A buyer contacted me by email the other day and we talked yesterday on the phone. From what she told me her husband has a good job and they have very little debt and no major credit problems. In fact, from what she told me I'd imagine that she can get financed conventionally right now, but she doesn't seem to think so.

At any rate, they want a house in a particular neighborhood. It just so happens that I spoke to a seller from there just a few weeks ago in my cold calling. I didn't present the LO concept to her at the time because, well, because I was scared out of my wits, to be perfectly honest As it turns out, the offer she was so sure was going to go through ... fell through instead, and she's since listed with an agent.

I figure I can go direct to the seller since I spoke to her before the agent got in there. And I'd like to talk to her about doing a CA, and point out that I already have someone who might be interested. But I'm not quite sure how to put it when I have her on the phone? I read Michael's script in the manual, but it's geared more toward sandwiches than CAs.

The house is quite nice from what the seller told me, and the neighborhood I already know is very good, so if that buyer doesn't go for it, I'm positive I can get 10 more in no time.

Your suggestions are appreciated!

Doug, the transition from a sandwich lease approach to a CA is a simple and smooth one, usually.
After explaining to the homeowner that you "need" their property due to your having more t/b's than properties to offer them, make a "suggestion":

"Mr. Homeowner, I wonder if we could work together on this and find a solution that benefits you? What if I could find you a tenant/buyer subject to your approval who agrees to pay you an above market price, and who will be responsible for all maintenance and repairs during the agreement?
What if you can sell your property without paying Realtor fees and without paying closing costs? And what if I can do all this for you in weeks instead of many months like a Realtor might require? And all of this at absolutely no cost to you if your property doesn't sell. Is this something we can work on together?"

I think this will get the attention of the average bear. At least, it does for me typically. From there, the conversation will typically flow and you will be surprised how routine it all seems, even if it is only the second or third try at it. Be sure to follow up with The Lease Purchase Advantage doc as a follow up reinforcement. You'll do fine.

Have they signed a listing with an agent? If so, you might expect agent to demand their commission.



David Garcia

David, the agent can demand all they like, I came in contact with the seller before the agent was in the picture. The seller can probably cancel, or they can wait until it expires, or the listing might even allow them to sell privately.

Michael,

I am a little confused on one very minor point in the above paragraph. You state that our services are provided to the homeowner at no cost, if the property does not sell.

It may just be semantics, but what costs does a homeowner incur if we sell the property?

I thought that we are usually promoting a no cost solution to the seller regardless of the outcome of our hard work. Is this statement relevant only to a CA? Are you considering the assignment fee a cost to the customer? I thought our sell price is typically equal to what the seller wants plus the assignment fee and thus no cost to the homeowner.

Gene

With a Cooperative Assignment, if the t/b exercises their option, then the option money they put down applies to the purchase. Right?
So.....we kept all of or some portion of that option money. Thus, when the property is purchased, at that point, our service is costing the seller.
On the other hand, no exercise of option, no "cost" to the homeowner.