"How to Sell Lease Purchase Deals to Landlords/Sellers"
People sell their homes for various reasons. Some of which
include, but are not limited to:
1. Job transfer.
2. Making two mortgage payments.
3. Trade up to a bigger home or better neighborhood.
4. Tired of managing properties.
5. Moving in with a significant other.
6. Divorce.
7. Lost job or income and can not make the payments.
8. Physical problems with the property that they do not
have the ability or time to repair.
9. Etc...
MOTIVATION is the key when dealing with Landlords/Sellers. If
you can find out what motivates people, you can strike a great
deal with them. Your goal is to find out what needs they have
and satisfy them.
If they are a landlord and are sick of renting out that house
and fixing leaking toilets at two in the morning, you can offer
them something that will fill their needs. You can offer them
a friendly way of selling that property over time for a price
they can live with and with none of the landlord hassles. I
spent the last nine years as a landlord and to be honest, there
were plenty of times that if one of you called me up and offered
to take all of my properties off my hands I would have jumped at
the chance.
Landlords are a key source of deals. Many landlords are not as
sophisticated as you might think. Many of them inherited their
properties or just have homes that they had trouble selling so
they decided to rent them out. The key when dealing with
landlords is to let them know from the beginning that you just
want to help them solve their problems and make some money in
the process. Make them understand that it is a one-sided
partnership. You are agreeing to do their work and still give
them the money that they want for the property. If it doesn’t
work out in a year or two, they can have their property back
plus keep the option money. If they rent it out, they will
still have to worry about replacing the carpeting and painting
when it turns over. They really are in control of the process.
Let them know the advantages available to them.
The reality is that what you are doing is
limiting the landlord's risk and at the same time accomplishing
what a real estate broker and property manager would. You are
taking a small part of the monthly rent and making a small
percentage of the total sales price at the end of the deal. If
the house doesn't sell, they get to keep what you have into it.
No real estate broker in the country would do for them what you
can.
I define selling as the art of fitting a persons needs to a
product or service and educating them on its utility. I suggest
that when you approach a Landlord/Seller that you project a
sense of confidence that you know that this is what will work
for both them and for you and that you explain the benefits. I
find that in order to build trust between the person I am
selling to and myself, I need to discuss the drawbacks. If you
do not talk about the drawbacks, the Landlord/Seller will spend
hours trying to find out how this deal might be bad for him.
You want him to know right up front what the drawbacks are and
then you can discuss these issues together and work out
solutions.
We are all in this business to make money, but you will find
that if you come off as trying to make a buck, you will look
like a cheat. I like to think of myself as a creative
problem solver. . When people call me I immediately go into a mode of discovery.
What does this person need? What do they have? What is keeping them from
getting what they need? What do I have that can help in this
situation. Sometimes I talk to someone and find out that their
best answer does not involve me. . I know that I probably
lose deals that way, but I know that I have built some good relationships
and will get referrals down the line from some of these people.
Remember no today doesn’t mean no tomorrow- always keep your
options open along with lines of communication.
James A. Gage. is a best-selling author and internationally-known expert in Lease Purchase, AKA Rent To Own Real Estate Investing and Negotiating. He Mentors One-On-One throughout the U.S. and across the world. James is also director of the Gage Consulting Group, LCC , 800 Main Street, Suite 104 Holden, MA 01520 . http://www.jgage.com |
