Lease Purchase Flip: Part 3 Getting the Contract

Lease Purchase Flip: Part 3 Getting the Contract

If you’ve already contacted the sellers, went over the scripts, and received some “YES”, it’s now time for Part 3 of Lease Purchase Flip: getting the contract. If you’ve yet to get a seller to say “Yes”, keep going. The more you practice and get comfortable talking to these sellers, the more relaxed and confident you will be. As numbers may have it, the more sellers you contact, the more you increase the likelihood of receiving a “Yes”. Don’t get discouraged from hearing “No”. Remember, every “No” is one closer to a “Yes”!

Now, once you have a “YES” and a ready seller, the next step is to get the property under contract. The contract that you’ll use depends on the kind of deal that you’re doing. Since our focus is on transacting a quick lease purchase flip, we will use a simple Purchase and Sales Agreement. If you’re in Texas and feel comfortable utilizing the State TREC contract, then go ahead and do so. Feel free to contact or email me if you need references as to where to get standard Purchase and Sales Agreements.

The next step is to set up a meeting with the seller lead so that you can do a quick inspection of the property and most importantly, build rapport with the sellers. The whole purpose of the meeting is to get the contracts signed at the conclusion of it all. It’s also possible to do things over fax and email, but for more profound results and real world experience, meet with the sellers in person.

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Once you have a date for the meeting, here are a few tips on what to do before and during the meeting for maximum results:

– Dress business casual when meeting with sellers.

– Make sure you smell good.

– Make sure your car is clean.

– Once at the property, ring the doorbell only once followed by 3 to 4 hard knocks, then step back and wait patiently.

– Before you step foot inside the seller’s house, ask them if you should take off your shoes.

– Always be enthusiastic and smile.

– Politely request the seller for a tour of the home.

– During the tour, build rapport with the seller by making small talk.

– After looking at the house, ask them where they’d like to sit down and talk.

– Once seated, go over the offer again, and then ask for the close: “So if you’re ready to proceed, I have the agreements with me and we can go over them together.” (Pull out the agreements while saying this)

– Go over the agreements, very simply, summarizing and highlighting key points. (Dates, prices, and obligations of each party are usually the key points)

– Have the sellers “OK” their portion first, then you sign yours.

– Have 2 sets of contracts with you always so that you can give the sellers a copy right away. (If you happen to forget to bring a 2nd copy, assure them that you will fax or email one within 24 hours)

Believe it or not, but it’s really that simple. Sometimes you’ll have sellers that don’t sign right away, these require follow up. Other times you have sellers that are very motivated and sign immediately, these are the ones we would like to achieve every time. That’s all to it, you have the deal under contract!

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Stay tuned for Part 4 where we will be covering how to get buyers for your property.