ErikOk 10 Report post Posted September 22, 2012 Have any of you ever advertised a RTO, but instead got a call that said will you sell right now?! I assume I just assign the contracts and be on my way? While on the subject, how about advertising at the same time For sale (to catch those that are ready NOW), and also RTO for those that need time to buy? Share this post Link to post Share on other sites
<Steve> 82 Report post Posted September 22, 2012 Yes, then I think through the deal like MC's Pure Option assignment. Or, record a memorandum with the current option and then release at close. Share this post Link to post Share on other sites
ErikOk 10 Report post Posted September 23, 2012 Hey Steve, That's sort of what I was thinking. I was just wondering if anybody here has advertised for just a RTO and received a response from a buyer saying they want to buy it now instead of leasing. Also, I was just curious if it would be a good idea to widen the range of buyers and advertise as "For Sale or Lease to Own"? From my standpoint, I guess it wouldn't make much difference. Although what attracts the Tenant/Buyer to a CA is the time that they receive, the trade-off being that they pay pretty much full price. So I guess what I'm really asking is if a Buyer responds to a RTO ad saying they want to buy, then I guess there would really be no negotiation, so to speak, and they would be paying full price and I would just receive the usual assignment fee. Just a bit confusing, because on a pure option the price is usually much lower than market value. It would be great to hear if any members here are advertising "For Sale or Lease to Own", because that seems like something the seller would like very much. ThanksErik Yes, then I think through the deal like MC's Pure Option assignment. Or, record a memorandum with the current option and then release at close. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 23, 2012 It's happened enough times so that I'm not surprised when it does occur. Most times the inquiry is more curious than serious, but if it is a serious interest than it would be handled as Steve said above. The homeowner, of course, is thrllled since they want to sell in the first place.Price is certainly negotiable, however. Why not? If someone is buying today versus a year from now, it's not unreasonable to expect them to want a better price. Share this post Link to post Share on other sites
ErikOk 10 Report post Posted September 23, 2012 MC, So you're saying if a LO is already in place and a buyer comes into the picture then I could let the seller know and do a new pure option, or really just change the price on the existing option to purchase? Can you give an example with price/terms? How about advertising as "For Sale or Rent to Own" and tell the seller that we could get a direct buyer, but they might want a reduced price because of them not taking advantage of the length of the lease term? What are your thoughts on this and have you done this yourself? Advertising for "For Sale or Rent to Own" is something I have been thinking of that could help reduce seller objections to just a lease purchase. Appreciate your thoughts.It's happened enough times so that I'm not surprised when it does occur. Most times the inquiry is more curious than serious, but if it is a serious interest than it would be handled as Steve said above. The homeowner, of course, is thrllled since they want to sell in the first place.Price is certainly negotiable, however. Why not? If someone is buying today versus a year from now, it's not unreasonable to expect them to want a better price. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 23, 2012 I'm saying that if a buyer comes along, he'll make an offer on what he thinks is a good deal for him. The homeowner can either accept it or reject it, as in any buyer-seller negotiation. As stated above, you can work out your piece of the action with the homeowner and proceed from there. A Pure Option with the homeowner is one easy way to do this.You could advertise both for sale and rent-to-own simultaneously. Cover all bases, I suppose. Share this post Link to post Share on other sites
<Steve> 82 Report post Posted September 23, 2012 I will get a call or someone ask if they could just purchase with no lease from time to time. And if they ask about price, I will offer to lower the price equal to the amount of rent credits that would be received with a L/O. I do leave the option considration in the price that I would receive in the assignment. Share this post Link to post Share on other sites
ErikOk 10 Report post Posted September 23, 2012 Steve, That seems like a good tactic with the rent credit reduction, while still keeping your assignment (consideration) in playI will offer to lower the price equal to the amount of rent credits that would be received with a L/O. Share this post Link to post Share on other sites
<Steve> 82 Report post Posted September 23, 2012 Steve, That seems like a good tactic with the rent credit reduction, while still keeping your assignment (consideration) in playI will offer to lower the price equal to the amount of rent credits that would be received with a L/O.You've got to protect your payday. Share this post Link to post Share on other sites
