OfflineThe good part is I have 5 buyers lined up wanting Lease to Purchase properties. The Problem is that I'm having trouble finding sellers who want to sell like this. I talked with a seller yesterday who has a beautiful home for sale that meets the criteria of one of my buyers. I asked her if she would be willing to do a lease with option to purchase and she said she didn't think so. She said they wanted a large down payment too. The house is listed at $295,000 and she said it appraised for more but she wouldn't tell me how much. What's up with that????? Anyway, it is listed as much less on zillow and totalview. How do you convince sellers to do a lease option? I told her that people who lease with option will take better care of a property than a normal tenant because they feel it is already their own, but she wasn't convinced. I need some suggestions from someone who has done this before.
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
Finding sellers is always the hardest part of L/Os. Sellers first choice is always they just want to sell their house and move on.
Unfortunately, every seller is not going to be a L/O candidate. The number one criteria in finding a seller for this strategy is "motivated". They have to have a sense of urgency. Struggling to make the payment, transferred to another city or state, bought another house figuring this one would be sold by now and so they have two mortgages, etc.
A L/O seller is VERY MUCH needing or wanting to get rid of their particular problem and needs to see that this is the "best choice" of the solutions that they don't really want to do.
This seller sounds like she is not motivated enough yet. You have planted the seed, make sure she knows how to reach you and ck back with her in a month or so if her house hasn't sold.
Sometimes L/O is something they aren't familiar with either but they don't want to "sound dumb" and ask what it is. Maybe she will research a little and be more receptive at a later date.
If not, "Next!" Good for you for getting out there.
Karen
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Thank you. I knew you would have the answer!!
She didn't sound motivated but she did say they are already in another house. That's why I couldn't understand her statement. She kept saying her husband wanted to get it sold and behind them. So, yes I will contact her again in a month if it hasn't sold.... next!
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
The fact is most sellers want to cash out and be done with their property. Like Karen said, they have to be motivated. But even alot of motivated sellers will not entertain a lease option because they just want to be detached from the property.
My suggestion is go after Rental properties. There are several people trying to get their properties rented simply because they couldn't sell it. These are your prime candidates for a lease option. They want their property sold, but at the same time they're willing to rent it.
So just call up some rentals, be real friendly, ask a little about the property, and then pop the question..."Is there any chance you might consider selling it? Maybe on a lease option?" And my guess is every 7 or 8 calls you'll come across someone who'll say, "Absolutely, we wanted to sell it in the first place but it just didn't sell."
Hope this helps..I've had some success with it
Jordan
"You gain strength, courage, and confidence by every experience in which you stop and look fear in the face. Do the things you think you cannot do. Tough times never last, but tough people do"
That's a great idea... I'll be calling some rentals tomorrow!!!
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
Shirley,
as Karen says, your seller is not very motivated, "yet" (key word); keep your sellers information for a couple of months; if the property is still on the market then, the seller will be motivated.
Also, look for properties that have been on the market for a while, or ask your realtor to pull expired listings in your area-check to see which properties have not sold yet-motivated seller!
wishing you success,
Valerie
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
I'm going to do just that, but I'm glad you mentioned getting my realtor to pull expired listings. The reason being when I asked my realtor, he said he couldn't pull expired lisitngs. ?? Another concern I have is why would a realtor pull expired listings if they are expired? Do you just give them a fee for getting the listing for you if it closes? Thanks for posting.
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
Sorry, I should have said why would a realtor "want" to pull expired listings.
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
My realtor sends me new expired listings every week. We worked it out so if I get a property on a lease otion, I would pay her 1 months rent as the commission. It's all negotiable.
Jordan
"You gain strength, courage, and confidence by every experience in which you stop and look fear in the face. Do the things you think you cannot do. Tough times never last, but tough people do"
I should say her commission is equivalent to one months rent. She doesn't actually get to keep one month worth of rent. lol
Just to clarify
"You gain strength, courage, and confidence by every experience in which you stop and look fear in the face. Do the things you think you cannot do. Tough times never last, but tough people do"
What if it closes as an outright purchase? Do you just pay them a percentage based on the purchases price?
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
Yes... I think the best thing to do is pre-establish with your realtor what his commission will be if you close on an expired listing. Since those properties aren't active on the MLS anymore, I don't think a realtor would expect full commission unless you're having them do all the leg work. But then again, I'm not a realtor. But I would think a realtor would be happy to get anything from a property that is no longer listed.
"You gain strength, courage, and confidence by every experience in which you stop and look fear in the face. Do the things you think you cannot do. Tough times never last, but tough people do"
The good news is the seller's contact information is still in the MLS even though the listing expired. So you don't have to rely on sending a letter or a post card.
Just have your realtor contact the sellers (because the realtor can't give you their contact info) and ask if they're still interested in selling their property.
Hope that helps
jordan
"You gain strength, courage, and confidence by every experience in which you stop and look fear in the face. Do the things you think you cannot do. Tough times never last, but tough people do"
Shirley . Did you point out to the lady that these people (your clients) DO want to purchase it in a very short period of time ? With emphasis on purchase! And explain the way a Lease Purchase is different from other Lease types. Plus with a large down payment the odds of them not buying is very slim! Do things in "baby steps" so she understands / understood . It sounded like she didn't.
Michael Radtke
www.nationalpropertyscout.com
Slide Show:
www.nationalpropertyscout.com/Slide-Show.html
Maybe I should have quickly told my realtor that there would be something in it for him before he answered me.
I'm going to find a new realtor anyway. He just seems too busy being busy if you know what I mean.
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
She is in disbelief of the market prices. And is looking at it with a sentimental point of view. From what you've said she really isn't done with the place. Find that sentimental point and settle it, get her to have closure. Rapport first. Then work on the price. Not the other way around.
Michael Radtke
www.nationalpropertyscout.com
Slide Show:
www.nationalpropertyscout.com/Slide-Show.html
No, I didn't say those words to her exactly, but I'll keep that in mind next time. Yes, she is in disbelief but there are other properties close by that are very much more expensive. I have not run a list of comps yet, but it is in and near a very well established historical district and desired location. Also they have put a lot of money into it. The inground pool was reconstructed 6 years ago and a new roof was added in 2010 and kitchen updated with granite countertops. It has a burglar alarm system, hardwood floors and an irrigation system. So they are trying to get all they can. I won't argue with the price, that's for sure. I even told her that she would get the full purchase price with a lease option. But you're right, there has to be another reason they won't do a lease purchase other than they're afraid it'll get trashed and then someone would move out in a year and they would have to renovate it again. That's just not a justifiable reason in my opinion.
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
called me back yesterday. He asked me if I was a real estate agent. I told him no, that I was a REI. I had already told him that the first time I talked with him but he wanted to be sure before he asked me a question. He said didn't you tell me you would help me sell my house when I'm ready?... I said yes. Yaaaah... another lead... He is doing some improvements on his house now and will let me know when he is ready. In the meantime I'm keeping my eyes open for a bigger house that will be owner financed or L/O.
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.