Well, I have spent the past 2 and a half hours preparing for the 'group showing' tomorrow on my house (shown here on this webpage). I have read and re-read Michael's manual trying to get my nerves to calm down. Why I am so nervous - I don't know. Maybe it's because I have not had the opportunity to handle THIS side of the business until now.

I have 6 people coming between 4:30pm and 5:30pm. Hopefully an aire of competition will pop up. I'll post how it went afterwards.

Wish me luck!


Thanks again, Michael, for such a wondeful guide!!!!!!!!

Troy,



No we want to know now....

good luck

Now, now, Tony...

You KNOW that I can not see into the future!

I wish I could... then I could see what I look like in a Lamborghini Diablo!!!!

Troy nice diary have to go and read it when I get some time.

MichaelR

Thanks - I am trying to keep it up. I've been sooooo busy!

Well, about the 'Showing':

3 showed up, 1 made an application and $500 deposit (for a $4k Option fee), 3 did not show at all. THEN the one couple that made the deposit, later called an left a message saying that they were approved BY ANOTHER person with a Rent 2 Own home and they were backing out. Ain't that a kick in the a$$. Oh well, another showing will be scheduled.

I learned alot from this though, so all is not lost. I must say the wife and I had a ball today. In the beginning it was kinda rough... I pulled carpet from three rooms (the carpet was so shot). We got down to the hardwood floors and cleaned them (they showed very well). The rest of the house we cleaned as well - top to bottom in 3 hours. I don't think I want to do that again... The former owner will have to get it completely cleaned out before I will (ever again).

I had just finished the bath when the first TBer showed up. It was the couple that put down the ca$h. It was neat to see them talk themselves into wanting the house. He wanted to do this and that with the landscaping. She wanted to paint and work on the house. I had to say nothing - just listen. And it came to a point where they said - 'We want it.' Too bad they backed out two hours later.

So, you had a total of three showings and three no shows? That's pretty much the norm. You're going to find that there are a high number of no shows in this biz. In an effort to cut down on them, always confirm your appointments before leaving your house. And I tell the folks I must hear from them before I leave or I won't be at the property. Cuts down greatly on the inconsiderate dolts who don't think twice about wasting your time. And, of course, just as you are doing, scheduling multiple showings in blocks is an efficient time saver, too. And, it creates a sense of urgency for serious buyers who find themselves in a property with three other couples.
Too bad about this first couple that backed out. Still, I'd say you got off to a fast start with this one. Are the calls still coming in fast and furious?

Yeah it was fast and now it's dropped off - 6 calls today with no messages left on the machine, so I guess they are not serious.

I want to advertise in the paper again but it's expensive - maybe flyers?

Troy I had my second class with my mentor. What she told me is once she takes the deposit then she takes the house off the market, and does not accept anymore depostits from tenant buyers, and the only way that they can get there money back is if there credit is bad, and not because they wanted to back out of the deal.

MichaelR

Six calls in a day isn't too shabby, either. Granted, messages were not left. Some folks just have an aversion to leaving their phone number all around. Others may just be tire kickers and did you a favor by letting you know upfront they aren't serious. Those who are will call back.
In the meantime, diversification and aggressiveness are the rules to apply when marketing the property. Agreed, newspaper ads can be costly. I know you have a sign on the property. Does that sign also have one of those information tubes hanging from it? You know, the tube where you can put in flyers which describe the property and the deal? You might want to try that, Troy.
Flyers around the area are a very effective means of moving the property, too. Try posting them in local apartment complexes. Many renters want out. You might be able to provide them with that.
Are there any large employers in the area? Perhaps there is an employee lounge you can post a flyer, or a company relocation office you can call.
Additional signs around the neighborhood might also prove beneficial.
Last, but not least, word of mouth. Tell everyone and anyone about the great deal you have. Somebody knows someone who needs to move. Do you know any local mortgage brokers? They usually have a list of applicants who cannot qualify presently. A Rent to Own fits their needs. You get a tenant/buyer today. The mortgage broker gets to write a loan in a year. Win/Win. Same approach with any Realtors you may know. They toss you a lead of someone who can't buy today. Along the way, you tip them off to homeowners who you can't help and who really need to speak with a Realtor. They get the listing. Again, Win/Win.
Another idea was posted here, by member Option8.

moneynfast, that $500 had to be returned. The law varies from state to state, of course. Generally, the owner or landlord is required to return the deposit minus any expenses or damages that said owner or landlord incurred as a result of the tenant changing their mind. With a two hour time period, I'd think the expenses and damages would be difficult to prove. My advice would be to return the money and move on to someone who wants to be there.

I am making flyers tonight to post in the area tomorrow. Actually, I have been working on the house for the past two days. I have put out about $80 on cleaning supplies and a little paint - just to touch up marks on the walls - and a new toilet seat (the other was shot). Then I realized I may want to back off some - too much time, energy, and cash put in for this - and leave something for the TB to do. I am unsure... when is too much just too much? Am I going overboard?

I am advertising a Open House on Saturday from 10 to 12 noon on our website, answering service, and flyers. The reason I am doing this is I've had many people just show up while I was there working on the house - so why not be a little more prepared and schedule one where anyone can come in?

Troy, each deal is different, of course, and so is my possible approach. There are times when I will take over the property knowing full well it is going to require my getting physical doing various cosmetic level repairs and clean up.
My preference, though, is to try and do nothing. Kind of like my teen age daughter....
I prefer to leave clean up, cosmetics, etc to my tenant/buyer for a few reasons. First, our time is valuable and better spent elsewhere. Finding another deal, perhaps.
I want the tenant/buyers to have an emotional attachment to the property, if possible. If they come in and paint, change some window coverings, replace/clean some carpeting, etc., they begin to "bond" with the property. This just may make them more likely to take better care of it and purchase it down the road. I want them to think like homeowners, not renters.
Another thing is personal tastes. My usually exquisite tastes may be different from those of my tenant/buyer. So, if I go out and paint and customize according to my preferences I may be losing a prospective tenant/buyer who thinks my decorating ideas are hideous.
Also, keep in mind we don't own the property. As such, I don't want to put a dime into it if I don't need to.
You know by now I tout the advantages of giving generous rent credits. I politely but loudly trumpet these rent credits to all my prospects. When I hear, "Gee, Mike, will you be doing something about the carpet in the master bedroom? It's kind of shabby."
"I noticed it is a bit rough. That's why I'm giving 50% rent credit to you. Replacing the carpet in the bedroom will run you about $500. The rent credits total $5,000. I figure the tradeoff is very advantageous for you. Don't you agree?"
Usually works like a charm.
Finally, I keep an open mind to what I'm hearing. If I'm having trouble moving a property that I think should be moving quickly, I reassess the deal. Am I hearing feedback from prospects about the appearance? If so, I'm not opposed to getting in and doing the necessary clean up to make the property more appealing and marketable.