Tired Landlords

15 Replies

Looking for some feedback on how to deal with some tired landlords.  I've spoke to 2 of them today, both own multiple houses with a lot of equity.  They want to sell but also want full price.  One has a month to month renter and the other is leased longer term.  They are both open to some creative financing, I discussed owner financing with them and neither flinched.  Not sure any of that matters if they want full price, only option I can see working for them is lease options.  I told them both I'll throw a cash offer at them first once I have a number then we can go from there.  Any thoughts welcome.

@Lee S.   Most sellers want more than the property is worth.  I would recommend walking through the property before making any offers.  See what type of work the properties will need to bring top dollar.  Use that as value to negotiate a lower price. 

I wouldn't think a property that is rented and generating income is a candidate for a wholesaler. Is that your plan with these properties?

Yeah that is what i'm experiencing so far but i'm just getting going.  I have to get a sense on the phone though if they are willing to accept something less than full market value before I want to meet with them, I can't go see every house.  I've had to expand my marketing area because I live in a smaller town, there wouldn't be enough time in the day to see all the properties and make offers.  Are you telling me you go meet with every single person that contacts you?

Originally posted by @Ned Carey :

I they would accept $1 a year until it is paid off I might actually pay DOUBLE what they were asking.  Terms make a difference. However don't make a bad deal just because of terms. 

 Thanks Ned, i'm trying to keep this in mind when speaking to people.  I'm just getting started, even though I did months of reading it's still going to take work to get this figured out.

I'm not primarily looking for wholesale deals, I will wholesale if that is all I can do with a deal but I'm open to whatever works for each situation.

@Lee S.   Knowing which houses to go see and which to skip over is all part of the learning curve with fielding the calls.  I use google maps and many other tools provided online to view and learn about the property.  I then see if the house fits my criteria.  Next step is asking the right questions to identify the sellers problem to see if you can provide them with a solution.  If the call goes well, then you arrange a time to go walk through the property.  If it does not fit your criteria or if they are unreasonable put them on the back burner and follow up with them in a couple weeks to see what they are up too.  I have found after a couple weeks they sometimes become more realistic and  I was then able to schedule a walk through and make an offer and close the deal.  If you are serious about buying a house, you definitely want to know what work it needs and what secrets the property has before making an offer.  To make an offer the rehab estimate is vital IMO to negotiating the deal in your favor.  Only way to know what it needs it to walk through it and document everything you find.

Originally posted by @Ryan Billingsley :

@Lee S.  Knowing which houses to go see and which to skip over is all part of the learning curve with fielding the calls.  I use google maps and many other tools provided online to view and learn about the property.  I then see if the house fits my criteria.  Next step is asking the right questions to identify the sellers problem to see if you can provide them with a solution.  If the call goes well, then you arrange a time to go walk through the property.  If it does not fit your criteria or if they are unreasonable put them on the back burner and follow up with them in a couple weeks to see what they are up too.  I have found after a couple weeks they sometimes become more realistic and  I was then able to schedule a walk through and make an offer and close the deal.  If you are serious about buying a house, you definitely want to know what work it needs and what secrets the property has before making an offer.  To make an offer the rehab estimate is vital IMO to negotiating the deal in your favor.  Only way to know what it needs it to walk through it and document everything you find.

Thanks Ryan, this is basically what i'm doing. I'm not just throwing offers out there but I do ask what they think the property is worth and what they would like for it. I'm starting with the Michael Quarles strategy of getting them to make me an offer, i'll see if that works for me then adapt if necessary. I started getting my first calls yesterday and have talked to about 8 people so far, it's getting easier already remembering/knowing what i need to ask people, I would give myself a B grade based on my newbie status. I'm ready to go talk to people as soon as I feel I have someone worth the drive. I'm a bit disappointed that I haven't received my first angry caller yet, closest thing is a lady who left a message telling me "if you had done your homework you would know there is litigation on this property right now". It sounded like someone claiming to be an investor really took advantage of her and destroyed the house. Yup, I called her back but haven't got in touch yet. I still see a potential opportunity there for a buy and rehab or maybe a JV where I can come in and rehab the house if she has no cash and we split the profits on a sale.

I accepted the fact before beginning this process that I may not get a deal for the first few months.  I take each phone call as an opportunity to learn.  The fear factor of calling back has already gone from where I started at maybe an 8/10 down to a 2/10, I think this is the main thing that keeps people from getting started.  My plan is to keep bouncing experiences off of the veterans here so I can learn from each situation, I appreciate your feedback.

@Lee S.   Sounds like your on the right path!  Excited to see what your future holds and to help along the way!!

Lee this is what I do with landlords and trying to make some money with them okay?

First I only go see houses that are three or four bedroom and they are in good school districts and the quiet streets that's the first thing

Next thing I do is I walk through the rental and act like a renter asking the basic renters questions to landlords

And then I do a classic what if statement and give a leave behind on lease to own

Mr. landlord you got a nice place here and I think the rent you're asking 1100 is fair

"I want to ask you a question and if you hate the idea of them just let me know, but what if I could give you 1100 a month for about oh 24 months and then at the end of that period of time buy the property at a fair price, "

"would that be something you would even consider thinking about or maybe not?"

The end result is either a hot warm cold landlord prospect 

If he's hot  I'll just keep sending them postcards. If he's warm I'll keep talking to him once a week, if he's hot I want to talk to him and his wife about doing a lease to own

I leave behind a landlord basic form letter with the lease to own articles attached from Wall Street Journal, Money Magazine, realtor.com

@Lee S.

 Keep peeling the onion with the landlord, building a relationship.  I would be pushy.  Have that old landlord live through you.  You never know what kind of deal they might give you.  I have a couple older landlords give me a break on seller financing.

The lease option deals never entertained me because I always wanted to own the asset. Having the asset and liability on your financial statement makes you much more interesting.


Frank

Frank Romine, Real Estate Agent in CA (#01957844)

@Lee S.

Welcome Aboard! You're in the right place at the right time! :-)

I love old landlords and have purchased my two largest and most favorite apt bldgs from 2 different ones. Both wanted some $ down and were ok with payments.  They were retiring anyway.  They wanted to know that I will take care of 'their' property and their people as they have.  They liked to hear of ways I was excited to improve /paint/ add carports or whatever.  They gave me a break from large down payments, because I offered them amounts that were large to me.  I wouldn't run out to every single house I get called on, either.  I would go out of my way more to talk to these old guys which may have much more property than you even know of @Lee S.  !

Thanks Everyone, I have to be honest I'm a bit worn out after these past 2 days.  First lesson I've learned, until I get a better handle on all of this I need to split up my marketing.  Instead of doing it all at once I need to do 25% a week.  The issue i'm having is I feel like I don't have time to do proper follow up on everything.

It's not good to spend the money on marketing then hope the phone will stop ringing so I can catch up. I don't have the entire day to work on this quite yet and that is part of the problem, and the phone keeps ringing at all the wrong times. Good problem to have I guess. So far I feel like I have a few warm leads and possibly 1 hot lead but I'm not sure the guy is being 100% honest. I'm having my Realtor/friend check into the property for me. I have a feeling she is going to stop helping me soon, I'll need to get licensed so I have MLS access.

Originally posted by @Steve Vaughan :

I love old landlords and have purchased my two largest and most favorite apt bldgs from 2 different ones. Both wanted some $ down and were ok with payments.  They were retiring anyway. 

@steve vaughan how did you find these landlords and what would your recomendations be to one starting out? where should i begin looking?

My recommendation is to always have an attitude of gratitude, especially when asking something huge  for nothing.

I don't call on my colleague friends withot saying I appreciate what was shared so far and would be grateful if they could expound a little further. Then I pre-thank them. 

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