What to do from here

[royemunson 0]

Hi all,

 

Okay so all the reading and reading, I got off the couch and got a lead

that may be prosperous?

 

Question is when you go out to the sellers what forms do I need to take?

Do you close right there or how does that work?

 

Also how do I research rents in the area other than knocking on doors?

Do I look up rentals in that area for rent currently to get an idea?

 

Sorry for maybe dumb questions but it is much different when you

actually do it.

 

Thanks

 

Joe

[MichaelC 160]

Joe, every deal is different so it's hard to tell you specifically what to do with every homeowner you speak with. Should you bring the agreements with you? Sure, why not? You've got nothing to lose, I suppose. I think the bigger question is why are you running out to see the property already? Have you qualified the homeowner thoroughly? Are they ready to do business today? Are they curious or serious? Are they open to a lease purchase? Have you talked specifics? Terms? Etc. . .

For rents, look through the newspapers for comparable FRBO's and see what rental properties are fetching. You can also try calling a local property management company, or the rental division of a realty office, and see what kind of info you can extract from them.

[royemunson 0]

Joe, every deal is different so it's hard to tell you specifically what to do with every homeowner you speak with. Should you bring the agreements with you? Sure, why not? You've got nothing to lose, I suppose. I think the bigger question is why are you running out to see the property already? Have you qualified the homeowner thoroughly? Are they ready to do business today? Are they curious or serious? Are they open to a lease purchase? Have you talked specifics? Terms? Etc. . .

For rents, look through the newspapers for comparable FRBO's and see what rental properties are fetching. You can also try calling a local property management company, or the rental division of a realty office, and see what kind of info you can extract from them.

 

 

MC

 

Thanks for the thoughts. Yes, I have prequalified them. They are ready to do a lease option.

We have talked terms of 3 years. They want what is owed on the house and just want out.

 

So far our concerns are the ability to get enough to pay the mortgage and make some money.

 

It is in a good area, near a military base, etc...

 

They have moved to another city about an hour or so away, they had it listed with no luck,

they have considered doing a rent to own themselves but don't necessariy want the hassle and

would rather have someone else handle it, they have no problems with this type of scenerio.

They're focus is to just get out without losing anymore sleep.

 

I spent some time going through questions, etc.. over the phone and they filled out my website

form, so I have qualified them more than once.

 

So that is where we are in terms of how to proceed. I appreciate the feedback and understand

that if I am chasing people just curious, I'll be chasing deals that aren't there.

 

JOe

[MichaelC 160]

The additional info is helpful. Sounds as if these homeowners are serious about doing business. Assuming they are sincere, you now need to determine values: price and rent.

A few questions:

1) are you looking to do a CA or a sandwich lease?

2) what is the owners asking price? monthly payment?

3) do you have any mortgage info: balance owed, monthly payments, (PITI), is it current?

[royemunson 0]

The additional info is helpful. Sounds as if these homeowners are serious about doing business. Assuming they are sincere, you now need to determine values: price and rent.

A few questions:

1) are you looking to do a CA or a sandwich lease?

2) what is the owners asking price? monthly payment?

3) do you have any mortgage info: balance owed, monthly payments, (PITI), is it current?

 

 

Thanks,

 

I do need to get better at explaining the situation.

 

Anyhow, yes we built great rapport.

 

They owe 86K on a house they bought 2 years ago, so that sounds

pretty accurate from our research.

 

They pay 800 bucks a month PITI. - fixed rate.

 

It is in a good neighborhood, however the school district may be an issue

(it would be for me if the t/b had kids) - no kids no big deal.

 

Everything is current, many updates to house, just couldn't sell due

to market conditions.

 

The spread may be a bit thin on the backend but I may be able to get

a long enough term.

 

I am thinking a Sandwich L/O b/c it sounds like they want to walk away

and just ensure their payments are made on time.

 

I briefly mentioned them staying in the loop and me just finding a tenant/buyer

but haven't gone into detail on that b/c they sounded confused.

 

Joe

[MichaelC 160]

Joe, decide what you want to do and then make your offer. If you give the homeowner choices, you'll confuse them. Meaning they won't do anything for fear of doing the wrong thing.

If a sandwich lease is your preference, get the longest possible term, offer to cover their monthly payments, and set a purchase price for what they owe, or at least at the low end of market value. You need a spread to work with if you're going to remain in the middle. Meaning you want cash flow each month, and a backend profit when your t/b exercises their option to purchase.