Jump to content
The forums have been archived and are now read only. Years of great info saved for your reading pleasure. Thank you! Visit us on Facebook: https://www.facebook.com/NakedInvestor/ ×
The Naked Investor Forums
Jonathan RexfordFL

Rent to Own Auction

Recommended Posts

Well thought I would test the waters for a property that has had a lot of calls but, no takers. Going to experiment with an online auction. Marketing is going to be signs, voice blast and online marketing. Should be interesting. Check it out, book mark it to your friends and help me spin this.

 

http://www.jonsellahome.com/130

Share this post


Link to post
Share on other sites

Rex, a few questions. . .

 

1) You've used this auction method previously, correct? How were the results?

2) The bidding is for the option consideration only? Other terms are firm?

3) Do you think your timing, (smack in the midst of the holidays), will stifle interest?

Share this post


Link to post
Share on other sites
Rex, a few questions. . .

 

1) You've used this auction method previously, correct? How were the results?

2) The bidding is for the option consideration only? Other terms are firm?

3) Do you think your timing, (smack in the midst of the holidays), will stifle interest?

 

1) Yes I have used this method several times. Results have been good. Sometimes you win and lose. But I have had an empty now for 2 months. So I set my base rent to the lowest I can and I am allowing the market tell me what I can do.

 

2) Yes it is for Option consideration only. Terms are firm.

 

3) MC that is a mix bag. It is for that week, for two of my reasons. People are out driving around this week and families are here for Holiday's. If I am wrong we will know next week.

Share this post


Link to post
Share on other sites

Interesting, I'll be curious to see how this one goes! Are you having a hard time finding good tenant/buyers or just this property giving you a difficult time?

Share this post


Link to post
Share on other sites
Interesting, I'll be curious to see how this one goes! Are you having a hard time finding good tenant/buyers or just this property giving you a difficult time?

 

 

Acutally Chris it is both. The property is older competiting with newer homes that are in or near foreclosure. But, I am also finding the tenant buyers not the ones that I really want to put into a property. They have the down, they just don't have the depth of income to make me comfortable. As the old saying goes, you may get the 1st payment, but what about #2

Share this post


Link to post
Share on other sites

Interesting concept Jon. May I ask what signs you're using for marketing (ie what's your message and are they printed or handwritten)?

Share this post


Link to post
Share on other sites

UPDATE:

 

Well I started this auction a week ago. I have had 1747 hits to the page of the property. I have had a total of 87 phone calls which 19 had left messages, 6 people registered for the auction and 5 regular registrations. Total of 11 new tenant/buyer leads. I had two online bidders and 1 offline bidder. None which came up to my reserve. But they did top there offer for what they had available. Which was 1900.00. Barely enough to get my interest. But what did happen is that since it was over I have had a rush of calls asking if it was still available. One couple drove over today and I told them that I had several applications and it would take 5K to move in. They said it was not a problem and they LOVED THE HOME. Well we will wait until I get the applications.

 

Interesting observations.

Share this post


Link to post
Share on other sites

That's a strong showing, Rex. 87 calls, about 20 messages. Impressive. In your original post you mentioned that you were going to employ signs, voice blast, and online marketing. Are you able to track where the interest is coming from specifically?

Share this post


Link to post
Share on other sites

Yes. I used one phone number for my signs and those were the calls. From Craigslist I do have a tracking link and seen that 2 of the registrations came from craigslist. I suspect most of the visits came from CL as I did not give my website on the VM as I wanted to speak to them and chat with them on phone.

 

My Voice Blast went out to 850 phone numbers. Of those it seems that 130 of them are no good "as they were non deliverable. Some of my tenant buyer list goes back to 2002 that have been on my database. My emails bounced back 45 out 1300 emails. Which is not bad as I have not really maintained a relationship with them via email. Several had OPTED out.

 

So all in all. I don't have a BUYER on the dotted line but I am sure I will soon from this activity.

 

Total cost (my labor) is about $230.00

Share this post


Link to post
Share on other sites

Nice going Jonathan, you can't say you have been slack on the marketing. Hopefully that $5Ker will come through.

Share this post


Link to post
Share on other sites

×
×
  • Create New...