ads

[Elihu 0]

Michael how does this sound for attracting lo or ca deals

"I BUY PROPERTIES FOR FULL ASKING PRICE IF YOUR FLEXIBLE ON THE TERMS"

I AM GOING TO RUN THIS AD IN THE PAPER AN SEE WHAT TYPE OF RESPNSE I CAN GET

[Guest steve55121]

Personally I would just make it say "I BUY HOUSES, We Take over payments" xxx-xxx-xxx 24 hour message. The shorter the ad the better. Let your voice mail system filter people out with your recorded message.

 

-Steve

[Elihu 0]

Thanks for responding to my post Steve,i understand what you are saying but so many investors are having the same thing on their slogan,buy showing a potential client that i will buy their house for full asking price,they may be more iclined to call me, because i may be providing a service that is viable to them,what does every homeowner want full asking price for their property.If they call the other ads in the paper its all about how i can get your property for less than what your asking for,so there is a strong possibility that they will separate the two and go with the one that caters more to what they are looking for.Just a thought

[MichaelC 160]

Elihu, that ad you are considering running is an oldie, but a goodie. What might work for someone in their area, may get different results for you. I say try it and see the results for yourself.

As with all marketing, it is imperative to keep careful records so you know what is working and what isn't. Within a few short months you will have a finely honed and cost efficient marketing campaign in full operation.

[Guest steve55121]

This is true... in my area I cant buy a house for full market value and offer fair market rent. I would like 300 above the comps for rent. You seeing the ads might be different. I would hope someone would only have a financial problem once and not have to become fermiluar with the ads. If you say 24 hour message thats a non intrusive way for them to get information before being commited to leaving a telephone number or asking questions they might not want to answer. But I guess it call comes down to motivation.

 

"I BUY HOUSES FULL ASKING PRICE 555-555-5555"

 

 

-Steve

[Guest Guest]

when you buy a property on lo you are going to give them what they are asking for on the propertry and probably more if the numbers work right am i wrong?

[Guest Rat_Race_Hater(ImAnEagle)]

Howdy,

 

You give them full asking price if the numbers work for you on that particular deal. In my opinion...Ill give full asking price as long as I can make a decent spread or profit from the entire deal, otherwise I still try to negotiate down a bit just because its good practice and if they are motivated sellers then price isnt as important as them finding a solution to their problem home.

 

On the ad situation, in my humble opinion...do what ever costs the least and grants the most effectiveness. You gotta try different things sometimes when your dealing with a paper that has multiple investors posting in it.In my town, there are like 4 different "I buy houses" ads in the paper all the time too. I dont even plan on messing with the paper until Ive tried just using the plastic corugated signs. I see the ads alot but NOT the signs. Thats what I think will work for me here but only testing will tell in your area.

[-Tony- 0]

Try explaining it like this

 

MR. Owner there are many rea out there that could sell your house but let me show you some thing

 

1. rea = 6%

 

2. houses rarely sell for the asking price usually 5-10% less, will go conservative and say 5%

 

3. maint. and holding 6% (conservative) houses usually take 5-7 month to sell with a rea. Do they make your mtg payment during this time???? I will

 

4. closing cost 4%

 

So if we add all this up it equals 21%, so on your 100k house you may only see 79k, BUT if we were to do biz together and say split the cost 50/50 and you except my offer of 90k we will both benefit from this. See when I offer 90k that is what you get at closing less the balance of the mtg of course. You see I have Many people BLAH, BLAH, BLAH no cost to you BLAH, BLAH, BLAH I don't get paid til it sells BLAH, BLAH, BLAH. Mr. Owner can you afford for me not to buy your house?????

 

Unlike rea who list 100's of house, I only buy a limited number of house per month and put all my energy into those houses....

 

Mr. owner what will you do with your house if I don't buy it??? pause listen

[Mark in St. Louis 0]

Tony,

 

Where do you live. I wish I could use numbers like that when talking to sellers to justify a lower price point. My numbers are considerably different here:

 

1. rea = 6%

That is about right for here.

 

2. houses rarely sell for the asking price usually 5-10% less, will go conservative and say 5%

Here it is more like 3%.

 

3. maint. and holding 6% (conservative) houses usually take 5-7 month to sell with a rea. Do they make your mtg payment during this time???? I will

Here is is more like 3 months max, but the average is around 45 days. So here, only about 3% max.

 

4. closing cost 4%

This is where st. Louis is quite a bit different than most cities. The seller rarely has much in the way of closing costs. Typically around .75% at the most.

 

So if we add all this up it equals 21%, so on your 100k house you may only see 79k,

To adjust for St. Louis, were are talking more like 12% - 13% vs. your 21%. So, on a $100K home they would net about $88K.

 

Based on that, where do you think I should be on my initial offer price? I'm thinking around $95K. Problem I'm finding is that offering a 50% rent credit becomes very hard under these conditions.

[MichaelC 160]

So, on a $100K home they would net about $88K.

Based on that, where do you think I should be on my initial offer price? I'm thinking around $95K.

Mark, if they would net $88K, why would you offer more to start? You can always work your way higher if need be. I'd offer $80K because I'm there today, ready to deal now.

The other thing we need to remember is that a big discount in the price isn't necessary to make a lease purchase work. If you pay full price, get a long term deal. Say you pay $95K today for a house that is worth $100K. If you also get with that 36 months or longer, it becomes a good deal to assign. It isn't too difficult to make a tenant/buyer realize the value of locking in today's price for the next three years. Appreciation kicks in over that time and these folks have quite a deal on their hands. There's value in time, and someone will be willing to pay you several thousand for that contract.

My point is don't get too hung up on price. We all want those brags deals with a $40K spread. And they come along every so often. In the meantime be open to all the possiblities that a deal can offer you and the different ways we can exit and profit.

[-Tony- 0]

Mark,

 

everything that MC said but, the offer would also depend on if they called me and there motivation......

 

Okay lets start with discount ruffly 5% but high dollar houses 10% or more (I never said her/his house)

 

hold time high dollar 9-12 month or more but nice homes hmm 1-11 days house in good older neighborhoods 1-5 month

 

closing cost Do they know that (I am tight)

 

Make the numbers work for you. Be creative that is what we get paid for....

 

Sure you know a guy that can clean the carpets and make them look new, but to the seller you may say at that price where you going to replace the carpet.

 

Make them think about everything (DO NOT FLOOD THEM THOUGH). Look at the roof and say WOW how old is that roof and if it is newer say I didn't think it looked as old as the house, did it leak before it was replaced?

 

best of luck