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<Steve>

How's Business

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So how is business now that spring is winding down? Are people out there marketing and getting deals?

Whats going on? :D

 

For me things are rolling along, although a little tougher than last year. Because of the mortgage squeeze, I am having to look closer at a t/b's credit and potenial to buy down the road. I am getting CAs and SLOs, but I am finding a lot more troubled t/bs. A few of my existing SLOs have tanked as some t/bs have lost their jobs due to economic conditions and I have had to give them the boot; however, the properties have been re-leased quickly. CA's are helping to bring in the bacon so far this year along with option consideration from new SLOs. Rents are covering any tanked SLOs.

 

And you. . .?

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Steve, not much of a problem for me to pick up deals. I scored three in the past ten days. The difficult chore these days is finding any takers. Three CA's and barely a response on any of them, despite my usual marketing. I'm primarily using the various free online sources: Craig's List, Backpage, Kijiji, and Postlets. And I even got all three homeowners to agree to a straight rental on their respective properties, too, to help get them filled. Still, it's slow going. Here in south FL, seems everyone is wary about how far down this market will fall, so few want to buy or commit to a Rent To Own. Can't say I blame 'em.

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I filled two homes last week. Basically it was all bandit sign work. Craigslist is a joke these days, but its free.
I have to agree that Craig's List has lost some of its luster. It is overrun with Realtor ads, at least here in my region. It's as if it has become a free supplement of the MLS for Agents. :D And that has to be chasing away potential buyers and renters. If I place an ad now, (10:00 AM as I write this), it'll be buried on Page 3 within a few hours.

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I have no problem finding willing "homeowners". The biggest problem is finding folks who aren't upside down with their mortgages :D

 

Foreclosures are rampant over here!!

 

Phil

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I hear ya, Phil. Same thing here. Do enough digging, though, and we can still find owners who aren't upside down but still motivated.

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And I even got all three homeowners to agree to a straight rental on their respective properties, too, to help get them filled.
I am finding it difficult move town houses and condos but there is interest from straight renters. I might try and see if my current CA sellers would be open to a straight rental.

 

For single family houses some are hot and some are not. The market can be different just 10 miles down the road. I just have to make sure there is wiggle room with the numbers especially for SLOs.

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With the market being what it is here, most every homeowner is open to every possibility. So even straight rentals are being considered and accepted. Definitely easier to find a tenant than a t/b these days. I mean, if you think that the house you're moving into will be worth 12% less in a year, why lock in a price today via a Rent To Own? So I'm pushing the rental angle and it's filling a need. I charge half a month's rent for my troubles, but I don't show any of the properties. I tell the homeowner I'll do the market analysis, the marketing, take the calls, etc. But they need to show the property or have someone else who can. So far, not a one has squawked at this arrangement.

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With the market being what it is here, most every homeowner is open to every possibility. So even straight rentals are being considered and accepted. Definitely easier to find a tenant than a t/b these days. I mean, if you think that the house you're moving into will be worth 12% less in a year, why lock in a price today via a Rent To Own? So I'm pushing the rental angle and it's filling a need. I charge half a month's rent for my troubles, but I don't show any of the properties. I tell the homeowner I'll do the market analysis, the marketing, take the calls, etc. But they need to show the property or have someone else who can. So far, not a one has squawked at this arrangement.

 

 

 

Now, that's turning lemons into lemonade. I think I'll start using this approach. You're absolutely right about it being easier to find tenants than T|B's. With no end in sight for depreciation, it almost doesn't make sense to lock in price if the expectation is it will be worth less in a year.

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I agree, Phil. We've got to adapt to market conditions. And in hard hit areas such as where we live, this approach makes sense. And again, without my having to drive around and meet tenants, there really is no limit to the number of properties I can handle at any one time. I'm working three right now and I have two more homeowners I expect to come on board in the next day or two. With a bread and butter 3BR home in the area going for $1,500 to $2K a month, that's easy money as far as I'm concerned. And with thousands, literally, of condos that can't be sold, there is no shortage of inventory and desperate homeowners willing to go along.

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So MC, this is like a CA with out the option. What do you call the option consideration? A non-refundable deposit and assign your lease? Or do you even use an agreement with the owner at all?

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Simple, Steve. I use my Residential Lease Agreement, and when a tenant is found, assign the agreement. No different than a CA.

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Simple, Steve. I use my Residential Lease Agreement, and when a tenant is found, assign the agreement. No different than a CA.

 

 

Okay Batman who do you assign to: Tenant or Owner.....

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DUH.....I must have had some of Joker's spray. Of course its tenant. Now one last question Batman. You are just doing a simple assignment with OWNERS approval I would assume.

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