Hi Everyone,
thanks for all your fantastic ideas and sharing of knowledge.
Has anyone heard of the arrangement whereby an investor allows a tenant buyer to choose their own property?
The investor would have to pre-qualify the tenant-buyer and tell them a price range that they could shop in.
When the TB finds a house they like, the investor signs up the tenant-buyer to a wrap or lease-option deal, pays for the house and immediately collects income with a locked in profit, which is realised when the tenant-buyer gets traditional finance.
If one could make an offer on the property subject to the tenant-buyer going through with the lease option or wrap, it would remove a lot of doubt and risk as to whether one was going to have any vacancy between date of settlement and beginning of Tenant-buyer’s lease.
i’d love to know your thoughts.
regards,
AndyHi Andy,
Yes – I do what you have suggested for finding wrap leads.
In the first instance, I run classified ads to attract leads and then once filtered I qualify them to buy property up to a pre-determined level.
If one could make an offer on the property subject to the tenant-buyer going through with the lease option or wrap, it would remove a lot of doubt and risk as to whether one was going to have any vacancy between date of settlement and beginning of Tenant-buyer’s lease.Hmmm- it might be difficult to do this as (in Victoria anyway) the Sale of Land Act does not permit you selling a property before you own it.
I’m also concerned that a subject-to clause of this magnitude would be difficult to negotiate.
What I do is buy the property and try to have my buyer remain interested in the deal. The best way has been to get them to pay an pre-application fee (of say $1,000) that comes off their purchase price (or deposit) when they go through with the deal.
If they don’t then they lose the $1,000.
Other non-financial incentives such as getting them to move in asap and keeping in contact with them about the status of the purchase are important too.
Bye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Thank you Steve,
I am flattered and thrilled to receive the very answer I was looking for from the guru himself.It’s this sort of friendly, useful and valuable advice that keeps me away from seminars!
There is truly nothing more powerful than knowledge.
May your dollars keep flowing in faster than they flow out.
Regards,
Andy[
]It’s nice to receive positive feedback.
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
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