MichaelC

Stocking up on gold, guns, and MREs as we speak.

I see an ugly ending to all this, Steve. I hope I'm wrong, but just in case I'm practicing my Spanish and preparing phony documents for passage to Bolivia.

I'm wondering what their end game is? Scooping up properties by the thousands, then putting them on the market for rent at prices no one is accepting isn't a business model I understand.

Should we be surprised anymore? One more way to create positive numbers and artificial wealth.

Here's my take on this BS passing as consumer protection. . .I can contact any number of attorneys right now who will tell me the opposite of what your attorney advised. The laws are so convoluted and contradictory, so full of loopholes, that they are impossible to enforce. I hope many investors are scared away and decide to become part of corporate America. Means more deals for me.

Seems to me the law is about tightening rules for lenders, making sure that borrowers are legit and can actually pay back the loan. I don't see it as a bad thing, and I don't see a big effect on what we do. In fact, it might be a boon to our business because buyers who can't qualify today make for tenant/buyers, instead. What have you been hearing?

Daniel, many title companies provide this type of service. Do some digging around in your area and you should come up with a local office that can do this for you.

If John weighs in here he'll give you his reasons why. In the meantime I'd suggest his approach is based on the homeowner with a listed property that hasn't sold is almost always going to blame the Realtor. So if you hit that owner up with a letter or three while their property sits unsold, unloved, unlooked at, the Agent always gets the blame. Hit that homeowner up at the right time and you will receive a "tell me more" reply.

Hello, KC, and welcome to The Naked Investor. Your plan is a good one and should prove to be effective. The key is persistence. We can't just send out 50 letters on a one shot attempt, or stick a dozen bandit signs in the ground and then complain that "this stuff doesn't work". It does if we work. Put your plan into action and the results should justify the effort.

You mean borrowers might have to, gasp, qualify for a mortgage? What the hell kind of country is this anyway?!

I'm going to assume that if the listing expires, your Agent is going to be required to get the homeowner to sign another listing agreement, even if it's just for a week while she puts the deal together. But your best source of info is your Agent himself. Tell him what you need and ask him his fee. Mystery solved.

If the property is listed, then the seller pays the Agent. But keep in mind the Agent has a responsibility to represent the seller's best interest, not yours, unless you sign on with a buyer's Agent.

You can ignore Zillow's Zestimate. They are often way off the mark. So, first things first, you need to know the true value of the property. Then, you need to know the owner's asking price and degree of motivation and what he might be willing to do as far as a deal goes. With that info in hand you can then make your offer.

If I'm doing a sandwich lease, the t/b is paying me, not the homeowner.

Daniel, I always say that making a mistake isn't a bad thing. . .unless you repeat said mistake. When I was new at this biz I also would hop in my car and drive to see any house when a homeowner told me they were interested. . .only to find they really weren't but instead were hoping I could be talked into buying today and paying full price, too. It took a while but I realized that wasn't the brightest approach. Now, my offers are made sight unseen. If and only if the homeowner is on board with the concept of a lease purchase and has agreed to the terms I have offered will I go see the house. As for your gift of gab, that's usually a sign of nervousness or insecurity. Understandable with the new guy, but remind yourself you know more than 95% of every homeowner you talk to and do your best to stay on point.

It's not going to end pretty.

Things have changed, Steve. But for the worse. The can has been kicked down the road once again, (was there ever any doubt?). Debt ceiling increased another trillion or so, with promises to create a few more committees, sigh, so the problem can be fixed prior to the next (moveable) deadline in February.

Either they're on to something, or it's time to buy more votes.

What's driving the market up your way, Daniel?

American Homes 4 Rent. . .over promise, under deliver. Hell of a business plan.

A smooth answer isn't needed; an honest one is. If a tenant, any tenant, stops paying rent they are subject to an eviction. However, the likelihood of that occuring with a tenant/buyer is reduced significantly. They should, yes. And therein lies the problem when dealing with heirs and their inherited property. They can rarely agree on what they want to do or the terms. Getting them in a room together is often impossible. While my general rule is not to leave paperwork behind, you may have to make an exception here, Tom. Use your judgement as to whether these people are serious.

Steve, I thought of you when I read this article: http://moneymorning.com/2013/09/06/the-all-american-short-squeeze-no-one-else-sees/

That was the rumor. But not to worry. With the implosion of the federal govt, we should soon see another housing collapse and you'll be able to buy houses from these guys for .10 on the dollar.

What Steve said.

Steve, I'm surprised to hear your market is so bare. What's driving it? What about expanding into other areas? I did a deal in Ohio last week. Never was on site, didn't know the neighborhood, never met either party. All done via email and phone. You're right, though. Marketing needs to be ramped up via mailings and bandit signs..