lomax_properties 5 Report post Posted November 19, 2011 Hi guys, so I have two properties right now that I am trying to LO right now. At first I was taking Joe McCalls approach by calling CL ads and stating that I have buyers that would be interested in their house. I didn't get a single contract. Then I ran into Claude Diamounds approach...talking about the property and then stating that if I were to lease it for 1-5 years if they would give me the option to buy. Now I have two contracts from the same person and trying to find a buyer. However, people get thrown off when I state I would be buying the property then also saying I would be sub leasing the property out on a LO. I want to be where I am working ON the business and not IN the business. So once I get these deals done I want to pay for the coaching that Micheal offers but will only have about $500 dollars left for marketing. WIll that be enough or should I wait untill I have more to invest. RIght now I only target CL cause I don't have any money for marketing. THanks Share this post Link to post Share on other sites
MichaelC 160 Report post Posted November 19, 2011 Now I have two contracts from the same person and trying to find a buyer.What do you mean you have two contracts with the same person? However, people get thrown off when I state I would be buying the property then also saying I would be sub leasing the property out on a LO.Sublease is a word that homeowners do not want to hear. . .ever. Avoid it like I try and avoid my in-laws. What types of deals are you trying to do? Sandwich lease, CA's, or something else? Share this post Link to post Share on other sites
Doug Pretorius (ON) 9 Report post Posted November 19, 2011 MC, I'm guessing lomax signed up 2 properties owned by the same person. lomax, if you're running into the: "Whaddya mean ya ain't gonna live here urselves?" objection, I feel your pain. That has long been the bane of my real estate existence. As I have discovered this is ridiculously easy to dispatch with a simple upfront: "I'm an investor." There you go...if they're still talking to you after you say that, you won't have ANY issues with subletting or assigning or doing a naked chicken dance in their livingroom at 3am (OK maybe not that last part). Share this post Link to post Share on other sites
lomax_properties 5 Report post Posted November 19, 2011 Yes it is the same person 2 properties, sorry for not makeing that clear. I entered into the LO investing wanting to wholesale the deals like McCall teaches. I recieved my first contract on a "option to lease option" then I met another investor a Claude Diamound mentee who said he can mentor me through the transactions. When I recieved his contracts I found out that he was doing them more with a sandwitch LO having the right to LO for several years and the LO them out for 1 year which I was fine with. They also state that I have the right to sublease out and so forth. People didn't like the word sublease even stating that I am an investor so I went back to my first script stating I have buyers that are interested in your house. I want Micheals training, I like how he states that he works ON the business not IN the business, I am tired of talking to all these CL people, I want it more systematic cause thats how I am. If you do so much marketing, talk to so many people, put out so many offers, you will get so many deals. However, not sure how much I need to actually afford the coaching and enough money for the marketing. I just need the cash right now thats why I like wholesaling LO then I can move onto long term subject to or sandwitch LO.... Share this post Link to post Share on other sites
Doug Pretorius (ON) 9 Report post Posted November 20, 2011 lomax, what do your conversion ratios look like? i.e. how many calls/emails do you send to get how many positive replies to put out how many offers to get how many accepted? You need to know what those ratios are so that you can track the effect of changes to your prospecting or marketing. I've been a bit negligent in my record-keeping lately but over the years I've averaged about 1 contract for every 100 contacts, and it breaks down something like this: 100 calls/emails --> 30 'yeses' to rent to own --> 5-10 offers --> 1 signed deal. The reason there's a drop of 20-25 from the "yes I'll rent to own" category is because of a few things, one of those being that they don't want an investor involved. It's not that saying "I'm an investor" is going to make it OK with them. It's a qualifier. It's a way of eliminating those who wont' work with you so you don't waste your time. Share this post Link to post Share on other sites
pilot76180 51 Report post Posted November 20, 2011 1 contract for every 100 contacts?!?! yikes!!! That CAN'T be right...no way dude..that's rough!! I think I get a solid 80% of the sellers that contact me...probably more that sign up. So 100 sellers would be a solid 80 houses..I think it's how you approach the whole thing...I never tell them I'm an investor, I never tell them I'm going to buy the house, I never tell them Im' going to rent the house, and I never say I'm going to sublet the house. I approach it far more from the angle of "Our company specializes in lease purchasing, and we can normally lease purchase your house within 60 days, so the buyer is simply making the payments to YOU, rather than the bank...blah blah blah"Then I mention I know MC, and they sign on the dotted line...Lomax, it sounds like you better sell a child or something and get on board with MC's mentoring ASAP to get you properly on track.Too much info from different sources can be frustrating. Share this post Link to post Share on other sites
Doug Pretorius (ON) 9 Report post Posted November 20, 2011 John, to get those 100 seller calls you would have sent out somewhere around 10k brochures though, right? I'm doing the sorting by phone instead of by mail. So our numbers are about the same. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted November 20, 2011 I entered into the LO investing wanting to wholesale the deals like McCall teaches. I recieved my first contract on a "option to lease option"That's the first problem. How can a cooperative assignment be "wholesale"? In fact, it's the opposite. You are cooperating with the homeowner to get them retail terms for their property. And what the hell is an "option to lease option"?? Sounds to me like someone is trying to complicate matters to justify charging exorbitant fees to learn insider's secrets. . . .then I met another investor a Claude Diamound mentee who said he can mentor me through the transactions.A mentee to mentor you makes you what, a mentee-e? I'm sensing some info overload here, closing in on paralysis of analysis. When I recieved his contracts I found out that he was doing them more with a sandwitch LO having the right to LO for several years and the LO them out for 1 year which I was fine with.That's a problem. You always need to be certain you are using the correct paperwork for the deal you are doing. And it sounds to me your preference is a CA, (which is always a good idea for someone new to this biz), so stick with that one approach for the time being and simplify matters for both you and the homeowner. Share this post Link to post Share on other sites
pilot76180 51 Report post Posted November 20, 2011 John, to get those 100 seller calls you would have sent out somewhere around 10k brochures though, right? I'm doing the sorting by phone instead of by mail. So our numbers are about the same.Ahh...very true my northern accomplice.....but I don't have to talk to 99 losers looking to just waste my time....makes my life all the easier.....More time to focus on important things...like scouring NI for great material. Maybe you should try to implement that boingo boinko template with sellers. You have someone call them..they go to your site to complete the documents, they e-mail the docs to you, they upload the house to Craiglsist but put your number, then they show the house for you. Doug...there is something here man! Share this post Link to post Share on other sites
pilot76180 51 Report post Posted November 20, 2011 HA!! I'm sorry doug...i just can't let this go...HA!I was trying to think of why you have to talk to 100 people to get 1 house, and the only thing I could think of was you either had Teret's Syndrome, or a really bad stutter....or both..."Yyyyyees, Mmmmmr. Ssssssseller...Our llllllease ppppppppurchase ppppppppprogram mother $**# a$$ whore Bit$ hhhhelps you gggggget ttttop ddddddollar ffffffor $&@*!$&!" OK...I've gone too far... Share this post Link to post Share on other sites
Doug Pretorius (ON) 9 Report post Posted November 20, 2011 Ahh...very true my northern accomplice.....but I don't have to talk to 99 losers looking to just waste my time....makes my life all the easier.....More time to focus on important things...like scouring NI for great material.Now you see why I'm setting up a telemarketing sweatshop in my basement. You'd be amazed how hard some sellers find it to say no to 5 year olds. Maybe you should try to implement that boingo boinko template with sellers. You have someone call them..they go to your site to complete the documents, they e-mail the docs to you, they upload the house to Craiglsist but put your number, then they show the house for you. Doug...there is something here man!There are some realtors around here that have already perfected the system. They have sellers running all the ads, doing all the showings, writing up the contracts, and sending the agent their cut. And they even recommend these agents as the greatest thing ever to their friends: "I only had to pay this guy $1,500 for me to sell my own house, what a steal!" HA!! I'm sorry doug...i just can't let this go...HA!I was trying to think of why you have to talk to 100 people to get 1 house, and the only thing I could think of was you either had Teret's Syndrome, or a really bad stutter....or both..."Yyyyyees, Mmmmmr. Ssssssseller...Our llllllease ppppppppurchase ppppppppprogram mother $**# a$$ whore Bit$ hhhhelps you gggggget ttttop ddddddollar ffffffor $&@*!$&!"OK...I've gone too far...I get a lot of sympathy deals... Either that or they jump on it because they think I'm adding zeros to their asking price. Share this post Link to post Share on other sites
pilot76180 51 Report post Posted November 20, 2011 YES!! Little kids cold calling Clist leads!!!! I like it!!! Share this post Link to post Share on other sites
<Steve> 82 Report post Posted November 20, 2011 Wow, ask a simple question lomax and there you go. Taking the time for calls and the huge expense of mailings, that’s the 99% way. Be part of the 1%, starting out, and do email marketing, and only speak on the phone to those who have some level of motivation. If I speak with 100 callers my rate of return is 95%. That is 95 deals out of 100 calls; the other 5% will call me back in a month or two. What can I say I rule. But then I am a kiss-but, show-off, know-it-all, so you may only want to take advice from the big guy. Posts #2 and #8 of this thread. Just pick’n lomax, I have seen people get burned with that option-to option stuff. You never have a full commitment from the seller. The more complicated from all that info out there the easier to make mistakes. And that’s a lot of work to potentially lose everything at the end of the deal. Mentoring is the easiest and fastest way one-on-one. Also, all types of marketing, calling, mailing and emailing are all good, the more the better. Keep the Deal Simple though and get the Street Smarts from here, if you can put up with these guys that is. Share this post Link to post Share on other sites
Doug Pretorius (ON) 9 Report post Posted November 21, 2011 Be part of the 1%, starting out, and do email marketing, and only speak on the phone to those who have some level of motivation.Can't argue with you, Steve. I have definitely come around with the whole email marketing thing. I just wish there were more sellers doing it in my area. I couldn't possibly do even 1 deal a month from just emailing. Share this post Link to post Share on other sites
<Steve> 82 Report post Posted November 21, 2011 I hear you Doug. I have been working an area and it seems sellers have been over ridden with emails and compition is high, so an added different approach is needed. Share this post Link to post Share on other sites
