Marketing For Lease Option Sellers

Michael; The trouble with trying to do a sandwich lease option with motivated sellers is that most of them need whatever equity they have to get into the next place and are not willing to wait 5-7 years till the tenant buyer can qualify for there own loan. This is the problem I have had.

Andrew

hi everyone

I have to agree with Michael that the property is underwater, and especially if they're behind on their payments. More than two months is impossible do a lease option. Problem with sandwich lease options. Most motivated sellers that have found do not have enough equity in the property or do not want to share any equity. With this said, I prefer wholesale lease options, also known as the cooperative lease option. With wholesale lease options. I basically have no risk at all, no money out-of-pocket basically stay in the middle just to put the two groups together, the seller and the tenant buyer. I clicked my option fee from the tenant buyer and I could be considered done, but I like to stay involved fix there credit and ultimately by the house that's the whole goal.I find most amazing motivated sellers use craigslist for rent it . I find for any it of the best because the motivated sellers are accepted renting for the past interjection that you normally have to get over with for sale ad next week or so I'll be working with marketing ideas that I have not tried yellow letters to explore expired listings is one, working with realtors to find motivated sellers. As an example if the realtor has a listing that says to them, if I can't sell my house. I may have to rent it, that's when it's time to call me. I will give the realtor 1% commission .out of my option fee, and they will receive their full commission 12 to 18 months. When the house closes. That's one idea. Another idea to find tenant buyers. Through mortgage brokers if they have somebody that they cannot get a mortgage today, but possibly in 12 to 18 months. When there credits is repaired. That's when my services, come in to play,I haven't decided if I will give referral fee to the mortgage broker. At that time I haven't worked that out yet anybody has any other ideas please let me know or if you have a better twist on my ideas.

thanks, Reuben

when I am doing cold calling. I don't spend more you 5 min. on the phone on each phone call, unless I'm going in the direction of closing a deal. It did not motivated I go next. If they sound interested on the phone. I will always be upfront with them and tell them that I am an investor as you do this by saying that me and my mortgage broker have somebody right now who's on the verge of getting a mortgage. They need a few months to do so.That clears the air as far as me being an investor,sometimes they have ejections about me keeping me option fee. Sometimes I will share a little bit of it, but will usually what I say first is missed, the seller if I give you full asking price. All the rent check goes directly to you. Unit day-to-day maintenance is being done by the new tenant buyer. What more could you want or why can't we do business today. That usually works for me on the phone. Hope this helps

Thanks, Reuben

Andrew,
Yep, most people with equity or no equity that are CURRENT on their mortgage ( the ideal lease/option person) want to cash out for sure. They are NOT motivated. On to the next lead quick and simple, leave them your info and let them know they can call anytime if things change for them. You can even ask them if they would like you to make a follow up call in a couple of weeks. Just like any RE acquisition strategy you will get 25 to 30 no thank yous for every yes I am interested.

Also, I screen my buyers, if they can't qualify in 24 months (12 hopefully) I don't use them! There are plenty of tenant/buyers that can buy within 24 months. All of this applies to my area, small towns with cheap houses may be a better type of location to work for working pre foreclosures. However, there are people in foreclosure that have a ton of equity, they just can't have a high cure amount due for this to work.

Which do you think you have a better chance of doing a deal that you can make money at the start, in the middle and at the end with?
A seller in foreclosure that is upside down and has multiple back payments due or a person current on their payments and 0 to good equity that needs to sell in a hurry or their house is not selling?

1. Determine if the seller is MOTIVATED and the numbers work for you.

Good luck!
Michael Mangham
MD Home Acquisitions

Michael; I will try your strategy. By the way, have you ever considered those with poor credit as tenant buyers (considering they have the necessary down-payment and monthly's)? You help them into a credit repair agency & they build their credit up while they are leasing. I know another student, this has worked for. Of course you would try to place those with the best credit history first.

Andrew

Hi everyone, the biggest problem I have always had was finding the right property for the buyer. I get all kinds of people saying what their criteria is to buy but a lot of people that says they have properties for sale doesn't have the right kind of property for the buyer. Am I daft, or am I going about this the wrong way? A lot of people don't want to work with agents out of state and I have no other way to find properties for them. I know this isn't lease optioning but they could become potential lease optioners if not outright buyers. Please give me some suggestions.

Good advice

Since I am having such a hard time finding cash buyers I was thinking of shifting my focus to lease options as a way to make some fast cash and monthly income. It was interesting to note that you can wholesale L/O too. This might work as a better start strategy that straight assigning, at least for me.

Maybe once I get some cash ahead I can afford to market for cash buyers. I am so amazed at all the ways to succeed in RE investing.

Is there such a thing called "Work For Equity Lease Option" ?

Thanks,

Tony

I have a realtor in my family Im thinking I will be using. He is a creative individual so that is probably a plus. Any suggestion on how to have him approach these potential sellers. Any help would be greatly appreciated.