I just started in this forum but have a quick question... has anyone done or what do you all think about marketing for buyers that would be interested in Lease Options?
I am looking at properties and trying to narrow my focus. Instead of being like everyone else that is advertising that they buy houses, I want to build up a list of buyers and then can focus on finding homes that would meet their needs. I am a contractor so I have no problem with properties that need repair - in fact, I prefer them because my margins are usually better because I can self perform most of the work.
I am thinking that if I can build up a list of individuals that are seeking non conventional purchasing opportunities - due to credit or whatever reasons - then that would help give me some leverage and a better sense of security when approaching sellers. Also, in terms of me finding lenders, having a list of potential purchasers and/or renters would make one of my exit strategies stronger.
I'm also thinking that with so many people trying to get their credit back to normal that there may be a good target market in people looking for alternative ways to finance a home.
Any advice and/or input would be appreciated. I'm brainstorming here and trying to develop verbiage and a marketing plan.
I think you will work too hard if your trying to help credit challenged people buy property.
You would actually be better using the " we buy houses " bandit sign strategy. You want to get a property and get rid of it quickly.
@H. Duplechain undefined
Looking for buyers is not going to make you money. Look for deals and the buyers will find you.
If you want to do this strategy I think the most important thing is to figure out a plan with the buyers on how they are going to purchase this property in the end. What is their motivation to purchase? Down Payment? I would also develop a strong relationship with a loan officer that can run their credit and guide them to being able to purchase down the road.
In my experiences if you have a great deal and market it, buyers will go crazy trying to get their hands on it. Good deals are hard to come by for most buyers. Now if you have a deal and can't find someone interested, it is either because it is not a good deal or you are not marketing it well. We wholesaled 3 deals and had them all gone in a week or less with no buyers list.
Thank you all.
There are TONS of potential deals here. We have more than 45K vacant properties in New Orleans proper alone. Because of what I do and my background, I seem to run across properties daily. My problem is that I guess I have to overcome my fears - when I attempted to do this before (2007-2008) I lost properties because...well, wrong timing. It has made me a little more cautious and I am guessing I'm spending more time worrying about exit strategies when I just need to go ahead and start putting together deals. I am looking at lease purchases and wholesaling as new tools to put in my tool box. I've never wholesaled before, so I'm still trying to grasp that whole "concept".
@Curt Davis - I was sort of trying to avoid that approach. There have been several "guru's" that have come thru here recently and now there seems to be a slew of those signs. I'm wanting to set myself apart a little bit. These guys are quickly beginning to develop a bad rep - most of them don't know anything, don't follow thru, and don't deliver.
@Brian Gibbons - thanks. I'm going to spend some time checking out that info.
@Jerry Padilla - that's the approach I was thinking of. There are a lot of people around that can't get conventional financing. When I was a licensed agent I would come across tons of buyers that couldn't get financing to purchase a home, that's what made me think about this approach.
You just need to ensure that they are motivated to fix their credit.
There are several large corporate re-sellers that have done very well by concentrating on the rent to own market (on a National level.) I have always wished someone would do it here in New Orleans and the corporate boys wish they could too. The problem is, REOs have never really been plentiful here, not at the discounts bulk buyers need. At the price level they pay, the properties that they usually end up with are truly bottom of the barrel. Not the easiest to work with.
If you can lock down properties on a regular basis, at the right prices, you can make some serious money here. There are a few tricks of the trade that make rent to own deals a lot easier than many people expect. There's also a few different ways to go about it.
There are huge numbers of good people in New Orleans that go to work every day and pay their bills on time but can't afford the luxury of things that serve to build credit. They should not be doomed to paying rent forever. Investors CAN turn it into a win win situation and it's an awesome thing.
If you want to play on this field, I would be more than glad to help you. We definitely need to get you off the sidelines. Like you said, there is still a lot of work to do around here!
@Kimberly Jones - Thanks for the words of encouragement. Yes, there are TONS of good people here that work very hard but just can't seem to get over the hump to home ownership. Those are the people I'm thinking about. And they are not all necessarily lower income either - I also have spoken to some young professionals that just have such huge student debt that they don't think they can handle taking on a mortgage and coming up with down payment money.
Thanks again. I am working on getting my courage back and am researching some properties now. Perhaps we can do coffee one day. I've actually met with a few local BPers here and have to say that I am learning from and being encouraged by them. Seeing others do what I want to do makes me less afraid to move forward.
If you want to get into the higher end homes, look at the videos above. They explain the problem and the solution.
@Brian Gibbons - thanks.