Lease option Marketing.

[KHM]

Seeking advice. on Lease Option Marketing.
Ran an ad in Melb. Age on Sat. offering brand new townhouses with Vendor Fin. No financials req'd, No Interest. Low Dep.. Placed in townhouse/ unit for sale. ys. Large AD. with special shading - received ONLY 3 enquiries.

Any thoughts on why this style of offer did not flush out a large number of interested buyers or at least enquiries.
Do people still read the Age ads, for real estate??
Or do people not believe that you can get into a brand new 3 b'room townhouse in a prestige suburb for only $10,000. with no financials and no interest.
appreciate any thoughts or feedback.

Alternatively we have 2 x 3b/rm 1x2b/rm Brand new townhouses in Butler street essendon available for Lease (preferably Lease Option) should anyone have any contacts looking to get into a prestigious growth suburb for very little down. Completion date 4 weeks. $10,000 Dep. Payments $440 -$550 /week.
contact [email protected]

 

[Les]

G'day KHM,

Any thoughts on why this style of offer did not flush out a large number of interested buyers or at least enquiries

Could it be that so many see the deal and think "It sounds too good to be true" - perhaps a case of too much info for Mr/Ms Average. Perhaps a little less info on the board could be beneficial - wait till they're face-to-face before spelling out the final details.......

Of course, most of us on the forum tend to think more like "If it sounds too good to be true, allow for the fact that it COULD BE true" - in other words, due diligence will soon sort out the facts.

Any other takers?

Regards,

Les
Moderator

 

[Aceyducey]

It could also be that this is simply an ad & should be in Caveat Emptor

Giving the benefit of the doubt, rather than believing the offer to be too good to be true, the increasingly savvy property buyer could have looked at the comps & crunched the numbers for the area and worked out they could do much better elsewhere

Cheers,

Aceyducey

 

[Mrs Bird]

Hi KHM,



Are you targeting the Owner/occupier or investor for these deals?

what response did you get from those who did enquire?

It may be that the general public do not understand what lease options are and therefore think it is another one of those shady real estate deals that will cost them a higher interest rate.

Intersted in other forum members imput.

Mrs Bird

ps... Why do you prefer the lease option and not sell outright?

 

[KHM]

Mrs Bird.

I'm certain that a large percentage of the general public don't understand investing strategies at all, let alone Lease Options. Even finance Brokers and Banks have trouble with Joint Venture developments let alone broaching Lease Option, positive cash flow scenarios.

The ADvert. placed, purposely DID NOT mention Lease Options, just the potential for owner occupiers to get into a brand new property, in a prestigious suburb, for only $10,000.
No other costs involved and no finance requirements.
Forget how the deal was to be negotiated, my interest was to gain an insight from Somersoft Forum contributors as to why such an offer appears to have been totally rejected by the would be real estate purchasing public.

I would have thought the opportunity to move into your own property, share in the equity growth of between 8-12% would have been incentive enough to generate numerous enquiries at least.

Appreciate any other feedback, or ideas on where you would source potential property buyers who don't have 100k to get into their own property.

KHM.

 

[Lustre]

Hi there KHM

Being from Sydney, I can only offer a "what works best for me" scenario:

1. Try to use local papers - that way you target a specific market.
2. Use words such as "Rent to Buy"
3. Envoke an emotion - "Lovely 3Br townhouse..."
4. Keep it simple - don't overcrowd with too many options or details, as mentioned by Les
5. Reconsider whether you need to charge a deposit - many in Sydney are using the rent option strategy without a deposit. Realistically, if they have $10K saved, they can do the rest themselves - there are lenders out there willing to be flexible on terms in today's market. You are looking for Mum's and Dads or people desperate for a start, are you not?

I hope this helps.
Lustre