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MichaelG

 

Question: Are you marketing for sellers for pure options only, or both L/Os and pure options?

 

The reason I am asking it may be a great way to get into a deal, as you say, from those sellers with the initial response of "No I need to cash out." If a seller is not wanting to do a L/O but is flexible on price a response to the "No" from email marketing, lets say, is to follow up to see if a pure option would work. Build the relationship as you mention and change to a L/O. Is that how you are going about it?

My marketing is simply geared toward motivated sellers and getting a Pure Option Agreement signed. Since there is absolutely no risk to the L/S with a pure option, I find this is a very easy document to get signed. Once that document is signed, the next document signed, whether it be a L/P, Purchase Agreement, Contract for Deed, etc., comes much easier. This gives you time to develop that relationship with the seller and point out the pros/cons of the different strategies they can choose from.

 

My experience has been that a lot of times, even with motivated sellers, the idea of of a LP is not in the forefront of their mind as far as what they want to do because of the horror stories they've heard of renting/leasing a property. That's why I like my first document signed to be a Pure Option. Hope that answers your question. If not, fire away, again. :blush:

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You Michaels like to stick together don't you. B)

 

I like the approach also. I like how one can put their own spin on how to do this business to make it work. MichaelG just curious, do you get showings with your pure options with potential buyers? And how long typically do you start suggesting to the seller to maybe try something else? AAAAAnd do you price your pure optoins below market?

 

I won't bug you with any more questions. :blush:

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You Michaels like to stick together don't you. B)

 

I like the approach also. I like how one can put their own spin on how to do this business to make it work. MichaelG just curious, do you get showings with your pure options with potential buyers? And how long typically do you start suggesting to the seller to maybe try something else? AAAAAnd do you price your pure optoins below market?

 

I won't bug you with any more questions. :blush:

Steve - I would say 90% of my deals turn out to be L/P or owner finance deals, most of which have a balloon in 2 to 3 years. The other 10% turn out to be wholesale deals that I can flip to a rehabber or end user. As far as how long it takes before I start suggesting something else to the seller, it just depends on how motivated they are and developing the conversation with the seller so you understand what is in their best interest...and yours, too, of course. I have approached L/S with the L/P idea within a week. With others, it has been 30-45 days. As far as as pricing the pure options, if I have a wholesale buyer, I convert the option to a Purchase Agreement and the flip that Purchase Agreement. As far as how much I make, I've made as little as $1,000 and as much as $9,000. It just depends on the motivation of the seller, etc. On the L/P deals, I would say my average is about $2.5K to $3K on a $100K house.

 

On another note, the question comes up as to the advantage of a L/P versus owner finance. I find that I can get more of a down payment on an owner finance than with a L/P. However, the disadvantage to my seller is that on an owner finance, they would have to foreclose, as a result, as opposed to just evicting with a L/P. There are, of course, exceptions to both of these scenarios, and it varies from state to state.

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Family Needs A Nice House In A Good Area To Lease With A Purchase Option.
After reading this thread I thought I'd run the ad again (haven't done so in a long time) and see what happens. So far I've got 3 replies today and sent off the second email explaining things a bit. Thanks for resurrecting this oldie but goodie, Steve [where's a thumbs-up smiley when you need one?]

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Family Needs A Nice House In A Good Area To Lease With A Purchase Option.
After reading this thread I thought I'd run the ad again (haven't done so in a long time) and see what happens. So far I've got 3 replies today and sent off the second email explaining things a bit. Thanks for resurrecting this oldie but goodie, Steve [where's a thumbs-up smiley when you need one?]

Hey Doug! Where have you been?! :);)

 

It's MC's oldie but goodie and it works. I use it off and on and get all kinds of replies. It only takes one in the bunch to land a deal.

 

Stay in touch you. :)

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How do you market for "Pure Option" only?

 

Lynn (FL)

 

 

You do not market for PURE OPTIONS, Pure Option deals are made. It is just a by product of your offers and structure. All of your general marketing can get the same result of either lease, lease option, owner finance, wholesale, retail flips...etc. That is why one trick type deals are harder to fill the funnel.

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Jonathan,

 

So, in your opinion, in order to find more possible deals, it's best to do general marketing and go with the flow, depending on the property and/or homeowner's situation?

 

 

Lynn (FL)

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Lynn, many times when I'm pitching a lease option the owner asks if I would be willing to look for a regular buyer too (or instead). They usually say: "I'll pay you $5,000 if you find me a buyer." That right there could be a pure option. Now of course the price will determine whether or not it's a deal worth taking on for you...OR...you can do what MichaelG is doing and use the pure option as a way of building a relationship with the seller and convert them into a lease option or owner finance or whatever later.

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Jonathan,

 

So, in your opinion, in order to find more possible deals, it's best to do general marketing and go with the flow, depending on the property and/or homeowner's situation?

 

 

Lynn (FL)

 

I think a mix of demographic with geographic marketing is a result of finding motivated sellers.

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