Original message
| Lenny
  |  "Dealing with a house under contract?"
, Wed 21 Mar 15:38 
Our marketing efforts are beginning to generate calls!!! Dealmaker posted earlier in the week requesting input on what we learned last week - My response is that you can't afford to skimp, and pinch pennies on marketing. But most importantly, marketing requires a constant and consistent effort - especially when your just starting off. On that note, we implemented/added 2 changes to our marketing efforts in the past week. 1) Newspaper Ads: In addition to running an ad in the Penny-Saver, you need to advertise in the larger circulation as well - which for us, despite the cost practically being a budget buster, seems to pull calls from a different demographic sector of the market, and creates the law of large numbers (i.e., the more people that see your ad the higher probability of generating calls). 2) Postcards: It's worth the time and energy to build-up a list of targeted neighborhoods, and use a 2 step approach. Both ideas picked up from this site.
Now 2 technical questions from 2 different calls I have received since yesterday.
1) I'm dealing with a seller that has an adjustable rate mortgage. The loan was originated 10/98, for $217,000. He fell behind the 1st year, and the mortgage company (Household Financial?) through the arrearage to the back of the loan, approx. $8,000. - $10,000. About 2 months ago, he was thinking about refinancing, and the house appraised for $275,000. I'm still working on getting comps, but even the seller admits that the neighborhoods top end price is in the $250K range. He is current on his loan, other than the 1st years' problem. The current interest rate is 13%, and the current monthly note is $2,466 PI. TI is not escrowed, but you can factor another $275 monthly. If the equity is sufficient, this might be a good subject to candidate. However, the monthly outgo is big, and I'm almost certain that a L/O exit strategy can't cover the monthly obligation. The seller has stated he is willing to help cover part of the note. There is a lot that I need to address with the seller, but for now, my preliminary question is how can I protect myself with this type of arrangement - wherein the seller is agreeing to cover part of the monthly? These type of monthly notes are a concern for me - in these early days of investing.
2) My other situation involves a seller that has been jerked around by another fellow investor - since January. Today he had another scheduled closing fall through. The investor claimed he didn't have his paperwork completed. He's tired of being exercised by this investor. The seller is motivated, and needs to move quickly as he has been laid-off. He claims he is done with the other investor. My concern is how do I best verify and confirm this is so. I definetly think something in writing makes the best sense, but I don't know how to go about it or what to ask for. With the investor having a written contract on this house, there is nothing to stop that investor from filing a Memorandum after I close with the seller, and clouding my title. Maybe it's my newbie paranoia coming out in me!
Any thoughts would be appreciated!
Lenny
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| | Lenny
| "Re(2):Dealing with a house under contract?" , Thu 22 Mar 10:09
Manneke - In addition to providing my direct line, I provide the sellers the opportunity to call another line for a recorded message, to ask for a copy of our special report. It's just another way to open my pipeline of motivated sellers even wider. It helps capture those sellers that might be to intimidated to initially contact us direct.
After a follow-up call by me, if nothing initially develops with these sellers, I'll add them to one of my follow-up mailing list.
Lenny
Dealmaker & Ben - Thanks for your responses.
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