Thursday, May 31, 2007

Lease Option: Finding and Qualifying the Tenant/Buyer

by James Gage

Once you and the seller have signed your contract your job becomes to move that property to a tenant/buyer (this is also known as a sandwich lease). Remember, to save time, to have your flyers and signs done before going to meet with the seller. This allows you to drive the neighborhood before meeting with the seller to see where you can place your signs and flyers.

So be sure to place your signs once your meeting with the seller is concluded. Next is to place your ad in the newspaper and any specialty papers in your area. Go through your manuals and make a checklist of all the other areas we mention to place your flyers and signs. Next check your database of tenant/buyers to see if any are looking for this type of home in this particular area.

Make the telephone calls to the appropriate agencies we discuss in our manual.

Once you start receiving telephone calls be sure to qualify your tenant/buyer. Can they pay rent on or before the first of the month? Can they make repairs? Is the assignment fee in their budget? Go through your checklist for this in your manual.

Again, you don't want to make wasted trips, you are not a Real Estate Agent. Be sure they are serious. If they are, either have them complete your application by phone and/or set up several appointments and bring your application forms. Always be sure to tell the tenant/buyer about your procedures and fees. This avoids confusion and prevents wasting your time.

Remember if a tenant/buyer wants you to hold the property, they have to leave a deposit. Be sure to give them a receipt for the deposit. This form is in our contract package; explain your procedures on this. Deposits are not refundable unless the tenant/buyer does not qualify. Changing their mind is not an option, since you have removed the property from the market to any other tenant/buyers.

After the credit check and application process is fulfilled, you call your seller to tell them you found a tenant/buyer for their property, and then set up a meeting time with your tenant/buyer to process the paperwork. Assign the property and cash your check.

Isn’t lease purchasing a wonderful business?