Actions generate results?

[Nikita123 0]

So,

 

I know I posted here a couple of weeks about taking action, I kinda sorta did, it took me a couple of days to start

sending emails to FSBO's on craigslist.

 

Well guess what, I got a response from a woman who said they may consider it. Mind you this is a may... but

Oh Lord, all of a sudden I dont remember a single thing I read in Michaels manual, .... breath Nikita breath....

 

now what....

 

Do I automatically send the second response email or do I get on the phone and explain what I do...

 

 

Thank you for your HELP!

 

Nikita

[Jonathan RexfordFL 8]

Get them on the phone.

Email is so impersonal.

I think it is also a crutch for begining investors.

This is my opinion.

[<Steve> 82]

Or set up a SKYPE account and include it in your second email. You can have a voice/video communication with any potential seller online. It's the latest greatest form of communicating!

 

Skype.com

[MichaelC 160]

Nikita, this falls under the category of "Be careful what you wish for. You just might get it".

You're new at this, and your reaction is to be expected. For the most part, I would recommend sending out a second email in the interest of time and aggravation. But, like Jonathan said, in your case you are probably better off calling and speaking with the homeowner. As intimindating as that may be for you, the real world experience will prove invaluable in the long run. You'll get a feel for the homeowner's concerns, which tend to be the same from homeowner to homeowner. And at some point you will have to speak and meet with them. Might as well start now. Look, the worst that can happen is you flub the call and come off like a rookie. Big deal. Find more prospects and do it again. It gets easier with each attempt as you become more comfortable. But if the thought of this terrifies you to no end, then go with the second email and let's see what the response is. But do something, Nikita! Come back here and we'll go from there.

[Nikita123 0]

Hello MC,

 

I just wanted to give you an update on that property. After all that drama (on my part)

it turns out the seller had the property listed. Also, the sales price was higher than the market

rate so I wished them good luck and dropped out of the running.

 

 

I do have a question though...

 

How do you structure a sandwhich lease option in an area where the market rents barely cover the

mortgage? I mean I can charge a couple of hundred dollars extra but it still would not cover the

mortgage. Is this why I should find sellers with equity so the rents can cover the mortgage,

and with an additional $200 or so get the property to cash flow?

 

 

Thank you so much for your help.

 

Nikita

[MichaelC 160]

I just wanted to give you an update on that property. After all that drama (on my part)

it turns out the seller had the property listed. Also, the sales price was higher than the market

rate so I wished them good luck and dropped out of the running.

The listing will expire without the property being sold. So keep you're eye on it and stay in touch with the homeowner. Time will prove to be a great motivator. "No" today often becomes "tell me more" three months later.

 

How do you structure a sandwhich lease option in an area where the market rents barely cover the

mortgage? I mean I can charge a couple of hundred dollars extra but it still would not cover the

mortgage. Is this why I should find sellers with equity so the rents can cover the mortgage,

and with an additional $200 or so get the property to cash flow?

Not every property is going to be a fit for a sandwich lease. First, you need a highly motivated homeowner. Then, the numbers need to work. For the homeowner that usually means the rent has to at least cover their monthly PITI. For you, it means there has to be enough of a spread between what you're paying the homeowner, (rent and purchase price), and what you will be receiving from your t/b for the same. Depending upon your market specifics, such circumstances may be very difficult to locate.

What's a girl to do, you want to know? Change hats and offer the best option the homeowner will hear: Cooperative Assignment. It won't eliminate the negative cash flow the homeowner may face. But losing, say, $300/mo versus making payments on a vacant property that can't be sold for 9 months, seems like a better alternative. And without you being in the middle of the deal, the homeowner makes more money. You, for your smarts, collect the option money and are out of the deal without any tenant and toilet problems.

[amasters 0]

I think you also have to look closely at home values in the specific area. If home prices are heading south then your lessee may not be able to get financing even if he or she exercises the option.