LOL now I need encouragement :)

[Doug Pretorius (ON) 9]

The motivated seller leads keep rolling in. The problem is I'm feeling a bit nervous about doing SLOs on long-distance properties that I've never seen (nor will see besides pics).

 

I thought I would do CAs instead but the sellers want me to completely take over, they don't want to have to give the house a second thought until it's time to sign the closing papers. To make matters worse I'm also nervous about losing control of the deal if it's a CA considering I can't be there to meet with the buyers myself.

 

Ahhh what a predicament! A SLO makes me feel more secure and less secure at the same time, argh! Help!

[MichaelC 160]

See, Doug, there is some truth to the saying, "Be careful what you wish for".

To do a sandwich lease, there needs to be a spread fat enough to make it worth your time to carry the additional risk. That said, still the risk isn't great. Keep in mind we have a number of weasel clauses in our agreement that enable us to keep our shirt in case something goes awry.

Who's your local eyes and ears to help you with the deal-at-a-distance?

[Doug Pretorius (ON) 9]

I have a person or two I might be able to call on for some assistance on one of the deals, but generally speaking, I don't have anyone local to most of the leads I'm getting. You see, I have to cast a very wide net in this God-foresaken province to locate the smallest glimmer of a possible deal. And as a result I don't have anyone nearby--in most cases--to work with.

[MichaelC 160]

What about having the homeowners themselves assisting you? I'm working two CA's currently that aren't local. In both cases, I have the homeowners doing all the local stuff. They are handling the showings when I have a prospect for them, and they are doing the local marketing as per my instructions.

[Doug Pretorius (ON) 9]

That would be good. How do you keep the seller and buyer from going behind your back?

[MichaelC 160]

Sometimes you just have to trust the homeowner to do the right thing. I have found that the vast majority of homeowners we deal with are simply anxious to get the deal done and aren't concerned with screwing us over. And most of these deals require our guidance and know how along the way, as well as the required paperwork.

[Jason (AL) 1]

They are handling the showings when I have a prospect for them, and they are doing the local marketing as per my instructions.

Italian muscle flexed at its finest!

 

Michael,

Seeing that these 2 aren't local for ya, is this pretty much a consulting-type deal?

However, you stated it is, in fact, a CA.

Could it be said that it's a stronger/more solid consultation,

seeing that you're a principle in the deal....even though things

are running under CA paperwork?

Am I making sense?

 

Also, whenever you're not sending Big Tony to collect

payments, which method are you using to get paid?

Paypal? Credit card?

[MichaelC 160]

Good point, Jason. I guess it is somewhat of a hybrid consultation, only a better paying one. Generally, I work these deals with an equal split of the option money, rather than a flat consultation fee. It's a bit more work, but worth it in my opinion. Not to mention I find most homeowners want more guidance and less hands-on work themselves.

When the deal is getting to the finish line, I instruct the t/b's with regards to who gets paid, how much, and payment via cashiers check or money order only. They turn it over to the buyer who then mails it to me. I've said before that most folks we deal with are honest. If I get an inkling that sets off my radar detector I'll pass on the deal.

[Steve Morton 0]

Hey naked investors. It's been a while since I've been here.

 

Anyway, M.C. I'm intrigued by this "hybrid consultation" method you've described here.

 

The biggest reason is because I think that I do very well with the seller on the phone, but I struggle when it comes time to meet in person to close the deal.

 

Quite honestly, I believe sellers may be put off by my appearance when I arrive. So they reconsider. I look young, and I'm not exactly the most conservative looking guy either. Personally, I also find it to be uncomfortable no matter how many times I meet with people.

 

It's kind of funny, I've recently been trying to devise a method such as what you've described in order to overcome these obstacles.

 

I was even contemplating contacting you to see if you think it could be a viable business model to focus solely on the consulting side, mostly by way of the internet. What do think M.C.?

 

After all, your not limited to your local area this way right? You can market to anyone in the civilized world couldn't you?

[Doug Pretorius (ON) 9]

Hey Steve, is that avatar your real picture? If so I can see why people might find you a bit odd, considering you look exactly like Yoda

 

You might want to remove as many piecings as possible and cover any blue spiked hair with a hat. But other than that I don't think looks or youth has anything to do with whether a seller signs with you. The only question is: Can you help them?

 

I look younger than I am too and sometimes sellers size me up because of that when we first meet. But as soon as I open my mouth they forget all about that and realize I know what I'm talking about.

[MichaelC 160]

Yoda. . .I mean, Steve, I am finding myself leaning more towards this hybrid approach as of late. These are CA deals where I require the homeowner to handle the showings when I send t/b's their way. And I also instruct them on what I expect of them with regards to local marketing. These deals are, after all, Cooperative Assignments. And I must say that I am finding most homeowners very willing to go along with this.

The advantages: must less time and expense required, enabling us to do more deals, anywhere houses grow.

The disadvantages: I am splitting the option money collected. On the other hand, 50% of something is better than 100% of nothing. Meaning, I am getting a piece of deals that I otherwise wouldn't be gettting.

And these deals don't require any face to face meetings, for the most part. At least not until it's time to close and wrap it up. I have four CA's/hybrids I am working on right now. Two local, (each about 20 minutes or so away), and two in other states. Obviously, the long distance deals I have not met personally with the homeowners nor have I seen the properties. No matter. When I find t/b's I'll provide the paperwork and wrap up the deal. The homeowners and I will have had only emails and telephone calls between us.

The local deals will usually result in meeting the owners once or twice. No big deal, really. Besides, I'm a hunk and the homeowners are thrilled to meet me. Don't hate me because I'm beautiful, boys.

[happyardy 0]

Yoda. . .I mean, Steve, I am finding myself leaning more towards this hybrid approach as of late. These are CA deals where I require the homeowner to handle the showings when I send t/b's their way. And I also instruct them on what I expect of them with regards to local marketing. These deals are, after all, Cooperative Assignments. And I must say that I am finding most homeowners very willing to go along with this.

The advantages: must less time and expense required, enabling us to do more deals, anywhere houses grow.

The disadvantages: I am splitting the option money collected. On the other hand, 50% of something is better than 100% of nothing. Meaning, I am getting a piece of deals that I otherwise wouldn't be gettting.

And these deals don't require any face to face meetings, for the most part. At least not until it's time to close and wrap it up. I have four CA's/hybrids I am working on right now. Two local, (each about 20 minutes or so away), and two in other states. Obviously, the long distance deals I have not met personally with the homeowners nor have I seen the properties. No matter. When I find t/b's I'll provide the paperwork and wrap up the deal. The homeowners and I will have had only emails and telephone calls between us.

The local deals will usually result in meeting the owners once or twice. No big deal, really. Besides, I'm a hunk and the homeowners are thrilled to meet me. Don't hate me because I'm beautiful, boys.

 

MC,

How did you land up with these out of state deals?

Are you marketing for them on city specific craigslist/kijiji etc? How are you choosing which cities you want to do your long distance deals?

thanks

- Rahul

[MichaelC 160]

Rahul, the location doesn't matter a bit to me. My concern is the homeowner. Are they motivated? Are they willing to follow my instructions? If so, then I'll work with them.

Finding them is the usual: I hit up Craig's List and some of the other online sites where desperate homeowners congregate. In one case the homeowner lives near me but her property is 400 miles away. In another instance, while waiting for my beer to chill, ( ), I did a quick scan of another location where I know the market is being hit hard and came up with a few prospects.

[Steve Morton 0]

Hey Steve, is that avatar your real picture? If so I can see why people might find you a bit odd, considering you look exactly like Yoda smile.gif

 

Hey Doug, I wish I was Yoda so I could use my "force persuade" powers on them! That way they'd just hand over the keys you know? Hmmm... I wonder if that would move me closer to the "dark side"?

 

Yoda. . .I mean, Steve, I am finding myself leaning more towards this hybrid approach as of late. These are CA deals where I require the homeowner to handle the showings when I send t/b's their way. And I also instruct them on what I expect of them with regards to local marketing.

 

Hey M.C., so am I able to assume that you instruct the sellers to market with your contact info for the tenant/buyer to contact you about the house, and not the owner at all?

[MichaelC 160]

. . .Hey M.C., so am I able to assume that you instruct the sellers to market with your contact info for the tenant/buyer to contact you about the house, and not the owner at all?

Exactly. They put up signs with my number on it. When the calls come in, I take over from there.