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bpmiller2

Explaining a CA to a seller

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Ok, so I have my manual and have been reading through this forum for about a month now. Well last week, I decided to take some baby steps in actually applying some of the knowledge I have gathered and e-mailed a few FSBO & FRBO (2 of each) thorugh Craigslist. My reply to their ad was just a simple "would you be willing to consider doing a lease purchase?". So out of the four that I responded to I got one positive reply back saying " I'm open to idea's. What terms did you have in mind". There were no pics or address listed with the ad, I told him I would need to get the address and any pics if he had them before I could discuss terms. I also asked him at what price he would be willing to sell the property (he had mentioned in the ad that he wanted $1100/mth. for rent). He then sent over pics and said that he would be willing to sell the property at $120,000.

 

Well, I have done my due dilligence on the property and looks it looks like this house was bought as an REO from the bank. Also, there have only been two comp sales in this neighborhood in the past 6 months at $107,000 and $112,000. Based on the information that I gathered it looks like this would need to be a CA rather than a SLO. Now I feel like I have a good grasp on what a CA is and the process of it, however, how would I go about explaining what a CA is in laymen's terms to this seller and make it sound beneficial to him?

 

Thanks in advance for the advice,

Miller

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Miller, the assumption by the homeowner is that you, personally, are the prospective t/b. So rather than mislead him, the homeowner needs to know from the very beginning that isn't the case. Doing otherwise just leads to much wasted time and effort. How best to do this? I send a second email which explains in greater detail about who I am and what I'm doing. It eliminates the owners who want nothing to do with me. But that's the point. Not talking to homeowners who aren't going to do business with me.

Here's an old thread I dug up which might help: http://www.naked-investor.com/forums/index...?showtopic=2165

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MC, I understand what you are saying about being upfront with the seller at to my intentions with this property. And I will use that follow up email on future follow-ups, however, on this situation I feel that we are past the point of introducing my self/company and what I do since we have been going back and forth a few times now. I feel like at this point I need to go ahead and begin explaining what a CA is but am worried about confusing the seller once I begin to explain it in detail......and as I read in another post "a confused mind always says no".

 

So once you have an interested seller how do you explain in detail how a CA will work without making them confused?

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Keep it simple. Use the Lease Purchase Advantage flyer as your guide and hit on the highlights. If the homeowner can't understand that, you're probably better off moving on. Believe me, he will ask the questions that you already have the answers to. It won't be nearly as difficult as you think. . .and it gets easier each time.

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