I Have had no problem getting sellers to do lease options. I have 6 homes right now that are ready for tenant buyers. I am having a lot of trouble finding those tenant/buyers. I get a lot of calls, but no serious people.
I always thought it would be hard to find the sellers, and easy to get the buyers, but it is opposite way around
Can Some of you out there please share how you find your tenant/buyers, because i am at a loss :-[
It is a competitive rental market and rental are a dime a dozen. That means there are more rentals than there are renters. This is why so many sellers are willing to do the lease-option. They couldn’t rent it out until you came along.
You are trying to rent them for more than the market will bare. You must have your research in place BEFORE you buy so you know what you can rent it out for. Work backwards from there when you negotite your lease-option. How long have you been trying to rent them?
You are not marketing them in a method that will get them rented to the people you want renting. Re-evaluate your marketing and see what you can do to adjust if necessary.
Where are these lease options at? Did I see that you are in TX? Isn’t there issues with TX LOs?
I had the same problem too when I first started. My problem is I wanted to get my “first deal” done. I was calling all the FRBO and signing up sellers. Well, they didn’t move…why? #1. I didn’t study the rental rates. (I’ve learned alot and now will not deal with a seller who will not give me my terms, not motivated) #2. I had properties that were in a less than desirable area. (Now I target certain areas) #3 In the beginning I did alot of cold calling, now my phone rings daily and that allows me to pick my deals. I stepped up my marketing campaign to get the phone to ring.#4 Because RTO is new to my area my buyers couldn’t afford the Option Consideration so I had to do alot of educating on how it works.
It may be a good thing that you haven’t L/O any of those properties since you live in Texas. Unless you own those houses it is near on to impossible to legally L/O them. If you do own them you have lots of hoops to go through. Seek out competent legal advice. You may be thoroughly screwed either way. Good luck, you may need a ton of it.
I had the same problem, I can buy houses by the handful on sandwich leases or sub2’s, but getting tenant/buyers is a whole different story. In certain parts of the country it is easy, in others it is not, and it depends on the demographics and current economic conditions of the area.
When it is tough to move your L/O property, then the passive approach is not going to work. Passive being: putting out yard signs, ads in newspapers, advertise on websites. It is passive because you list and wait, hoping that somebody will find your property and call. It does not matter how well the ad is written, it is about your particular market conditions, not your marketing skills.
There is a whole new way, which is the active approach. Instead of the tenant/buyers finding you, you find them. In this approach tenant/buyers register on a site where they record how much down payment they have, where they are looking for a home, what they are looking for (beds, baths, basement etc…), how much monthly rent they can afford and when they are planning to move.
You prescreen the leads online, pick the ones that want what you have, that has the down payment that you require, and can afford your rent, and call them. Much faster if there are enough leads in your part of town.