Accept Lease Option, Reduce Vacancy
When an investor approaches a motivated landload/owner and offers an lease option or master lease option, in reallity, is it acceptable or what the chance of success?
Another question, let's say a owner is having problem renting with high vacancy rate, what is the quickest, effective, and cheaptest way to come in and increase the occupancy?
James,
Each situation is different and the rate of success for an investor deals in large part to how good his presentation is to the landlord/owner as he explains the short term and long term benefits of his proposal to the landlord/owner. It goes without saying that the landlord/owner must be truly motivated in order for the investor to experience success in closing the deal.
I do lease options and I had to develop my presentation and negotiation skills regarding this technique before I experienced any good level of success.
If the investor is helping the landlord/owner by turning a negative cash flow situation into a breakeven or positive cash flow situation for the landlord/owner it only seems logical that this landlord/owner would sit up and listen.
Your second question seems geared to multi-unit dwellings which I don't deal with. I'm sure someone on this site can answer that one for you. Good Luck.
Dave
[addsig]
Well I'll weigh in on the occupancy question.
The first half of the equation is to figure out what is wrong with the units. Are they rentable? Cleanliness is, as they say, next to godliness.
Is there some major flaw in the product? Are they priced right for the location? etc, etc, etc.
If you can get past those issues then there remains only one other answer: more effective marketing.
Now marketing is as much art as science. The science part is finding out where your target market looks when they are looking for a place to live. The art part is figuring out some way for them to see you there. In most markets that seems to be finding some way to stand out from the competition.
The "give-away" gimmick frequently works. We once gave away a free microwave oven (this was years ago when they were much less common than they are now). Oddly enough we got better response from an $80 microwave than we did from giving away a free months rent (test ads run side-by-side)! Do not overlook the value of the tangible.
Congrats onthewater,
Can you share with us a little more on your success as regard to your RE market, the deal(how much discount), seller, CAP rate, repair/rehab cost/tips, rental market etc?
What were your criterias and techniques?