I got 3 CA's this week but ...

[rbaras 0]

I got 3 CA's (sellers) this week but ... I'm not bragging. Because I know that the paychecks don't arrive until I get the Tenant/buyers. So, I put ads in Craigslist mentioning 100% rent credit, No Bank Qualifying to move in ... I directed people to my website for more information ... and I put ads on Backpage, Kijiji, Postlets, and a few others (the ones sent via Postlets). Already my Craigslist ad is buried.

 

My website mentions that a tenant buyer will need 2 months rent ($4000) plus option consideration ($5000) to move in ($9000 in total). Average house value is $325k. I'll be putting signs on the properties. The $5000 would go to me. I'm concerned that if I charged any less (which I did in the past), I'll be getting someone with a 'tenant' mentality who could care less whether they bought the house or not (been there, done that).

 

But I'm not being swamped with calls or emails. That means either that I haven't waited long enough for marketing to take effect (it's been less than 24 hours) ... or I haven't done enough marketing ... or ... my worst fear ... that in the current economy, the 'buyers' with bad credit have no money.

 

So I'd like to hear from those of you that have gotten very good at finding tenant buyers (and please forgive me ... but for this particular post ... I'd really like to hear from those that are getting results ... although tons of you are great at creative ideas that sound great).

 

So if you've got a system for finding tenant/buyers and getting paid ... I'd really like to hear from you either as a response to this post ... or in a private email.

 

Thanks,

 

Ronnie in MD

[dionwisn 0]

The system you've just mentioned is what most from what I've heard have been using. You may want to post signs up in the area saying Rent to Own out on roads in accordance to your states laws. Flyers in busy shopping centers posted on telephone poles also works. Cragslist and other free marketing online has'nt seemed to do well for me, but it depends on the area. Good luck this time of year getting a large down payment.

[MichaelC 160]

But I'm not being swamped with calls or emails. That means either that I haven't waited long enough for marketing to take effect (it's been less than 24 hours) ... or I haven't done enough marketing ... or ... my worst fear ... that in the current economy, the 'buyers' with bad credit have no money.

No one is being swamped with calls or emails, Ronnie. That's a fact of life in our current economy. If anyone says otherwise, they're lying. I am spending many hours weekly updating all of my online ads on the very sites you mentioned, with results that are, at best, mixed.

You will need to be aggressive with your marketing, and persistent. Putting some online ads up today and forgetting about them for a week will net zero results. Word of mouth is critical. Dion mentioned signs and flyers. And you're going to have a realistic time frame, too. Less than 24 hours, you said. It's taking me weeks to find a single tenant for a bread and butter condo. Granted, here in south FL it may very well be the worst market in the country. But don't set yourself up for disappointment by having unrealistic expectations. You will get results, but you need to work at it. Marketing is key, as are being certain your terms are in line with what the market will accept.

Finally, there is no such secret system for finding tenant/buyers. If there were, we'd all be using it and sharing it.

[rbaras 0]

Thanks! I guess when it comes down to it ... we all know what we need to do ... anyway, I got 2 emails. And I'll be vigilant about the marketing.

 

Ronnie

[<Steve> 82]

I started using BEV!'s discovery that making sure that your available properties show up on sites like Craigslist on "Mondays" results in getting more calls from potential t/bs. Not sure why, but I have been posting late on Sundays and I get a lot more responces from potential t/bs.

[rbaras 0]

Shame on me today. I got lied to twice today (Sunday). Once by sellers, once by potential buyers. First the sellers: "Oh Ronnie, I like what I hear but I just need to look at your paperwork for a few hours to see if I have any questions. I'm sure we'll go with this (wife nods head too) but we just want to be more comfortable by looking this over". I looked into their eyes and like a fool ... I let them. "Ronnie, we'll get back to you before the day is over". Oh my gosh! How could I have fallen for that? Now, the paperwork was not filled out and I might have held back the Assignment Agreement ... but if I had done the right thing ... I either would have said, "let's go over the paperwork now and I'll answer the questions you have, but company policy is that I don't leave my copyrighted papers with anyone although on occasion I'll happily fax them directly to an attorney for legal review" ...

 

Amazing that I let this happen considering the other times when other sellers were eagerly awaiting to sign any papers that I put in front of them. These people seemed eager until I actually came out with the papers. I do remember thinking that in most cases, I don't like to sign papers without reading them first. Then again, when I'm motivated (i.e. to buy something online or to enroll my kids in school) and trust the other party, I tend to glance over papers and sign them.

 

The other lie? From the potential tenant-buyer, "Ronnie, I really want this house. Don't show it to anyone else. I'll be ready Tuesday with the funds. I promise to email or fax you a copy of my credit report and proof of income before midnight today". And I listened to his voice and like a fool, I believed him.

 

Shame on me. I can't believe I've read tons of postings by our Admin and by Bev! ... and still I managed to screw it up.

 

Oh well. Tomorrow is a new day. Perhaps I'll handle this situation (and it WILL happen again) better the next time.

 

Ronnie

[<Steve> 82]

Ronnie-

 

Here is a is a statement I put on the last page of all my agreements right under the signatures. It may not stop this from happening but it can be a deterant.

 

 Copy Right:

As an instrument of convention this contract and the agreement represented are the property of (insert your name or company). Reproduction or use of this contract other than for the parties intended without written consent from the preparer is prohibited. Unauthorized use will be subject to legal action.

[MichaelC 160]

I either would have said, "let's go over the paperwork now and I'll answer the questions you have, but company policy is that I don't leave my copyrighted papers with anyone although on occasion I'll happily fax them directly to an attorney for legal review" ...

Question asked, Ronnie. Question answered. Learn from this and do the right thing next time. You just put those homeowners in business.

[BEV! 0]

Ronnie,

First of all, congrats for getting multiple deals, amigo!!

 

Secondly, I'm a strong believer in that making mistakes is a healthy thing but only if we learn from them.

If we do not learn from them, then it will destroy us.

When I make mistakes, instead of pounding my head against the wall and feeling like dumb moron, I instead focus on finding the lesson to be learned from that mistake. Once I find my lesson learned, I let it go FAST because I'm not exactly fond of carrying infectious baggage with me. Not worth my time.

 

And now for a silly tip about when someone requests to leave the contracts with them.

 

The way I look at it is this... (sample script convo)

 

Landlord: Bev, could you please leave your contracts here so I can review them with my spouse first before signing them? I promise to call you tomorrow after reviewing them.

 

(To Me, this is like asking me to.....)

 

Landlord: Bev, could you please leave your wallet here with me so I can pull out your biz card for my spouse to see? I promise to call you tomorrow so you can come by and pick up your wallet back after I show the biz card to my spouse.

 

I don't know about the rest of you, but I sure don't feel comfortable leaving my wallet to total strangers who requests for it... (crazy example but you get the point)

 

No big deal, Ronnie. You're only wiser and stronger now.

 

BEV!

[rbaras 0]

Thank you Michael, Bev, Steve ... I'm moving on. I understand why I did what I did and more importantly, I know how to handle it better for the next time (which will be very soon).

 

Now here's the interesting part: I was ready to send a firm letter warning that I fiercely protect my copyrights ... but then decided I should call the seller first. Lo and behold I call the seller who says, "We reviewed your contracts and we want to go with it." We'll see what happens.

 

I called the tenant/buyer who said, "I've got the funds. Let's do this tomorrow night.

 

Now, granted, this doesn't change that I made mistakes ... but I may not have put someone in business after all.

 

There's another lesson that I learned from all of this. You can read post after post on these forums, understand the reasoning ... and even predict what a poster is going to answer. But the lesson is only truly learned if you are DOING the business. If you keep telling yourself that you'll start tomorrow and you notice that several months have gone by but tomorrow didn't come yet ... you're not DOING the business. Don't ask me how I know this.

 

Ronnie

[MichaelC 160]

There's another lesson that I learned from all of this. You can read post after post on these forums, understand the reasoning ... and even predict what a poster is going to answer. But the lesson is only truly learned if you are DOING the business. If you keep telling yourself that you'll start tomorrow and you notice that several months have gone by but tomorrow didn't come yet ... you're not DOING the business. Don't ask me how I know this.

I just figure that's worth repeating.