The Seller Wants $20,000 Down Payment – Now What?
Hey, it’s Joe. I’ve got another one here.
This is another objection to the “For Rent Method” when you’re talking to a seller.
They say, “Yes, I’ll do it but I want $20,000 for a down payment to do the lease option.”
You’re not going to give them $20,000. As a matter of fact, they’re not going to get
a down payment if you do this the way that you teach because that money is your money
– that money is the money that you’re making as a profit.
The more of it you give away, the less of it goes in your pocket. So make sure you don’t
give it away. Making $20,000 on a down payment for a lease option is unlikely unless that
property is worth $400,000 or $500,000 or more. So don’t expect to get that much. If
you promise them $20,000, there’s no way you’re going to get it so don’t waste your time on
deals like that. So here is the response that you want to give
if you’re in that situation: “I can understand that. that’d be nice. What
will you do if you don’t get that much for a down payment?”
That’s the crux of it really. I mean, what are their options in this situation? Then
you get into this next question which is: “Do you know your options for the different
ways that you can sell?” If you look at the Automarketer, if you go
to any of the lead sheets there, there’s a button up in the left hand corner that sells
“seller options” and it breaks down their options. What happens if they work with a
realtor? What happens if they sell it for under market value? What happens if they go
into foreclosure? What happens if they sell it subject to or land contract or multi-mortgage
or for cash or for a lease option? Those options are all broken down.
Those are the limited options that these people have when they’re selling a property, depending
on what you as the investor are willing to do. so you can look through that process with
them and help them look at the options and then they can make their own decision about
what makes sense for them. Alright, I hope that helps.