offering MONEY-BACK GUARANTEE, am I crazy??

offering MONEY-BACK GUARANTEE, am I crazy??

I have a property under contract that I have a few options on. It is a short sale that MUST close before April 9th. Here is an ad I just placed on Craigslist. I would like to know what you see as the pros and cons of such an offer. My thought was it may build me an immediate buyers list of people qualified for this price range and location. Also, it may be the incentive someone needs to take the plunge. Also, while it could bite me in the butt, I feel that it is safer than offering a home warrantee, because I would be out nothing if I have to buy it back.

What do you think??

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$59900 / 3br - 3bdrm $59,900 for quick sale w/ Money-back guarantee! (South Superior)

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Reply to: hous-sjbbp-1067043845@craigslist.org [Errors when replying to ads?]
Date: 2009-03-09, 11:18AM CDT

Nice 3bdrm/1 bath home in quiet South Superior neighborhood. Good size yard and 2-stall garage. County FMV over $85,000!

Here’s the deal. This house is under contract and set to close the beginning of April. It will make a very nice starter home or great cash-flowing rental property ($750-$800mo + utilities). I am willing to double-close to someone with cash or pre-approved financing. I am offering a 6-month money-back guarantee for the full purchase price. Why, you may ask? Simple. This is to assure the buyer of the confidence I have in the value you will receive with this purchase. If you are interested please shoot me an e-mail or give me a call at ***-***-****.

Location: South Superior
it's NOT ok to contact this poster with services or other commercial interests
PostingID: 1067043845

***************************************************

Rina

__________________

"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249


Money Back Guarantee

Wow Rina! This is a new idea. I guess it could have both good and bad consequences.

You may want to talk to your Re attorney about any legal ramifications that may come up.

I think you will get a lot of calls and build a list of buyer's. It does show your confidence that they will like the house. Just make sure they return the house back to you in the condition it was when they bought it.
Maybe a lot of contingencies are needed in the contract to protect you.

I am interested in seeing how this turns out.

Thank you for transfering that form to a JPEG. Smiling

__________________

"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"

"SUCCESS WALKS HAND IN HAND WITH FAILURE"


Sis,

you're welcome (sorry it didn't show up better) Smiling

Yes, I will add contingencies such as property in same condition as when purchased, etc. I'm thinking this may give someone just enough confidence to buy, but not be in a hurry to sell back because they WOULD be out their closing costs, etc.
I'll post the responses I get (pretty sure there will be some).

Rina

__________________

"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249


Also

Maybe you also include a very high non refundable deposit so they won't be so inclined to ask for their money back.

__________________

"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"

"SUCCESS WALKS HAND IN HAND WITH FAILURE"


My thought is this..

1) Anything I lock up I would LOVE to keep myself, so if I do get it back I wouldn't be sad at all.

2) The buyer would do their best to KEEP it in good shape or they wouldn't be ABLE to get their money back.

3) It wouldn't be like a land contract where I would have to TAKE it back, so no issues there.

4) It would be like me having a free HML for 6 months, with free seasoning.

5) Most of the props I buy are vacant. Now someone would be living there, making sure for me that everything is in working condition and giving it a "liveable" quality to show to the next buyer.

Those were my first thoughts. I'm always so focused on the pro-s. I would love to hear some con-s I may be overlooking right now.

And can you think of any wording that would make this ad more appealing to a buyer? Any input welcomed.

Rina

__________________

"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249


MY 2 cents.

Rina, Maybe put the going rental rate in there for that area so someone thinking about the investment side of the ad might be more attracted to it.


Richie,

Good idea. I think I'll put the county FMV in, too. Thanks.

Rina

__________________

"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249


What about doing another ad

What about doing another ad also.
Add 5k to the asking price.so 64,900. offer that 5k as a closing bonus.
OR word it,receive a check to cover first few mortgage payments at closing.
Nice incentive, not to have to worry about a mortgage payment for a while.
Just some ideas that came to mind.
Good luck Rina.
crazy ? no. You are a smart marketer.


Thanks Richie,

I'll give it a few days and then try that. I think the highest I can give back legally is 3%, so I can offer to pay closing costs. Heck, maybe I WILL run another ad right away for that. Time's a-wastin'.

Good ideas. Eye-wink

Rina

__________________

"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249


Maybe set some specific limits for the Guarantee

Maybe the contract should have some legitimate limits for reasons to return the property so they can't just give it back for any reason. In other words, the Guarantee section of the contract should have some specific reasons like a dead furnace or leaking roof that are NOT the cause of the buyer. I think a really, really thorough inspection should be performed with a place for the buyer to sign off on it in order to back up the guarantee. Along with assuring high confidence that the property will not come back, you must cover your behind in the case they try. Sort of like and exit claus but on the guarantee.

Just my opinion....


Rina...

Defiantly thinking outside the box! I like that, but can I ask why, why wouldn't you just keep it and rent it out yourself for positive cash flow?

Holding and renting is the name of the game right now...

Also, if you were to buy it back, you would be out transfer tax, any Realtor commish, and lawyer/title co. fees...

D

__________________

Don't Wish the Past, Create the Future! - DH


Rina

The ad looks like it would generate alot of buyers. Have you received any good responses from the ad?

__________________

"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote


Sounds like a good deal

Keep going Rina. You are the best! Sounds like it would be great even for you. Maybe you can buy/hold rent, then you can do much better on it when market is back up.

__________________

This train, Dreams will not be thwarted
This train, Faith will be rewarded
Big wheel roll through fields where sunlight streams
Meet me in the Land Of Hope And Dreams

Bruce Springsteen


Thanks for all the great input, everybody.

Dan, thanks for the "exit clause" suggestions.

D, Jeremy, I am torn between keeping these and building my cash base. I know there will be plenty more opportunity in the coming months to pick up properties. Right now I am trying to get under my belt each of the diferent strategies that Dean teaches. Plus I would like to build up my cash base by doing a little wholesaling. So you guys make my decision a tough one. We'll see what happens with this one. I may end up keeping it. But if I can double-close at this price I will gain a substantial amount.

Jason, I have received only one reply so far, but I have that person plus another local investor meeting me at the property on Wed. Wish me luck. Smiling

Rina

__________________

"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249


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