Hi Everyone,
I’ve read a lot about constructing these deals and I’d like to know how other people got started. Did you find a realtor who is open to ST and LO deals? Did you work solely with a real estate lawyer to handle all of the paperwork? Did you form an LLC right off the bat?
Any advice is appreciated!
Thanks!
Howdy Solrak18:
My first house was for sale by owner on a contract for deed. I talked him down to $500 down payment and I would paint the whole house and replace the carpet and do the minor repairs within 30 days. We did not have a Realtor or lawyer involved. I did not even get a title search. I would today at least have that done prior to closing the deal. Just starting I would get a mentor or someone to help me on my first deals.
To get started you need a combination of marketing strategies plus the know how to make it happen.
Suggestions:
Work with a RE agent who can recommend sellers and buyers to you. In exchange give him a refferal fee.
Work with banks, loan brokers. They know lots of people who are renting or people who can’t qualify for a loan at the moment. Refer them back when the tenant/buyer is ready to exercise their option to purchase.
Database: Build a database of tenant/buyers. It gives you more negotiating power because it sounds powerful when you say “Hi, Mr. Seller, I have 10 prequalified buyers ready to move into your home if we can structure a rent to own deal today”.
Distribute flyers
Pass business cards around
Get birddogs to find you deals
Incorporate your business once 3 or 4 deals are done.
GET A MENTOR!!
Hope that helps.’
To your success,
Diana Fontanez
Lease Purchase Specialist and Consultant
Read the post about dianafontanez!!!
Of course Ms. Diana wants you to get some mentoring. =) I am no way against any sort of mentoring but please be very careful on who your get them from. They might not be who they claim they are. To answer your question, I got started by putting bandit signs all over town and getting leads that way. I found a townhouse that didn’t need any repairs, she wanted to get cashed out. It was worth 115k got it under contract for 84K and sold it to an invesotr for a quick 2K profit. I could have made more, but I didn’t know better.