12. You get inquiries about all of the above. Write answers describing the buildings more fully, and make appointments with the writers to inspect the property.
13. A man is interested in the 12 flat building, but he has only $10,000. Offer him the property for $40,000 on these terms: $10,000 down, a first mortgage for $20,000 to run 10 years at 5%, and a second mortgage for $10,000 to run 5 years at 5½%, $2,000 to be paid each year with interest. Make it as attractive as possible. Tell him you will arrange for the mortgages.
14. (a) Write to your bank, the First National, and explain that, although the first mortgage on the 12 flat building for $25,000 still has 3 years to run, you would like to arrange for a 10 year mortgage for $20,000, if your prospective buyer takes the property. (b) Write to George R. Scott, who owns the building, offering him the second mortgage. Explain that although it is a second mortgage the fact that $2,000 of the principal is paid each year makes it attractive. (How would the owner benefit if the buyer failed to make his payments after 2 years?) Sign yourself Francis L. Russell.
15. You have put through the deal. Write to the new owner, offering to take care of the renting for a commission equal to 2½% of the amount collected.
Exercise 297—Farm Lands
1. You own a large tract of land in the South, West, or Southwest. Choose your own locality. Prepare a pamphlet setting forth the advantages of this particular spot in a series of paragraphs: (1) scenery, (2) climate and healthfulness, (3) crops, (4) profits from the crops, (5) price of labor, (6) chances for pleasure, e.g., hunting, fishing, etc., (7) transportation facilities, (8) price of the land. Use a firm name and address.
2. Arrange and punctuate:
Nov. 1, 19— [For the introduction supply the same firm name used in (1)]. Gentlemen I have just returned from an extended trip through (the district spoken of above) with reference to the forty acres I purchased from you I desire to say that I am convinced that it will prove a paying investment I am so pleased that I shall certainly try to induce several of my friends to purchase near my site while on the property I carefully inspected the farm worked by Mr S R Jackson I must say what he is accomplishing the immense crop of vegetables and fruit he is marketing amazed me no doubt what he is doing I may do for I made sure by careful examination that the soil on my land is exactly like his you may depend upon it that within the next two months I shall move my family upon the land for I am eager to develop it sincerely yours F W Farrell
What advantage would there be in including such a letter as (2) in the booklet spoken of in (1)?
3. To prove the possibilities of the land spoken of in (1), you intend to start a model farm. Advertise for a farmer. Your plan is to give him 60 acres to develop for himself, in return for which he shall demonstrate the possibilities of the land.