Lease Purchase Query

It's tough to do a lease purchase with an agent involved because they feel there is nothing in it for them. Better route would be to look for motivated sellers with little to no equity, pre-foreclosure type....save their credit solve their problem scenario. Realtors don't get involved because there is no money to pay their commission, plus the seller doesn't have any cash to bring to closing anyway. These owners would be more open to a lease/option. The only upside for a realtor would be to negotiate for the commission when the tenant/buyer exercises the option, but most realtors don't like to wait that long or aren't that bright. If the seller is behind in payments quite a bit, you can tell the seller you have all the forms and can walk them through the process as a consultant for a reduced fee. They can use the option money to bring the payments current and pay you your consulting fee. You don't make as much but you can help them out and move on to the next deal. Once they tell others how you helped them out, maybe you'll get some word of mouth deals falling out of the sky coming your way. Just my take, I may be wrong.

I understand about the agent feeling left out. It seems I might have to negotiate with the agent and the sellers going this route. And the results might not be in my favor...
My other strategy to consider was to have my buyers pick out specific neighborhoods they would consider living and market directly to homes in those areas. Since this is more of a 'country' community, I can put bandit signs at the end of their road (since there is only one way in and out). Maybe I can find motivated sellers with this approach. I could even try to set up a sandwich L/O if the situation warrants...

Travis,

instead of getting your leads from the MLS, get expired listings from a realtor; the sellers will be more motivated since they weren't able to sell their property...

Also look at 'for sale by owners' listings; put them aside for several weeks; then call the owners and find out if their property are still availble... owner may now consider a lease option...

Good job thinking outside the box!

Wishing you success,

Valerie

Good thinking! When I call my agent tomorrow, I'll ask if he can dig some up for me. Is there a good source to find 'For Sale By Owner' listings? All I know of is www.fsbo.com, craigslist, and old-fashioned farming. I'm learning that retail buyers can be pretty particular, so I have to make sure I can find homes that appeal to their needs...

Thanks for all the help!

Don't let them be too particular; they may be retail, but obviously they cannot get a loan with a bank for a reason... so find great deals for you, and good deals for them!

Check out the Sunday paper-real estate section-you will be amazed by how many people still use this venue to advertise their properties...

Stay motivated and you will succeed,

Valerie