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jhanson8

Seller wants to change the terms

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I think you nailed it Jason. I don’t see how anyone can last if they are on the take. With CAs, I let the seller know I am always just a phone call away. I try to make the seller feel comfortable to ask me any and all questions they have. I try to fully explain and disclose everything. It's good business. I would say about 30% of my deals are from referrals and repeats. You build a good relationship with people and a chunk of your business can go on auto-pilot. Meaning others will bring you business. But having said that, there are some sellers and t/bs who themselves need to be kept on a short leash to protect yourself. Similar to the sellers on this thread.

 

It does seem that way, doesn't it? But, no, you're not. I've done more in the past than I do now, but that's because the difference between the Albuquerque market ten years ago versus the south FL market today is vast. SFR's in my area do not cash flow, even with the 40% decline in prices over the past three years. I take what the market gives me, Steve, and right now CA's make a heck of a lot more sense.
MC, yes I can understand how the market has a large effect on the ability to do SLOs. I would say currently 20% of my deals are SLOs. And when SLOs are good they are great, and when they’re bad they’re worse. But SLOs offer a welcome second source of passive income and I don’t think I could make it doing CAs only.

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Not to be repetitive, but I want to add my two cents to the last few posts. When I have put a CA together it is always with the best of intentions. Both the homeowner and the t/b have my contact info, and I leave them with the reminder that I am but a call away if they have any questions. Contractually, of course, I am out of the loop. But if I can help should something arise, I will do so. Of course, big, legal issues, should any arise, are met with the advice to contact their attorney.

The bottom line: I do my best to make the deal a good one for the parties involved. Everyone receives full disclosure before signing anything. I treat adults as such, and expect them to be responsible for their actions. I remain available for a phone call should anyone want to contact me. I never feel guilt should something go wrong down the road during the deal. I receive numerous repeat deals from homeowners and referrals, too. I must be doing something right. :ninja:

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I hope I didn't imply that people who do CA's are somehow unethical. I just didn't fully understand how you guys handle things once you've assigned the deal. I read on several posts about assigning and then "on to the next deal" and I took that to mean completely moving on. I really like the idea of being "a phone call away" for my buyers and sellers. Of course, as MC said, all the big things that worry me would be handled by their attorneys, and legally I'm covered.

 

So far, I've been marketing myself as a management company (which implies SLO). Would I be better off just marketing myself as a consultant/educator instead? What pitch do you guys steer toward?

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I market myself as a management company, also. But I don't see that as implying sandwich lease deals. My pitch, for lack of a better word, is that I am a management company, but with a twist: tenant/buyers rather than tenants, no cost to the homeowner, and all the other advantages that a lease purchase offers the homeowner.

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I had a feeling CL would come back to bite me. That is where I found them in the first place. I guess from now on I'll keep the purchase price off the ad and only show the monthly.

That's how I do it but I go deeper than that to protect my privacy from the homeowner's curiosity (which causes greed on some of them).

 

Here's what I do, aside from only showing the basic information on CL (lease, credit and a different picture than the one they had on CL), I also put the link to my website for people to click so they can see ALL the details (option money, more pictures, city, etc)... Of course anybody can click to view this information, but if the homeowner happens to see my ad, he won't be able to access my website when he clicks on the link because I always block their ID from accessing my sites. I do this intentionally to avoid any of what you went through recently. (greed from the owner). :closedeyes:

 

Blocking their IP is the very first thing I do when I put a house under contract, and is all for a good cause.

 

 

BEV!

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Guest jvmccall

This is a really good post & I would like to add my two pesos. First, I try to only deal with MOTIVATED sellers. If they aren't motivated and desperate for my help, then I probably won't work with them. It's just not worth it. Second, MichaelC says this all the time... in a CA, let the seller select the t-b. That way they can't blame you when things go bad. Also, I always suggest several good property management companies for the seller.

 

One more thing, PRESCREENING is so important. Consider hiring a comany to review your applications. I have a lady do it for me here in St Louis. She does a thorough job. She pulls their credit, does a complete background check, calls all the references, verifies all the information like paycheck stubs, etc. The point is you have to do as much prescreening as possible. I also have this lady give me a letter with her review and opinion of the applicant. I give that to the owner and ask them what they think. EVERY bad t-b I have ever had was because I didn't prescreen enough.

 

Hope that helps! Remember to keep this business fun! I just left my job to do real estate investing full time & I am having a blast! Business has never been better.

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Consider hiring a comany to review your applications. I have a lady do it for me here in St Louis.

Interesting idea. What does she charge and where did you find her?

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Guest jvmccall
Consider hiring a comany to review your applications. I have a lady do it for me here in St Louis.

Interesting idea. What does she charge and where did you find her?

She charges $45 and I make the tenant-buyer pay for it as their application fee. I found her from my local Real Estate Investing Association. You could also ask around what other Investors are doing, maybe talk to some property management companies and find out who they are using. PM me and I will tell you who I am using. She may do this in other states.

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I had a feeling CL would come back to bite me. That is where I found them in the first place. I guess from now on I'll keep the purchase price off the ad and only show the monthly.

That's how I do it but I go deeper than that to protect my privacy from the homeowner's curiosity (which causes greed on some of them).

 

Here's what I do, aside from only showing the basic information on CL (lease, credit and a different picture than the one they had on CL), I also put the link to my website for people to click so they can see ALL the details (option money, more pictures, city, etc)... Of course anybody can click to view this information, but if the homeowner happens to see my ad, he won't be able to access my website when he clicks on the link because I always block their ID from accessing my sites. I do this intentionally to avoid any of what you went through recently. (greed from the owner). :angry:

 

Blocking their IP is the very first thing I do when I put a house under contract, and is all for a good cause.

 

 

BEV!

 

 

Bev,

 

Could you go into more detail as to how you go about block the sellers IP address. How do you get it in the first place?

 

Thanks,

 

TAT

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Bev,

Could you go into more detail as to how you go about block the sellers IP address. How do you get it in the first place? Thanks,

TAT

TAT, is very simple to accomplish this. If you're familiar with codes and header and IP then you''ll do this with no problems.. it takes me only 20 seconds to do the whole thing.

 

How do I get the IP? You can get it from any email you have from the homeowner. Just go to the email and open the "header", in there you'll see a gazillion codes (client, IP's, etc) choose the one that says something like " received from 12.555.35" (that's just an example of an IP number), then take that IP number and go to your host and added it to your " IP Deny" file.. or you can email your host to ask them how they do it. Every host is different.

 

That's pretty much it :angry:

 

BEV!

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Bev:

 

Interesting way of solving a challenge with sellers.

 

Maybe Michael can add to the conversation here. With his CA paperwork, we are putting in there what we are selling the home to the tenant/buyer for, so the seller sees right away what that figure is. I've told the seller their net figure, and that the rent credits and my fee will be added in on top of that to come to the gross figure. Unless they can't subtract, they have what we will be making right there.

 

Bev: I assume you have developed your own contracts or are using a hybrid of Michael's. You don't have the gross amount you are selling it to the tenant/buyer on there?

 

You also mentioned that you have on your property info website the amount you want as an option fee. This works better for you that seeing how much they have to put down, which could be more?

 

Thanks for sharing, as always...

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