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So, I am getting leads from FSBO’s and FRBO’s and first I ask if they are open to lease the property for a few years and then sell it. Some say they are interested some say, no and some say, we just want to lease it.
Those who are interested end up not being too interested in doing a lease option for whatever reason. And the ones that say “they only want to lease” I ask if they are open to lease to a corporation and if they say “yes, maybe or I want to know more” I usually ask them what is the least they would take for the monthly payment if we lease for 5 to 10 years and we take care of all maintenance and repairs up to $500 per incident. But I haven’t had anyone take me up on the offer yet. Any suggestions? What should I do instead, etc..
Thank you,Aristides R.
Aristides,
I’ve found that follow-up is the key to getting FSBO deals where others fail.
Talk to them every 30 days (monthly payment) or so and see how their situation has changed.Also, unless you have immense deal flow, try not to negotiate over the phone on the first call.
If these FRBO’s & FSBO’s are local to you, set appointments to meet with them. A seller/owner much prefers to deal with a real human over a voice on the phone.Or — and I’m channeling Jackie here — do a highest bidder sale.
Keep up posted,
Mike
You don’t need the option. For cash flow, just get the lease.
Once you prove yourself by making payments on time, you can always approach the owners about an option later.
Though getting a lease for 5-10 years is attractive to you, it is not so attractive to the owner. Start with a 1-2 maybe 3-year lease, then go for a longer-term lease later. Rents could go up dramatically or they could go down a lot too.
I think people have not taken you up on your offer because you are being too aggressive with your offers.
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