Best Marketing Strategies to Sell a Lease Option?

Question

Any help from someone experienced in selling Lease Option deals would be greatly appreciated!

I'm currently marketing a home that I am looking to sell as a lease option, and have been having a little bit of trouble selling it.

The price is very fair, just a couple thousand over retail. The lease payments are about $50-$100 lower then market rents, and it's a two year option to purchase with $5,000 down on a $72,000 purchase price.

I started marketing on the first of May, and really don't want to pay another payment out of pocket for June. I have it on zillow/trulia/postlets/etc. as well as a craigslist ad, and a small sign in front of the house.

I have been getting a lot of leads from the zillow ad but most of the people aren't serious or think its just for rent (Although it says it twice in caps in the description).

What are some good other strategies that you know of, or personally use in your business that would help to generate real solid leads and sell this thing as quick as possible?

Any help would be greatly appreciated!

Thank you!

Jeff Rappaport · Answer

@Igor Kajpust, Here are a couple of suggestions. First, you need about 20 handwritten Lease to own, No bank qualifying, easy terms etc. bandit signs all around the house with arrows leading back to the property. Go back every day and replace the signs that come up missing. I have found this to be the best strategy for finding a tenant/buyer. I would put two or three signs in the yard and at least one that says I buy houses. Second, I would continue to place ads every few days. Change the message up a little. Third, I would talk to some mortgage brokers and see if they have had to turn any potential buyers away because they could not qualify for a loan. See if any of their turn downs would fit for your property. Tell them they can do the loan for the buyer in two years. The last bit of advice I would give is that you are probably asking too much for your option deposit. Even though $5,000 is not a lot for an option deposit it is about 7% down and tenant/buyers in that price range of a house don't typically have a lot of money. I did a $100K house in Idaho and it took me almost 3 months to find someone with $4K. I did a house for $367K and got $12K down in two days in Utah. I would suggest doing lease options in nicer neighborhoods with a price of at least $200K. Those tenant/buyers tend to have more disposable income that can be used for option deposits. You may need to ask what they have toward an option deposit rather than advertise the down payment or tell them directly on the phone. You may also consider taking some down payment and some kind of trade or note. My experience over the years tells me that you will have a difficult time trying to get $5k on a $72K house.

Dan Walters · Answer

Account Closed:I believe your down you are requiring is just fine. I would take out "option fee" in your marketing, as it can/could be confusing to your potential end buyer. You can elaborate further once they call and inquire. I would increase the frequency of your online postings to CL. Post 2x day. Once in mid/late morning and again late afternoon/early evening. -Contact real estate brokerages/agents as well. Any good agent will have a database of buyers looking for lease options/owner carry type transactions. -Post flyers/ads in the local bulletin boards around the neighborhood convenience store, grocery store, gas station, laundry mat...etc. Sounds old school but I have found some of my best buyers through this grassroots style of marketing my properties.*****Most important****Don't get desperate and take just anybody that fills out an application because you don't want to make another monthly mortgage payment. Ask anyone with experience and they'll tell you a vacant property is far better and less expensive than one filled out of desperation.The marketing will take a little bit to gain some traction. Be patient and as long as you are active and consistent, the buyers will come.

Brian Gibbons · Answer

Account Closed you may want to show the link where the property is being marketed Bandit signs drive a lot of phone calls 24 hour recorded message - use Squeeze page to collect information - I use jotformYouTube video on a "walk through" the propertyAn EZ website to remember like Goldenrent2own.comOffer referral fee to all property managersGet letters to attorneys about helping their clients with lease to own

Account Closed · Answer

@Dan Walters Thanks Dan I appreciate that, I think Ill knock a thousand off the deposit and just hit craigslist hard posting multiple times per day, I haven't been consistent with that.Contacting agents is a great idea as well Ill get to that tomorrow.Im also considering running some facebook marketing really concentrated on that area and a certain age group since its pretty inexpensive.Thanks for all the helpful tips everyone!

Account Closed · Answer

http://www.zillow.com/homedetails/6824-Butternut-Ln-Fort-Wayne-IN-46825/73202102_zpid/?view=public

Account Closed · Answer

Thanks Brian!I will get in touch with property managers and attorneys tomorrow. Thanks for the helpful tips.Ill also get someone to record a walk through video for me that will definitely help.Thanks!

Stephen Lewis · Answer

I was just reading the ad and I had a few questions. Is the option fee also the down payment? Does this down payment go towards the principle? How much of the rent goes toward the principle? How long is the term? Am I responsible for repairs or taxes etc?

Rick Maningas · Answer

Is the house staged? A must. Do you have professional photos on the listings? The maximum of 24? Are you doing open houses every weekend, same day and time and shown on the bandit signs surrounding the house. The bandit signs have to be at the major intersections pointing to the house. Do you have a good script when showing the house, describing the minutest upgrades like door handles, faucets, etc. Good luck.