I was seeing if anyone has tried calling For Rent on Craigslist and ask if they are willing to sell. If anyone has done this strategy, i could use some tips on how the conversation will go?
Most of the ads i've seen the property is in good shape so there's no wholesale or fix and flip opportunities. So should i be looking to do seller financing or subject to? Any help on enlightening me on this topic would be greatly appreciated. Thanks!
That is a good idea and I have developed good relationships with investor by doing that. It wasn't from Craigslist, but they were for rent sign on properties. I have just called them and left messages saying I saw your for rent sign, but and would like more info about the property. Once you start talking fuel them what your real estate goals are. I'd like to know how that works for you. You can always just ask the owner and pinpoint what they really want then convince them that seller finance is better then having to manage property and tenants.
Awesome tip @Jeffrey McKee i like the idea of selling them on managing property and tenants. How would you talk the landlord down on monthly payments so you can make a margin yourself?
Find out what they the numbers. How much they want to sell, vs how much it will rent for. If they are asking 100k for the property but you know you can rent it for $1500/month that wouldnt be to terrible depending if you could get the owner financing on good terms. They get a steady paycheck and if you default they keep their property which they can rent out again. No maintaince, no midnight calls, nothing, just go to the mailbox in the morning and collect their check. No hassle income, depending on the age of the investor they might like that thought. Just spitballing some thoughts :D
My focus with landlords and for rent signs is to talk to them about possibly leasing from them and then buying the property down the road
One of my questions for landlords it is
If I could get you the rent that you want and keep the property in good shape for period of 12 to 24 monthly rent payments would you be willing to sell the property to me at a fair price?
Think about what landlords want: they want people to pay on time and be respectful of their property
Once you raise the idea of leasing the property and then selling it, then you need to sell the idea of rent to own and how you can place the right tenant buyer in their property
How I do this is I show them my tenant by air intake forms, I do cross of their names and Social Security numbers but the physical proof that I have buyers already helps build credibility that I know what I'm talking about
I make generally 3% of the value of the property in an assignment fee doing lease-option assignments
I might do sandwich lease option if the deal is terrific
I am talking about a lease option assignment from landlords tired of landlording.
I lease option from landlord and assign the deal.
I know you want to buy from the landlord for yourself, but it is another way to make money.
@Brian Gibbons i just checked out your youtube vids, they were very informative. who pays the 3% fee and how does it work? is the buyer paying it like a wholesale deal?
When I have done these, Mario, it's your new tenant buyer (TB) that pays the assignment fee. My margins are slimmer than 3% though when I do LOs or sandwich LOs. I will lease with the option to buy from the LL, say by giving 1% as an option fee. I will then assign that lease with option to buy to a new tenant buyer, charging them a 3% option fee. They will be in the property paying the lease payments. Bill Walston is another Lease Option guy to listen to on podcasts. He refers to a sandwich lease option as a master lease option. With those, be sure your option lasts longer than your tenant buyer's. You will essentially be managing the property, getting a bit at the front end, monthly, and at the back end when done right!
@Mario T. , craigslist is a great source for this strategy. I actually e-mail the LL initially instead of call. I may call if the post is still up a week or two later. I tend to e-mail the older postings, hoping they are a little more motivated to move the house. I simply say I am a LL, too and know what they are going through. I ask if have any interest in headache-free rent or an interest in selling sometime to get back to me or keep my info for future reference. A guy called me yesterday from an e-mail I sent him a month ago. He was only looking for an attorney referral to deal with his slow-paying tenant, but it was contact that may develop into something down the road!
@Steve Vaughan awesome stuff. i'm excited to try and add this strategy to my toolbelt. thanks
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing