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levmills

chicken or the egg.. Seller or the T/B.. which comes first?

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Hi everyone, My name is Lev and I'm new here. I'm a broker in GA looking to do some lease purchase deals on the investor side. I'm looking forward to meeting and sharing ideas with all of you. As a realtor, I market other lease purchase listings and have a lot of tenant buyers, now I'm shopping for the houses.

 

From your experience, has it been better getting the seller first or the buyer first? Some of these t/b's want a lot for a little and its a bit difficult finding exactly what they are looking for. But I'm also thinking that having the t/b in hand will give me leverage when approaching a seller.

 

what are your thoughts?

 

Lev

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Hi, Lev, and welcome aboard! B)

Obviously there are two schools of thought here. Put me in the column that votes for finding the willing seller first. That is usually the more difficult part of the equation in my experience. Assuming you have a deal to offer with terms that are market acceptable and assuming the word gets out, the t/b's are likely to respond in short order.

I have found that when I have a t/b who is waiting for me to find them a property, they become unrealistic in their expectations. No matter what you show them, something won't be just right. Somehow they see me as their personal property valet, and if Property A isn't perfect, then they want to see Property B and then Property C, etc.

For me, the logical oder of things is to first get the property, then market it as a Rent To Own. Works for me. ;)

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Hi, Lev, and welcome aboard! B)

Obviously there are two schools of thought here. Put me in the column that votes for finding the willing seller first. That is usually the more difficult part of the equation in my experience. Assuming you have a deal to offer with terms that are market acceptable and assuming the word gets out, the t/b's are likely to respond in short order.

I have found that when I have a t/b who is waiting for me to find them a property, they become unrealistic in their expectations. No matter what you show them, something won't be just right. Somehow they see me as their personal property valet, and if Property A isn't perfect, then they want to see Property B and then Property C, etc.

For me, the logical oder of things is to first get the property, then market it as a Rent To Own. Works for me. ;)

 

 

As a Realtor, they tell us to focus more on listings than buyers (80/20). I find it interesting that the same rules apply here. It makes sense. I'm looking forward to my first deal here. ;)

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Another vote for find the seller first.

 

Better yet, why not work on both at the same time?

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Another vote for find the seller first.

 

Better yet, why not work on both at the same time?

 

Hi Chris,

If you have a T/B, do you use Realtors for co-op or sandwich lease purchase? Do you find it difficult working with them rather than working directly with the owner?

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Lev, I'm not Chris, but let me add my two cents here.

Are you asking if someone has a t/b in hand, would they seek out an Agent to find them a house available as a Rent To Own? I don't do that specifically, but that's not to say I'm opposed to it. Over the years I have met a few Agents who have been helpful in this regard and a deal has come about as a result. But it is certainly easier to deal direct with the homeowner.

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I agree, I prefer to work with homeowners themselves, but I've got nothing against working with agents (As long as they are INVESTOR FRIENDLY)

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I agree, I prefer to work with homeowners themselves, but I've got nothing against working with agents (As long as they are INVESTOR FRIENDLY)

 

Thanks guys. I just closed on a lease purchase and I was the Selling agent. The Owner made out with the bulk of the option consideration, which is understandable. I do get a cut on the back end. But my front end money was just a few hundred bucks.

 

I was wondering if I came in as an LLC and not an agent, if I could have gotten more on the front end. (co-op maybe). The listing agent was pretty negotiable and everyone acted like they were new at this. just a thought B) hhmmmmmm

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I was wondering if I came in as an LLC and not an agent, if I could have gotten more on the front end. (co-op maybe).
No less than half the option consideration, I'm sure.

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