Paul and I are just starting out and would love to start doing rent-to-own's. We have looked at a few houses and spoken to some agents, but when we ask the question about delayed settlement and terms, we get the third degree and they are just not interested. One agent even said "you're not one of those no money down people are you?'
We have also put an ad in the local paper, but have not received any calls as yet. We are really keen to get started.
Does anyone have any ideas or input as to what we can do when it comes to getting sellers/agents on board?
Does anyone know any agents in the Campbelltown/Narellan area that are willing to use these strategies?
MelissaTony FlemingParticipant@the-dark-knightJoin Date: 2008Post Count: 396
If you are looking at doing VF (rent to buys) it'll be hard to get agents involved very little return for them. Might be best to work out your target type investment house or unit etc and write a note print a lot out and start doing some letterbox drops.Nigel KibelParticipant@nigel-kibelJoin Date: 2005Post Count: 1,425
Most agents are not really that experienced when it comes to investment properties full stop. So when you start to talk about rent to buys very few agents will even understand what you are doing.
I agree with the dark night you should letter box drop. Many people may see it as an opportunity of savings agents commissions. However many solicitors will not understand these strategies.
We were planning to do letter box drops as well. Thank you for your advise. We are also going to Rick Otton's boot camp and hoping to get lots out of it as well
Hi Melissa & Paul
We've had a real estate vendor finance business since 2003 so here are a couple of quick tips that might help:
- In the community newspaper of the area you wish to operate in, place the following ad in the Wanted To Rent classifieds; "Professional couple looking for long term lease with view to future purchase. Call Mellissa & Paul 04xx xxx xxx"
- In the area you'd like t operate in, go and talk with the Property Managers, NOT the sales agents. When you get to the Property Manager, ask the question, "Do you have any properties for rent that came back to you after they didn't sell?"
Thank you very much Paul! We will be putting in an ad like that next week. Thanks for the great advise. Much appreciated!
Melissa and PaulRPIParticipant@rpiJoin Date: 2012Post Count: 308
Had a Brisbane Solicitor on the other side who did not know of proposed lot or off the plan sales for land and told his client it must be dodgy and to not touch it. Many solictiro's know 2/3rds of stuff all about property.
I have just placed the ad you suggested, Paul fingers crossed we get a good response. Thanks again for the advice! MelissaTamara43Participant@tamara43Join Date: 2012Post Count: 57
Hi Melissa and Paul
You might want to tap into Rick Otton's Podcasts (available from i-tunes) as there is one on "How to deal with Real Estate Agents" (I believe it's Podcast # 44). The Bootcamp will also give you a little insight on this topic, but I recommend when you attend that you ask this question specifically so that Rick/Ben can provide a more detailed response.
As the other folks have suggested, using the words "Rent to Own" when speaking with the so-called professionals is not the best approach. They will only look at you like you've grown horns out of the side of your head! My husband and I tried that at a Money Expo with some Lawyers and they just laughed and sneered at us. They've got NO IDEA!!!!!
Rick recommends providing or floating an "idea", rather than mentioning a particular strategy. He also recommends offering to pay the Real Estate Agent his/her commission right up front – after all that's what they are most interested in, right??? More importantly you need to speak with the Seller to find out their SITUATION. Ask them, what are they going to do if they don't sell the house? If they say "Probably just rent it out" – Bingo….there's your in. You could then tell them you would love to buy the house, but at the moment you don't have enough cash. If they're OK with it, you could pay them "above market rent" with a view to buying the property from them down the track when you get your bank loan approved. In this process you haven't mentioned Rent to Own and you've just floated an idea.
Cheers and good luck, Tamara
Thank you for the fantastic advice! We have listened to many of the pod casts, but I mustn't be up to that one yet so I'll put it on my "to listen to next list"!
We just got back from bootcamp and had a great time, learnt heaps and met some great people! We also got a lot of great advice from the Kahuna's!
Paul is going to see a seller tomorrow, whom we found on http://www.buymyplace.com.au. We found out that they are building a new house in Albury so he'll be asking the questions you suggested, as well as others we learned at bootcamp, if he remembers them haha. I will let you know how he goes.
We haven't had much luck with our ads it the local paper yet though, unfortunately.
MelissaTamara43Participant@tamara43Join Date: 2012Post Count: 57
My pleasure re: the advice. I'm no expert by any means, but it pays to listen to the Podcasts to get all that info that you don't get at the Bootcamp. Hubby and I have found the Podcasts extremely valuable, especially for "Words that Work" and just to reinforce the strategies we learnt.
Assume you guys live in Sydney? We are based at Rosebery (near Mascot). We have tried to keep in touch with some of the people my husband met at the Bootcamps he attended. Just wondering if you and Paul woudl like to join our Network? It's always good to touch base with like-minded people. If so, just drop us a note to the email address below and maybe we can meet up for a coffee.
Email: [email protected]fragarcolinMember@fragarcolinJoin Date: 2013Post Count: 16
The idea of dropping letterbox is really good.I Buy Houses FastMember@i-buy-houses-fastJoin Date: 2009Post Count: 7
I start my conversations with real estate agents by asking if they have any problem properties, you may need to ellaborate a bit, for example "properties that have been on the market for 12 months or more or properties that no one bothers to look at" these properties may be good source for "handyman specials", you'll find a lot of these vendors are frustrated and feel delighted that someone will finally do a deal and in most cases on any terms. and tell the agent that you run a business that can solve alot of vendors problems, like upside down properties etc. the real estate agent will then refer to you when he comes across problems in the future I have found with the newspapers, its better for the marketing of properties you have rather sourcing properties you want.Jacqui MiddletonParticipant@jacmJoin Date: 2009Post Count: 2,539
Oh yes ain't that the truth. I had the solicitor of a vendor (a deceased estate…) tell his client that their property was "worth $8k more than my offer, and they should get a certified valuation to prove it". Poor selling agent was gobsmacked.
I've also picked up a few properties from the 'For Sale By Owner' type websites (including Gumtree). It pays to keep a regular eye on these sites and call the ones that haven't sold after a couple of months.
Cheers, PauljayhinrichsParticipant@jayhinrichsJoin Date: 2011Post Count: 1,177
How to deal with real estate agents. That's easy give them a big hug
We have actually given up with real estate agents and delivered flyers instead. We haven't got a deal yet though. We get close, but I have a feeling real estate agents are warning their clients against us or working harder to find a buyer once they find out we are interested as they sell just before we are meant to see the property!
I am always keeping an eye on those sites and have sent a few emails or called, but nothing has come out of it yet! Hopefully soon.
We are looking at doing a "deal assist" course with Stephen Donaldson. Hoping to learn a lot from that.
Hi again Melissa & Paul
We;ve found that flyer drops are a bit of a blunderbuss marketing technique. They go into every residential property and then the filtering starts, i.e. first up, a large percentage aren't interested in selling. Then most of the sellers are selling their family home to move to another family home and, while they my ring you, they can't go forward with a vendor finance sale as they need all the money now, to move to their new home.
I'd suggest you research how to market to Landlords. With the change in capital gain returns in the recent past there are a lot of frustrated, negatively geared landlords out there. And they're not that hard to find
Cheers, PaulshereebeckerMember@shereebeckerJoin Date: 2004Post Count: 31
All good advice here…. on the flip side to many of the people here, i get a GREAT number of my deals through Real Estate Agents.
They can be a mixed bag. Sometimes i find the newbies great as they'll listen to anything to get a first sale over the line and often let you get to the seller with some clever words. Oftentimes the deal is all agreed and ready to sign up before the Principal agent finds out and its too late for them to put a stop to it.
Other times i find the older long term experienced agents can be good because they've done 'something similar' or vaguely along these lines before and its just a matter of adding a few variations to what they already know to get it through. You'll find they'll sell the concept to the seller for you and save you a lot of the work.
You just need to help see the forrest through the trees and narrow it down to a specific property. Start with questions with the agent to weed out the motivated sellers on his book – which property is vacant right now? Which one has been on the market the longest? Which one needs to sell first? and why? that'll get you working with those sellers who need a solution now and your on your way.
Then remind the agent how they are getting paid the whole time, thats all they care about after all
Thanks again everyone! Love all advice we are getting on here!
Sheree, we do ask those questions, but houses are selling so fast in our area that the agents say "we don't have any that have been on the market for long". I can verify this by what I see on realestate.com. I'm thinking its more the fact they don't understand the process themselves. We will wait until we start our training with Steve before attempting to keep trying as we don't want to burn all our bridges with them yet. ie. we need some to not say "not those two again" lol. How much money do you offer the agents? Is it the usual $5000 or does it depend on how much the property is worth?
Thanks again everyone!
Melissa and Paul