OfflineFellow DGer's,
I've scheduled my first appointment with a very motivated seller on Sunday afternoon 6/13/10 to talk about either buying or lease optioning his home. I'm very excited but nervous that I may come off as a rookie(I am) may kill the deal. Its a very nice home in somewhat of a higher income neighborhood. He needs to sell so that he can move out of state(found this out through forsalebyowner.com). He's open to my ideas but is very skeptical.
So far I've told him that I may be able to assist in a smooth transfer to his new area of residence by removing the burden of worrying about his existing home. I told him that I may be able to either purchase his home or cover the payments on the home until the home sells, however long that may be. All of this has been done through email. Well, he's very curious as to how I can help him out.
Does anyone have any advice on the verbage I should use when he asks exactly how am I going to cover his payments every month until his home sells? I mean I don't wanna tell him I'm gonna rent it out(lease option) to someone else because he may not like the idea of someone he doesnt know living in his home while he's living out of the state. I wanna be able to give him an answer that will allow him to gain confidence in me but not totally give it all away.
Also, is it better to attempt to agree to purchase home "subject to" or lease option. Which strategy works better and/or does it even matter as long as you get the house under contract? Does someone have a copy of a lease/option agreement that has been filled out before in a previous deal that I may look at so I'm familiar with it.
I want to come across as a knowledgeable, professional REI who has his stuff together instead of someone who is trying to put together his first deal if ya know what I mean!! I need some answers soon so please someone hook me up with some good info.
Be blessed,
Steven
This guy also doesn't have a lot of equity i don't think. He probably owes very close to what the home is worth right now so an assignment is out of question I think. Just FYI
Also, how might I be able to convince him to put no money down(earnest money) to get the contract signed or does it matter since I may have some exit clauses in there?
Anybody out there lol?!?
Ask others here(RINA?JAN?)but the more honest you can be I thinks seams to be the way to go besides he needs to know what you are going to do it sooner or later anyway.You need to gain his trust in you so be sincere & get it done!
I'm working on my first deal & it feels GREAT!!
i would suggest being honest but also have all your questions lined up so that you can find out all you need to know about the property to see if you can create a win/win.
How long have you attempted to sell....
What are you looking at getting...
What kind of equity do you have in the place...
Just suggest start by saying that you will need to ask him a whole lot of questions to determine if there really is a fit and see if he is OK with you asking him a bunch of questions...he will likely say sure...then start asking your list of questions.
Then take the information and go home and digest and work out a plan!....
Good luck!
Luck is when Preparation crosses paths with Opportunity!
Thanks fellas!! I see where you guys are coming from and its an approach that I will be using. Hope ya'll are never letting up on achieving your goals!!
Any other advice on some other questions in this post would be most appreciated from the DG family!
1st check you county's website(pa & clerk) to see what he paid, how much mortgage, taxes etc. If there's no equity, don't focus on a purchase right now. Steer to a lease option, you can use a regular lease & just put other related info in the addendum(term/ purchase amount/ any rental credit etc.) Be direct & emphasize that you are getting him out from under his payments NOW !!! This way you don't have to worry about a down payment, if your doing a sandwich lease, your leasee will give you the money(with a little extra for your pocket) & cover the payments( & some for you).