All of the preceding potential sellers are often hidden. They represent the kinds of sellers who will sell if the “right deal” comes along, but they’re somewhat covert about revealing the fact that their property is actually for sale. Most of these sellers don’t list their property, and they know pretty well that they can sell on their own without paying a real-tor’s fee. These investor-sellers are able to get the word out to other associates in the business through a network of acquaintances that is almost a real estate subculture. Part of the vernacular of this subculture is the word interested, which means that, if tie “right buyer” comes along—and it’s got to be the right buyer—-and all things look good, then they’re “interested.”
Oftentimes, dealing with this subculture of investors can be a slow process. You’ll hear comments like “I’ll let you know” a lot of times because the seller will investigate thoroughly, think it out completely, and then make a decision. They will often pursue a credit check for tenant. You can be assured that the seller-financer is going to want to know everything about the buyer before making a commit¬ment and handing over the property. When dealing with these investors, remember that seller financing is very much to the advantage of the buyer because the seller will not only finance but will help oversee the operation. The seller definitely will not want to see the property become run down and lose its value, so he or she is going to keep an eye on it.
There’s another group of investor-sellers who are open to selling their property but are not in a position to finance. Because they’re forced for one reason or another to sell, the properties are often good buys. The first of these are investors who want to get out from a mortgage. They have probably run into some financial difficulties, other than their investment property, and can’t carry the burden of the property along with other financial commitments. So, if the mortgage is assumable, this property can be a good buy and a way to get into the business, although it may take a little more than a down payment.
Then there are sellers—and this may seem rather mercenary—who have to sell because of sickness or death. Cynical or not, this is a fact of life … and death. In many cases the heirs are anxious to get their hands on the money. They don’t care how much work, time, and effort went into building the investment property, so the value sometimes is not a significant factor. They’re not interested in waiting around for any long-¬term negotiations or even for the best price.
What they want is the money, so they may take the first offer only if they have run a credit check for tenant, which may be their only offer. I’ve seen some tremendous real estate buys become available under these circumstances, but, in most of these cases, the buyer has to come up with all the money in order to acquire the property from the estate.
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http://www.REIClub.com – Tenant Screening Can Eliminate Tons of Landlording Hassles. Here Are Some Helpful Tips on How To Properly Screen Tenants.
Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got quick video on some helpful tenant screening tips that will help you with your tenant checks.
* Applicant provides photo I.D.
* Don’t hand out applications – have the tenant complete the application on the spot.
* Don’t let the applicant fill out the form – instead, ask the applicant questions while you complete the form yourself.
* Charge a nonrefundable application fee (~-40) – separate the serious from the window shoppers.
* Require applicant to sign authorization for a criminal background check
At a bare minimum, screening tenants include:
* Talking to the current and prior landlord
* Verifying the tenant’s job or other sources of income
* Criminal background
* Credit report
Additional steps when you screen tenants:
* Personally visiting the applicant in their current home – If you pay a surprise visit, you’ll be able to collect a great deal of information.
* Talk to the applicant’s existing or old neighbors – they’ll provide a wealth of valuable information for FREE
Don’t get tricked!
– Falsify Identity → ask for photo I.D. and social security number card
– Falsify prior landlord info/address
* How much is rent, street address, how long tenant has rented for
* Utility bill on current address
* Check County Treasurer for property info
– Falsify employment → Pay stub, call employer, etc…
– Conceal Eviction → civil records, prior landlord
– Under-reporting # of occupants → prior landlord
– Additional Warning Signs:
* Very eager
* Sign with little inspection
Screening tenants can definitely be tedious process, but trust me when I say its well worth the effort. The more thorough you are, the less litter to pick up, less damage to repair, fewer late or bounced rent checks, and longer-term tenants.
Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you’ll be automatically notified when we upload more quick video tips for you. Take care and good investing.