birtane 0 Report post Posted March 2, 2011 hey guys... A quick question.... What do you think and what is your personal experience on lower price houses (around 80K) when doing CA.My market is full of homes build for military families. Entire blocks of cookie cutters. They are nice, 5-6 years old, I would not say they are the best quality ones but they still have 2-3 bedrooms, 2 bathrooms etc. I do have few motivated sellers with the homes like that, just not sure if I would be able to find TB. And the numbers seem to work too.I understand my payday wont be as high but still if I can get about 2500 I would be happy. Thanks for any replies. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted March 2, 2011 Those houses are ideal for attracting CA's, Monica. They are in an affordable price range, meaning a large pool of potential t/b's. Like you said, though, your payday will be smaller. But if you're moving them quickly and doing any kind of volume, it's worth your time to work that market. Share this post Link to post Share on other sites
birtane 0 Report post Posted March 2, 2011 Thanks Micheal. God knows what would I do without you (definitely not CA) While I am here let me roll with another question... Option fee and rent credits. I have been having difficult time to present and explain those two to the owner so he would understand that it is not coming out of his pocket. Do you just simply explain that the asking price will be that much higher and he will still get his asking price? What language do you guys use for this situation? I remember you guys talked about it here on forum, but I cant find it sorry Thanks Share this post Link to post Share on other sites
MichaelC 160 Report post Posted March 2, 2011 Option fee and rent credits. I have been having difficult time to present and explain those two to the owner so he would understand that it is not coming out of his pocket. Do you just simply explain that the asking price will be that much higher and he will still get his asking price? What language do you guys use for this situation?Good question, and one I am sure will pop up on tomorrow's teleconference. My experience has taught me that homeowner's struggle with the idea of rent credits. Try as you might, they always seem to see it as coming out of their pocket. Instead, focus their attention on their bottom line. That is, how much will they get at closing? If that figure is, say, $150K, then that is the number you need to draw their attention to. When it's time to get some signatures, they will see the Option to Purchase price being higher, as well as the mention of rent credits. Of course, they will ask what that's about. "Mr. Homeowner, your net price at closing will be the $150K we agreed to. I want to be sure to leave room for any negotiations that may be necessary so that your net selling price isn't affected". Or something along those lines. If you are questioned about rent credits, same tactic. Turn it into a positive, explaining that they don't affect his net price, and they an effective marketing strategy to make the phone ring and to keep his tenant/buyers in line and paying on time each month. Share this post Link to post Share on other sites
birtane 0 Report post Posted March 2, 2011 I like it. It's like live chatting with MC. While I'm still reading my question that I just posted to see how many mistakes I made I already get looong answer from MC. It is a question day. I am about to email offer to the seller. To be clear. First I email him The Short letter, when he comes back to me with YES then I shoot the Short Offer Form (Residential Lease and Option To purchase Agreement). After I get this, I meet him and sign the real agreements needed. RIGHT? Thanks Share this post Link to post Share on other sites
MichaelC 160 Report post Posted March 2, 2011 If the homeowner agrees to your Short Letter offer, no need to follow up with the Short Offer Form. Instead, meet with the homeowner ASAP and complete the deal with the CA Residential Lease Agreement, the Option to Purchase Agreement, and the CA Assignment Agreement. Share this post Link to post Share on other sites
birtane 0 Report post Posted March 2, 2011 NEW IPAD is OUT.I know where my first option fee money is going ;-) (after I buy that sports car for MC.) lol Do u guys find useful for your RE bussiness needs? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted March 2, 2011 NEW IPAD is OUT.I know where my first option fee money is going ;-) (after I buy that sports car for MC.) lol Do u guys find useful for your RE bussiness needs?Are you talking about the iPad or the sports car?? Share this post Link to post Share on other sites
birtane 0 Report post Posted March 2, 2011 Do u guys find useful for your RE bussiness needs?Are you talking about the iPad or the sports car?? :-) I had iPad in mind. I'm sure nobody would argue about sports car being unuseful. ;-) even if its a car towing bussiness ;-) Share this post Link to post Share on other sites
speedingpenguin 19 Report post Posted March 3, 2011 I pretty much have my business set up where as long as I have a phone and my netbook I can do pretty much everything. An iPad could be a useful tool for your business, and a great reward for doing deal #1! My advice however would be to put aside twice that amount for marketing, and get more deals from it! Share this post Link to post Share on other sites
birtane 0 Report post Posted March 3, 2011 My advice however would be to put aside twice that amount for marketing, and get more deals from it! Good advice, Chris :-). I know that myself too... its just nice to dream sometimes....Right? Share this post Link to post Share on other sites
<Steve> 82 Report post Posted March 3, 2011 It's time to start Living the Dream baby! Share this post Link to post Share on other sites
speedingpenguin 19 Report post Posted March 3, 2011 My advice however would be to put aside twice that amount for marketing, and get more deals from it! Good advice, Chris :-). I know that myself too... its just nice to dream sometimes....Right? Visualizing your goals as achieved is very powerful. Give yourself a reward (the iPad) for closing the deal, that can be a HUGE motivator to go out and get more deals, but also put money into the business! It'll make the next deals easier to get! Share this post Link to post Share on other sites
MattF 0 Report post Posted March 4, 2011 My advice however would be to put aside twice that amount for marketing, and get more deals from it! Good advice, Chris :-). I know that myself too... its just nice to dream sometimes....Right? Visualizing your goals as achieved is very powerful. Give yourself a reward (the iPad) for closing the deal, that can be a HUGE motivator to go out and get more deals, but also put money into the business! It'll make the next deals easier to get!Really good advice! Something I have done in the past was reward myself a little on each deal, but remember this is a business and the biggest part of this business IMHO is marketing. Especially when you are just starting it's very important to put as much as you can afford into marketing. Rinse and repeat and before you know it you can afford anything you want! Matt Share this post Link to post Share on other sites
