The Best Real Estate Investment Nobody Knows About! - Part 3 by Mark & Lloyd Walters 3-
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"THE LONG LINE STARTS HERE!
"
What a different experience it is offering a brand new house for rent compared
with an older house. It's one of the greatest feelings if you're the one who owns the
house. It's one of the most competitive experiences if you are the one trying to qualify
to rent the house.
Often times when one is trying to rent an older resale home, there will be lots of
phone calls followed by words of good intentions. But, once the time comes, there isn’t
always that many people who are interested after they've seen the house. Even if you
are offering a nice house, there's competition out there and many other houses for
people to consider. Markets change of course and that also affects supply and demand.
When you are advertising a new house for rent, it's a whole different story.
Particularly if the rent being asked is reasonable. I will touch on asking prices later, but
it's important to keep the price within fair market. The first time I offered a brand new
house for rent, I must admit, I was a bit overwhelmed.
When I advertise a home for rent I pack it with whatever amenities I think will
stand out while at the same time keeping it concise. For example:
Brand New Home! Just Completed
4 bed, 2 bath, 1,700 sq ft, RV parking,
near park Pristine! 945 mo.
www.Your/Site.com 555-5555.
Just plug in whatever specifics your home has into the ad. From there I place it
in the newspapers "classified homes for rent section" Friday - Sunday. Then I will
leave a message on my answering machine in case I'm gone when someone calls. The
message goes something like this:
"Hello! If you're calling about the house for rent, the address is 1234 Main
Street. Feel free to take a drive by to look at the outside. If you want to look at the
inside, we will be showing it between 3:00 - 4:00 p.m. on Sunday. If you have any
questions, please call this number after 11:00 a.m. Thank you!"
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When people call me I tell them that I will be there for one hour on Sunday. I
don't want people to have me running all over the place at different times. When I have
more than one property available, I will keep my answering machine message general
and direct people to my web site with more information. Here are some of the features
I will list on the web page created just for the house I'm renting or selling:
There I will list all the sizzle the property offers such as number of bedrooms
and bathrooms, great room, loft, gas fireplace, large lot etc.
Parks, schools, local shopping, ease to freeway, entertainment etc.
I will take digital pictures of the house, park, and development entrance
Your web page is a marketing machine that should be used to it's fullest! When
people see how beautiful the home and area is they will call you wanting to see the
home.
The Stage is Set!
Now you've set the wheels in motion. If the price you're asking for rent is
reasonable, you're going to be pleasantly surprised come Sunday. Get ready for your
phone to ring.
Once Sunday comes around be prepared! The first time I showed a brand new
home for rent, I happened to bring a few clipboards just in case people needed a place
to fill out an application, considering there was no furniture in the home. To my
delight, I had people waiting for clipboards wanting to fill out applications! I literally
had the pick of the litter. The cream of the crop. Whenever people come with interest
in renting your home, they try to put on the charm. It's not always easy to see right
through it. Either way, realize that's what's going on. They're being as nice as they can
be in hopes of you liking them and choosing them. Don't be fooled by this. Enjoy it
though. Take it in stride. This is a moment in time where you are truly in charge. This
is a situation where you will experience demand.
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Be cool. Don't over use your authority. Be professional and ask lots of questions
if you have the time. This is your chance to get an impression of what kind of people
they are and if they plan on remaining in the home for a minimum of 1-2 years. If they
do intend to live there that long, in actuality they will often stay longer than that
barring any unforeseen events.
In this situation where so many people were competing for the same house, I
had to be discrete in my questioning. The reason for this is the house was packed with
adults and children. When someone would give me the completed application, I would
go over it with them and ask questions about what they wrote. I would usually walk to
a part of the room that had a little privacy to show them the respect they deserved.
figure #2 is the application I use. You may use it or modify it any way you like. I feel
as though I get a lot of good information using this form. When I'm reading the
application in front of the applicant, I make sure I can read the writing especially the
social security number, date of birth and exact spelling of their name. I will need all
that info if and when I run their credit report.
RENTAL APPLICATION
APPLICANT'S FULL
NAME____________________________________________________________________
_
APPLICANT'S CURRENT
ADDRESS____________________________________________________________
_
HOME PHONE____________________________WORK PHONE___________________________
_
RESIDENTIAL HISTORY:
LANDLORD'S NAME____________________________________ LANDLORD'S
PHONE__________________
_
HOW LONG AT THIS ADDRESS?_________________________ MONTHLY RENT
$_____________________
_
REASON FOR
MOVING______________________________________________________________________
_
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PREV ADDRESS
PREV LANDLORD'S NAME_______________________________ PREV LL'S
PHONE____________________
_
HOW LONG AT THIS ADDRESS?_________________________ MONTHLY RENT
$_____________________
_
REASON FOR
MOVING______________________________________________________________________
_
WORK HISTORY:
OCCUPATION__________________________________
_
COMPANY:_______________________________
_
MONTHLY TAKE HOME PAY $_______________________ SUPERVISOR'S
NAME______________________
_
HOW LONG AT THIS JOB? ________________________
_
PHONE__________________________________
_
PREVIOUS OCCUPATION______________________________________ HOW
LONG?___________________
_
OTHER INCOME
&
AMOUNT__________________________________________________________________
_
FINANCIAL INFORMATION:
SAVINGS ACCOUNT: BANK_______________________________
_
ACCOUNT#________________________
_
CHECKING ACCOUNT: BANK______________________________
_
ACCOUNT#________________________
_
[ ] VIS/MC/DISCOV ACCT#________________________________ BALANCE
$________________________
_
ALIMONY $__________________ CHILD SUPPORT $__________________ STUD LOAN
$_______________
_
TOTAL MONTHLY PAYMENTS ON ALL FINANCIAL OBLIGATIONS (CAR PAYMENT, INSURANCE,
CREDIT
CARDS, ALIMONY, ETC.) EXCLUDING RENT
$___________________________________________
_
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AUTOMOBILES:
MAKE(S) & MODEL(S)__________________________________________ YEAR______
_
PLATE#__________
_
DO YOU OWN IT OUTRIGHT?_________________________________ IF NO, MONTHLY PMT
$___________
_
PERSONAL INFORMATION:
SSN#___________________________ DRIVER'S LIC#_______________________
_
D.O.B._______________
_
NEAREST LIVING RELATIVE _________________________________________
_
PHONE________________
_
OTHER PERSONS WHO WILL LIVE WITH
YOU___________________________________________________
_
HAVE YOU EVER FILED BANKRUPTCY?_________________________
_
WHEN?_______________________
_
ANY PETS?_________________ TYPE OF PET, WEIGHT
&
NAME___________________________________
_
HAVE YOU EVER REFUSED TO PAY RENT? ___________
_
WHY?___________________________________
_
HAVE YOU EVER BEEN EVICTED? _____________ IF SO,
WHEN?__________________________________
_
I declare that the statements above are true and correct, and I hereby authorize
verification of references and
a
consumer credit check. I agree to pay a NON-REFUNDABLE processing and credit
check fee of $25.00. I also
authorize ____________________________________ to obtain information about me
from current and previous
landlords and employers and personal references. I authorize my credit sources,
current and previous landlords
and employers, and personal references to disclose to
__________________________________ such information
about me as they may request.
__________________________________________________________
_
APPLICANT'S SIGNATURE DATE
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"MORE ABOUT THE HOUSES!"
I must tell you that the examples you will be learning about, a one-story and a
two-story home happen to be just that, examples. It's not the number of floors that I'm
interested in, it's the value per square foot. So if you find houses out there you're
interested in, please realize one of your main comparisons is "price per square foot".
As I mentioned earlier when I drove out to the new developments, there I was
walking through the model homes when I found a 3-bedroom 2 bathroom one-story
home that was 1,239 square feet (figure #3). The price was $78,900. The size and
bedroom count fit the traditional cookie cutter mold for rental property. I felt a sudden
interest start to build.
As my tour continued I walked into the final model. That was the one that really
caught my interest (figure #4). It was a two story with 4 bedrooms, 2 1/2 bath and was
1522 square feet. The price was $88,900. There was an option, costing $4,500 dollars,
that would add a great room upstairs that was 311 square feet. If one chose not to add
this room, the upstairs center portion of the home would open up to the downstairs.
That great room option cost only $14.50 per square foot! The house without the
option cost $58.41 per square foot, so you can see this was a great value. One has to
add the room because it just makes monetary sense, as you will soon learn when
considering overall price per square foot. That increased the base price of the home to
$93,400 and the square footage to a total of 1,833.
There are three renderings that follow because these illustrate the three exteriors
available. This is a way that builders make extra money. they have a plain front, then
two other choices… each a bit fancier than the next. The difference in price is only
$1,000 on the one story if you chose the fanciest exterior. It’s a $1,250 difference for
the two story home.
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TWO STORY HOMES BEGIN ON NEXT PAGE:
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The difference in appearance is very subtle.
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3-10
"Upgrades Worth Considering"
Do you really need a front door? This document and accompanying materials are designed to provide authoritative information in regard to the subject matter covered in it. It is for illustration purposes only and presented with the understanding that the author and publisher are not engaged in rendering legal, accounting or other professional opinions. If legal advice or other expert assistance is required, the services of a competent professional should be sought. |
