The Seller Wants $20,000 Down Payment – Now What?
When you make Zero Down Real Estate Offers to Sellers, you will often get questions. Answering these questions in a way that gives us credility, shows that we know what we are talking about and helps the Seller understand we can solve their problem is vital.
Here is what we do when they ask for a down payment.
You can watch it in this video.
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Read Transcript for “The Seller Wants $20,000 Down Payment – Now What?“
Joe: This is another objection to the “For Rent Method” when you’re talking to a seller.
Joe: They say, “Yes, I’ll do it but I want $20,000 for a down payment to do the lease option.”
Joe: You’re not going to give them $20,000. As a matter of fact, they’re not going to get a down payment if you do this the way that you teach because that money is your money – that money is the money that you’re making as a profit.
Joe: The more of it you give away, the less of it goes in your pocket. So make sure you don’t give it away. Making $20,000 on a down payment for a lease option is unlikely unless that property is worth $400,000 or $500,000 or more. So don’t expect to get that much. If you promise them $20,000, there’s no way you’re going to get it so don’t waste your time on deals like that.
Joe: So here is the response that you want to give if you’re in that situation:
Joe: “I can understand that. that’d be nice. What will you do if you don’t get that much for a down payment?”
Joe: That’s the crux of it really. I mean, what are their options in this situation? Then you get into this next question which is:
Joe: “Do you know your options for the different ways that you can sell?”
Joe: If you look at the Automarketer, if you go to any of the lead sheets there, there’s a button up in the left hand corner that sells “seller options” and it breaks down their options. What happens if they work with a realtor? What happens if they sell it for under market value? What happens if they go into foreclosure? What happens if they sell it subject to or land contract or multi-mortgage or for cash or for a lease option? Those options are all broken down.
Joe: Those are the limited options that these people have when they’re selling a property, depending on what you as the investor are willing to do. so you can look through that process with them and help them look at the options and then they can make their own decision about what makes sense for them. Alright, I hope that helps.