813equities 0 Report post Posted December 29, 2006 My goal is to do at least one deal every month after my first Lease Purchase is completed Good for you. This is a very realistic goal. It is ssssoooo easy to pick up one deal a month and make $20K from that deal doing an SLO. You may not realize it all right now, but it's money in the bank waiting for you!That's $240K a year!!!Not bad at all,Adam Would that be $20K when the t/b actually purchases the property? If so aren't the real numbers somewhere around 1 in 10 t/b's actually ends up purchasing the home. So to actually make 20k a month wouldn't you need to do considerably more than 1 deal a month. Perhaps as many as 10. Ofcourse this does not include the cash flow and the option money they put up front. But am I missing something else here. Don't get me wrong, I like lease options. I will not do normal rent with my properties ever again. But with that being said I realize that the t/b will probably not buy the house, and my $20k payday will be postponed. Btw, once again I am not trying to be negative or a smarta$$. Just always looking for another perspective. Adam, thanks for making my day with that post...sure feels good to read that starting my day out. I know it's very possible too. I'm going after momentum more than anything...consistently doing good deals, and learning this business. I think I forget sometimes I'm 19, and a lot of pressure comes with that. So my goal is more geared towards being a profitable learning experience. I know with Mike being a phone call away, and having this forum at my fingertips, I can't lose if I put some true effort behind it. Rich, you may be right, I don't really know. The margins seem to be lower here than they would be in most places, but then again it's not like I'm in the middle of nowhere, and it's all relative. Like Adam said, it's definitely out there to be made. Share this post Link to post Share on other sites
Adam King (MI) 1 Report post Posted December 29, 2006 If you have MC as a coach your positive financial future is sealed. That is, as long as you get out there and work at it. Good stuff,Adam Share this post Link to post Share on other sites
MichaelC 160 Report post Posted December 30, 2006 If you have MC as a coach your positive financial future is sealed. That is, as long as you get out there and work at it. Good stuff,AdamGod, I love this man! Too bad for you I prefer Hispanic women, Adam, or we'd be picking out furniture by now. Share this post Link to post Share on other sites
813equities 0 Report post Posted December 30, 2006 If you have MC as a coach your positive financial future is sealed. That is, as long as you get out there and work at it. Good stuff,AdamGod, I love this man! Too bad for you I prefer Hispanic women, Adam, or we'd be picking out furniture by now. Adam, you're lucky I didn't have a pic of you at the right angle, LOL... Share this post Link to post Share on other sites
MichaelC 160 Report post Posted December 30, 2006 Classic, Joe! That's hilarious!! Share this post Link to post Share on other sites
tlpadil 0 Report post Posted December 30, 2006 Tomas, listen to the marketplace. If most folks who are seriously considering your property are telling you the price is high, you might very well be. Do another analysis and see where your properties stand in relation to what has sold in the past six months. Then you'll know for sure. And if you are overpriced then you'll need to reduce that price. Fight the market and you'll always lose.As far as folks wanting to put down only $1K, don't even entertain the thought. Having gone this route myself when I was in Albuquerque, I can tell you this will give you more than your share of aggravation. These aren't tenant/buyers, these are tenants. Heck, they're not even tenants, because tenants are still required to put down first, last, and a damage deposit. And that will surely cost more than a grand.Increase your marketing, and emphasize the buzz words that buyers like to hear: low down, no bank qualifying, rent credits, stop renting and start owning, etc.When I started with the Cuesta house I got comps for 4 properties. I got the average $/Square Foot and applied it to my house. That put the value at $202k. I offered a 50% rent credit and a price of $208k. After a month I dropped the rent credit and lowered the price to $199k. After another month I dropped the price to $195. On the first I am planning on dropping the price to $195. I paid $175k for the house with nothing down. I don't want to lower the price much more? What do you guys think? tomas Share this post Link to post Share on other sites
Doug Pretorius (ON) 9 Report post Posted December 30, 2006 As long as your price isn't totally uncompetitive, I would FIRST look at your marketing. How many calls are you getting?How many are still interested after driving by?How many are still interested when they hear the terms?How many show up to view the property? If you determine that your marketing is definitely NOT the problem (i.e. you're getting LOTS of calls, LOTS of interest, and LOTS of viewings) and then everybody that sees it says: "Damn this place is expensive!" Then and ONLY then do you know you have a price problem. It never ceases to amaze me when realtors will tell their sellers that no one showed up to the open house because the house is overpriced. Ahh... NO! Nobody showed up because they had only one sign! So my point is... make sure you're reducing the price because you genuinely overpriced it because every buyer is TELLING you that you overpriced it. Don't reduce the price because you think that will increase traffic. There's only one thing that increases traffic and that's marketing. Share this post Link to post Share on other sites
Adam King (MI) 1 Report post Posted December 31, 2006 Adam, you're lucky I didn't have a pic of you at the right angle, LOL... BBAAAHHHH!!!! Share this post Link to post Share on other sites
MichaelC 160 Report post Posted December 31, 2006 Tomas, Doug is right. If no one is looking at the house, then no one is in a position to say it is overpriced. That determination requires a walk through the property, at least. So verify that your marketing is up to snuff first. Get viewings, get feedback, and then you will have a better read on where your property is in relation to the market.Also, lowering the purchase price while at the same time lowering the rent credits is, to me at least, counter productive. You're trying to entice folks to call, to look, and to ultimately be blown away with the concept. The rent credits usually push some hot buttons for t/b's. And while they may eat into your bottom line, remember if the option isn't exercised it's all a moot point. And if they do buy, a smaller profit and deal is better than none. . .which is what you have presently. Get tge deal done quickly, put it on auto-pilot, and move on to the next.Happy New Year, amigo! :xcool: A friend of mine in ABQ just sent me some photos of some snow you guys had. Have some green chile and stay warm! Share this post Link to post Share on other sites
CS1977 0 Report post Posted January 3, 2007 omg i just saw that brokeback mountain picture for the first time--bwhahaha! Share this post Link to post Share on other sites
MichaelC 160 Report post Posted January 3, 2007 omg i just saw that brokeback mountain picture for the first time--bwhahaha! Yeah, that one had me laughing out loud! My only concern is that Adam is now sending me romantic piano concertos via email. . . Share this post Link to post Share on other sites
