Realtor Says Owner May Consider Lease Option

[<Steve> 82]

I have been in deals with agents, not by choice, and have worked it out that the seller pays them at close, not me.

[baron14 1]

Hi...I would prefer to work directly with FSBO & FRBO from Craigslist, etc. but like I said I've had no success finding any leads so I tried contacting listing agents for houses about to expire to see if there is any interest in doing lease option terms.

 

Someone told me that if you get a L/O contract with a Seller of a listed property, then most Agents expect at lease 1/2 of first month's rent or one full first month's rent upfront and then they get the balance of their commission from the Seller when the house sells.

[MichaelC 160]

Hi...I would prefer to work directly with FSBO & FRBO from Craigslist, etc. but like I said I've had no success finding any leads so I tried contacting listing agents for houses about to expire to see if there is any interest in doing lease option terms.

You'll have more success dealing direct with the homeowner. Then the homeowner can speak with his Agent and save you that aggravation.

 

Someone told me that if you get a L/O contract with a Seller of a listed property, then most Agents expect at lease 1/2 of first month's rent or one full first month's rent upfront and then they get the balance of their commission from the Seller when the house sells.

That may or may not apply. Each deal is different. Generally, the homeowner is responsible for any payment to the Agent, not you.

[<Steve> 82]

Baron-

 

My market is so bad there are no buyers and there is no new inventory coming on the market. “They” are saying that this year new inventory for this spring is 17% less than last year. And last year was shit. Real estate agents are left sitting in their office with their feet on their desk. For me Craigslist is nothing more than the local-yokel investors flipping run down houses built in the 1920s. You know things are bad when it makes your day to find a pretty house just to be able to send an email to. So I hear your pain with FSBOs & FRBOs.

 

When I first heard, back when, that John Jackson was marketing to sellers with listed properties I said, What? This guy is crazy! But obviously it works, especially if you are focusing on expired listings; I would think the seller would be more motivated. Oh, and Jackson he’s still crazy.

 

Anyway, I have to do triple time with my marketing these days. It’s like when mom would give me the cake mixing bowl and I would scrape the bottom for a taste of whatever was left. Did anyone else do that? Unfortunately, I don’t see things changing soon with the political climate we are in and the demonizing of businesses making a profit, resulting in a crap economy. So, we are in for an even longer haul. Or, until the majority come to their senses. You get what you vote for.

 

So I market to sellers where I can find them and nothing is sacred. One marketing technique isn’t going to get the job done. Many times I will find listed properties on FSBO sites. You can obtain email address, phone numbers, the seller’s real mailing address and any other info. With that send multiple mailings and email them. Use all the marketing techniques available. I have found that there are pockets of several houses for sale in a specific neighborhood that make a good place to put a few bandit signs. Hitting the same sellers with more than one marketing technique brings in some calls and I am able to plant a seed, so when the seller is motivated enough I am ready to make a deal.

[MichaelC 160]

Excellent post and advice, Steve. Thanks for sharing your experiences from the front lines.

[wildwestinvest! 19]

Forget dealing with agents. They are a world of their own. As with a rock in a river, the water pauses for a moment before it builds up enough power to go over and around the rock.

 

On the topic of less listings, etc. We can't be focused on Realtor's and their situation. We have to realize Realtors are the problem. When Steve mentioned disinterest in business, the most well known business to real estate is Realtors®. We need to position ourselves against Realtors. I maximarket hard and I have a very specific image that has been building a lot of energy this year: solutions (old idea), fast (old idea), and definitely NOT agents. The response I'm getting from telling people I want to buy their house directly from them and I'm NOT an agent is fascinating. It as if, the world is crying out that they need solutions. Did you know, that something like 25% of people between the ages of 25 and 35 move every year?

 

Every single day a pile of people suddenly need to move. Attract them with your expertise, convenience, and friendliness. Control their property.

[baron14 1]

Hi Wildwestinvest!

 

Yes, I would prefer to deal directly with the homeowner but I've had no success with FSBOs & FRBOs. In this area the sellers want CASH and and the landlords want to be landlords and are not interested in doing a lease purchase since the market is stable here.

 

So how are you getting leads in your area?

 

I'm looking now to work at doing CAs remotely in some areas that are more receptive to the LO concept.

[wildwestinvest! 19]

I try really hard and I don't give up.

 

Im big on branding and positioning.

 

It sounds like you are strictly minimarketing. maximarket for 6 months straight with a good ad and the phone will start ringing. you must be commited. you must be commited.

[randian 0]

It sounds like you are strictly minimarketing. maximarket for 6 months straight with a good ad and the phone will start ringing. you must be commited. you must be commited.

What do you mean by "minimarket" and "maxi market"?