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CS1977

WHERE are the t/bs??

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I am pretty surprised at the lack of calls on 1 of the 2 CAs I have under contract. One I have down the shore is getting a good amt. of activity (it's priced at a good discount), but not the one up here near me.

 

I have done many different forms of advertising for it and it has been so slow. The house is really nice too, but I think it just goes to show how much things have slowed down here. The contract is about the expire and the seller is not budging on his price. He's one of the part time flippers that bought and then rehabbed the place and now has it priced so he can pull his money back out. But no one's biting. He says if he lowers it he'll take a loss. As if the holding costs aren't killing him right now!

 

Interestingly enough, I just got a list of people who are 60 and 90 days late on their mortgages to market to--and he's on there for his own residence. Yikes.

 

I thought we could really move it at his price but I guess things are worse than I even realized out there.

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They're up here in Canada. Here's an email I got from a "T/B" this evening.

 

Thank you for your response Doug.

 

Your website makes the product sound appealing, but the follow-up sales approach is regrettably inadequate. If you're not prepared to play 20 questions, perhaps real estate sales is not for you. Having been a registered realty salesperson before getting into investment, I understand the importance of follow-up.

 

I'm about to close on a million dollar investment property and cannot purchase another residence simultaneously. I dislike the notion of paying rent, however. This was to be an alternative, and what you point out is rather obvious to me. But I do find distasteful that you're rushing me and certainly other prospects to pay $25 for the privilege of "applying".

 

We've already exchanged half a dozen emails and still you haven't answered my request: to reveal the rent on this property.

So, thanks, but no thanks. And save your apologies for someone who trusts your sincerity, as I do not.

 

Regards,

 

LOL! All that because I pressed him to fill out the application because he was asking question after question after question!

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I guess you have been away for awhile, Christine. Remember the "good ol' days", back when you started out? Then it was just a matter of finding a willing homeowner, and the tenant/buyers were everywhere to be found. Now, quite the opposite. What's happening to you is happening to me and just about everyone else in every part of the country.

It's a buyers market, for sure. We really need to pull out all stops to make the phone ring. . .starting with pricing the property right. Then it's aggressive and consistent marketing, a wing and a prayer, some good luck and a lot of patience.

 

Doug, now that's funny! So the guy is buying a million dollar property, but is bitching about a $25 application fee? There must be more to this story than meets the eye. :angry:

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The contract is about the expire
Can you increase the rent credits and lower you option consideration to get something out of the deal?

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T/B here are even worst too!

I'm trying everything to get their attention and just when I was about to get frustrated, I put a dummy ad to renters (I always trigger renters) and it must of been something I said on the ad or didn't say in it or whatever, but I got so many calls for a week that I couldn't keep up and took a 2 days break to return all the calls... well, although most of them say they have the option money (you all know my price what it is LOL) I'm still skeptical and want to know why is it they are all so anxious to get into a rent to own with all my terms all of the sudden.. So I asked them why the rush?

 

To my surprise, they ALL are telling me that the house they are currently renting is going to be sold at auction sale soon and they need out and do NOT want to go rent another house as this can and will happen again to them and they don't want to put up with it anymore. They are all telling me that money is no object but to please get them an RTO asap! Some of these renters have been through this foreclosure dilemma twice in one yr.. YIKES!

 

The moral of this story is that if you're in a fatal buyers market like I am, don't give up, market to renters on craigslist and everywhere as they are losing their rental homes daily!! This is really bad here now and is not getting any better either. (I see auction sale signs all over the hood and lots of police cars are patrolling these houses 24/7)

 

BEV!

Oh, and yes, I'm in the process of closing yet another deal from my dummy ad to a renter from Craigslist of course :angry:

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To my surprise, they ALL are telling me that the house they are currently renting is going to be sold at auction sale soon and they need out and do NOT want to go rent another house as this can and will happen again to them and they don't want to put up with it anymore.

Unless you own the house and can guarantee the payments, how can you be sure the current owner won't soon be going through the same problems? Which potentially makes the situation much worse for a T/B, having their option money at risk.

 

That's how it is in my neck of the woods. Add to that many sellers being $100,000+ upside down on their house and CA's are just a wonderful memory.

 

Dan

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Christie, (and all)

People are really scared to buy right now, this includes RTOs. They see the market, the foreclosures and the banks making harder to rent.

 

There is a solution however.

 

Last week we an RTO tenant move out. The investor (a friend of mine) asked me if I could help. I placed one ad in the paper for plain old "rent" with very little down. Normally I would have asked for $1000, but I asked for $500 security deposit instead. The house was gone to the second person who called.

 

So, once we met and discussed her employment (coincidentally she works for one of my colleagues as a property manager :angry: ) I said; an option is open if you want to own it. You can make a decision after you move in. She showed immediate interest.

 

What does this mean to you? Simple, do a sandwich lease option and try this angle. CAs are awesome, but it wouldn't hurt to give the seller the SLO as a backup offer. And you can always take a note on assignment with the seller if you want out of the deal.

Hope that helps,

Adam

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That is interesting Adam. I have noticed that there are many folks out there who are wanting to do a straight rental. And they would make good renters too.

 

After the next round of foreclosures and short sales, I think the days of buy and hold, SLOs, and old school owner financing may come back. The key is monthly positive cash flow.

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It's a buyers market, for sure. We really need to pull out all stops to make the phone ring. . .starting with pricing the property right. Then it's aggressive and consistent marketing, a wing and a prayer, some good luck and a lot of patience.

Have you been forced to reduce the fees you charge for CAs, or finance part of those fees, in order to attract t/bs?

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Each deal is different but, yes, in some cases concessions need to be made to make a deal fly. That could be less option consideration, delayed payment of it, negotiating the purchase price and/or rent, increasing rent credits, even accepting a straight rental just to get the property filled and the homeowner receiving some monthly help with his house payments.

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BEV!

Oh, and yes, I'm in the process of closing yet another deal from my dummy ad to a renter from Craigslist of course ;)

 

Bev, what does your dummy ad look like? do you just put fake house details and fake pics? I am thinking about taking this route so I can get some buyers lined up before signing up any sellers. :P

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It's a buyers market, for sure. We really need to pull out all stops to make the phone ring. .

Have you been forced to reduce the fees you charge for CAs, or finance part of those fees, in order to attract t/bs?

 

Some good negotiation is required. I always try and get some sort of incentive from the seller. Maybe free yard maintanenece or leave behind some furnishings in a dedroom. I like to use them to get my price from the t/b. They might offer 2k option money, I say I'll throw in free lawn maintanenece for a year. then i get my 2,500k from the t/b. :P

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