Rento to own signs to sell houses
Just thought I'd put this out there for those of you having trouble moving houses. This is a tactic that I don't particularly like to use for many reasons, but it works better than any other tactic I've seen for flipping houses. I use this tactic to SELL houses, not rent or rent to own. The goal is to fish for people who for one reason or another can't get off their butts to learn how to buy a house. They are qualified, maybe just not super self-motivated. These buyers will require more hand-holding and more work than traditional MLS buyers, but when things are slow I guess you have to work a little harder, right?
I put a "Rent to Own" sign in the yard. When people call, I say, "I am looking for someone who ultimately wants to own the house. I am going to put you in front of a lender to see when we can get you qualified to buy. Hopefully the answer will be that you can buy right now. If you can't buy right now we will put together a plan revolving around when the loan officer says you should be ready to go. As long as it is within 6 months, we should be able to do something for you." They will then ususally ask what the qualifications are. You'd be surprised how many people think you need 20% down and a 760 score to buy right now. When I tell them 3.5% down and a 600 score, most are pleasantly surprised to find out they are closer than they thought to being able to buy.
This script also weeds out those that are not serious about buying and those who know they won't be able to qualify due to bad credit, bk, foreclosure, etc.
The Rent to Own signs will generate a ton of calls, and you will spend a lot of time weeding through the garbage.
I hope someone finds this useful. Let me know if you have questions.
Oh yeah, I WILL do a Rent to own in some situations, but they are rare. I just did one for a guy who has a 577 score and the only thing holding him back is a $2,000 state tax lien that he is paying off. My lender assured me that once that is cleared up he should be fine. I took a $27,000 option fee on a $90,000 house for a 6 month lease option. The guy really wants the house and I am on him to make sure that he follows through. Just thought I'd throw that in the show that I'm not false advertising.