6,386 Tenant-Buyers Nationwide (and Counting)...Dear property owner, We are Russell & Diana de la Peña. We're in bit of a pinch and... we need your help. We've got some tenant-buyers who need a house... actually, we've got 6,386 tenant-buyers across the country (and counting) who need a house. Here's the story... My wife and I are real estate investors out of Southern California, and we advertise to find people who want to buy homes, "Rent-to-Own". Well... our marketing worked amazingly well, and we found a lot more tenant-buyers than we had houses to sell. So... we wanted to find a way to help these folks find a home and to make a little money on all the work we've done to find them and qualify them... so we set up this web page and started to look for wholesale real estate investors, landlords, home owners, and property managers like you. About Our 6,386 Nationwide |
1) Scams: The Internet is full of them. How do I know you're not one of them? |
Answer: Indeed there are tons of scams on the Net. I recommend you always consult a real estate attorney first, and never send wire money to anyone.
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2) What's the catch?: How do you get paid? |
Answer: No catch. We get paid by the "end" tenant-buyer to whom we assign the Option rights based on your pricing and terms.
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3) Does Title stay in my name? What about the mortgage? |
Answer: Yes, both Title and the mortgage stay in your name as this is a rental with the "option" to buy - not a sale.
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4) Do you have tenant-buyers for my specific house right now? |
Answer: Hard to say until we see your home, and determine if it is priced correctly. If yes, then yes, getting a tenant-buyer is easy for us.
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5) What if they destroy my house? What then? |
Answer: While anything is possible, consider that a tenant-buyer is putting down non-refundable cash upfront that far exceeds what a straight-renter puts down (who has no intention of buying). Which is more risky?
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6) Do your buyers pay us directly? |
Answer: Yes, they will pay you your portion (the "Option Fee") directly and our "Option Assignment fee" will come directly to us.
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7) Are you licensed in my state? |
Answer: No, we do not represent anyone but ourselves, We act solely as Private investors.
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8) How fast can you find someone for our home? |
Answer: Usually 7-14 days when the rental price is priced correctly. Longer if it is not.
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9) Can my real estate attorney review your contracts once drafted? |
Answer: Yes, of course. We encourage that both your real estate attorney and accountant advise you as we do not provide legal nor accounting advice.
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10) How do you qualify them? What's the process? |
Answer: In a nutshell, we check everything but their credit scores, since if they had perfect credit, they could qualify for a regular bank loan and wouldn't need you or I. They MUST remove any doubt, however, of any concerns of their current financial strength, so you feel 100% comfortable. We send all documentation to you for your review before assigning the contracts, of course.
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11) I'm listed with a Realtor. Can you still help me? |
Answer: Yes, since we are not Realtors in your state, and we are technically buyers of the "Option" contracts, assigning the contracts to an "end" tenant-buyer for a profit, there is no conflict of interest with your Realtor at all.
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If these are concerns that you've had in your mind as you search the Net for help, solutions, and ways to sell your home without paying commissions or fees, you're not alone.
And frankly, I don't blame you. I would think the same things. Hopefully these answers have shed some light on who we are, what we can do for you, and have helped you better determine if working with Diana and I would be a good fit for your specific needs and wants.
My Wife Diana and I Believe In Full Transparency
and Full Disclosure (We avoid a lot of drama this way)
We too have fears and concerns, at times, as we've been "burned" by folks that we've worked with in the past, so trust me when I say, we understand. After all, though we sign contracts, for some reason there have been sellers that have tried to circumvent us and steal buyers we've sent them.
So cocnerns can really goes both ways, right?
There's an old saying that I love that goes something like this: "That which we compromise to gain, we ultimately lose."
So What's the Point?
If you have the questions I mentioned above, or others (since this is not an exhaustive list), please reply to this email now.
I will personally answer you questions, and there is no obligation to work with us. Our goal is to help you, the "end" tenant-buyer, and ourselves, win. We don't want you to spend thousands of dollars of needless commissions or fees, or ultimately have to lower your price over and over again, because your house is sitting on the market collecting dust.
Difference Between a Lease-Option and a Contract for Deed Explained by Attorney Bill Bronchick
5/11/2016
Attorney Bill Bronchick explains the differences in each of these types of contracts and what you should consider before selling in either fashion. Since I'm not an attorney, and I do not ever give out legal advice, I figured I'd let a real estate attorney like Bill Bronchick explain it all to you here in this video:
Keys Differences to Consider Before You Sell
Using Either a Lease-Option or a Contract for Deed
In the last 7 years of working with home owners, wholesale real estate investors, landlords, property managers, and Realtors, I've noticed quite a bit of confusion between these two exit strategies, so the goal of this blog and the video above, is to help you understand the fundamentals of both before you enter into a contract.
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- Usually you can safely collect 3-5% upfront (non-refundable) and if the "end" tenant-buyer fails to pay their rent on time (or at all), you can evict them.
- This is exit strategy is not considered a sale as the tenant-buyer has the "option" to buy and the "option" not to buy.
Contract for Deed:
- Usually you can ask for 10-20% down upfront (non-refundable), and if the end buyer fails to pay their mortgage, you'll need to foreclose on them.
- This exit strategy is considered a sale.
Of course, you want to sell at the highest purchase price, but since you're selling, "rent to own" (Lease with the Option to buy), if you overprice your rental amount, your house will sit and it matters not how much you want for your over all purchase price.
Get this part wrong and you'll only succeed in showing your home to your nosy neighbors.
Often when my affiliate team and I inform a seller that we can get them their full asking price, and help them fully avoid paying any commissions or fees in the process, some sellers will get the nutty idea that they can simply ask whatever rental price they want - and they'll get it. Wrong.
With the Internet at the fingertips of 5 year olds these days, it takes but a few seconds for a home seeker to plug in the area the want to live in and the price range they want to pay.
Take Craigslist.org for Example...
All your tenant-buyer has to do is plug in their criteria, and within seconds they can quickly shop you (and your competition) and decide if they feel your priced right - or over priced.
Granted, you are selling, rent to own, and you're giving other great terms that may very well justify a higher price, but... that doesn't mean that the tenant-buyer population, at large, has any real clue of why they should pay more for your home over your competitors. And while you may be perfectly justified in charging $100-$200 more per month for your rental price, being justified in charging more and actually succeeding in renting/ selling your home to a tenant-buyer are two different things.
I recommend that you make your money on a higher Option price (the purchase price you'll sell your home for) on the back end, instead of raising the rent on the front end (at least in the beginning). There are other ways you can be fully compensated for the great terms you'll be extending your future tenant-buyer that won't price you out of the market.
To price your rental amount correctly, there are several ways you can start, and while the following list is by no means exhaustive, it's fair to say that it's a quick, easy, and free way that you can get an idea of how much you should charge.
#1: Rent-O-Meter.com
- Basic free report limit is 10 reports every 30 days.
- Quickly allows you to enter your address, desired rental amount, and gives you a "metered" range showing you if you've priced your home right, too low, or too high.
#2: Zilpy.com
- Uses advanced data mining algorithms
- Shows how the target property rent compares with the neighborhood, zip code and the city.
- Zilpy Cashflow Report is used by thousands of Landlords, Real Estate Professionals and Investors across the country..
#3: Zillow.com's "Rent Zestimate"
- According to Zillow, "A Rent Zestimate (pronounced ZEST-ti-met, rhymes with estimate) is Zillow's estimated monthly rent price, computed using a proprietary formula. It is a starting point in determining the monthly rental price for a specific property."
- The key takeaway here is that you can plug your property's info into these 3 free sites and within a few minutes total, you can get a pretty good gauge as to what you can charge tenant-buyers for your rental price.
- Don't get greedy and raise your rental price several hundred dollars more than the market rent. You'll only succeed in getting nowhere fast.
- Make your money on your Option price (purchase price), instead of over pricing your rental amount.
Author
My name is...
Russell de la Peña, and I am a former Realtor with both Keller Williams Realty and Re/Max City Horizons out of Denver, CO. I'm originally from Los Angeles, CA, where I currently reside today, and I have authored a few books related to real estate investing and credit repair. I own a creative seller financing training school online and work with, and serve, new and seasoned real estate investors alike for a living.
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