How do I respond to this question?

Independence, MO · Member since 2016 · 192 posts · 18 votes

What do I say to the seller if he/she ask if I plan on living in the property or am I an investor. Do I be honest or say I'm going to occupy the property. I've gotten a few phone calls where I tell the seller I'm an investor and then they automatically tell me their not interested. Thanks

0 Reply

124 views

Most Popular Reply

Karen Rittenhouse

Flipper/Rehabber · Greensboro, NC · Member since 2010 · 623 posts · 615 votes

@Deangelo Mack Many sellers think investors only want to take advantage of them, so they're afraid to speak with investors.

However, always be honest because you certainly don't need to be lying about anything that you do.

I read that you said you're using creative financing and you "won't close until you find a tenant". That's a whole different conversation and, I must say, I don't like that one. No matter your strategy, you must always be ready to close on the contract and live up to your end of the negotiation. That negative statement is about you, not about them, and you definitely come off as some kind of scam.

If you're trying to do this business with no money or investment of your own, then you're very new in the game and this type of transaction is what hurts the reputation of investors.

The best thing you can do is take the time to learn how to buy and sell investment properties and get yourself qualified to do so. Creative financing is a great fall back for experienced investors, but a terrible way for people to try to learn the business. Please, never take advantage of a seller.

6 Reply

See this reply in the discussion

36 Replies

Jump to latestLatest

Sort by

Shera Gregory
Investor · Richmond, VA · Member since 2013 · 347 posts · 191 votes
7y
It sounds like you could really benefit from talking with some folks in your local market who have done these types of deals before. Have you found a meetup or REIA in your area? I just checked on meetup and this one is tomorrow evening in Lee's Summit MO with the topic "Let's Get to a Closing" : https://www.meetup.com/Kansas-City-Real-Estate-Men...
1 Reply
Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
7y
Always prepare the offer/contract. If you can't do this yourself, hire an attorney for the first few transactions. You want someone else dictating the terms of sale?
Gimer Law516 Reviews
Website View Page
1 Reply
Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
7y
OK so the seller is offering to sell on a land contract and you want to purchase it then immediately sell it under a lease option with a down payment from a tenant buyer and he makes the payments and expenses ? You are really amping up your risk by being a middle man on this one . Your not going to be able to hide your intentions anyway so might as well tell the truth . If I was the seller I would say “ no way” and for good reason
1 Reply
Michael J.
Rental Property Investor · Louisville, KY · Member since 2008 · 342 posts · 123 votes
7y
@Deangelo Mack if a seller is concerned about selling to an investor and won’t deal with you then they have either had a bad experience dealing with an investor selling their house before or they are not motivated to sell. If they are not motivated then you are not getting the best price you can. If they had a bad experience with a investor then maybe try to tactfully find out what the issue was and try to reassure them you won’t do it and then make certain you don’t.
0 Reply
Deangelo Mack
OP
Independence, MO · Member since 2016 · 192 posts · 18 votes
7y
@Tom Gimer should I be asking for their attorneys mailing information?
0 Reply
David H.
Madisonville, LA · Member since 2018 · 125 posts · 71 votes
7y
I'm confused on what you are doing but typically the seller will send you the purchase agreement. You will fill out your info and conditions and send it back. If you found the seller then you could provide the agreement and send it to them. Or thier attorney, you would have to ask them how they want it If you are trying to line up a tenant for the property prior to owning it will turn off alot of sellers. If it's a good deal in a good market I'm not sure why you would predicate the sale on finding a tenant. Well I can see why so you have no risk in the deal but i dont think that will work well. I could see maybe if it was commercial property but not residential. But I'm a bit confused so may have it off
1 Reply
Moshe Bloorian
Rental Property Investor · Upstate, NY · Member since 2017 · 26 posts · 9 votes
7y
@Deangelo Mack Honesty is what gets you to the top in any field. When it comes to real estate I think reputation is most important. Lies can come back to haunt you and it could cause damage later on. It’s not about telling a small lie or a big lie to get an advantage. It’s about having the discipline to keep to your morals so you never do it once. Good luck with everything.
1 Reply
Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
7y
Originally posted by @Deangelo Mack:

@Tom Gimer should I be asking for their attorneys mailing information?
Unless and until you are notified that they have an attorney representing them on this matter, assume they don't.
Gimer Law516 Reviews
Website View Page
2 Reply
Deangelo Mack
OP
Independence, MO · Member since 2016 · 192 posts · 18 votes
7y
@Tom Gimer Would they need a attorney if I decided to record the land contract? Sorry for all the questions. Im just trying to figure some obstacles out before I jump in the game. So Thanks for all you guys responses
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.