|How To Sell Lease Purchase Deals To Landlords & Sellers
People sell their homes for various reasons. Some of which include, but are not limited to:
- Job transfer.
- Making two mortgage payments.
- Trade up to a bigger home or better neighborhood.
- Tired of managing properties.
- Moving in with a significant other.
- Lost job or income and can not make the payments.
- Physical problems with the property that they do not have the ability or time to repair.
MOTIVATION is the key when dealing with Landlords/Sellers. If you can find out what
motivates people, you can strike a great deal with them. Your goal is to find out what needs they have
and satisfy them.
If they are a landlord and are sick of renting out that house and fixing leaking toilets
at two in the morning, you can offer them something that will fill their needs. You can offer them
a friendly way of selling that property over time for a price they can live with and with none of the
landlord hassles. I spent the last nine years as a landlord and to be honest, there were plenty of
times that if one of you called me up and offered to take all of my properties off my hands I would
have jumped at the chance.
Landlords are a key source of deals. Many landlords are not as sophisticated as you might
think. Many of them inherited their properties or just have homes that they had trouble selling so
they decided to rent them out. The key when dealing with landlords is to let them know from the
beginning that you just want to help them solve their problems and make some money in the process. Make
them understand that it is a one-sided partnership. You are agreeing to do their work and still give
them the money that they want for the property. If it doesn't work out in a year or two, they can have
their property back plus keep the option money. If they rent it out, they will still have to worry
about replacing the carpeting and painting when it turns over. They really are in control of the
Let them know the advantages available to them. The reality is that what you are doing is
limiting the landlord's risk and at the same time accomplishing what a real estate broker and property
manager would. You are taking a small part of the monthly rent and making a small percentage of the
total sales price at the end of the deal. If the house doesn't sell, they get to keep what you have
No real estate broker in the country would do for them what you can.
I define selling as the art of fitting a persons needs to a product or service and
educating them on its utility. I suggest that when you approach a Landlord/Seller that you project a
sense of confidence that you know that this is what will work for both them and for you and that you
explain the benefits. I find that in order to build trust between the person I am selling to and
myself, I need to discuss the drawbacks. If you do not talk about the drawbacks, the Landlord/Seller
will spend hours trying to find out how this deal might be bad for him.
You want him to know right up front what the drawbacks are and then you can discuss these issues
together and work out solutions.
We are all in this business to make money, but you will find that if you come off as
trying to make a buck, you will look like a swindler. I like to think of myself as a creative
problem solver. I do take pride in helping other people solve complex problems and so far have been
able to make some cash in the process. When people call me on ads or signs that I have out, I
immediately go into a mode of discovery. What does this person need? What do they have? What is
keeping them from getting what they need? What do I have that can help in this situation. Sometimes I
talk to someone and find out that their best answer does not involve me. In those cases, I let them
know what I would do if I were them. I know that I probably lose deals that way, but I know that I have
built some good will and will get referrals down the line from some of these people.
You know what they say about integrity, once you loose it, you can never be whole.
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