One of the mistakes new real estate investors make when dealing with sellers is not being assertive enough. They get so excited early on about getting a lease option agreement signed (which allows them to be a principal so they can sell the property) that they do unnecessary things in order to please the seller.
Don’t fall into this trap. There will be sellers who will take advantage of you by having you do things you simply shouldn’t have to do as an investor. These include tasks like:
- Evicting a tenant
- Picking up the seller from the airport if he or she lives out of town
- Buying supplies
- Cleaning or repairing the property
- Or any other work not associated with investing
It’s not that you can’t do these things if you want a few extra bucks, but if you do so it won’t be in the capacity as an investor. Rather, you will be an investor who does custodial work or carpentry on the side. But as a real estate investor using the “For Rent” method, this is not a good use of your time. Focusing on making deals will make you a lot more money.
So, when dealing with sellers like this, what you need to do is to set the rules your way and make it clear to the seller how you work. Doing this will cause people to have more confidence in you and respect you. If they want to do it their way, that’s not a problem for you as long as they do it themselves. But if they want you to bring in your resources, your expertise, your list of buyers, etc., then they’ve got to do it the way you know works.
Making deals with these types of sellers and selling their property isn’t impossible, but in order to sell it you need to get the seller on board and tell them, “Here’s how we need to do it.” Make it clear that you have other properties to sell and are willing to leave at any time. When you do, what you’re going to find is that people don’t walk away from you very often.
If you’re familiar with the “For Rent” method and the zero-down hierarchy, it won’t take long to show people that you know more than they do. It will be apparent to them how badly they need you and make it easier for them to accept doing things your way.
If you get the seller to understand why you are there and what you have to offer, you will maximize your ability to close the deal and minimize the possibility of the seller stabbing you in the back.