Is it Possible to do a Senario?

Again the Realtor is left out in the cold. Who's going to put cloths on my kids?

I'm so sorry about you losing your husband. Maybe someone will find him while you're taking care of your Aunt. Would you consider selling your house for a price of $200,000? We could do a lease/option or a sale subject to your existing mortgage. We could set it up so that you would receive payments every month so you would have a set income while you are out East. As long as your husband's name is on the mortgage and you don't know when he might be located, the title work might tie up a sale indefinitely. This way you would be able to leave, and it would give you time to settle everything.

I am disappointed in YOU...for you to be such an excellent and in-tuned realtor, you have provided me insite and guidance and even quoted ut you never asked for my listing. I migt be led to think that you were not an aggressive realtor.....hmmmm

Rina you made me such a considerate offer but my husbands name is not on the house, I owned it before we married. I owe nothing on it, would you believe I bought it 15 years ago for 69,460.00 and now its worth 289K...WOW.

So anyway I think this lease option sounds interesting but what are you saying. You would ust pay me monthly installments until paid in full? Or would you be putting something down. I might consider this but to tell you the truth I said that when I went to visit my ill aunt I really did not want to come back so I would need enough money to get a place there.

Here in my area I could almost just keep the house and rent if for 1950.00 easily but I just dont want to be bother. Too many husband memories and what would be ideal is if I could get out of here in the next month.

Rina
would you like to make your offer 220K and instead of lease option I could finance it for you at 7% for 20yrs with 20K down

I like your personality. Would you believe I got another offer and this guy tried to insult me by talking about how the house was in bad condition and all that stuff. I did not like his attitude but you seem so nice.

That way I would have something to move with and still have a decent monthly income coming in to support me.

Anita, I want to be fair and give you the amount you would need to make the move feasible. I’m glad that you don’t have a payment to worry about. If you could rent it out for $1950mo that would be great. You might need to hire a property manager to watch it, though and that would be an added cost. I think they get around $100 month.. Maybe this would work. If I can lease it from you for $1900 month, with an option to buy at the end of the year for $200,000 that would give you plenty to have for a new place out East since the home values are still much lower than here. And I could probably round up enough to help with your moving expenses. What do you think?

Anita, I think that sounds very fair. I will find a way to come up with the $20K. If it's possible to lower that amount it would help, but if not, that's OK. Let me see what I can do. Should we sign a purchase agreement now? I did bring one with me just in case. lol
Well, I hope everything goes well with your Aunt. I'll be praying for both of you. I think it's great that you're stepping in to take care of her. God will bless you for it.

(P.S. Alright, you guys, keep in mind I haven't actually done an FSBO yet and I'm trying to think fast here, so I'm sure I'm missing stuff. PLEASE feel free to use this as a teaching moment. LOL)

Dear Ms Wilson,

I see that you are trying to sell you beautiful home at 123 Main St. I would like to offer my services as the Top Selling Agent in this neighborhood. My average time to sell a home is less than 40 days. In this difficult market, homes are staying on the market for over 90 days. Often times I am able, with my accurate pricing and agressive marketing to save my clients more than the price of my commission. I would like to meet with you to discuss the benifits of listing your property with me. I will also provide for you, at no cost, a Current Market Analysis of your home. Even if you don't list with me, this information will be extreamly valuable to you as a seller. Please call me at 123-456-7890 to set up an appointment.

Best Regards,
Al
Can't B Beat Realty

(Anita, I was thinking of doing this before your comment, but thought it might take away from the exercise)

To be continued, I guess.....

I have much to learn. I am loving this learning process thus far. I know I approached my offer horribly. I was trying to accomplish a, how do I put this...an assignment deal? or IEE? Something of that nature. I'm just not sure how to structure offers yet.

Who's to say the next seller wouldn't have jumped on your offer? It's all about figuring out the person. I'm practicing for tomorrow. I'm meeting with a FSBO that is a neighbor of my mom & dad, inherited the house from his parents, has had it up for sale for 6 months with a realtor and is now trying it on his own. I'm kind of nervous, BUT I'll play it by ear, I guess. This was great for me. I just hope his wife isn't lost in Mexico. haha

Rina

Omg, what have i done? lol

Ok, the point of my post was to ASK if we can have a scenario, first!, before we actully jump the gun and start making up cul-de-sac's full of houses and everybody gets lost in which house were all supposed to be putting information on the process.

Maybe we can have some sort of organized topic area where we can all focus on ONE HOUSE AT A TIME from a list of continuation names to where we can correct each other in taking ONE STEP at a time?

maybe dean him self can organize the process and itll be like playing "popcorn" when your reading a book, but for real-estate.

If no-one has played popcorn in grammar school, its when one person reads a perticular portion (a page or two of a book) and the TEACHER says "popcorn!" and chooses the next person to read the next couple of pages, and so-on.

Ps. I just saw deans new ad on tv, where he mentions anita an rina on television.
pps. IM TAKING THE HOUSE WITH THE POPPY FIELD. LOL!

I WILL BE MAKING A HOUSE AND
THESE ARE THE PEOPLE THAT I THINK SHOULD BE INVOLVED IN THE FIRST INSTALLMENT>
PLEASE REPLY IF YOU ARE UP TO THE TASK>

ME(the home owner),Rina (My agent)

VS.

Alchristmann(the Buyer), anitarny(the buyers agent)

You all will take turns starting from RINA. (hopefully in good time)

Im going to put a house up for sale,i will include everyting about the house, then rina will act as a sellers agent, and tell me what todo next.(considering that im a typical american home owner that wants to sell and dosent know where to start and goes to an agent.)

I have not seen the TV ad have you Rina.

NOW...as for the house...here are some points

1. Always meet the homeowner with a pleasant attitude

2. Be respectful but ask for a walk through before you sit down and talk

3. Make silent note (meaning write it down but dont talk about it) of any repairs that you see that may need to be made.

4. Share a little info with owner about yourself first, like why you are looking to buy. This will put them at ease with you.

5. Once sitting down to discuss, do not be aggressive, ask simple questions at first like why they are selling, comment on what a nice house they have but if repairs are needed simply ask them in a way that will not seem accusatory, like .... I noticed the back porch has some boards loose, will you fixing that or are you just selling as is? With that simply question you just found out if they were willing to make repairs or not, without offending them regarding the condition of their home. Remember these people live there, this is THEIR home and they can be easily offended if you start in on them about how much work needs to be done, so use something like the question above to ease into it. If they say yes, they will be fixing that, ask them what else will they be fixing. If you notice the shingles on the den needed to be replaced ask them, at that point will they also be fixing the roof, if not then that may be a great negotiating point. Try something like,.....well since the roof need to be repaired, how about I get an estimate on that before I give you my offer and whatever that cost is I can just deduct it, because I know you are trying to move on as soon as possible and I would hate to see you held up because of a roof repair. I actually think I may know someone that could take care of that pretty fast. Is there any thing else, that is major that needs repairing? With that question you have just shown consideration, understanding and a sincere interest in their property, but you have also just opened the door for them to tell YOU what else need fixing.

6. Always look them in the eye and just be honest. If you are buying to rent out as investment property, just tell them.

7. Whatever their reason for selling, the fact of the matter is, they have something you want, so once you find out what their reason for selling is, figure out if YOU have something they want.

8. Be creative, ask about they types of financing hey will consider. Just because it is for sale by owner does not mean they are OWNER FINANCING.

9. If you are wanting to assign it, tell them that, but phrase it to make you look good in a positive way. Most will accept your purchase offer once you explain what you do and how you do it.

10. TREAT THEM LIKE YOU WOULD WANT TO BE TREATED!!!

_______________________

The reason I accepted Rina's offer was because she hit something in me that showed she actually cared. Not only about the property but about me. Her sympathy to my situation was obvious. 8 out of 10 homeowners sell not to the person with the most money but to the one they like the best.

Thank you, I have some sort of guidelines to base myself on when coming up with creative offers. Even though I've read Dean's book and taken his TALD course, I've been over loaded with information completing them both in a month. I forget a lot. Thank you again =)

Peter, sorry about us getting a little carried away. LOL!!!
It serves us right that you have reversed our roles.

Now, I'm still game if the others are. I don't know how good of a seller's agent I will be, but I guess we'll find out. I'm just wondering, though, if we're working with a FSBO, do we need the agents' roles? Or do you just want it to play out like a traditional deal? It'll be interesting to see what you present tonight. Whatever we do, we're bound to learn SOMETHING from it.

enjoying the "game",

Rina

I enjoyed watching and participating in "the game".
I think it would be fun to do as Peter has suggested.
I think we would need to slow it down a little. I am not always available to respond immediatly. I have commitments to clients many evenings, and with my full time job, my time is limited. Let me know how you want to proceed. If you would like to use someone else, I understand.

Al

Once you're in you can never leave. Didn't you know that rule?

No, slowing down might be good. Then maybe I'd use part of the pm hours for actual SLEEP!

Rina

P.S. Anita, no I haven't seen the ad either. That would be cool.

yea rina, its a traditional deal. but im about to put in the information so everybody can go to the First scenario now.

I occured to me, that there is something lacking here. Anita gave a great summary of the deal from the sellers side. How about the buyer (investor). How is Rina going to make money on this deal? How did she calculate what she was going to offer? Did she have multiple exit strategies? How is she going to finance this deal (down payment). SHOW US THE MONEY!!!

Good question, Al.
I started to ask this toward the beginning of the thread. I figured with my offer of $200K, it would put me in the right range to assign the contract to an end buyer. I was kind of waiting for more conversation to play out with the owner (obviously in real life you would have more than just a couple exchanges of dialogue. And LOTS more personal stuff. lol). I was hoping she might agree to a little bit less down after we would talk for awhile, but in real life for me the deals that I've found that I can't pass up I have just decided that I WILL make them work. (That's what I tell my realtor, too.) So, if in the momentum of the discussion, I could get a contract signed, where I had to come up with $20K I would just FIND the $20K (business loan, hard/private money, bank, heck, credit card for that amount) And remember, she's going to finance the rest. If I couldn't get that great of a deal I wouldn't be in a rush. I guess assigning this deal would be the best strategy. BUT if I didn't have a buyer's list or HAD to go with the lease option to make the numbers work, I could probably eek out enough rent (assuming Anita's rent comps are accurate)to hold it until I could find a buyer. And, of course, adjust as I go if other opportunities came up.

The thing I worry about in this market is what if you are getting a great deal, say 60% of value and then the market drops significantly. I would sure hope not everyone would walk away from a property just because they end up upside-down in their mortgage. The FSBO I looked at yesterday is such a case. It's a house that was inherited from the parents, free and clear. Then 2 years ago the guy took out an "investment" loan against it to put down on a new house. Now BOTH places are only valued at about 1/2 of what they were worth and he's making way bigger payments than the rent can support. So he wants badly to get out, but by selling he'll never get what he needs. (I would try a short sale, but after looking at the property, it's not something I would want)

Well, I'm rambling. What else were you looking for, AL? Did that kind of cover it?

I'm gonna go over to the other thread now.

Rina

Rina, I was concerned that we were giving new investors the wrong message, or maybe the incorrect approach. Until you have decided on an an exit stratigy, and crunched some numbers to determine offer amount and profit potential, You probably should not make an offer. We jumped over that part, and I believe it is the most important.

Thanks for your input, Al