Hello All-
This is such a great source of info and thanks in advance for any/all help. I’m a beginner REI and was wondering if you think it’s a good idea to ask a potential renter/seller if they would entertain a lease/option to buy within the first phone conversation? The reason I ask is that time is important and I’d hate to waste any.
Thanks again.
I’m sure you will get more people to agree if you sit down and talk to them in person about it; build rapport, slowly introduce the idea, etc, as compared to just asking point blank over the phone.
So, is it a good idea? How could we know without knowing why your itme is important? If your time is important because you make great money, and you’d have to put off something highly profitable to go see sellers who may or may not do a lease option, then I guess you’d have to weigh the profit in the deal if they agree / their likelihood of agreeing against the profit you’d otherwise make doing the other important alternative to seeing the seller.
If your time is important because there’s only 24 hours in a day, and you’re not truly pulling yourself away from other profitable things while going to see these sellers, then it seems like a simple choice from where I’m standing.
I guess if there’s a higher ‘net gain’ (profit realized X chance of said realization) by going to see a potential seller who’d lease option compared to what you otherwise would have made, it would be in your best interest to go see the seller. If not, then it wouldn’t be. But those answers seem very clear and straightforward, perhaps I’m missing the point of your question?
Thank you for your reply. I understand your point completely. So far, I’ve been saying that I’m hoping for a long term lease, possibly with an option to buy. In my first week I came across two potentials.
I agree that building rapport could change a situation entirely, versus an “ice cold call”…thank you for pointing that out.
another question…when searching rental ads, should the most important thing be the monthly rent (for cash flow purposes)? or would the fact that someone is willing to lease/option with decent terms (good price but little or no cash flow) be acceptable?
I appreciate your help and hope this isn’t confusing.
Screen them hard over the phone. Don’t waste your time with someone who is not motivated. Your looking for location, monthly payments, & price. Location: Would you want to live there with your family. Payments: Cash flow and are other properties in the same area renting for the same ammount or more. Don’t believe the hype about because its a rent to own you can charge more. Price: You need a spread to create rent credit and option money.