I'm always tinkering with my business, trying to improve it.
And as you know when I get a lead from a seller and I think there might be a
deal, I send them a written offer.
Well, now I am sending the below email along with the
written offer I email to them. I'm doing this so that people have a better
understanding of how I can help them and to try and erase any confusion they
might have about my offer.
So what I would highly encourage you to do is use the exact
template I have below. And I mean exact, because everything is in there for a
reason.
Also, you'll notice I included the "comps" for the
property. This is important to do so people have proof of the value of their
house (and so you can bring them back to reality.) Now use this template to
help you close more deals and make more money.
Ms. Smith,
Thank you for calling us yesterday about your property. We
have finished evaluating it and our offer is attached to this email.
I wanted to explain how our company can help you, so the
offer makes more sense:
When our company pays cash for houses in this current
economy we have to buy properties at 60 cents on the dollar. The reason for
this is because our financing costs are high and also because many properties
that are in foreclosure sell for around this much and we can also buy those.
After doing our research we estimate your townhouse is worth $140,000 today. If
you go to this link, you can see the comparable properties we used <insert
comps link>.
So if we were to pay cash for your property we would not be
able to pay more than $84,000. Now I remember you said you owed around $140,000
so that obviously wouldn't be an option (but I did have to put the cash offer
on the attached offer form as required by company policy.)
The other offer and what we're typically doing these days is
a lease option (also known as rent-to-own.) This is where our company comes in
and guarantees your rent payments for a period of 5 years and then we have the
option to buy the house any time during the 5 years for a previously agreed
upon price.
During this time you don't have to worry about any vacancies
(we guarantee the rent), you don't have to worry about maintenance and you
don't have to worry about 99% of repairs (our company covers the first $200 of
any repair. And since most repairs are leaks, or clogged toilets which cost
less than $200, you'll most likely never hear from us.)
I'm sure you're wondering what the "catch" is?
Well, there's really no catch, but let me show you how our
company makes money off the rent-to-own.
As I just mentioned, when we do the rent-to-own with you,
you have an agreement with our company XYZ Realty Group, where we will take
care of everything for 5 years. Then what we do is we put a family in the house
with less than perfect credit (nothing major, just a few dings) and we help
them achieve home ownership.
Then within the 5 year time frame, their credit has hopefully
improved and we help them buy the house. So, when we do this our company policy
is that we make 10% off of the rent-to-own properties. For your particular
house, since our offer to you is for $150,000 (which is above fair market
value), we will sell it to our tenant/buyer for $165,000 or more.
Luckily, you don't
have to pay us a dime for our services. The 10% is charged to the tenant/buyer
for spending several years with them helping them to buy a house.
Also, just to reiterate, your agreement is with XYZ Realty
Group and has nothing to do with the tenant we put in the house. If for some
reason we got unlucky and put in a tenant who did not pay rent, you would still
get your rent because we guarantee it (and of course we would evict that tenant
and put in someone else.)
I know I've written a lot and I hope it made sense. (I'm not
the world's best writer, but I wanted to make sure you knew how we could serve
you and the options our company provides.)
Please review the offer form and then let me know what
questions you have and I will be more than happy to give you a call and go over
everything.
Thank you.
Sincerely,
John Doe Investor
___________________________________________________________________________________(this is not part of the letter)
***If you are looking for excellent Investor deals please visit my site...www.dcmetrohousedeals.com
Derek
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