mobile2k 0 Report post Posted June 8, 2006 Hello my fellow Naked Investors! Tighten up your loin-cloths 'cause I might have something to share with you. I recieved an email yesterday night which read: hello, My name is Melissa and my husabnd and i are selling a home but are willing to rent it or lease it out. It is a three bedroom, 1.5 baths, fenced in yard, quite safe area with the police depart a block away. Yard is large 100 x 150. here is the sale add.. The yard is well landscaped it may not look like it in the picture below but the grass is in and all the plants are out. we are right off the AC Expressway and it is a straight ride to 295, 76 and all the PA Highways. we are about 12 miles inland from Philly. 3 Bed, 1.5 Bath1,404 Sq. Ft.0.34 Acres Location: Winslow Twp, NJ Listing #: 4733651 PRICE: $1900.00 A MONTH AND THAT IS WITH ALL UTIL AND WASHER DRYER AND FRIG ALL BRAND NEW Property Type: Single Detached Style: Colonial Beds: 3 Full Baths: 1 Half Baths: 1 SubDivision: Walden Chase Exterior Features Exterior Features: Fencing Sidewalks Roof: ShingleRoof Exterior: VinylExt Single Family Property, Area: Winslow Twp, Subdivision: Walden Chase, County: Camden County, Approximately 0.34 acre(s), Age: 24 year(s) old, Two story, Central air conditioning, Laundry room.----end of transmission----- I asked for its complete address and ran comps in the area which showed the house was worth $185k to $210k. There was pictures included and the house looks very nice with a huge yard and everything. As stated above, she is asking $1900 with utilities incuded. I think I'm going to steer her away from including util and have the tenant/buyer be responsible for that in order to bring the monthly price down. Good idea? I know I should move quick to get this under contract ASAP. Shes moving in 90 days into a new house their having built. I need to know what contract to shoot for and any input would be VERY MUCH appreciated! Share this post Link to post Share on other sites
MichaelC 160 Report post Posted June 8, 2006 Luigi, a few questions for you:What type of lease purchase deal are you considering? A sandwich lease? Cooperative Assignment? Straight assignment? Etc.What is the homeowner's asking price?What will the local rental market bear, versus the $1,900 monthly rent she is asking? Share this post Link to post Share on other sites
mobile2k 0 Report post Posted June 8, 2006 Im not sure if i want to do a sandwich lease because I don't know if i still want to be involved with this property a year or 2 from now. Meybe I should to maximize my profit but I still have that "fear of the unknown" mentality at this point and would be happy with just straight option money. As far as asking price, I've yet to negotiate price but her MLS listing shows $234,900.Local rent market to me is currently unknown and I'm unsure of how to get that information other then looking at similar for rent houses in that area...I'm guessing around $1500/month without utilities based on the houses value. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted June 8, 2006 A few problems we need to fix. First, the asking price is $235K, but your comps are $185K to $210K. Where's the deal? Are your comps wrong, or is the homeowner in a dream at this time?You must determine the rental market. Start by looking at FRBO ads and look for comparable properties in the area. Share this post Link to post Share on other sites
Craig 0 Report post Posted June 9, 2006 A few problems we need to fix. First, the asking price is $235K, but your comps are $185K to $210K. Where's the deal? Are your comps wrong, or is the homeowner in a dream at this time?You must determine the rental market. Start by looking at FRBO ads and look for comparable properties in the area. "As far as asking price, I've yet to negotiate price but her MLS listing shows $234,900." MC, Did I see the MLS listing price? Is it under contract with an agent at this time? Share this post Link to post Share on other sites
mobile2k 0 Report post Posted June 9, 2006 Her asking price seems too high but I'm going to call her tomarrow and work on that. I'm not sure if its the best way to go but i've been getting my info and running comps from realtor.com. Its on the MLS so i'm assuming that means its under contract with an agent and I'll have to tell her to take it off the market once I get a contract with her? I've had 2 email inquiries so far on my 2 Rent-To-Own ads i put out earlier today. Might as well start lining them up! Share this post Link to post Share on other sites
CS1977 0 Report post Posted June 9, 2006 Her asking price seems too high but I'm going to call her tomarrow and work on that. I'm not sure if its the best way to go but i've been getting my info and running comps from realtor.com. Its on the MLS so i'm assuming that means its under contract with an agent and I'll have to tell her to take it off the market once I get a contract with her? I've had 2 email inquiries so far on my 2 Rent-To-Own ads i put out earlier today. Might as well start lining them up! What is the ad they are responding to, by the way? I suggest you don't bother with anything listed. Too many other deals out there. Share this post Link to post Share on other sites
mobile2k 0 Report post Posted June 9, 2006 the ad they are responding to reads:RENT-TO-OWNStop throwing money away! Rent to own a beautiful house in a great neighborhood in Sicklerville, NJ. Low money down, will work with any credit. 3BR/1.5BATH Email serious inquiries with contact info. Share this post Link to post Share on other sites
realestateremedies 0 Report post Posted June 9, 2006 Just so you know, if she is under contract with an agent she is obligated to pay the agent commision REGARDLESS of who or how the property gets sold, at least those are the conditions on the contracts Ive always used (Im an agent). I assume it would be the same everywhere else. However, some agents will release sellers from the contract because they want to keep good word of mouth or just do the right thing in general. Both you and your seller should be aware of this. Im pretty sure that if you negotiate a price and put it under contract, and then the seller finds out she owes the agent a 13K commision, things could go south on you in a flash. No worries though, just talk to the seller about it and have them talk to their agent about it as they will have to get out of the contract before she can sell it to you or anyone else.....without paying a commision anyway Share this post Link to post Share on other sites
CS1977 0 Report post Posted June 9, 2006 the ad they are responding to reads:RENT-TO-OWNStop throwing money away! Rent to own a beautiful house in a great neighborhood in Sicklerville, NJ. Low money down, will work with any credit. 3BR/1.5BATH Email serious inquiries with contact info. I meant the ad the sellers are contacting you off of Share this post Link to post Share on other sites
mobile2k 0 Report post Posted June 9, 2006 Thanks for the info, Ji. I will talk to the seller and see what I can do about getting the agent out of the loop. I got this seller off of one of my WE BUY HOUSES ads I ran a couple weeks ago when I was planning on wholesaling but its turning out to be a possible lease option instead. She actually contacted me telling me she was willing to go that route. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted June 9, 2006 Her asking price seems too high but I'm going to call her tomarrow and work on that. I'm not sure if its the best way to go but i've been getting my info and running comps from realtor.com. Its on the MLS so i'm assuming that means its under contract with an agent and I'll have to tell her to take it off the market once I get a contract with her? Realtor.com will show you properties on the MLS and the list price, not the selling price. Big difference. For purposes of knowing a properties value, there really is only one best way: sales prices of comparable properties within the past six months. And, yes, if the property is listed, before you go any further the homeowner must cancel that listing, and get something in writing. Or, as Ji said, a commission must be paid. Moreover, it's just the ethical thing to do. You don't want to be sneaking around a Realtor's back. Eventually, you'll get stung, and you'll regret it. Share this post Link to post Share on other sites
mobile2k 0 Report post Posted June 9, 2006 G'Mornin! There's a spot on realtor.com to put a propeties address and it will pull up comparable sales, the date it was sold, the the distance from, and the sq. footage. Im using that part to get the estimated value NOT the listing prices, MC Not sure how accurate that is though...I just ordered the manual! Look forward to reading it and getting the contracts that are included. Share this post Link to post Share on other sites
mobile2k 0 Report post Posted June 9, 2006 I just talked to the seller. I explained all the benefits of a lease option and recommended she not include utilities in the monthly rent. I also told her that I'm concerned that she has it under contract with an agent and that I would not be able to do anything until thats settled. She told me that the agent is one of her husbands cop buddies and does it only part time and that he isnt even looking for a commission, nor does he care if it gets sold any other way. Hmmmmm I told her I have numerous buyer/tenants asking about the property and that I could have a deal for her done very quickly. She told me she would talk to her husband (the cop) and call me so I can take a look this weekend (and get an option contract hopefully). That is when I plan on talking about market value and all that good stuff to come to a good selling price, or should I do that on the phone before I drive over there and meybe waste my time? Share this post Link to post Share on other sites
CS1977 0 Report post Posted June 9, 2006 I just talked to the seller. I explained all the benefits of a lease option and recommended she not include utilities in the monthly rent. I also told her that I'm concerned that she has it under contract with an agent and that I would not be able to do anything until thats settled. She told me that the agent is one of her husbands cop buddies and does it only part time and that he isnt even looking for a commission, nor does he care if it gets sold any other way. Hmmmmm I told her I have numerous buyer/tenants asking about the property and that I could have a deal for her done very quickly. She told me she would talk to her husband (the cop) and call me so I can take a look this weekend (and get an option contract hopefully). That is when I plan on talking about market value and all that good stuff to come to a good selling price, or should I do that on the phone before I drive over there and meybe waste my time? Sounds good so far. I would have the conversation about market value on the phone beforehand. Save yourself some grief in case they really are gonna be stubborn on price. The market is changing but some sellers are refusing to believe that. Let us know what happens and if you need any help at all. Oh, and make sure you get something in writing stating no commission is going to be needed for that agent....they may say that, but cover yourself. Share this post Link to post Share on other sites
