How To Find & Qualify Great Tenant Buyers - Part 1

 

 

 

 

 

 

 

So let's say that you've marketed already and you're bringing potential clients in, how do you discern if these are good clients or not good clients? I'll give you one example of a client that I thought was pretty good. If you saw any of my previous videos or posts before today I've talked about people with cash and a pulse can be really tempting if your property is vacant. And if you're tired of dealing with tenants. I had this couple, they had really good references. So I talked with their landlord and previous landlord. I prefer a previous landlord. (I'll go into that a bit yet)

 

 

As I look back I'm pretty sure that these were fake landlords. I think there were friends posing as a landlord and told me exactly what I wanted to hear. If you ever experienced that, or have you been on the other end where you were trying to get rid of a tenant and you've told a new potential landlord, whatever they want to hear. These are all things that we hope to avoid. Anyway, they ended up being horrible tenants. On the bright side even though I spent thousands of dollars cleaning up after them and months of missed rent, I learned a ton of stuff. I hope to give you some of what I learned through the entire thing and you can set yourself up for success!

 

 

You know, finding and qualifying these tenant buyers, the qualifying can be the hardest part because you have to do a bunch of due diligence, but I promise it's worth it in the end because you don't want to have to deal with these tenants. Two weeks, two months, six months down the road, you want to do the best job you possibly can. So I start by marketing out there and like I said, I wasn't going to go very deep into this, but you know, I've got a website, a Facebook page for my Rent To Own business and properties, Kijiji, Facebook marketplace, street signs, word of mouth, all that sort of stuff. So when they come to me, there's a couple of different ways that they'll come to me. And I go through an initial questionnaire, that they've filled out on my website. (Check that pre-application form out here!)

 

 

Now there are 4 key things that you want to know and look for off of this sheet. Very quickly; what their income is, how much they have for a down payment, what the debt looks like, and how much they pay for rent now vs. how much they think they can pay for a mortgage payment. Right away, this will give you a quick picture of whether you can help them and give you a glimpse of how truthful they are. There is more to it and you must do your full due diligence but this is simply the pre-screening or pre-application. You get to that point. From there if they are pre-qualified we have a brief phone call or meeting to learn a little more and from there we have one other form to fill out and then and only then if they pass those first 3 points I give them a 5 item checklist. I explain the program, all that sort of stuff. And then they start from that checklist. They start submitting stuff to me. Right. I don't really do any real work until they've done some work and they've submitted material to me.