Approach Seller for SLO or CA

[baron14 1]

Hi,

 

 

I'm trying to get clear on the approach to the owner for a SLO or CA and how you would transition from

one to the other. Its seems like marketing to a FSBO would be a little different than marketing to a FRBO.

 

- FSBO seems more interested in getting Full Asking Price and house sold.

- FRBO seems more interested in no landlord issues and cash flow.

 

To do a SLO one would need to get a discount purchase price with some equity in the deal, so you wouldn’t offer to pay FULL Price, right?

 

Do you approach the homeowner first for a SLO and then transition to the CA if the numbers don't work?

 

If you approach owner for SLO instead of Full Price, would you pitch debt relief,

cover their payments and house sold at no cost to them?

 

If the numbers don’t work, then pitch the CA…FULL Price, no maintenance issues, your list of qualified T/B’s.

 

I need to get clear on the approach for FSBO and FRBO owners for the SLO and CA deals since these type owners would have different perspectives for their properties.

 

Thanks,

baron

[MichaelC 160]

To do a SLO one would need to get a discount purchase price with some equity in the deal, so you wouldn’t offer to pay FULL Price, right?

If you are going to do a sandwich lease, approach it as if you are buying the property. Meaning, you are on the opposite side of the table and so you need to negotiate the best deal for you. Quite a different approach from doing a CA, where you are trying cut the best deal you can for the homeowner.

As for which approach to take, you should know that going into the deal based on your preliminary assessment of it. For example, is the property in a known area for easy rentals? Does the ad indicate a highly motivated seller? If so, the deal may make sense as a sandwich lease.

On the other hand, if the numbers don't have the necessary spread to be in the middle of the deal, if the homeowner isn't as flexible as needed, then your approach should be via a CA.