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I’ve been studying the market in my area, and getting my education regarding the different ways that the Real Estate business is done. I finally felt the time is right to put my hat in the ring. One ad in our county press has resulted in a folder of buyers, including several “A” credit people.
Anyways, with my buyers folder bulging, and no houses, I decided I better get some inventory to sell. I knew of a house in my neighborhood that has been on the market for some time. I also knew that the lady had mentioned the word “rent”, meaning she was thinking of renting it out. That’s a big monent in a seller’s life and that’s the time to act.
I presented the lease-option idea to her and we easily agreed in less than a half hour.
I went on to meet the guys at the jobsite (deliver checks) and guess what? My foreman was telling me that he thinks he’s going to hold off selling his house till spring (he just lost a buyer). One thing leads to another and I have his house under contract in less than three minute!
Anyone want to “rent to own” a 119k house on two acres, 5%+/- down, 795 per month? Or how about a nice 200k brick home in the city at 5% down and 1995 per month?
I’ve got two showings this weekend and am negotiating for two more houses in a small rural town. I’ve already got the buyers lined up for those because they’re coming in under 90k.
It’s a lot easier than you guys think….
blue
Replies
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congrats!!!
I would do this but where I live houses sell as soon as they hit the market.
*You'll be wanting to sell all those useless tools in the barn then?Congratulations. Hope you get filthy rich at it. $200K here would buy you some bricks (a lot of bricks actually), but no house. Slum Lord Blue, cool. Joe H
*Keep posting, Blue. We're interested. Love this "real-life" stuff, not just slick talk from a hardcore salesman.
*Blue, Best of success in your new endeavor. As I said before real estate has been a great sideline for us for years. Hope all goes well. DanT
*Thank you for the cheers guys.I showed the 119k property and the buyers are already emotionally attached. They're a little short on the 5% option payment and will need to get a little family support (loan) to get the deal done. They looked like excactly the All American Family (two kids, a dog, etc) that I'm after.Dad was thirty, a painter, that gave up his dream for self-employment and took a job not too long ago. Ironically he's working for a man that I went to grade school (St. Angelas) with. I know that this painting company is second generation and well established in the custom home market. This tradesman will easily qualify for this mortgage in one year. Mom was attentive and caring for their two children. Her concern was a safe enviorment for the kids. She wants something that she can call home. Isn't that what we all want, when we have a family?I feel very good about helping this family start out. I'm helping them live the American Dream of owning their own home. It's a perfect place for a family to live, out in the country. It's got a beautiful swamp out on the back of the two acres. He can put up a blind and hunt deer off the back edge of his property. There were deer tracks on the driveway. This sale was the easiest sale I've ever made. It also was my first attempt.Of course they might not get the loan, and they might not have the proper history. I'll know tomorrow.blue
*Oh yeah, I almost forgot. I was on the way home from a disastorous real estate auction (no one there to bid-the broker will be contacting me soon) and I decided to drop in on an old foreman/friend of mine. Doyle (he's the fastest framer in history) was home. I hugged the old man...I'm getting sentimental in my old age....Anyways, ole Doyle has been restoring a gem of an old 4500 sf farmhouse on 57 acres. It's his retirement dream. Long story short...we've agreed on a 450k option deal. I'm going try like hell to find a buyer/developer for his place. I'm thinking green, as in "Earth Friendly Green". He has a 4 acre wetland/pond in the back of the 57 acres. I'm thinking of dedicating 14 or so acres of that wooded area and creating 10 quaint building sites using that beautiful old farmhouse as a model and sales office. We'll allow old farmhouses to be trucked in from the surrounding farms or replicated....I need a name for the project.blue
*Hey, Blue.....What kind of ads do you run that results in a folder full of buyers?So, the goal is to find the buyers first -- then find a house to fit them?Just curious. RayT
*Ray just asked my question. You ran the add before you had any houses?My wife would kill me if I set out like that. She has no sense of business adventure.Scott R.Blue, if I remember right you're over in Sterling Heights? (sp?)
*Actually guys, I ran an ad offering my house and my mothers (she didn't know). I'll let my house go because I'm actively trying to sell it. My mother's house is another story. She's trying to sell because I won't be in the area any more (I'm heading to Florida asap). Her house is on the market and I know that she's going to be renting (Senior complex). I also knew that she really doesn't need a big lump sum immediately. I didn't know if I could "sell" her on the idea of a lease option. Remember, she's old school and pretty set in her ways. I figured it was 50/50 at best.She's willing to go along with the program because it makes sense. She gets the sale of her house-full price (she'll have to pay the realtor), just a year later than she wants. She gets a nice rental income without the hassles of being a landlord. She gets a sizable down payment upfront that is non-refundable. She also can keep her house on the market with the realtor. If the realtor finds a buyer, then it cancels our agreement. It's a win win situation.blue
*Ray, at the seminars and on the course study stuff, they advocate running an ad just to see how many buyers you will attract with an ad. They said that you will a lot more buyers than houses. I was skeptical. I'm a believer now.I'm now offering 13&1/2 properties in my inventory. Every thing I own, and have aggreements to buy is up for sale. I've got an informal agreement on a nice lakefront at 270k (I worked on this one today for several hours-the lady is old, hates loans and is somewhat skeptical but likes the full price I'm offering) which I call the 1/2 because it's only verbal, not in writing. I've got two Lake Huron properties that are offered at 1.5 million each, unless a proposed condo rezoning fails. The 450k farm is verbal, but I know he'd sign a deal. I'll get it over to him in writing next week. My brother threw in his Sterling Heights home at 225k. I've got 3 lake lots here, vacant. I've got an agreement to purchase (not lease option) 2 adjoining lots and a house that I'm offering. My daughter in Florida will let me sell that at a hefty profit for her- 275k. I've got inventory! Just not enough in the first time buyer range. I'm negotiating two more under 90k. I know I can get one with a few thousand out of my pocket down, but I'm trying like hell to avoid doing that. I've made it my goal, and business practice to only work with zero down deals, or partner up, splitting the profits 50/50. I won't offer the cash (from the partner) until I've exhausted my efforts at a zero down deal. I'm not quite there yet. I've got several other leads on properties that sound like a zero down lease option deal. The situation of the sellers dictate the terms.Fellas, don't place that ad unless you're willing to spend some time talking, looking and negotiating. I spent an easy 40 hours last week, my first week with an ad run. I've got another great buyer lined up and he will be looking at the house tomorrow (ma's at 119k). It's a little far for him to drive but we agreed that he'd take another closer to his work. I don't have any prospective houses down in his area, but I'll bust my rear and find one this week if that's what he wants. Remember, each buyer represents 10 -15k with no money down besides ads, phones and gas. My total hours is about an hour of interviewing (I'm not selling to any losers), and a couple hours of buying. Buying a house is a lot easier if I have a great potential buyer lined up.Oh yeah, I still haven't heard from the auction guy and that house. It's probably the perfect house for my latest buyer.blue
*Update: The buyers apparently can't get their down payment together at this time. No problem. I'll send them my suggested savings program to get them up to speed in a year or so.I've got another "A" credit buyer interested. We'll know more Thursday nite, with a possible walkthrough on Sat. This buyer probably needs something a little farther South, so I'm on the hunt for something in his desired area.Also, another "A" credit buyer called. I spent an hour chatting with him and remembered a perfect house for him. It's the house that was up for auction, the older couple is in the throes of a divorce and might go for a lease option. Then I found out that the buyer's wife handles the cash and makes all the money decisions. I spent an hour selling the benefits of the program to the wrong person! Lesson learned.I stopped at the bank today to make a deposit (carpentry cash). The bank teller sold her house. She's moving temporarily into one of the spec houses that her husband is trying to sell. I inquired: "Would you consider a lease option?". Surprisingly, she instantly said "Yes. We've talked about that. We'd require that the buyer have good credit and we'd need a down payment". "How much down?" I asked. "About $5,000." "Perfect.", I replied, "I might be able to take these off your hands". (She has two available). She drew me a map, gave me her phone numbers and noted that one is selling for $70k and the other for $67k. That's two more in the inventory. I've got an FHA pre-approved "A" credit person in mind for that one. She's short a little down payment, but since FHA allows a low down, I might be able to do a quick flip without the lease option.It's that simple.blue
*Are you sure you don't need to have a real estate license for this?
*Blue, Congradulations. Around here you can't even buy a plot of land for $200000 but its all relative isn't it? To bad we didn't do this when we were younger but hindsights 20 20 isn't it. Better late then never. You sound so energized. I know the feeling. At 50 I feel like I'm just getting started. Stop by for a brewski on your way to Florida and we can swap stories.New chapter!
*Sean, I will need a real estate license after my fifth deal here in Michigan. I'm not worrying till I'm at #6. Then, I'll contact my network and use the services of an investor friendly broker, translation, pay a fee.I don't think Florida requires anything. I'll find out...blue
*Andy, all the same principles apply to 200k property, as well as 2 million dollar property. The only difference is zeros.I am pretty pumped up however. I'm energized and having fun, thanks to Napolean Hill and Andrew Carnegie. They reminded me on how to dream. They also gave me the tools that I need to translate dreams into reality.I've got a few deals cooking on raw land that total slightly more than a couple of k notes. I'm currently in the midst of a 10 acre develpment. There is a small power struggle going on, and our two parcels a smack dab in the middle of it. The potential development has a projected value of (12 units per acre @ $200,000 each) or, 24 million if the developer gets his way. Two 1/2 houses will have to be torn down. If I can do it my way, I'll be working the northern half...I'm meeting the principles next week with my option contracts pre-printed.Fun!Oh yeah, I got this great farm preservation idea. I've spilled the beans to a few trusted souls and they were estatic about the concept....They might be gullible....blue
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I've been studying the market in my area, and getting my education regarding the different ways that the Real Estate business is done. I finally felt the time is right to put my hat in the ring. One ad in our county press has resulted in a folder of buyers, including several "A" credit people.
Anyways, with my buyers folder bulging, and no houses, I decided I better get some inventory to sell. I knew of a house in my neighborhood that has been on the market for some time. I also knew that the lady had mentioned the word "rent", meaning she was thinking of renting it out. That's a big monent in a seller's life and that's the time to act.
I presented the lease-option idea to her and we easily agreed in less than a half hour.
I went on to meet the guys at the jobsite (deliver checks) and guess what? My foreman was telling me that he thinks he's going to hold off selling his house till spring (he just lost a buyer). One thing leads to another and I have his house under contract in less than three minute!
Anyone want to "rent to own" a 119k house on two acres, 5%+/- down, 795 per month? Or how about a nice 200k brick home in the city at 5% down and 1995 per month?
I've got two showings this weekend and am negotiating for two more houses in a small rural town. I've already got the buyers lined up for those because they're coming in under 90k.
It's a lot easier than you guys think....
blue