“The Perfect Tenant Program”
NORCAL Creative Real Estate
Maybe you’re tired of tenant hassles and have already decided to sell…or maybe you’re still looking for that perfect tenant. Either way, this report will give you some valuable hints and save you thousands of dollars and a lot of frustration.
Dear Landlord,
Sooner or later, most landlords get fed up with the hassle of repairs, maintenance, and tenant problems. Others who have hire property management companies are tired of the aggravation and inflated repair bills.
Throughout years of providing the “Perfect Tenant Program,” we have helped a lot of landlords and homeowners that we refer to as “accidental landlords,” due to their inability to sell their property in this slow economy.
If you are already a seasoned landlord, than you understand all the tenant hassles discussed in this report and will soon be relieved after learning about our service.
If you are an “accidental landlord”, because you were not able to sell, than you will be glad you came across our service because it will save you the headache of dealing with tenants.
We have talked to an awful lot of landlords, and it generally comes down to one or more of the reasons discussed in this report.
First, most landlords have come to hate dealing with tenants. This is particularly true if you’re what we refer to as an “accidental landlord.” Maybe you’ve moved into a bigger house, another city, or just inherited a property and decided to rent it out because you couldn’t sell it.
Even seasoned landlords cringe every time their tenants call. It’s either some silly complaint or more maintenance? Can’t they fix anything themselves? Or even worse ‘ they don’t call, and the leak under the sink rots out the cabinet and the wall behind it causing major damage that can be very expensive to repair.
Maybe the tenant is responsible for the first $50. of repairs every month. Do you really think all of these repairs get done: More likely, when the tenants move out, you’re left with a lot of deferred maintenance that would have been cheap to fix if it had been done immediately, but has since turned into a major expense.
Then there’s the rent. If you’re like most landlords, you could publish a book with all of the excuses you’ve heard! We understand that the recession has left its mark on everybody’s budget, but paying for the roof over their heads should be their first priority, shouldn’t it?
Tenant turnover is another profit killer. Statistics show that tenant turnover can average 18 months or less, so that leaves you constantly having to clean the house, paint the walls, and interview prospective tenants.
Wthe cost of every turnover being substantially higher than the mortgage pay – down in the previous 18 months, it’s no wonder why your accountant is constantly urging you to sell. (This was not the case at all during the boom of the previous decade!)
Every time you rent to a new tenant, it’s like playing Russian Roulette – except there’s more than one bullet in the gun. It’s unfortunate, but true!
With today’s high rate of foreclosures and short sales, it seems like on one out there cares about their credit or paying on time anymore. It is almost as if it is becoming socially acceptable to live in a property without making payments.
Unless you have a sizeable advertising budget to find those with decent credit/payment history out of the many prospect, and then carefully screen them by running a credit and reference check, you could be in for a very unpleasant and expensive surprise.
Even when a prospective tenant checks out, you have to wonder if the last landlord lied to you because he wanted to get rid of them, or perhaps wanted to avoid any legal liability for bad mouthing the tenant.
This is a new thing our organization is learning more and more about…In the last few years, has any landlord ever told you the tenant paid late or tore up the house?!! But you know from experience, a lot of tenants fall into this group.
Sure, you can hire a real estate agent to handle all of this – at a pretty steep price. Real estate agents don’t like to show occupied rental housed, so you lose at least one month’s rent due to vacancy, and then you pay one month’s rent for commission every time you have a turnover. If a real estate agent or a property management company manages your rental, you lose 7 -10% every month for management fees, and the repair bills are marked up by at least 20%.
Yes, you know all of the above, but you would still like someone else to be paying down your mortgage, and you need those tax benefits…
We have a solution for you, where you’ll eliminate the vacancies, tenant turnover and keep more of your money in your pocket! You’ll never again have to worry about calls late at night, leaky toilets, stains on the carpet, etc. It’s called LEASE PURCHASE! Later on in this report you’ll find out how to have a perfect tenant (us) In your property that always pays on time and even pays for all the repairs!
Here’s another problem…Once you decide to sell your rental, it’ll probably need a major cosmetic fix up. In reality, you’ll be competing with homeowners selling their personal residences, so you have to spruce it us to their level. That’s no issue if you’re in the fixer upper business, but if you have to hire contractors to take care of all the deferred maintenance and the fix up, you are liking at thousands of dollars and more hassles.
Some homeowners who are “new” to this tenant business think they can sell their rental house through a real estate agent with a tenant in it. Not very likely! The real estate agent has to schedule showings at the tenant’s convenience (and it’s never convenient), and the tenants have no interest in cleaning the house so it shows well. Real estate agents hate these kinds of listings and many won’t even show them.
This just adds up to your cost of sale because you will have to make mortgage payments on a vacant house.
In the rest of this report, you will discovder how you can sell your property without spending a lot of money on repairs, holding costs and commissions. The answer is LEASE PURCHASE!
Discover LEASE PURCHASE!
The Lease/Purchase (also called Lease/Option or Rent to Own) has been used for many years as an alternative to renting or an outright sale.
Our organization has taken this concept to a whole new level and rcreated the program for homeowners and Real Estate investors who want to put their rental properties on “Automatic Pilot.”
The Lease/Purchase Agreement is the unique blending of a Lease Agreement combined with a Purchase Offer (sometimes called an “Option,” which is the right to buy at an agreed upon price).
Such an arrangement allows for a perfect scenario in this economy – you still benefit from owning a rental property, while our service eliminates the hassles of it and you avoid repair costs, holding costs and commissions.
Here’s an example of how Lease/Purchase works. Let’s say you hae a house worth $100,000. (We are aware that in our area the typical house is not $100,000, however, this round number make it easy to understand the concept.)
Let’s say the “going rent” for a house is about $800 per month. Then the Lease/Purchase Agreement would read essentially as follows:
Lease Term: Three Years Monthly Rent: $800
Purchase Price: $100,000 Rent Credit: $400 month
Usually, part of the monthly rent will be credited towards the price of the house. In the above example, 50% or $400 is being credited, so if the tenant decides to buy after one year (lawyers call this “exercising their option to buy”), they would pay $100,000 - $4,800. = $95,200. If the tenant/buyer does not purchase the property, the owner would keep all of the monthly rent.
The best part is, the $400/month is considered “Option Consideration” by the IRS and does not have to be reported as income until the house is sold or the Lease/Purchase Agreement expires!
The Perfect Tenant Program
Our program is simple, we lease/purchase the property from you at an agreed upon purchase price that is good for the term of the lease.
We then sublease the property to a QUALIFIED tenant who is serious about buying. Our organization specializes in relocation services, so many of our candidates are local employees (not tenants) who are new on their job and ot able eto qualify for a loan at this time due to their short employment history.
We thoroughly pre-screen all potential tenant/buyers, regardless.
We will guarantee all the payments to you for the term of the lease, REGARDLESS OF WHETHER THE PROPERTY IS RENTED OR VACANT. (Management companies don’t do that!)
We take 100% of the responsibility for management, maintenance and minor repairs, at no cost to you. (Again, management companies don’t do that!)
The tenants will call us if there is a problem, not you.
When our tenant/buyer is ready to qualify for a loan, we buy the house from you for all cash. There is no fee or commission charged to you. This way you save on holding costs, repair costs and commissions.
We make our profit by offering the tenant/buyer a price that is higher than the price we pay you. It is a win-win situation for everyone involved.
Why should I consider Lease/Purchase?
There are several ADVANTAGES for you to consider:
Guaranteed NO Vacancy –your rent is guaranteed!
Better quality tenants because these are really tenant buyers!
No tenant/maintenance hassles – PEACE OF MIND!
Tax Deduction (the property can be treated as a “rental” for tax purposes)
No Commission to pay when it sells!
WHAT IF THE TENANT TEARS UP MY HOUSE?
Our organization cannot guarantee that a tenant won’t damage your house, but if that happened under our agreement, we would repair it at our expense, Our objective is totally different – we are looking for a buyer who will eventually qualify for a loan, and not a “tenant.” In fact, it has been our experience that tenant/buyers make substantial improvements to the property. This is a big bonus if the property was in poor shape to begin with.
NOTE: We screen our clients to avoid people with a renter’s mentality. We only want those who are serious about buying a home (this is how we get paid!)
Our clients include:
Transferees to the area who may still have their old home to sell.
Professionals needing to establish more time on their jobs to meet current lending guidelines.
People who need a little more time to get their down payment together.
How do I know I can trust you?
We understand your concern. We’ll meet face-to-face after you call. You’ll find that we don’t make empty promises…we know this business. Our organization has been buying and managing houses nationwide for over 15 years, and we have provided solutions to literally hundreds of homeowners when they wanted to sell their homes.
We truly believe we can create a solution that will work for both of us. We are willing to devote our time and resources to your house , but only if you feel comfortable with that arrangement. Please remember, we get paid when our tenant/buyer buys, so it’s in our best interest to actively maintain and manage the house.
Why don’t I just hire a property manager?
A property management company charges about 10% of the monthly rent to “ manage” your property. We use the word “manage” loosely because managing involves calling a handyman, plumber, or other expensive professional every time something needs to be fixed, and at YOUR EXPENSE. We take care of all minor repairs at OUR expense.
In additions, a property manager only COLLECTS RENT…We GUARANTEE rent, whether or not the property is occupied. If it becomes vacant, we will find a new tenant/buyer at OUR expense.
Why don’t I just list it with a real estate agent?
It can’t hurt to list it with a real estate agent or broker. But do you have any idea how many houses your agent is trying to sell? It’s safe to say more than just yours! Most agents have a whole folio of houses, all over the city, which they are trying to sell at any given time. This means the attention your home needs, (in this show economy) might not always be there.
The first problem with this method is that there are thousand of other homes in the computer that read just like yours. If you want to move your house FAST, you have to offer something different. The lease/purchase is that special something that makes your house attractive.
The second problem is that most realtors don’t know what a lease/purchase is, how it works, and how to maret such a deal. Most Realtors will get you a tenant, not a buyer! Then you re back to hassles and cost.
When we agree with you to leas/purchase your property, we take it seriously. We treat your house like it’s our own.
We know this is a lot of information to digest at once, but if you’re still with us at this point, chances are you’re interested in doing what it takes to get your house rented quickly!
We honestly believe you’ll be pleasantly surprised with our services. We specialize in solutions! Call us today and let us provide a worry free solution for you!
Sincerely,
Mark Richardson
NorCal creative Real Estate
707-696-9073
P.S> With our “perfect Tenant Program” we’ll GUARANTEE all rental payments to you REGARDLESS of whether the property is rented or vacant and we’ll PAY for ALL REPAIRS!! No Cost to you! Guaranteed in Writing!
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