When I ask the potential buyer how much they have to put down, the majority of them say, “Well, I don’t know yet.”
I guess what I’m asking is, how do you get a hold of a serious buyer willing to put down a sizeable downpayment? It seems like all my potential buyers are just “testing the waters” and are not true serious buyers.
goosen2,
Glad to meet you.
The reason your buyers are not serious is because you are not serious when you are the one testing the waters, when you ask them how much they have to put down.
You tell them how much to put down, my ads start out with $30K Down, $20K Down, etc., now when I get a call I really have someone serious, plus I know they have the money or close to it.
See the difference?
John $Cash$ Locke
Thank you. Good advice, but when you are asking for a downpayment of $20k to $30k, you are marketing to a very select group of buyers. What’s the least amount you will accept when you are asking for these kind of numbers?
goosen2,
When I purchase a house Subject To there are steps that I do in my due diligence and one of them is finding out the average down payment of other properties purchased conventionally in the same area, this way I am assured as to what I can get down the creative way.
I really do not accept less of a down than I advertise, there have been occassions where I will carry a small amount of the down for a 90 day period when I am assured the buyer will have the money in that time period.
There is no reason to short change yourself when it comes to down payments or monthly payments, there are people out there who even though they have a hic cup in their credit it does not mean they do not have the money for a down payment or the monthly payments.
Remember these people who contact us cannot purchase conventionally in most cases, so they see us for help. We do all that is possible so when the time comes for them to re-finance they are more than likely able to do so.
John $Cash$ Locke
Question: How do you find the average downpayment in the area? I haven’t seen any data like that in my data mining. That’d be great information to have.
Thanks.
marcus335,
Find a title company in your area that will work with you, they have this information.
John $Cash$ Locke
Just thought I’d chime in and say that John is 100% correct. Playing games about how much people have to put down might be standard fare in many guru courses, but it’s just plain silly in reality. The theory that: “If you ask for $5k you won’t get $10k” is just that…theory. In practice I’m almost always offered more than I ask because buyers want to lower the payments.
I don’t put my DP requirements in my ads as standard practice, but I do put the monthly payments in. I find that screens out most of the wishful-thinkers. And since I use mortgage payments (not rent rates) as the basis of my payment structure, I find that the people who can afford the payments, also have the money to put down.
I have always said the same thing from day number 1, I mean, what’s wrong with being honest and TELLING your prospects your terms from the start, right? Maybe is because I don’t like games, but I have never palyed that “how much do you have for DP” silly game. My idea of marketing for propspect buyers is to close the deal, NOT to make my phone ring >:( Any serious prospect buyer appreciates my honesty with him from the start!
I don't put my DP requirements in my ads as standard practice,I always do (in red bold numbers), that's how I weed out the tirekickers almost 100% 8)
Pearl 