It’s no secret that finding lease options sellers is one of the biggest hurdles facing lease option investors. However, for beginners it’s a psychological challenge as much as a challenge in the real world. After studying the training materials and getting your questions answered, finding a lease option seller in the real world is also your first venture into truly making this investing method work for you. Getting started can be intimidating.
Where to Begin Looking for Lease Option Seller
Craigslist is the place to begin looking for potential lease option sellers. I say “potential” because you’re not going to simply find people looking to sell a house on a lease option. At least not very often. Very few people in the real estate business are even aware of lease options. You’re going to need to do a little educating.
My lease option coaching students understand they need to educate potential sellers but still make one crucial mistake when getting started. They find a landlord trying to rent out a vacant house on craigslist. When the landlord says he or she is possibly interested in doing a lease option sale, the beginner jumps right into a technical explanation of how a lease option works. What this does is intimidate the potential seller with too many complications about how the deal works. Since the seller doesn’t understand the deal, he or she comes away from the conversation with a healthy dose of skepticism that this might be a scam.
A Better First Conversation with a Potential Lease Option Seller
How you want to begin the conversation is by explaining to the potential seller that you are a professional investor. That you are thoroughly knowledgeable about this investment method and although it sounds a little complicated it’s really not once you completely understand it. That in fact, it’s a win-win-win scenario for the seller, investor, and buyer. Everyone gets what he or she wants out of the deal.
Let them know that you have buyers and sellers that you are matching up for these deals. That your goal is getting this concept better understood and bringing together people that will benefit from it. Let them know that the end deal will be fully documented in a contract that any party can have reviewed by a real estate attorney. They’ve already expressed an interest in this arrangement, which greatly improves your opportunity to put together a successful deal.
Besides looking on craigslist for landlords trying to fill a vacancy, you want to look for people trying to sell their homes without a realtor being involved – For Sale By Owner. Some FSBO sellers will be interested in what you are offering if their house has been on the market for a while.
One last thought on the subject. Some people think that opening the conversation by letting the potential seller know you are a professional investor is a mistake. They are afraid it will make the seller skeptical of getting into a deal with a middleman. I disagree. I’ve found it’s always much better letting them know up front how you fit in the deal. If they don’t understand how you benefit from the deal, they’ll be wondering why you are doing it. When they figure it out, they’ll feel that they’ve been deceived and probably pull out. Integrity means letting everyone in the deal know everything that is going on from the beginning.
If you want to work directly with me as your lease option coach or with any of my other investing models that have proven highly profitable, please join me at www.wendypatton.com/what-is-wendy-pattons-inner-circle.
Besides reading this article about lease options, you’ll want to read this other useful information that I offer free. Please take advantage of it today.
Several times each week, I make the most current real estate investing information available to readers. This time, it’s about lease option coaching but the information I provide changes constantly to stay current with the market. Be sure to check back at: www.wendypatton.com. Also, get started learning how to do NO CASH lease options on real estate by picking up a copy of my bestseller book: Investing in Real Estate with Lease Options and Subject-to Deals.
By Wendy Patton
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