Back From Vacation

[draegarfrog 0]

Hi everyone,

 

Just got back from Guam, while I was there I placed a I BUY HOUSES, CONDOs, TOWNHOMES add in the paper. I have three CA's in the works right now . But here's something interesting. I got an email from a builder who wants me to sell his 8 unit apartment complex and a 10 unit condo (which is 90% complete) I spoke to him briefly asked if selling on a lease purchase would work for him and he said yes. He's suppose to email me some pictures. Anyways what's a good approach? I don't have any info yet as to price, comps etc. Thanks.

[MichaelC 160]

Welcome back! I noticed it was quiet from your corner of the planet.

Sounds like your marketing is paying dividends. With this builder, you'll need more info about the properties and what he wants to do. There are many possibilities, but the devil is in the details. Get more info and then post back.

[transactionsengineer 0]

Guam - What an excellent place. The only place that mail order divorce is possible and accepted by both the United States and the British Realm.

[Adam King (MI) 1]

I can't believe we're talking about "Guam", that's just hilarious. And that fact that we're talking about DOING DEALS THERE! Man draegarfrog this is one for the books!

 

I got an email from a builder who wants me to sell his 8 unit apartment complex and a 10 unit condo

 

Get this, I jut picked up an 8 condos and a 10 unit apartment complex! Today is opposite day man!

Cool stuff,

Adam

[draegarfrog 0]

How I'm working this now is my sister takes all the calls for me. If she has a tenant/buyer she screens them and shows the property. If it's a homeowner than she calls or emails me and I personally get in touch with the homeowner. Here's what's great, there is no one else on Guam doing this. When I first placed the ad I got calls from people that thought this was some kind of joke, other investors, and realtors trying to find out what I'm doing. That was 4 weeks ago. Now I'm getting calls from people that want to sell their houses, condos, commercial property, land etc. Yesterday I got a call from a woman who wanted more info. She has a home on top of a laundromat that she wants to sell. I also got a call from a guy that has some nice land he wants to sell (he wants to move back to the states) He has 1/2 acre (1/4 sells for 20K) that he'll sell for 25K. I told him I'd give him 10K down and owner finance the balance. (I know some investors that I'll sell the contract to) Today I got a call from a guy that is taking care of his mom's house. They just returned to Guam (his mom just had a bypass) and he wants to sell. I just called a lady who left a message. They want to move and are selling a 3/2 house. The scary thing is this is from my newspaper ad that I run 4 days a week. I haven't even put bandit signs up yet. I'll be heading back to Guam in 2 weeks to put the signs up. This is incredible! I'm also finding out that ALOT of people do not like working with realtors.

[MichaelC 160]

Wow, that's great! Being the first gives you a big leg up on your "competition". . .oh, wait, you don't have any! You're sitting on a gold mine, dude. Push the issue, and spread the word. Let homeowners know who you are, what you can do for them, and where they can find you!

[draegarfrog 0]

Right nowI have 6 CAs signed up. I'm getting alot of calls on them. So far everyone says there great deals but no one has coughed up the cash yet. I'm not asking for a big option fee. I know from just a short time doing this what the majority of callers can afford to pay each month. It seems like alot of people want something for nothing. I think these are people that are not ready to own a home so as far as I'm concerned they can keep on renting. Most of the property are in the $119K-$170K. I'm asking for 3K option money. I think that is reasonable. There are alot of houses on Guam that are not moving with realtors. Besides putting RTO signs up in the area (which I haven't done yet) are there any other suggestions. I have a RTO ad in the paper and the phone is ringing but so far just tire-kickers. I'll be heading back to Guam in about a week. My mission is to bandit sign, flyer etc. the hell out of that island.

[MichaelC 160]

Six CA's?! Nice work, frogman! Tire kickers and those who have champagne tastes on a beer budget are all the norm in our line of work. You'll need to weed through all of them to find your t/b. The key is to get the word out that you have properties, and to make your phone ring. And I agree, $3K option money is not out of line...although I must admit to being ignorant in a big way about the Guam real estate market.

And I would definitey push the issue with signs. The print ad is great, but you'll find signs on the property and all around the neighborhoods where they are located will get you noticed.

[draegarfrog 0]

I've been getting a ton of calls and emails from people that want to know how a rent to own works or how do they go about getting into one. I think because this is new to Guam people are in the education and save for the down payment stage. I have a one page letter that explains how a rent to own works and all the advantages that I email to people, I also ask them to forward it to their family and friends. Everyone I've talked to says this is a great deal. We'll see what happens in the next couple of months.

[Frank (OH) 0]

Can you share your letter with us?

[draegarfrog 0]

Here is what I use right now. Like I said, majority of the calls/emails are people wanting to know how it works or how they can get into it.

 

Hi (name),

 

(Thanks for the call/email). Here’s how a Rent To Own works: It’s basically a 1 year lease with the option to purchase anytime during the term. There is a small down payment which is credited towards the purchase price if you buy and rent credit which is credited towards the purchase price if you buy. A Rent To Own is a great way to purchase a home. Here are some advantages for you as a buyer.

 

1.No bank qualifying to move in.

2.If your credit is not perfect this will give you an opportunity to repair it while your living in the house you intend to purchase.

3.Small down payment which is credited to the purchase price if and when you buy.

4.Monthly rent credit which is credited to the purchase price if and when you buy.

5.Your money is finally working for you instead of someone else.

6.Gives you a chance to check out the neighborhood.

7.Gives you the chance to find the best financing.

8.You lock in the purchase price for the entire term. (So if the price appreciates due to the market, you still buy at the original price. However, if the price depreciates you can move out or negotiate with the owner for a better price)

 

Right now we have properties in the following area. This could change anytime.

 

Chalan Pago 3bd/2ba house (2 story, aussie style) Very nice home w/carport, outside storage room. Nice quiet area.

$3000 down, $1100 a month, $140K This house was bought a few years ago for 160K and the lease is 2 years. Owner financing w/20% down is available when your ready to buy. Because of the low price there is no rent credit and the down payment will NOT be credited to the price. But, you can rent to own this house for todays price $140K and buy it 2 years from now at the same price.

 

Chalan Pago 3bd/2ba house (Mai Mai area) nice concrete house in a nice quiet area.

$3000 down, $1300 a month w/$250 rent credit, $165K This house was listed with a realtor for 169K

 

Chalan Pago 3bd/2ba house (Santa Cruz area) very nice house with washer, dryer, new gas water heater, back-up generator, fenced yard and more.

$3000 down, $1500 a month, $173K This house was listed with a realtor last year for $175K the $3K down will be credited to the purchase price.

 

Dededo (Machanao) 3bd/2ba concrete house, fenced yard

$3000 down, $1200 a month w/ $250 rent credit, $155K. This house was listed with a realtor for $165K

 

Tamuning 2bd/1.5ba

Tumon 2bd/1ba This is a 2 condo deal meaning they will be sold together. The tamuning condo is vacant and the Tumon cond has tenants.

$3000 down, $700 a month w/$150 rent credit, $159,800.

 

Santa Rita 3bd/2ba concrete house

$3000 down, $1200 a month w/$250 rent credit, $131K The original price for this house was $145K

 

If your renting now this can be a good opportunity to stop paying for someone else’s property and have a chance to own your next home. Ok, if you have any questions please feel free to email. If you want to drive by the property call 477-6210/456-1065 ask for Jenny and she’ll be happy to give you directions. Please feel free to forward this to family and friends so they know there are other options available to owning a home.

 

Thanks,

Mike

[Frank (OH) 0]

Thanks for sharing Mike. Great letter !!!!

[draegarfrog 0]

Thanks Frank, hope it helps you out.