It's Official - I SUCK
at filling my properties. I have NO probelm generating motivated seller leads and signing up sub to's and L/O's but I cannot fill them.
Yes, I put up bandit signs, run classified ads, offer OWC, NO qualifying, etc, network with brokers for their cast offs, flyer the neighborhood, network with other investors for referrals, but it is not working.
I'm offering below market rents/sales prices on nice homes in nice areas and although the market is still pretty weak in my area, this strategy should be working.
Any advice is appreciated. And WHO is the guru of filling properties?
Are these properties in Denver? Where in Denver -- just the general vicinity. I use to live there. Prices have escalated so much that the average wage earner cannot afford the property. If you are not getting any response, maybe your price is still too high, or the neighborhood is shaky, or the commute is bad. If they show up and still won't bite, what's the condition of the property? Are the next door neighbors running a Meth Lab, or are they cops?
I wonder if it could be your area of the country.
Yours is the third post I have seen from someone from Denver CO who could not rent their place out.
As the song says You don't know what you got til it is gone. I am fortunate to never have had a problem renting property and have lived in a number of different places in this country.
Never did anything more than put a sign out front with the monthly rent, and was fortunate to get tons of calls.[ Edited by MrMike on Date 11/29/2003 ]
I second this. I have 3 vacant properties in 3 different parts of the country. Can't rent.
Have opportunities to buy a couple of properties in my area, but with almost a 20% vacancy factor and everybody offering L/O, afraid to go for it.
Thanks for all help offerred.
[addsig]
Joann,
I keep seeing people from the Austin area saying things are not too good.
I know FL and NY but not TX.
I just did a search and was amazed at how cheap some properties seem to be.
Is this your experience?
Oh! I never thought the meth lab could be the problem. KIDDING.
One in particular is in Boulder near the Boulder Country Club. 2/2.5 townhome. Rent is $995 about 10% lower than comps.
It's a great area but a little far from Boulder "proper". When people call they are always impressed by the location and the rent is well within their range but ...nothing. I get the "I'll drive by and take a look and call you back" speech.
Another is in Denver - in a trendy urban area. Great restored Victorian - again below market rent and sales price but nada.
With the economy and wage level in general (especially if you live in a recent high layoff (1 to 2 yrs) the rental market appears to be declining.
Foreclosures are projected to increase in 2004, even though the "media and government" tell us all the economy is better. This is due to a combination of fewer jobs, layoffs, higher and higher taxes and insurance that increase the "mortgage payments" for those with escrow accounts especially.
Better means basically that there is an increase in manufacturing a very small increase and consumer spending.
What they don't say is that the wages paid for these new hires is 20-40% less than the guy they laid off last year doing the same job, there is more work being covered by less people at less cost.
People are spending money because when people are depressed guess what the majority of them do - Credit Cards and there are those who are not spending as much on their living expenses because they have change their living arrangements.
These are the people that have moved into their family's homes, friends or similar situation. This seems to be happening a lot.
If you see a lot of adds in newspapers for "for Rent" with discounts, no move in cost, low rents this is a sign it is happening in your area.
There are so many of the min wage to $8 hr wage earners that simply cannot afford to live anywhere but with their friends or family.
There is a list at all the subsidized housing apts. Just call around and ask. In our large metro city there are increasing section 8 vouchers but fewer and fewer places for them to rent and many of them can't get past the owner of the home because many are afraid to rent to them (many do not care for the homes).
Apt complexes can only have 30% of their units rented section 8 so many are already at max capacity. In many smaller areas there is no section 8 at all. These communities are the ones that have the lowest wage earners but no facilities or assistance.
So many live with friends or Family.
This may be what your area is experiencing. The only way to make the rental market work is to buy in low enough and have a "nice" unit for an affordable price. Otherwise expect your vacancy rates to stay high. You may even want to consider your breakeven rent and keep it there til things improve.
This is a strategy that we have in some areas where we hold and when things improve the rents go up. As long as we aren't in the red we call it a fair deal with potential for being a good of great deal.
Like all businesses you must chart the water and make adjustments as you sail along the waters.
I see you too are from TX.
Man I guess we have it VERY good here in FL and NY. I keep hearing about the problems with the economy but haven't seen its effects in rentals and especially not in increasing house prices.
TX seems to go boom and but about every 20 years.
Yep - here in Denver all of the signs you mentioned are there.
I have considered changing my plan and looking at FULLY RENTED multiunits. 3-4 units for 80-90%% of market value has to be a pretty good deal.
What do you guys think?
Also, is there a way to get a property listed on the MLS for CHEAP?
How do you get a property qualified for section 8? Is it the property that qualifies or the landlord? Meaning if I get my company qualified then is every rental I acquire a potential section 8?
Hey lassitermarketing....have you tried finding buyers before you find properties? Sometimes it helps to know where people want to live before you go out and buy a property.....especially if it's a slow market. Try running general ad's in the paper as though you have a property for rent/lease and when people call say you just rented it out but you will have more. Get them to either fill out a questionaire or tell you what they are looking for and what areas they prefer. Some people may prefer a 3 bedroom 2 bath over a 2 bedroom. In some areas 2 bedrooms are slower to rent out.
As far as Section 8 goes, I would call the Section 8 office and have them send you a landlord pack. That would let you know what they require and what they pay for certain types of units. The property has to meet their inspection requirements, so that means an inspector would have to come out to inspect the property before the tenant moves in. Sometimes it could take 45 days before you get paid for your first months rent, so I would ask them when would you get your first check by.
hoped that helped!
Yes, Texas does seem to go up and down and Austin is especially down right now. Landlords are falling all over themselves to get Section 8 tenants.
There are some great deals out there for when the market/economy pick up, I just don't have the money to support them until that day
[addsig]
Lassitermarketing, ,
Contact the local Housing Authority and tell them you want to qualify your property for Sec 8 http://www.housing.They wil set up a time to inspect the property and tell you what is required. Mostly it is that everything is to building and safety codes .They put your home on a list of available housing
The next step is for you to find a tenant that meets your requirements to lease. They need to be interviewed by the housing authority to determine what they can afford, after taking all their financial information. They may be given a voucher for a subsidy based on the family income . The housing authority will enter into a contract with you to pay a certain amount monthly to you while you collect the additional amount of rent [to total your whole amount] from the tenant
Keep in mind that the housing authority has a published list of rental amounts that they will pay determined by the market rent and the # of bedrooms etc,
In other words the tenants must qualify and the property must qualify The first step is to get you house inspected then you can choose to rent to Sec 8 if you want
If a tenant already has a voucher they still must be approved by the authority for this property
You must enter into a lease with the tenant and charge a security deposit
good luck,
Lynlinz
How do you get a property qualified for section 8? Is it the property that qualifies or the landlord? Meaning if I get my company qualified then is every rental I acquire a potential section 8?[ Edited by LynLinz on Date 11/29/2003 ]
Yes Tx goes through cycles of build and crash, we are in the lower side of that. The last one started in the late 70's and into the early 1980's.
My father got caught in this but not crushed (Praise the Lord for his blessing on a man with 6 kids and and extremely ill wife).
We have experienced an explosion of building and many foreclosure after a yr of ownership becuase of our economic climate in TX. This is hurting a lot of people. Do we ever ever learn our lessons? No, I dont think so.
Many of our businesses pulled up and moved thanks to NAFTA. There was a great boom for Texans in the service industry in the mid nineties. When interest rates went down many Texans still had jobs so we build homes - dreams come true. Now with the Aviation, Tech and manufacturing layoffs over the last 3 yrs and increasing lack of employment opportunies at wages that are what these workers have had the boom is coming to a head.
Our taxes have skyrocketed, insurance cost have double and tripled, medical cost have quaded, etc..... there is a repeat of the 80's for us on the horizon. The S&L and oil scandals were not the true cause of our problems they were a symptom. Greed and careless planning was the problem.
Those of us here must be smart about our investments. We must help not hurt those in trouble where we can. Not everyone will accept our help though.
Not trying to scare people this is a good time to be investing if you do it smart. We are not infaliable and may even goof up with some of ours but that is lesson to learn if so. But our plan is not to make any errors, so we leave greed outside the door and aren't welcoming it in.
There is a good article by a Hard Money lender on this site talking about some of the issues going on here. Take time to read it if you live in TX. Can't temmeber the title, but I printed it off and loaned it out.
I know that our state survived the last one and we will as always survive this one. I am living proof of that. I never was without food, water & shelter even after I left home.
The suggestion of your local housing authority is a great option. Here they even give free landlord classes and other types of help.
To answer you Q's
Fully rented units are always good if your number work and your repairs needed are not high. You need to have a couple of inspectors go in and look the place over. [ Edited by Dreamin on Date 11/29/2003 ]
Quote:
....have you tried finding buyers before you find properties? Sometimes it helps to know where people want to live before you go out and buy a property.....especially if it's a slow market. Try running general ad's in the paper as though you have a property for rent/lease and when people call say you just rented it out but you will have more. Get them to either fill out a questionaire or tell you what they are looking for and what areas they prefer. Some people may prefer a 3 bedroom 2 bath over a 2 bedroom. In some areas 2 bedrooms are slower to rent out.
Great idea! I already have a small database going with some potential TB's. Maybe I'll make that my focus.
This thread is a good read for all those new people following the TV 'gurus' who preach the nothing down deals to people who have no money in reserve.
Yea it is great til you go a couple of months with no rental income or a tenant damages your property and you have to lay out a couple grand to fix it up before you can rerent it.
Good lessons for us all.[ Edited by MrMike on Date 11/29/2003 ]
lassitermarketing,
Glad to meet you.
From my automobile ownership days we had a saying "There is an A$$ for every seat." no different with houses.
You need to use "Message to Market" to sell houses, Creativity in your advertising message is paramount when you are in the market you are in. Of course I am also a firm believer that the market thing is in most peoples head, up - down - all around who cares the diamond will always shine, you being the diamond with the correct advertising message.
60% of people who want the American Dream are tuned down for a loan, this doesn't mean they don't have money so, they are looking for you to help them.
Tell me where you are advertising and how does your ad read?
John $Cash$ Locke
I may be blessed to be in the area I am, but I have to believe that people are similar anywhere. If your area is saturated with L/O opportunities, people may seem to get a little bit jaded. I remember when Lee Iaccoca offered the first rebates on new cars and people flocked to his dealers. Now they offer 0% financing or up to $4000.00 in rebates and people don't pay attention. An ad is not an explanation of what you are offering. Very simply put, an ad should be designed to do one thing and that is to make the reader respond. I use a very simple ad to draw in the calls, and luckily it has never failed.... here. It reads Owner will finance no banks 123 main st 3 br 2 bath Call (XXX) XXX- XXXX. That's it. When they call, you need to control the conversation. When they ask how much, ignore that question and start talking about the house and its feature/benefits. Let them know what's in it for them. Transition the description into a questioning or qualifying session. Where do they live now, ho much rent are they paying, how much can they afford monthly, and how much cash do they have now.... in 30 days... etc... If they fit your profile, especially if competition is fierce, ask them if they want to meet you at the property. tell them to bring their checkbook or cash or whatever because the amount of calls you've been receiving is unbelieveable. (you are not lying, nobody could guess that you've only gotten 1 call or a 1000, therefore it can be unbelieveable what your advertising dollar is doing, good or bad) When you get to the property it had better sizzle. An apple pie or an apple candle.... a vanilla candle... whatever makes it pop. mainicured lawn, no eyesore. If you do 1% better than what 99% of your competitors are doing you will succeed.
Good Luck,
Shawn(OH)
Oh and change the title of the thread. work on the salesmanship, the velvet hammer
Hi John - VERY nice to meet you too.
Tanks for taking the time to reply. Here are some actual ads:
RENT TO OWN 3 bd/2.5bth home in Bromley Park. $1195/mo and up to 30% rent credit. XXX-XXX-XXXX x.75 24 hr rec msg.
OWC! Non-qualifying financing. 2/2.5 Gunbarrel. xxx-xxx-xxxx x75 24 hr rec msg
I'm advertising in the Post-News classifieds (A JOA for Denver's two major newspapers) and the local city newspapers for both areas.
My bandit signs say the exact same things.
I've done tests with a local number and my toll free call capture. The call capture generates more calls i.e. 2 vs none.
I call back everyone even if they don't leave a message but then I seem to lose them.
And by the way, I use your postcard (my mother in law will help you pack) with GREAT success. Thanks for that.
I divested a few months ago and my children are now playing at landlord. Fun to watch.
I have always used single signs on house rentals. Some of these signs are pretty far out. Of course my highly sopfisticated children set them aside and went for the more institutional approach. I notice they are back to my signs. Paste over my number.
Eclectic one br. hse designed for unpublished writer who lives alone and hates it. Room for additional tenant.
Lovely 4 bedroom 3 ba for rent to familiy with lots of kids who break things. Study hall included No Brokers, Attorney's or
Social Workers.
Newly liberated 2 br 1 ba hse with converted closet for Mother in Law. Pets optional or interchangable.
Handy? Own Tools? Rent to buy. Bonus given for ownership of pickup truck. We furnish building permit and blessing.
Shall I go on. they work maybe its LaLa land but when I did the 300 houses at Moses Lake the same approach.
Passed Bar, failed SAT. Lucius
lassitermarketing,
I think you are trying to sell the steak instead of the sizzle.
I would have gotten back sooner but I fell asleep reading you ad.
Here is what I want you to do, set down and write all the great things about this property.
Close to schools - Close to shopping - Close to parks - Excellent neighborhood - this sets the mood, now are there some strong emenities concerning the property, Party size backyard, country kitchen, large master bedroom, come on now put the ole creative thinking cap on.
OK, now about this not answering the phone yourself so you can presell the property over the phone and set the appointment let's talk.
Your will increase your chances of selling 10 fold by answering the phone yourself. Etch this in stone so you do not forget it. People want to talk with people not a cold message machine.
Rent To Own are we renting television sets, dining room tables or are we selling a Home where we hang up pictures of Aunt Gertie and Grandma, or where the children play and grow up?
Are you advertising in the major newpaper in your area?
When you are done thinking about these things and put together another ad for me to look at, we will make the final draft.
Then I will tell you what to say on the phone when the buyers calls to set the appointment and what the first words out of your mouth should be when the buyer shows up to look at the home.
Are you with me?
John $Cash$ Locke
Ok, here goes:
2 bd/2.5 bth immaculate townhome. Steps from Boulder Country Club, open space, parks with real ducks and killer biking. You don't have to be a millionaire to live here - rent to own or owner carry. XXX-XXX-XXXX
Better? Or are you still sleeping?
This post is very very good. I read yesterday in the NY Times online about the massive amount of vacancy in rental units. They said that low intrest rates have caused a surplus of rental units nation wide. With this being said houses should move. I am no expert but if you have done your homework you should be able to sell the house. If you are keeping it as a rental you may have a hard time filling it. Just wondering if any one else was seeing this. Thanks
A possible way to get people into these properties is by offering them on a rent to own basis. This will open a whole new world of buyers to you as many people cannot get bank financing even though they can afford a down payment and the monthly mortgage payments.
As I am far from being an expert, check out the book "Making Big Money Investing in Real Estate" by Peter Conti and David Finkel. It is as outstanding book and it goes into great detail on how to do this and make a very nice profit.
Best regards,
Peter
Tonight I saw on Fox Channel that apparently all landlords all over the country, except NY and Los Angeles suffer from vacancies. Some are offereing free rent just to get their houses/appartments occupied!
Reason given: mortgage rates are so low that a lot more people are buying houses than before.
Wish you good luck and pray that you may fill your vacancies!
Ladybug
lassitermarketing,
As a matter of fact it is late and I am off to sleep, however I will get back to this in the a.m.
You are getting me to where I am just nodding off reading the copy rather than falling asleep, we are making improvements.
John $Cash$ Locke
Quote:
On 2003-11-29 23:21, geispc27 wrote:
A possible way to get people into these properties is by offering them on a rent to own basis. This will open a whole new world of buyers to you as many people cannot get bank financing even though they can afford a down payment and the monthly mortgage payments.
As I am far from being an expert, check out the book "Making Big Money Investing in Real Estate" by Peter Conti and David Finkel. It is as outstanding book and it goes into great detail on how to do this and make a very nice profit.
Best regards,
Peter
Hi Pter - I am a student of Conti and Finkel and am offering these properties on a RTO basis. Don't be fooled - there are a glut of these RTO and OWC props available too
lassiter
try using "No Bank Qualifying" instead of "rent to own."
You know it's rent to own, and they will know it's rent to own, but give them a better feeling by saying "No Bank Qualifying."
Most people that "rent/lease to own" have problems with bank qualifying and when they see "No Bank Qualifying" thats like music to the ears.....
lassitermarketing,
+
2 bd/2.5 bth immaculate townhome. Steps from Boulder Country Club, open space, parks with real ducks and killer biking. You don't have to be a millionaire to live here - rent to own or owner carry.
+
$
$6K Down, Owner Financing, 2bd/2.5ba,
pristine townhome, walking distance to Boulder Country Club, bright and airy floorplan, parks with real ducks, feed them from now on with what you will be saving, because homeownership is only $XXX.XX per month. Call owner 555-1234
1. Answer the phone yourself, ask them questions, "children? that's great schools are only" "Shopping? if you like shopping don't we all, you are only minutes away from" in other words find out your buyers needs and presell them on the phone and set the appointment. This I call Message to Market.
When your buyers show up for the appointment and they step out of their car greet them with "You folks are here to see your new home, come enjoy." This will set them in the buying mood.
$
Make sure you advertise in the major newpaper, no thrifty nickles. I have not seen everything about your townhome so I may be interjecting a bit here, but you get the idea. Please no Rent to Own, save it for the televisions sets and refrigerator people.
Good selling,
John $Cash$ Locke
You are getting some good advice. I would also recommend reading "The Clipper Ship Strategy" by Richard J. Maybury, Bluestocking Press. It details what these boom and bust cycles mean to us and how to profit from them and avoid disaster.
We were caught in Oklahoma during the early 80's crash, lost our first home to fc, not till lately have I figured out what happened to us. We did what this book recommends, moved somewhere where the jobs were and the federal money was flowing, to the Atlanta area. He talks about being portable, being able to fold up your tent and move when disaster strikes in your neighborhood. Those Bedouins weren't stupid.
If you can't rent, try rent to own, lease purchase, outright sale, owner finance and sell the note, Section 8, free TV, free pizza every month, free two months rent, whatever it takes is what veteran investors here are doing to fill their vacancies.
best of luck!
Shelly
Lovely 2 br and 2 ba Townhouse. Why rent when you can own. l Owner will carry. Living persons only. Others need not apply.
Call ----------. If cat answers hang up
Estate of: Mrs. Alvira Diddlehoff
----------------------------------------------------
For Sale
2 bedroom 2 bath Townhouse
Wanted Couple who intend to occupy for the next 10 years. Seller will finance
3% interest no balloon, split monthly payments. 40 year payment plan.
Estate of: John Doe, & Jane Doe
Call: ---------------------- let it ring twice
_______________________________
What you say in a sign and how you close are two different items. The person who reads the sign is merely being motivated to meet with you. You then adjust the transaction as you so wish. Now thats the skill Negotiation.
For the full cataloge of catchy signs that have worked since Noah trespassed on the top of a Mountain. merely post
Lucius
[ Edited by Lufos on Date 11/30/2003 ]
I want the FULL catalogue! Great stuff!
lassiter
like johnlocke and lufos has said. Create desire and action. In marketing they teach you the Acronym A.I.D.A.
A: attention -
you want to get your buyers/readers attention
I: Interest -
you want them to have an interest in what you're offering product/service
D: desire -
you want them to desire what it is you are offering
A: action -
then you want them to take action and make the purchase or decission to respond
hope that helped!
Ok - I appreciate the help with classifieds, but are you guys saying that classifieds are the ONLY way to go?
Any other great techniques for filling properties?
lassitermarketing,
Are waiting for the Televison or Radio ads or maybe the billboard copy.
A sign in front of the house is effective as maybe the neighbors have a friend they want in the neighborhood.
I find print advertising to be very effective when done creatively, there are more ways to advertise, however I don't think you are ready for the Free Corvette yet.
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&sid=166
John $Cash$ Locke
Quote:
On 2003-11-30 21:46, Lufos wrote:
Lovely 2 br and 2 ba Townhouse. Why rent when you can own. l Owner will carry. Living persons only. Others need not apply.
Call ----------. If cat answers hang up
Estate of: Mrs. Alvira Diddlehoff
----------------------------------------------------
For Sale
2 bedroom 2 bath Townhouse
Wanted Couple who intend to occupy for the next 10 years. Seller will finance
3% interest no balloon, split monthly payments. 40 year payment plan.
Estate of: John Doe, & Jane Doe
Call: ---------------------- let it ring twice
_______________________________
What you say in a sign and how you close are two different items. The person who reads the sign is merely being motivated to meet with you. You then adjust the transaction as you so wish. Now thats the skill Negotiation.
For the full cataloge of catchy signs that have worked since Noah trespassed on the top of a Mountain. merely post
Lucius
<IMG SRC="images/forum/smilies/icon_cool.gif"> <IMG SRC="images/forum/smilies/icon_cool.gif">
<font size=-1>[ Edited by Lufos on Date 11/30/2003 ]</font>
I'd love to see the full catalogue. This is super stuff. I'm brand new and still learning, but this is as helpful as it could get.
Some excellent information in the posts above. People have different ways of selling their product that works for them. Of course, one thing I never hear mentioned when you hear people talk about investing in real estate is that fact that it is a business which means it has to compete with similar businesses in the area. The number of renters in a local market is not unlimited. On the other hand , there are always people who rent no matter what the economy does. If you can't rent your units generally it simply means you are not competitive for some reason. As I have mentioned before, everything will rent at the right price. Either you will have to lower your rent, or find some way to make the property more desirable. Comps can be misleading. I have a guy who owns a rental house two doors down from one of mine. His property has been for rent for 6 months. He priced it based on comps for the general area of town the house is in. I think he still doesn't realize that the particular street this house is on simply will not bring the same rent as two streets over. Unfortunately he has invested too much money in this house to rent for less. It's actually ironic because this guy is a much larger investor than myself. He complains about how things won't rent and yet I always have virtually no vacancies and I have people in this neighborhood constantly asking me when I'm going to have another house available. Again, this is simply the way I do business. I've never tried any creative financing or ads. I simply make my houses as good as or better than the other houses ON MY STREET and rent them for at least 10% less. Of course you have to get a great deal to start with and make sure you have low maintenance expenses to do this. Hope you find what works for you.
I am curious how things went so far in trying to rent the property???
UPDATE
Still no luck renting to own or selling. I ran the ad as JL suggested and generated a few more calls but no appointments.
I agree that I need to focus more on the deal itself to ensure that I have the best thing going. I wasn't as aggressive as I should have been negotiating this deal up front so in theory it's my own fault.
I'm still very disappointed in the lack of response to anything I'm doing. I've heard similar stories from other investors in my area (Denver). I'm hopeful that things will puck up after the holidays.
Thoughts?
Now you have me worried.
The Practice of PsyWar is applicable directly to the field of advertising and selling.
You place a sign on a house for rent. The purpose of that sign is not to rent the property but to produce a person who will knock or call you in response to the patterns induced in their psy by that sign.
At that point the next pattern is inserted.
With care, you talk to the people. You are polite, do not use words like folks. Do not ask for first names all that comes latter.
You show the house. No you do not walk into the kitchen saying "Now this is the kitchen." You direct them in the normal flow pattern which is present in every place of residence. Enter, lv room or "Great Room" (combined modern term for kitch/familyroom/livingroom. Then to bedrooms, Master Last. into Master Bath and back down hall peek in secondary bathroom. Back to Great Room. Cookies just out of the oven are nice. Semi relaxed music. Send the cat and dog on vacation. Leave them alone but listen. Depending on their signals you move into the close.
The close has nothing to do with the signs. It is based on your observance of the signals people broadcast on these occasions. Pick up on them.
I am going to stop, you see what I mean You have gone this far you can pick it up.
Actualy it is rather fun Lucius
Lucius,
It is knowing when to close in the natural sequence of things.
When the buyers starts talking about where the their furniture is to be placed, a simple "when would you folks like to move in" is all that is usually needed.
At this point they are done just stick a fork in them and hand them the pen.
John $Cash$ Locke
You know, in the winter in the northern states it's just plain hard to get a renter or even a buyer. It's three weeks till christmas. This time of year I just don't work too hard at finding anyone to rent. It seems that interest picks up after the new year. Last year I made the mistake of taking a tenant because I was desperate to get someone at the end of November. Because of my desperation I paid a huge price with a tenant who trashed the place completely in less than 2 months time. I had a bad feeling but I did it anyway. Really my point is that this time of year in the "frozen" states, it just isn't easy.
Quote:
With care, you talk to the people. You are polite, do not use words like folks. Do not ask for first names all that comes latter.
You show the house.
It's the getting from talking to showing that seems to be the problem. I get the "I'll drive by and take a look" speech or "well I have some others to call so I'll get back to you."
What's the trick to get them TO the property?
Of course you can always do what it says in the book "How to sell your house in five days". It is supposed to let you get full value for your house but the people who I saw them interview who did it said it was very stressful. If I had good equity in a property and I had to move it I think I would try it. At worst it would end the pain swiftly. It seems better than a drawn out process of making payments for months and then possibly having to lower your price substantially. Of course you do set a minimum bid and there was some other things they said to do to make sure you get a good price.
So what do they say to do? Is it a bid?
Lasitter,
Who are your competitors? What are they doing? What do their ads say? Where do they advertise? Have you called your competitors, as if you were a prospective client?
Economy hell or hot high water, and whether it be winter, summer or even spring, there are folks in Denver who're looking NOW for the American dream. If they're not biting your hook, they're biting somebody else's. And I swear (can I swear on this board) that some of these somebody elses are your competitors.
Who are your competitors? What real estate solutions are they providing your market?
Howard
The feedback that I get from my competition is that RTO's aren't moving. Great deals are selling in 30 - 90 days but RTO's aren't moving.
The people that are biting are what my peers call the "dregs". No down payment, want a 300,000 house for $900 a month, etc. That's their feedback.
I see ads and call on them occasionally but honestly, no one that I talk to is doing anything really creative or that much different from what I'm doing.
All,
I live about 45 Miles north of Denver in Fort Collins. I have to say that rentals in Denver and in Northern Colorado are a Tough sell.First off, as we all know, interest rates are at 40 year lows on mortgages. Second, it is CHEAPER, by my math ( All things considered) to buy.
In the area called Park Hill in Denver, many houses have been on the market forever it seems. 8OO-1100 Square feet for $190-249,000? Come on now! Just a short 20-30 minute commute north will get you 1500-2000 square feet for 149-170,000. I invest back home in Iowa. There really isn't enough upside in Central to north Colorado to even consider investing in rentals!
Susan,
I'm from Colorado too, Littleton.
Unless somebody has been living under a rock, you know that the rental market is brutal out here. If they are publishing 10-15% vacancy rates, you can easily double that for certain areas.
This time of the year is also tough, people don't want to move once it gets cold.
I'm not going to pretend that I know everything, but I know that not getting anyone to show up has nothing to do with the actual property and everything to do with the advertising.
Advertisements sole purpose are to generate a phone call. Then it is up to you to close with an appointment. If you are not able to get an appointment and you are getting calls the problem is with your conversation with the caller. If you are not getting calls the problem is with the advertisement.
As has been stated there is an A$$ for every seat. Which means for everything on the market there is a buyer at a certain price.
If you can't make that phone ring, sooner or later I think you have to come to the realization that the competition is getting your phone calls. I suspect that the price is killing you.
There is an easy but unethical way to find out. Call your competitors and go see their properties. Look at your property from the eyes of your customer and really try to see what they would see. How do you stack up as a value? I fear the price is going to have to come down to make the phone ring. In a tight market $25 a month could make the difference in getting the phone to ring.
I sold a car once in the paper. It was a little Honda Civic with low miles, a cherry in every way. I put it in the paper at $5000 dollars and every call I got was some Boulderite who only wanted to know if I had each and every document showing the oil changes and maintenance. I was shocked, I thought this car shoud sell in a second it is so clean and perfect and I was asking the top dollar for it because of it, but all I was getting for calls were anal-people, no buyers. I lowered the price to $4500 and I litterally had people fist fighting in my front yard over it. I could have sold 10 of them at that price.
PS - I think you asked about a realtor to get something in the MLS cheap for you. I have a friend who does that, I'm not sure what he charges but it is low, something like $150 or a bit more. You can private message me if you want more info.
I like many, I started out by purchasing the Carlton Sheets "No Money Down"
program. As a result, I did purchase 3 duplexes and 2 houses no money down.
The dirty little secret They don't tell you is that is takes money to hold
on to properties!! (Unforeseen vacancies, repairs, etc.) I really think this part is overlooked. I am going to make it, but things have gotten really tight in the past. Anyway, It is good that newbies understand that they may not need money to buy a property, but you sure have to have money set aside for repairs, vacancies etc.
I agree with the quote below by MrMike.
Quote:
On 2003-11-29 13:45, MrMike wrote:
This thread is a good read for all those new people following the TV 'gurus' who preach the nothing down deals to people who have no money in reserve.
Yea it is great til you go a couple of months with no rental income or a tenant damages your property and you have to lay out a couple grand to fix it up before you can rerent it.
Good lessons for us all.
<font size=-1>[ Edited by MrMike on Date 11/29/2003 ]</font>