Following Up With Home Sellers

[Walter 0]

I have been calling for the last three weeks sellers and what I am finding is that even those who seemed very open and willing to deal with me are "thinking about it". I hope we all know what that means...

 

My question is how much you tell them about what you do and how you do it?

Do you provide them only with a typical list of benefits of LP options (in my case it is CA agrrement)?

 

I have been asked several timesto show my contract. Once I show it to them they "dissapear" from my radar. I am not sure if I am showing or telling them too much. (The more they know the less they need you...?)

 

What are your tips on this?

 

Walter

[Kimberly 0]

Walter,

 

You're new and you've ONLY been calling for 3 weeks, I'd say your experience is fairly typical.

 

Do you provide them only with a typical list of benefits of LP options (in my case it is CA agrrement)?

Send them the LPA so they can look it over. With a CA you want to emphasize -- they'll Net more than they would fsbo (much more than they would with a Realtor), you can get a tenant/buyer within 30-60 days instead of months with a Realtor, and the tenant/buyer is responsible for maintenance. Those are my 3 main points.

 

I have been asked several times to show my contract. Once I show it to them they "dissapear" from my radar. I am not sure if I am showing or telling them too much. (The more they know the less they need you...?)

If you're doing a CA you can use any contract that they want to use. When it comes time to sign, you'd just want to slip that line in about being able to cancel prior to the start of the lease. If you're willing to use ANY contract they want, there's no need for them to see your contracts. You can still say, "Mr/Mrs Seller, I'd recommend you use my contracts, because they are written strongly in your favor. But I am willing to use any contract that you'd like me to use."

[MichaelC 160]

I have been asked several timesto show my contract. Once I show it to them they "dissapear" from my radar. I am not sure if I am showing or telling them too much. (The more they know the less they need you...?)

If you're leaving your contracts with the homeowners, you've just put them in business. Don't do that! If they insist on reviewing the contracts, even after you have explained the many advantages of a CA, sit there with them and point out the highlights of the paperwork.

And if they are that adamant about seeing the paperwork after all this, they're aren't serious, they're curious. Don't worry, Walter. This tells me you're running about normal. Stay with this, and spend less time arguing/haggling with homeowners who aren't motivated to deal.

[Walter 0]

I have been asked several timesto show my contract. Once I show it to them they "dissapear" from my radar. I am not sure if I am showing or telling them too much. (The more they know the less they need you...?)

If you're leaving your contracts with the homeowners, you've just put them in business. Don't do that! If they insist on reviewing the contracts, even after you have explained the many advantages of a CA, sit there with them and point out the highlights of the paperwork.

And if they are that adamant about seeing the paperwork after all this, they're aren't serious, they're curious. Don't worry, Walter. This tells me you're running about normal. Stay with this, and spend less time arguing/haggling with homeowners who aren't motivated to deal.

<{POST_SNAPBACK}>

 

Thanks for your comments.

So far I have never actually argued with sellers because of my approach, and people in general are OK to deal with. They have a challenge to make a decision and that's when the fear of unknown comes into play (what if they scratch my beautiful hardwood floor...I have never done this, I need $ to buy next house...etc).

 

I left my contract only with one seller who was so far the most interested in dealing with me. What can you say when they seemed to be more than open, invite you twice to their place, tell you how flexible they are with potential remodelling of their house to accomodate buyers and etc.?

 

I do believe in getting through more sellers to get my first deal to be done.

So far calling FSBO is the most productive way to get in touch with sellers and I enjoy talking to them...in spite of my Easteuropean accent .

 

Walter

[BEV! 0]

They have a challenge to make a decision and that's when the fear of unknown comes into play (what if they scratch my beautiful hardwood floor...I have never done this, I need $ to buy next house...etc).

Just thinking out loud here about a lot of the posts I've been reading where the owners asks these questions/concerns mentioned above about messing up their houses etc.....I'm involved with lots of this transactions (CA's) with different owners/builders/investors and not once I've been asked that question above (messing up their homes etc) nor has anybody ever requested to have my agreements examined or leave it with them over night either, why is this?

I have noticed though that ever since I started using the words "Rent To Own", the homeowners feel so much relaxed and comfortable dealing with the CA than when I "used" to use the words "Lease Purchasing".... maybe it has nothing to do with this but is just an observation

[tom2 0]

I feel that if the owner wants to see than, that is his right your not trying to pull anyting over on him so why be affard. Yes you are going to make money and he should know,your not only in this to help him but you are going to make some to. If he wants to try after you've shown him docs be my guest but he doesn't have your knolwege are or the correct docs to use.

[Sold ! 0]

I feel that if the owner wants to see than, that is his right your not trying to pull anyting over on him so why be affard. Yes you are going to make money and he should know,your not only in this to help him but you are going to make some to. If he wants to try after you've shown him docs be my guest but he doesn't have your knolwege are or the correct docs to use.

 

SEE them---sure. I'll go over every little detail with him; there's nothing to hide. Give them to him---no way. Then he DOES have the contracts and he IS in business. He doesn't need you any more. If he wants the contracts, fine.....he can buy them from me since they DO come with my consulting fee of a minimum $1000.00 to get his transaction done for him and with him.

 

 

 

If you're doing a CA you can use any contract that they want to use.  When it comes time to sign, you'd just want to slip that line in about being able to cancel prior to the start of the lease.  If you're willing to use ANY contract they want, there's no need for them to see your contracts.  You can still say, "Mr/Mrs Seller, I'd recommend you use my contracts, because they are written strongly in your favor.   But I am willing to use any contract that you'd like me to use."

<{POST_SNAPBACK}>

 

 

Use ANY contract they want? What? Who? Huh?

 

Can you help me understand the WHY here.......?

Thanks,

[Kimberly 0]

If you're doing a CA you can use any contract that they want to use.  When it comes time to sign, you'd just want to slip that line in about being able to cancel prior to the start of the lease.  If you're willing to use ANY contract they want, there's no need for them to see your contracts.  You can still say, "Mr/Mrs Seller, I'd recommend you use my contracts, because they are written strongly in your favor.   But I am willing to use any contract that you'd like me to use."

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Use ANY contract they want? What? Who? Huh?

 

Can you help me understand the WHY here.......?

Thanks,

<{POST_SNAPBACK}>

 

When doing a CA you aren't in the deal any longer than necessary to find a tenant/buyer. If the seller feels more comfortable with THEIR lease, why not use it, provided you still have the protection of being able to get out of the deal should you not find a tenant/buyer for whatever reason.

 

The WHY is that if you are willing to use Cousin Joe Bob's contract (with a minor change to protect you -- one line), there is absolutely NO reason for the seller to look at your contract prior to signing. The contract does NOT need to be shown to the seller until he is ready to deal.

[Sold ! 0]

The contract does NOT need to be shown to the seller until he is ready to deal.

 

But you just said you're not using my contract...you're using theirs.

 

All paperwork can be the sellers?

 

But, we prefer ours because it protects the seller better, right?

[Kimberly 0]

The contract does NOT need to be shown to the seller until he is ready to deal.

 

But you just said you're not using my contract...you're using theirs.

 

All paperwork can be the sellers?

 

But, we prefer ours because it protects the seller better, right?

<{POST_SNAPBACK}>

Rich,

 

I'm really only talking about the Lease, not the Option or Assignment.

 

Yes, you prefer your contract (Michael's -- CA), because it protects the seller better than any other you're likely to find. Also, you are familiar with your contract, you already know what it says line by line (I hope!) and can explain it.

 

The only contract I've been asked to use that was the seller's was a Lease. "You want me to use your Lease? Fine no problem, I just need to read over it completely and add in this one little line to protect me just in case I don't find a tenant/buyer -- not that this is going to happen, but you DO UNDERSTAND my wanting to protect my position, don't you?"

Uh, yes.

 

Odds are your seller isn't going to have an Option to Purchase lying around. They certainly aren't going to have a CA Assignment contract. Those would be yours. IF you call the vacant "for rents," that landlord may be more comfortable with his own lease. HE knows that lease and not yours. So, you want me to use your lease? No problem, I just need...

 

 

Clearer now or still feeling ?

[Sold ! 0]

CLEAR !

 

You've been a big help. I was just confused by some of the discussion above that pointed in different directions, that's all.

 

I think I am on the right track. Now, to find the motivated sellers !

 

Appreciate the time !

[Kimberly 0]

CLEAR !

 

You've been a big help.  I was just confused by some of the discussion above that pointed in different directions, that's all.

 

I think I am on the right track.  Now, to find the motivated sellers !

 

Appreciate the time !

<{POST_SNAPBACK}>

Glad you've got it!

[FirstAmerican 0]

Hello,

 

When you are calling homeowners don't explain any of the deal or talk any numbers or the phone. Your main goals will be "is the seller motivated", "why is the seller motivated" , and most important what is the time constraint on the seller? If there is a ticking time bomb your creative offers seem much more appealing.

 

Also be sure to ask pointed questions. aka Do you need all the money from the sale of the home to purchase a new home? If the answer is yes your creative deal won't work for them. How much do they need and what are they willing to walk with? You want to negotiate on terms and price. You can create money out of thin air with those two things. If they want price, you get terms. If they want terms, you better get a discounted price. Then you can flip or assign the contract (as long as you write and/or assigns on the buyer line) or you can fix it up, buy and hold on a RTO, or sell outright. If you want to leverage your time and money properly you want out of the deal fast. Thats why you should have atleast a 20 percent discount on ARV - Repairs and a Buyer list a mile high. Asking the right questions comes from knowing where you want the deal to go. .

 

-Christopher

[Sold ! 0]

Also, find out how much they owe on the property and then ask them if they would take what they owe for it. That could put 500K in your pocket each year just by asking that one question !

[EdFulmer 0]

Hello,

 

When you are calling homeowners don't explain any of the deal or talk any numbers or the phone. Your main goals will be "is the seller motivated", "why is the seller motivated" , and most important what is the time constraint on the seller? If there is a ticking time bomb your creative offers seem much more appealing.

 

Also be sure to ask pointed questions. aka Do you need all the money from the sale of the home to purchase a new home? If the answer is yes your creative deal won't work for them.  How much do they need and what are they willing to walk with? You want to negotiate on terms and price. You can create money out of thin air with those two things. If they want price, you get terms. If they want terms, you better get a discounted price. Then you can flip or assign the contract (as long as you write and/or assigns on the buyer line) or you can fix it up, buy and hold on a RTO, or sell outright. If you want to leverage your time and money properly you want out of the deal fast. Thats why you should have atleast a 20 percent discount on ARV - Repairs and a Buyer list a mile high. Asking the right questions comes from knowing where you want the deal to go. .

 

-Christopher

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