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All those people losing their home to foreclosure have to move somewhere.
Most of them cannot buy and will be looking for a house to rent or lease option or an owner finance opportunity.
That’s where YOU come in!
Analyze what price range is getting foreclosed the MOST in your town. Let’s say it is a $250,000 – $300,000 house.
Those people will not want to move in to a $125,000 neighborhood.
They will want to keep the kids in the same school and try to keep up appearances that everything is ok with their friends and family.
So they will be looking for a house just a little bit cheaper to rent in the $180,000 – $250,000 range.
You don’t want to get stuck making mortgage payments on a $200,000 house while you are waiting to find the right tenant.
Here are some solutions:
1. Negotiate seller financing and no payments begin until you find a tenant.
2. You can get lease with an options on houses in this price range and only exercise your option when you find a tenant or tenant buyer.
3. Master lease houses in this price range – but no payments start until you get the tenant.
Once you build a big tenant buyer list, you will be able to act quickly.
Focus on finding ways to help all those people facing a foreclosure…not necessarily to buy their house, but to help them move in to a different home.
Jackie Lange
Simon White
This exactly what I am doing.
This week I signed up one Lease/Option and one Master Lease in San Diego.
Cashflow in Southern California.With many people now unable to qualify for loans due to the new guidelines more people are considering lease/options.
From Jack Miller:
I just received a FAX from a St. Petersburg landlord who rents 80 houses. He reports that the onslaught of speculators who have been forced to become amateur landlords has diluted the market with desperation rents that are depressing his rental prices. This may be a short term phenomenon that could blow over as they either fold and lose their properties, or become more knowledgeable and learn how to rent at fair market rates. The point is that in his market, the rental market has been weakened rather than being strengthened in his price ranges right in the center of the house market. It may be quite different in other areas, and in other price ranges.
Jack,
That’s exactly the problem we had here in Dallas for the last year when we had an onslaught of out of town investors buying houses here. They flooded the market with rentals and caused rent prices to go into a holding pattern. It also took much longer to rent because of the volume of rental inventory.
But now, things have definitely changed.
This morning I put a rental sign up and had 3 calls by noon.
I’ve had that house rented for $1100 a month for 2 years and now I’ll be renting it for $1250.
Once I advertise on RentClicks.com and RentalHouses.com I will have plenty of tenant applications. I’ll also put a free ad on Craigslist.com
Tell your friend ( Dennis I’m guessing) to advertise in those places and he will find a good tenant MUCH faster.
Those are the ideal places to advertise to attract people moving to the area as well as locals.
Jackie
Jack,I am on the east coast and the rental market is identical to your friends.Add the tax and insurance increases here and you dont have cash flow you have cash flu.So I have injected some Lonnie deals into my system and I am beginning to feel better. Keith Gallagar
From Jack Miller:
Keith: There simply aren’t any seasons where managers can’t make moneyu: Anytime the rental market is soft, that’s a signal to lease/Option houses at low prices from all those landlords who can’t seem to find tenants. Anytime rents rise, raise yours faster. The key is to be a real manager, not just some speculator who though renting out houses was going to be easy. You have to learn how to attract and screen tenants. You might be interested in my Management Masters Collection that costs about $99. Check the crewealth.com book store.
Keith,
We don’t have the management course on CREWealth.com yet.
You can get it at http://www.CashFlowConcepts.com
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