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speedingpenguin

10 most frequently asked questions / typical rejections to a lease pur

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Posts on Craigslist, bandit signs, and mailing expired listings. Expired listings with >120 DOM seems to be a good list, my first C/A came from an expired listing and the house I've got under contract and am marketing right now was also and expired listing....

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Posts on Craigslist, bandit signs, and mailing expired listings. Expired listings with >120 DOM seems to be a good list, my first C/A came from an expired listing and the house I've got under contract and am marketing right now was also and expired listing....

Time is a great motivator. Not surprised when expired listings turn into deals for us.

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Hey guys, I'm testing myself on answers from sellers.

 

1) Can I get a mortgage if I have one on this house? Why would you need a mortgage when the T/B pays everything. Talk to your mortgage broker.

2) What if the tenant/buyer trashes the place? Well, if there renting to own they want to buy the house so if they want to buy your beautiful house, they will not trash it.

3) What if they don't pay the rent? Well I have screened my T/B's very carefully and they want to buy the house, so there should be no probs in paying rent. If there is a prob, you can take action to get them out.

4) What if they decide not to buy? Then we will find you another T/B.

5) How do you get paid? I get paid option money by T/B.

6) Must we set the purchase price in advance? Yes, we will sign a contract for the agreed upon purchase price.

7) How much rent can I charge? The agreed upon amount we set in the contract.

8)How does it work exactly? We put all the work into puting T/B's in place. You pay nothing and still get all the tax benefits. T/B's are responsible for all maintenance. Not sure on who collects rent, I know Michael said in the manual that he collects all rent and then pays to seller. Is this still the norm Michael?

9)Do I get a deposit? No, your selling your house at market value.

10)What's the difference if I manage my property or you do? No, I don't manage the property it is yours.

11)How long does it take to find a tenant/buyer? Not sure on this, I would tell them 30/60 days. Your thoughts...

12)How long have you been doing this? I have been in real estate awhile, just not L/O's. But I have alot of T/B's that would be interested in buying your house. Complete BS of course but you gotta start somewhere.

13)Do you have any references? Yes, call Michael Carbonare.

14)Don't you need to look at the house first? Yes, I would.

15)What if I find a buyer? If the house is under contract, you would be violating a binding contract. DONT DO IT.....

16)How much can I change on your contracts? Huh.What would you wanna change, no you cant change anything unless we both agree.

17)Why can't you just call me back when you find someone who wants my house? I can call you back and you screen them as well.

18)How do I know that you're not just stealing my house? Because we are in a binding contract and I want my T/B's to live in a nice house.

19)Well, if you're going to make $xxxx, then why can't I just do it myself? Well, you can but I already have T/B's that are looking for houses like yours in good areas. So, why do the work when I can do it and it wont cost you anything.

 

Please tell me what you think of any of my answers. I just wanna feel comfy talking to sellers and know what I'm talking about to an extent. Critque it and say what you think.

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1) Most homeowners can obtain financing for another house while their existing house is being rented. There are a number of factors that affect this. Speak with a mortgage broker.

2) That's why we prefer a lease purchase and tenant/buyers, versus leasing and tenants.

3) If they should stop paying rent, then you would evict them.

4) At that time you can decide if you want to do this again, or list with an Agency and try to sell it. The choice is yours.

5) The t/b pays my fee.

6) Yes. Legally, a price must be established upfront.

7) The market determines the rent.

8) Scott, impossible to answer that question here in 25 words or less. That's something you will need to know before you start contacting homeowners.

9) Typically, no. You're thinking of a lease and a tenant. This is a lease purchase and a t/b. . .

11) Depends upon how aggressively we set the terms.

13) ?? :angry:

15) That'll reply will kill any chance of a deal. I tell 'em if they find a buyer first, (and these days that's all but impossible), they are free to sell with no obligation to me. Perhaps I'll require a small cancellation fee to cover my time and marketing.

17) That would be brokering real estate without a license.

18) I can't recall ever being asked this question.

19) I have the experience, the necessary contracts and documents, and the marketing maching in place.

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Thanks Michael, I appreciate your help. Only kidding about number 13, lol.

I figured as much, seeing my name and reputation are on a par with Charles Ponzi, Bernie Madoff, and John Jackson. :angry:

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Chris,

 

Late to this party but very nice job! I think it will serve you well!

 

Have you had luck posting ads for sellers on CL? I seem to get spammed/removed by the CL gods. Do you post under for rent/for sale or under the real estate wanted, or both?

 

How about bandit signs, do you do the "I buy houses" thing or are they specific to LP?

 

Let us know how they work!

 

Eric

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Chris, how has the ebook worked out for you? Years ago I created a very nice presentation package similar to what realtors use, and would have been comparable to your ebook idea. But I didn't find it useful. I've always found that people either are interested or they're not right off the bat, if they need a lot of convincing and educating they always seem to end up saying no and then you've wasted all that time and effort.

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. . .I've always found that people either are interested or they're not right off the bat, if they need a lot of convincing and educating they always seem to end up saying no and then you've wasted all that time and effort.

I agree. I never allow myself to become a salesman, pitching a "scheme" to some unsuspecting rube. If the homeowner is on board, it's usually from the get-go.

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