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djbusch

Tenant / Buyer Application

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I placed an ad on craigslist for buyers, for one particular property. About10 people have responded, and I'm suddenly struck with the horrifying concept of having to personally call each one of these people without knowing anything about them, their financial situation, employment status, etc. The entire concept makes me want to spew, so I came up with an alternative...

 

I'm sure the concept of an application for t/b's is as old as the lease purchase itself, but I've added a new twist: this application submits ITSELF to me via e-mail (soon via web script - much more tidy), so I'm not bothered with tire kickers, relentless questions, etc. The prospect fills out the form on their computer, clicks the "Submit" button, then waits for me to contact them. To me, this is a sweet alternative to unnecessary phone calls from people who have no business contacting me to begin with.

 

I've attached my application PDF here, so everyone can take a look at it. The basic premise is that each individual applicant completes one, even if he/she is looking for a home with another person.

 

Now, having scoped it out, does anyone think I've missed anything with it? Or that I'm asking the wrong questions?

Lease Purchase Application v1.1 - 120813.1003.pdf

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I placed an ad on craigslist for buyers, for one particular property. About10 people have responded, and I'm suddenly struck with the horrifying concept of having to personally call each one of these people without knowing anything about them, their financial situation, employment status, etc. The entire concept makes me want to spew, so I came up with an alternative...

 

I'm sure the concept of an application for t/b's is as old as the lease purchase itself, but I've added a new twist: this application submits ITSELF to me via e-mail (soon via web script - much more tidy), so I'm not bothered with tire kickers, relentless questions, etc. The prospect fills out the form on their computer, clicks the "Submit" button, then waits for me to contact them. To me, this is a sweet alternative to unnecessary phone calls from people who have no business contacting me to begin with.

 

I've attached my application PDF here, so everyone can take a look at it. The basic premise is that each individual applicant completes one, even if he/she is looking for a home with another person.

 

Now, having scoped it out, does anyone think I've missed anything with it? Or that I'm asking the wrong questions?

 

I wouldn't mention the 5% on amount down. Let them tell you what they have. If it isn't enough, then you can tell them. Otherwise you might limit yourself to 5%. Also on the submit button, you might consider getting a website with a domain name so they aren't sending information like that to a Gmail address.

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I wouldn't mention the 5% on amount down. Let them tell you what they have. If it isn't enough, then you can tell them. Otherwise you might limit yourself to 5%. Also on the submit button, you might consider getting a website with a domain name so they aren't sending information like that to a Gmail address.

 

Good advice on the 5% thing. I just don't want a bunch of knuckleheads sending me applications on which they believe their charming personality would be a fine replacement for a cash down payment...

 

As far as the domain goes, I'm setting the PDF up with a "formmail" script on my site, so the user will get a polite "thank you" message and won't have to send me an e-mail explicitly. The gmail thing is just there as a stopgap while I'm working the bugs out of the formmail thing.

 

Thanks for your input!

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David, as Erik wrote, do away with the Down Payment section. First, it isn't a down payment, it's option consideration or option money. Always refer to it as that. Besides, prospects will often lie about available cash, so I have to question whether or not asking someone about this will serve any purpose.

Also, if you plan on pulling anyone's credit reports or background history, you will need a statement at the bottom of the application stating that you will be doing so.

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Hey MC,

I have a question about pulling someone's credit report. Would it make sense for the T/B to pull their credit report rather than me? My understanding is that to request my report does not negatively impact my score, whereas a company, agency, or person pulling the report impacts negatively.

Have I got that correctly?

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Charles, I think pulling one's own credit report has, at most, a very minor and brief affect on the FICO number. Certainly not a factor that would affect their ability to qualify for a home mortgage. Lenders get into the nitty gritty and aren't going to deny financing for that.

That said, if you prefer to have the applicant pull their own report, I see no downside other than you may need to stay on top of them to get it in a timely manner. Of course, if you need to do so, that's your first indicator that these folks probably aren't as serious as they claim to be.

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David, as Erik wrote, do away with the Down Payment section. First, it isn't a down payment, it's option consideration or option money. Always refer to it as that. Besides, prospects will often lie about available cash, so I have to question whether or not asking someone about this will serve any purpose.

MC,

 

Good points, but I have to point out that most t/b's wouldn't know option consideration from a Fullback Option (yeah, football's back, baby!!), but they are familiar with the "down payment" concept. I suppose it is wise to make the distinction, one being refundable and the other not so much.

 

Also, if you plan on pulling anyone's credit reports or background history, you will need a statement at the bottom of the application stating that you will be doing so.

 

My plan is to check their employment & rental background out first, and proceed with a credit score if/when I determine they've been truthful up to that point. I believe it would be smarter to get an actual signature before pulling credit, anyway. Anyone can claim they were authorized by some unknown entity on the Internet to pull their credit, leaving the investor in a tenuous legal position. If the applicant signs an actual authorization, I'm on solid legal ground to pull their credit. Additionally, it gives me an opportunity (if they're local) to meet face to face with the prospect and get a feel for them. If I'd availed myself of this opportunity with my previous deal, I suspect it would've turned out much better.

 

I've updated the application, but I'm not going to chew up a bunch of MC's server space uploading it every time I change it. I'll post it on my blog (the link is in my sig) for anyone who wants to look at and critique it or even hijack it, change the name at the top & use it for themselves...

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Like it or not phone work is part of the business and I hate phone work. So for the RTO signs I use a company the t/b calls into and there is a recording for the specific property and gives them all the information about the house and how the L/O works. I have found this screens out the majority who are just curious and those straight renters.

 

Regarding the internet, if phone calls are to over whelming (a nice problem to have) just use an email and have ready a copy & paste reply. Have a web page for the property that potential t/bs can click-to to get the property info. and L/O details.

 

For me when calls do come in, phone screening is key to not waste time with want-a-bees. Usually letting them know the large amount ($$) required before move-in does the trick.

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Good points, but I have to point out that most t/b's wouldn't know option consideration from a Fullback Option (yeah, football's back, baby!!), but they are familiar with the "down payment" concept. I suppose it is wise to make the distinction, one being refundable and the other not so much.
Go Big Blue! (That would be the NY Giants for all you CheeseHeads and Panthers fans :rolleyes: ) But I digress. . .

Yes, be sure to explain that the option money is, in fact, nonrefundable.

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