Dustin

I see this would concern some people... but it doesn't make me worry. Thats what I love about REI is that national trends actually help you make more money if you can spot the opportunities out of the market changes.

Thanks Guys. I think what I need to do is keep these different strategies in mind and just get the appointment with a seller showing some motivation. The sky will be the limit at that point.

Hi all, I was considering doing a couple "pure option" deals to get a little bit of business income going. I know I would be willing to even assign the option for 500 bucks to a fellow local investor where the numbers are marginal. The amount of conversation and educating to the homeowner is substantially less than other deal structuring and it would be much easier to perform given the time restraints I have. Now, that being said, I can lock the property for 30 to 60 days Im sure (I can assign it in an hour if the numbers are right). So, for a home that needs no repairs and is in a rental type neighborhood, whats the best way to go about negotiating that purchase price down to a range where I can easily assign the contract to another investor(preferably)/homebuyer? Please don't tell me 70% of FMV because houses here range from 50K up to 200K in better parts of the city. Would you buy a 55K FMV home for 45K if your an investor who likes to buy and hold knowing no major repairs are needed and its rent ready? I want to structure a couple quick cash deals and trying to get my ducks lined up ! Thanks in advance, Dustin

I cold call. I also agree with the confidence on the phone concept because it has worked for me in the past as well. Other emailing is usually done for networking purposes. I like talking to people on the phone and am very used to doing it effectively.

Well, I suppose that if you pull up in a porshe then it would intimidate the sellers. Its better to be intimidated and just tell them its your work vehicles if they ask, in fact, most people probably assume that anyway =). I know that our investor ego should never be the reason for losing a deal.

clowns! =)

I would rather just ask for expired listings =). Now, I would think you need to make sure your still getting paid on the principle on the deal or otherwise risk brokering without a license. Honestly though, if the agent cannot sell the home already then they are really not bringing anything to the table for you but leads. I dont know if 50% of the option is fair to you...unless of course they convince the seller for you. You will be structuring the deal with your specialized knowledge. Once the agent learns how too... bye bye leads.

No, MC, my best friend still uses a garage door opener for a cell phone. I do, however, always make fun of him . A good cell works well for me is all. I did notice though in your manual that you mention a recorder last night when I was reading... and I thought I was on the cutting edge, tisk !

LOL...its ok =). It was definitely worth the laugh =)

Hey MC, I noticed that the package had Dustin Hoffman instead of my real last name, thats too funny! DId you do that on purpose? It brought a nice little smile!

Most of us today have different methods for finding leads. If your like me and work fulll time... you need to do things fast! I am a field tech so I am always driving through residential areas in a company truck. It sucks that I put in a ton of hours at work but I run across leads everyday. Its a hassle to write things down and to later lose your paperwork that has the leads amongst my work documentation, lol. Here is what I do now: My cell phone has video capture, Digital Camera, and even voice notes... which means I can talk into a recorder. When I find a lead I record my voice. I say the entire street address of the property and the date with any other pertinent info in about 5 seconds or less. If I have a bit of extra time Ill record the info with video capture....Ill get the same data with moving image. If I have a bit less time... Ill take pictures of the same data. Best case, I get video, pictures, and voice notes per lead I run across in the field. In the end, I have a data base on my cell phone that I can down load onto my PC for records. I can only lose this info if I lose my cell phone so I download daily. This is one way to put your cell phone to use if your out pounding the pavement thrugh out your city... just driving around. This is faster than writing and you never lose that "paperwork" with the information you need later that evening.

Full Disclosure also helps settle those concerns. At least they have a "way in" to home ownership through terms with you and the deal structure your setting up. Otherwise...they would be haggling with banks before they could even consider looking for a house. Most "agents" want a bank qualification/financing statement before they even waste their time showing someone houses. Your offering leverage and an opportunity with a plan. Not all T/Bs want a lease option because they are trying to repair their credit. I heard a while back about a guy who wanted to L/O because he was going through a divorce. He would be better off financing down the road so his X could not take him for all he was worth. If you look at L/Oing as a smart vehicle for all parties involved to achieve their goals... bank financing problems are just a small concept on the side to be dealt with as needed. If it is really a valid concern... then offer to be the one stop shop to help them repair their credit and buy a home. Thats full service and quality customer focus =).

Nice post Brian -LV. In car sales... its the "Take Away" effect =).

They don't need bank qualification for the lease option.

I think its all a matter of preference and more of something you would mention with someone on the edge of the fence over such a concept. I think keeping it simple is the most important thing.

The name does not matter too much as long as it does exist because this structure is a legal thing for protecting assets as well as yourself from potential lawsuits, pray thee never encounters one. Lets say, for example you have 10 properties all in your personal name. Someone decides to sue you for all your worth....those 10 properties go bye bye. Now, if they are under a business name... the story would be different =).

Actually, when I had to evict someone from 1 of my places under L/O ... I copy and pasted info directly from the Oklahoma Landlord tenant laws onto a word document that basically reminded them of the laws and what I could enforce or else I would take measures to file "formal" eviction which is a shXXy long process. They moved in less than 2 days! It was amazing... but those laws actually benefited me... the optioner. I learned this trick from another investor where you threaten to file formal eviction with state law to back up your stance. It works very fast and very well... as I only had to pay for the 1 sheet of printed paper =). Since then I learned to choose better T/Bs and the best way to do that is... that good old non refundable option payment!

Thats too funny! I read this thread the other day and was wondering how it took a 180? I could only comment on my own behalf at that point. So, anyway, guess Im gonna go sign up on eharmony now.

Short Sales is a whole different course, hehe.

Thats cool that you update over time MC... I wasn't aware of it, my bad. I was mainly referring to additions to the contracts you already use. I dont suppose there has been any of that yet? I mean like a new form that is an offshoot from Lease Purchase Investing similar to the CA's and stuff. Also, the only thing I can think of to be sure about is specific laws per state that someone may live in. I know some states have started to shun L/Ping because of bad apples or simply people who just plain manipulate the system or take advantage of people. I know my state is good-to-go... since I haven't been taken to court yet over a lease option! Its all good in the hood =).

Im sexier than that picture!

I dont think he has JD... if anything... you would only need an addendum to a contract which really isnt a big deal. You could write that in pencil. Its just an addition to what is already in place. If you have ever done sales then you know that its all really easy... you just write the stuff up on paper... what you have already agreed upon in person. If you do your job well then by the time you get to talking about signing contracts then it should happen in a matter of seconds. Take your time with the sellers and T/Bs so that signing comes like walking...comfortably normal and easy. This business is especially fun as you keep overcoming things that would normally have you... uncomfortable.

I would agree J.D. Keep us posted on how things go =).

"Does your house have you bleeding profusely I can do surgery" Your Headline's EMV Score: 54.55%

Ill also say... do not buy those cheap forms you get online or other locations! Most of the time they are too neutral and do not cover all areas of special interest to you, the investor. Only use forms that are "SPECIFIC" to what you are trying to accomplish. It is kind of like the difference between buying plastic forks and knives versus real steel forks and knives. WOuld you have a guest at your home eating with a plastic fork? In the same respect, don't lock up a property with a cheap contract. My 2 cents, lol. I have seen the cheapo contracts and they suck. Also, you can stumble your way through your first deal and the seller probably wont even realize any of it. Take a deep breath =).