Hello All,
I’ve got 2 properties that I am currently trying to sell owner financing or L/O. When I ask for 3-5% down for a L/O some of the potential buyers have been quoting…well I called and that other place will sell to us for Zero down.
My question is this…I KNOW that other Seller is still making money on the deal…how are they doing it? Anyone know how to structure a deal to sell to buyer for 0 down and still make money?
Thanks,
Great $uccess,
Dee-Texas
Hello!
I know some folks in my area who are teaching me their Lease Purchase technique and I have seen them get at least 2% down with all their properties. They market to the right Tenant/Buyers to begin with. Their ads usually read something like the following: RENT TO OWN! 50% RENT CREDIT! 4/2/2, 220sf, 1yr new, Terrace Hills subd, $1,200/mo. $169k.123-345-4567. You can also ad “No bank qual.” in there too. You have to make sure you have a sign on the property and signs directing people towards your property from main roads. These other investors are making long term money it looks like because they aren’t getting anything up front. 2% is a must plus first month’s payment. I think where you can catch someone’s attention is offering to give them back the 2% of the purchase price and 50% of the rent at the time of purchase, but they only get back the rent credit if they pay on time and if they don’t exercise their option then they get none of it back. This only means something if they exercise their option, but we have never seen people exercise their option to buy the first yr. which gives you reason to do it all again for even more money. Tenant/Buyers are usually better quality tenants because they will one day own this home therefore take care of it.
I have to goes my 9-5 is calling!
Cruz
A lot of investors are making their return on the monthly payments that their t/b pays, and they may be strict on the credit check inorder to allow someone in with no money down. Good credit equals no down, bad credit equals something down.
Next time ask those t/b if the other investor is doing a credit check. They may advertise as no money down but are very selective in who gets in the property…