[Tim Myers]

Tim Myers

I am having some trouble finding people that will allow me to tie up there house for a short term option for $100. so obviously i am not marketing for the right people. what are some of the slogans or words that you are using to get deals coming your way for short term options? please be specific, what is your ad that you put on craigslist? thanks for the help

[Hank Baltar]

Hank Baltar

Tim,

Keep taking action!! And it sounds like you are doing it.

If a seller won’t accept you paying $100 for the option (i.e. right to help them sell their house where you expend time and $$$$ to get paid while they continue to market themself) they aren’t motivated enough as sellers. $100 still works for options on houses.

I’ve learned the hard way not to attempt to work with everyone that calls me or that I contact. Sorting thru the everyday seller to FIND the MOTIVATED seller is the second most frustrating part of this biz. More frustrating is wasting good $$$ and time on a bad or iffy property.

Practicing alchemy with real estate drove me crazy until I learned to more closely follow the teachings we get from the experienced and highly successful teachers on this site.

Hank

[Greg Christiansen]

Greg Christiansen

You might need to use more cash. I know $100 worked back in the day for Jack, but I am guessing it would have to be more–say $1000. Then again, maybe Jackie has some information I don’t.

[DON WEDE]

DON WEDE

Hank:

I use $100.00 and it works for me (my market may be a little different, lower house prices in more rural setting). In fact I have considered making my option consideration $50.00.

Don Wede

[Norman Gaw]

Norman Gaw

Tim,

I don’t know anything about marketing to locate option prospects but I suspect that if you asked someone for an option in exchange for $100 the conditioned response is NO.

Instead approach them as a potential buyer. In the event the deal is not good enough for that, apologize and explain that to them. As an after thought, half way out the door, suggest you might be able to get them what they want if they would let work on it for 60 days or so. Do not use thew “O” word, it is getting a bad name. Instead fill out a conditional sale contract.

I never discuss earnest money. As soon as comfortable I begin writing down property information on what doubles for a sale agreement. That way there is no awkward/suspicious moment when the “paperwork” comes out. Before earnest money or deposit even come up I have a “Colombo” moment and dig around in my pockets and come out with a $100 bill

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“that’s all I’ve got”

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and hand it to one of them, in an off handed manner. Then write $100 in the correct space. If you don’t make an issue out of it they won’t.

I’ve used that over a dozen times and have never had it refused.

Good hunting.

Norman

[Greg Christiansen]

Greg Christiansen

Norman, well said! Thank you for the “script”, it really helps out for us newbies.

[DON WEDE]

DON WEDE

Tim:

Norm is correct. I do the same I use a sales contract with contingencies. In essence it is nothing more than an option. I have done some straight options but it has always taken more money.
In fact I believe Jack Miller has also using a contingent contract.

Don Wede

[Jim Ingersoll]

Jim Ingersoll

I tell them the EMD is held in escrow at the settlement agent. I also use language that says I will put it there upon the specific request of the seller. One time I gave a seller too much earnest money, sold his house and then found out there were unresolvable title related issues and I lost my money. Now I dont normally give it directly to the seller at all.

Jim

[Adam Olsen]

Adam Olsen

[quote]
Posted By donwede on 20 Dec 2008 12:18 PM
Tim:

Norm is correct. I do the same I use a sales contract with contingencies. In essence it is nothing more than an option. I have done some straight options but it has always taken more money. In fact I believe Jack Miller has also using a contingent contract.

Don Wede
[/quote]

Where would I be able to find an example sales contract with those contingencies in it? I just had a Seller deny signing my Option to Purchase Agreement today and would love to try the sales contract instead.

Thanks in advance,
adam

[Anonymous]

Anonymous

There is a good sample option contract in the workbook that goes with the Foundations of Wealth — plus if you look in the RESOURCE area ( under Member’s Only) you’ll find a link for free legal forms. I think I saw an option agreement on their list

Jackie

[Shawn Fisher]

Shawn Fisher

$100.00 will work with no problem. My experience is that you need “motivated” sellers. The retail sellers all think their home will close in 30 days even after it has been on the market for 120. Get the sellers calling you. They are more motivated and then options become of no concern.