreements (I don't sign the agreements at that time until they fill out the profile form first and see how the answers look and also to negotiate the price and rent amount down ) I always do it in person unless the owner is from out of State or out of town in which case is done either fax or email. Do you do a lot of consulting work this way (if they don't meet your "requirements")?Nope because they choose not to as they know they would need to prepay me first. (they're house is behind on payments etc) How do you determine what to charge them ( payment equal to 1 month rent, 1/2 month, etc)? I charge a flat fee ($2,500 and up) depending on my mood and price of home.. I've done some for almost free and other times I've done them for $5K (I show them how to get that money back). But I personally don't want / like to do consulting and try to stay away from it as much as possible as I prefer to do the entire CA instead. BEV! Share this post Link to post Share on other sites
BEV! 0 Report post Posted September 26, 2007 So I get a couple of new properties over the weekend under contract.One of the houses is located in a very nice brand new court with approximately 12 brand new houses in it.6 of those houses had signs of REO's Sales, 4 other houses (same court) were being sold via public "auction" (in progress at the time I was there).1 house had a "Take over payment" sign on it and the one I signed up was the only one well kept with no signs of any kind on it. I'm speechless! BEV! Share this post Link to post Share on other sites
