Mr Boosh

It’s a Rent-To-Own – Not a Lease-Option



I am currently advertising one of my properties as a rent-to-own. I am trying to find someone who wants to buy the property but needs a flexible seller who will allow them to rent for a short time while they qualify for a traditional loan. I have discovered that there is a misconception that rent-to-own and lease-option are the same and that these are interchangeable terms. I disagree.

Call it semantics, but I think there is a difference even though they are similar and sometimes identical in structure.

The typical lease-option or rent-to-own involves a lease or rental agreement and an option or a purchase agreement. Aren’t those basically the same? Yes, they are, but the difference, for me, is how I explain it to the tenant-buyer or lease-optionee.

If I were explaining a lease-option to the lease-optionee, I would tell them that that they are leasing the property. Any time during the option period, if they want to buy the house, they can exercise their option and purchase it for the price described in the option. Pretty good deal for them right? They can rent and, at their option, they can buy the house whenever they like.

Now, here is how I explain my rent-to-own program. If you were my tenant buyer, I would tell you that you are agreeing to purchase the property from me and we would have a purchase agreement to do that. I realize you may need some time to get your loan in place and I am willing to be flexible with you and allow you to rent while working out the details of your financing.

Can you see the subtle, yet very big difference?

In the lease-option, they are leasing the property and if they feel like it, they can buy the property by exercising their option to buy. In my rent-to-own, they are agreeing to buy up front and they get the privilege of renting while they are getting their loan in place.

Usually, as a salesperson, I am reluctant to correct a buyer (think “agree and redirect”), but I am very quick to correct my tenant-buyers when they try to say they have an option to buy. No, no, no… you need to like it now and commit to me that you are going to buy. Then, I will be flexible and let you rent-to-own the property provided that you qualify.

These are subtle differences, but they can really change the mentality of those in your property.

Admin December 25, 2011 Real Estate , , , ,

The Importance of a Land Survey Before Purchasing Land



If you are interested in purchasing real estate, the wrong way to go about it is to simply find a plot or house that you like, and then make an offer. There are several often-forgotten steps that you should take before this point. Many people often overlook the land survey step of buying land. The best time to have a land survey undertaken is before you complete the process of purchasing the land.

Land surveyors can determine the boundary measurements to make sure that the plot of land you think you are buying is actually what you are buying. The land surveyor can tell you whether the trees, building ,fences, sidewalks, driveways, and other features of the land actually lie on the property, and also whether anyone else’s buildings or other features encroach onto the property you wish to buy.

They will also be familiar with building regulations, wetland regulations, and zoning. Land surveys are particularly helpful when purchasing a piece of real estate that you hope to eventually build on, as they can catch potential problems with this plan before you purchase the land. If you are purchasing mountainous land, land that may be considered wetlands, or land in other areas that may be difficult to build on, a land surveyor can help you evaluate the possibilities for building upon the land. If you plan to develop the land or subdivide it, a survey can help you determine whether this is possible or even legal.

Do not go off an old land survey provided by the current landowner. It may not describe recent changes to the land. The land surveyor you hire can place permanent markers on the corners of your property so that you are well-aware of the boundaries of the land that you will soon own. Before conducting a land surveyor, you may want to ask your real estate agent for a property profile, which will list the ownership information, legal description, plat map, tax information, and other characteristics. This is an excellent place to start when evaluating a potential real estate purchase. At least some of this information may also be available online. Then, be sure that you visit the property and walk the entire site, even if it is several acres, to see what it looks like with your own eyes.

Having a land survey conducted before the land changes hands is simply due diligence. Do not rely on anyone else’s word, such as the landowner’s, or a real estate agent’s, when purchasing land. This is a big purchase, and it should not be done unless you know exactly what you are buying. If you cannot get a land survey before placing a formal offer, at least have one done before the deal closes. The land surveyor will give you the best information possible to determine whether the piece of real estate will meet your needs. If any red flags come up, be sure that they are resolved to your satisfaction before closing on this real estate deal.

You do not want to make the mistake of buying land that is of no use to you, or buying land that is not what you thought it was. Although it’s especially important to have a land survey conducted when you are buying acreage or plan to develop the land, a land survey even of a small lot with a house can still catch potential problems before it’s too late.

Admin December 24, 2011 Real Estate , , , ,

7 Tips For Selling in a Down Economy



Right now, selling is tough business. After the heady days of excess, people are tightening their belts in a natural reaction to an economy that may or may not be in a recession. Yet there are still people out there who need or want to buy your products and services. If you are a salesperson, it is more important than ever to be at the top of your game.

Here are seven tips for selling your products and services even if the economy is in a recession:

1. In a down economy, people are more comfortable buying value, reliability, versatility and effectiveness. They want practical solutions for their problems. They may not be so interested in the bells and whistles right now.

2. Re-train yourself not only in selling but in your products and services. Brush up on your selling technique. And study your own products and services. Become an expert.

3. Remain positive with your prospects. Your prospects are already fearful. Make sure you don’t add to that fear. Highlight the positive aspects of your business and products. Be confident in your presentation and follow-up.

4. Be authentic. Don’t try to be what you are not. If you are naturally funny, a little humor in your presentation can be a great way to break the ice with your prospects. But if you are normally a serious person, contrived humor can fall like a brick and disengage your prospects. Be yourself and let your prospects get to know you as you get to know them.

5. One-on-one personal selling is back. Converse with your prospects in order to develop long term relationships. Ask questions and really listen to the responses. Be sure to incorporate those responses in your presentation. Devise a custom solution to solve your prospects’ problems.

6. Communicate with prospective customers. Deliver an accurate, thorough proposal to your prospects. And be sure to follow up. Completely answer any questions your prospects may have. And ask if there is anything else you can explain.

7. Make it easy for your customers to buy from you. Prepare your paperwork in advance. Offer a variety of payment methods. And once the deal is signed, be sure to keep in touch with your customers.

This is not the same selling environment you probably faced a couple of years ago. Salespeople now have to sell their products and services. It’s what we should have been doing all along. Get back to the basics of selling.

Admin December 23, 2011 Business , , , ,
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