Every story has two sides. 100 percent financing works best for my long term goals with my investments. I mean, that’s why I"m in this business, for the cash flow, to be able to create more contracts or rentals. So down payment to me is always very, very, negotable to the situation. I look on each contract, or rental prospect, as the end dollar, 100 percent collected, that number, total income. It is my job to get the buyer under contract or lease, at a number that suits my operation, not something said in a book, or recommended by any group, or trend. I look at each prospect as a potential customer for the rest of my life for the products and services I have to offer him as a buyer, tenant, and future consumer. It is my goal to satisfy the customer’s need for space, whether he lives in it, or stores stuff in it, or earns his living out of it, or whatever. With me, it all about going out and finding another customer, and I don’t let the dp matter really. I’d rather use my skills in collections and handling his account and the future of his space, than keep hunting folks that have learned how to save money or pay credit card debt. We only get a share of our customer’s money anyway, and it is up to me to keep him happily paying me for what he asked for, on paper, in writing. Good business is where you find it, and this business is about collecting on contractuals for space.
I agree with Bill on the main goal, but I read from others posts about with a customers low-paying job - they can’t possibly have a large downpayment; I have found it most profitable for me not to assume anything about my customers. People do sell other items, inhereit $$, recieve bonus checks, have good trade-ins ect. ect. I have traded for horses, cattle, trucks, trailers, cars, motorcycles, boats, atvs, land, houses, hay, tractors, implements, but other times, while I didn’t trade for these items, I reminded them that they might sell these items and they did, resulting in the down payment . Basically ASK FOR THE $$ or you will definatley not recieve it… if it is not there - start over in your negotiaion, But I don’t allow myself to assume that the best I can get is $1000 down - when I believe that, prior to investigation, I have almost assured that is all I will get. As for ads - like Lonnie says do whatever it takes to get the phone ringing, If my ad reads $1500 down - $350 month 60 mo.+ lot fee, when the customer calls I let them know - that is one way the deal could be structured, but not the only way. Also, I never have success (selling or renting) if I can’t find at least 1 other account that customer has paid as agreed - if they never paid anyone else, they won’t pay me.