Marketing for Lease -Option Sellers

There should be no reason to hangup on a potential tenant buyer ~ I'd let the mortgage pro handle that since they r gonna be the one to qualify them or not anyway.You're right, there are people out there that have good or even perfect credit n can't get a loan. That's where the mortgage broker comes in. There are programs out there to help these buyers,and if you can get them setup with a good credit repair company, you have yourself a good setup.

That being said, bandit signs and ads on craigslist work for finding sellers. Also, advertise to expired listings from realtors. I hope something from here helps you.

Hi DG Family

How do you market to get sellers that may be interested in selling on a lease option?

What sort of email would you send to the sellers on-line to see if they are interested in doing a lease option deal without asking them directly "would you consider doing a lease option?"

Thanks!

I've been out of the loop awhile, but I just got back in and I am now working on a L/O. I have to admit though that it took this seller over a year to decide to go with a L/O rather than trying to keep on selling outright. But that's another story. The time is right to try and sell these.

I just tell them that since they are asking $89k for their home and the market value is only $63K (as an example IF this is the case).... I can get help them get the amount they are asking and more and only tie up the property for 14-21 days. I will show them on paper how that is possible if they questions it. Plus I tell them it won't cost them a dime for me to get a buyer whereas they will pay a realtor 6% of the purchase price. They already know (and if they don't, tell them) that a real estate agent will tie up their property for 3 months and there is no guarantee it will sell. I only will do this if there is no mortgage, but you can do it even if there is a mortgage with someone who doesn't need the entire amount right away. However, this is not practical for them because they will be paying a mortgage on a house someone else is living in. IMHO.

If they are asking market value and it needs no repairs to speak of, they probably will still not be able to sell it outright any time soon. If they have had it listed with a realtor and didn't get it sold or if they have been trying to sell it themselves for a while, they are good candidates.

Hope this helps with the advertising issue.

Shirley

So do you tell the sellers all of this in one email in the initial email or do you tell them that you can get them Full Asking Price (or more) and they pay no commissions or closing costs to see if they are even interested.

Then if they are interested in learning more then you explain more in the next email that you will lease their house, make their payments, maintain the property and then cash them out at the end of the lease. Thanks, Nick

I'm hopeful that Shirley will have additional information to share, her approach is valuable and I'm anxious to learn more. I've used my own approach in finding properties for Lease Option opportunities, and that is by contacting owners of rental properties that are advertising to fill vacancies. To be honest, this approach has always supplied enough properties to keep me busy with this technique, and I work with some other strategies, so I haven't used the Lease Option approach all that much with properties for sale. Here, basically, is the script I use when calling on rental properties (note that this can also produce potential cash buyers too)
Calling on Rentals
"Hi, I’m calling about the rental property ad that I found on __________________. Am I speaking with the right person?" (They respond)
"What else can you tell me about the home besides what is in the ad?" (Compliment them on the property)
At the conclusion of their description of the property:
"Wow! It sounds like a nice property, it sounds like what we are looking for. There is one thing that is important to us, and that is that we would ALSO like to purchase the property. That could be now, or sometime in the future. Have you ever considered selling this property sometime in the future?"

Three possible answers—Yes, No, or Maybe. For yes or maybe, make arrangements to see the property, they are open to negotiation.

If the answer is no, then respond:
"You know, I certainly understand, it sounds like you are not looking to sell properties right now. But you are a landlord. I didn’t mention before but we are also real estate investors, and I wondered if you are interested in acquiring more rental properties. We may be able to help with that. Is that something you would be interested in?"

Hope these ideas and scripts are helpful.

I love your script! You make it possible at all levels for this to be a valuable relationship. Great advice. Thank you!

Harriet~

I neglected to respond earlier to say thank you Harriet for your kind words. I do want to emphasize that this approach has been effective for everyone that I have shared it with who seriously applied it. This seems to be an underused niche for finding properties that can produce an attractive return as a lease option. The fact that you can actually find a property that you can control for about 1 to 2% of the purchase4 price, and leverage that into tens of thousands of dollars is, to me, still one of those delightful surprises in the universe. Along with wholesaling properties, I have applied sandwich lease option more than any other technique, and despite branching into other strategies, still find it to be an effective strategy that produces income with less steps, effort, and dollars than practically anything else you can do in real estate. I hope you'll try the above steps, and also find my other posts on Lease Options to provide additional suggestions.