Dustin

Hi JD, Man, don't just study that info...make sure you have some action steps daily that put you in front of or on the phone with potential clients. Study hard but remember to apply it as much as possible! This is how you keep your head in the game and stay focused. Your in good hands and your going to have a deal soon but stay on the phone or whatever it takes to get you talking to sellers. By law of averages... your gonna hit your home run sooner than later.

I agree with MC, However, remember to talk to future clients that do sign on with you to be a reference for you =). Keep a running log so that the next time this happens you will at least have some ammo. This would help with "some" who are on the edge. Others are just the wrong people to mess with.

Congratulation's! It gets better too! You should go treat yourself to a corona now =). Good job taking action.

I did it full time long ago but did not specialize in Lease Options... I did a little of everything. The problem with full time is that it is easy to neglect the important stuff. With freedom comes responsibility. Remember that. Today I work a job and do REI 24/7 =) hehe. If you want to be sucessful faster... I would put in 3 or 4 hrs every day, regardless, for part time. If your full time... treat it like your job but know that you work for free until you get paid!. Common sense should be your judge. Full time hours, in the beginning, should be 8 to 12 hrs daily until you get your first deal or two. You have to WORK YOUR TAIL OFF to get beyond the learning curve. Otherwise... leverage your job to make a living and set a goal for REI income to become more than JOB income. It is a choice that common sense can answer for you quite easily. JUST HAVE A PLAN! (or else you plan to fail) Your yearly income expected is dependent upon your ability to apply what you know and learn and the goals you set for yourself (Goals are a MUST!). Its a numbers game and 1 deal a month could bring you 2 to 4K on average. 2 deals is 4K to 6K and so on.... not to mention monthly cash flow generated. Your income is based on the decisions you make.... daily, monthly, and yearly. You will earn what you make yourself worth. 24K 1st year is a good start as long as your committed and take action every day... but you would NEED 1 deal a month. EVERYONE wants to lose the job, trust me. Just stay focused and persistent and perhaps your job will eventually take back seat and become a conflict of interest. But remember that at that time, your probably still waking up early in the morning and still trying to balance work and play. The difference is that you are in control and must stay financially responsible for the family. Do all this together and you have earned the privelage of full time investing.

Thanks MC. Maybe I can do a reverse look up on the owner and get a phone number =). Next time someone tells me they are working on behalf of their older relative, Ill ask right then and there if they have power of attorney or just get me in touch with the owner to verify. Lesson learned. Usually when I call FSBOs... I am talking to the owner so this was a first.

NP... You are welcome. I have been dormant a while in rei and look forward to this new push!

Well, I finally purchased the course (wish I would have back in 2005ish instead of worrying about bills) ! I am no pro investor but I am also not a novice... I would say that I am somewhere a little less than halfway. So, I want to share the "whys". - Every investor KNOWS they will NEVER know it all or else we would not have networks of people and advisers or hire/outsource specialists in different areas. You MUST always continue your education and stay involved! - My success in REI (Real Estate Investing) was birthed out of "Controlling" property versus "owning". I didn't give that fact much attention or credit back then. Regardless, it is a niche of investing worthy of special attention! - You can do everything right with a seller and deal structure but when it comes down to that paper contract, you need forms that will support what you agreed on verbally and specific to your game plan. This course comes with forms relative specifically for the niche of Lease Purchasing, not to mention the bonuses of Cooperative assignments! - The course comes with everything you need and a free bonus... web sight support of other pros and experienced players in the "lease purchase" niche of investing in real estate. EVERYONE is on the same page! - MC (Michael Carbonare) has been here for several years and proven the value of his web sight and investing material through long term existence. Every investor should have his course even if its just a part of their "library of Real Estate Investing" references! I look forward to the material and cant wait to "print" the contracts needed for my next deal!

Hi all, So I called a seller up that I had touched base with last week. This seller said he was acting on behalf of his 85 year old grandfather. His name did not show on the records as the owner and the guy was quite shocked that I knew the last name of the owner, his grandfather as he had told me last week. So I explained lease optioning the property and that I might even live there myself since its in a good location. He said he might be open to it and would probably just have to meet up. Well he went on to mention a background check which I don't mind but I think he might also mean a credit check as well, which I do have a problem with because my credit sucks! I started to feel like I was dealing with an agent or representative of some sort that wasn't really a "grandson" of the owner who actually has a different name than him. The FSBO sign had 2 phone numbers...a cell and an office. Now, Im thinking this guy is a Realtor or some sort of property manager. Now, my question is this? How do I handle the conversation if he asks for a credit check? If this guy, as he mentioned, isn't getting anything out of it then shouldn't I be dealing with the owner since the owner is the only one who can sign the paperwork? What would you guys do? Thanks in advance!

Lets see... someone refresh my memory where, on the HUD statement, it shows your income as a principle and not a commission? I forget but I know its on there somewhere. Some people were saying a while back that flipping and bird dog fees is considered brokering without a license as well.

Well, Im with MC on this one. Just for the sole purpose of making sure the applicant is serious is enough of a reason to do it AND most people are aware that application fees are applied towards running a credit check and possibly back ground checks. Serious applicants expect it and the others are trouble waiting to happen. I would charge 30 bucks here in Oklahoma.... I mean... their going to buy a house! =)

Keep in mind that because of the option payment and the rental credits applied to the purchase price... the bank will then be financing a home with a bit of equity on the table... unless the T/B actually gets the loan for the appraised and appreciated value where he can actually end up with cash in his pocket at closing. Everyone wins. Examine MCs 300K home example that applies 15K in rental credit dropping the number to 285K. The option payment, somewhere along the line, would have been added as well to be deducted from the purchase price too to some degree which would drop the number a bit lower. Using this example can assist the potential T/B in making his decision to pay a good option price as well as move forward in the process. T/Bs usually shy away from the deal based on a few things they are uncomfortable with and wont always make it obvious and tell you: Price Term Payment (including the option payment perhaps) You need at least 2 out of 3 to be in your favor if not all of them. When I sold cars... I would label this "holding gross" =)

OK, thnx for the input =). I just needed to know what direction to head if it (taxes) comes up. I was going to shoot for a 3 year L/O. If all goes well then I can get cash in pocket even if I finance it after a year through a bank because of rental credits and the terms. If I decided to go then I could flip it to another investor or sub lease as Tony mentioned. Thanks again.

Wow, I am surprised u remember...it was so long ago! Yes, 12 pack would have made more sense! Yea, I think most average people think we are full of crap. I still dont know why for sure,lol.

1) When I did my last L/O, yearly taxes never came up because there was no time for them to come due. Is the seller still responsible for them since your not actually buying until you exercise your option? This is my assumption other than "It depends on what you negotiate". 2) So I found a house that I'm actually about to start negotiating to live in myself under a lease purchase. Is everything the same when it comes to deal structuring? I should still set it up as if I were going to sandwich lease it where I'm just a middleman? What if IM actually the one who decides not to buy in a couple years? Is it unethical to move forward in such a contract? OK, so maybe that was more than 2 questions, lol, sorry =).

Hi Hilton and welcome.... The sarcastic undertones come because most often both the investor and the agent can mutually benefit when it comes to investing but there are always hurdles that seem to create a reverse magnetism of the two. For the agent... hurdles are usually problems that come when trying to help an investor who fails to perform and/or consumes an agents time (and sometimes ego/pride). For the Investor, its difficult to find an agent who does not operate in black and white when required (non-motivated filling out of contracts due to standard school of thought). The list of differences between the two does not end there either. I like to see it as a marriage.... there are good ones and bad ones and it takes effort and give-n-take on behalf of both parties. Most of the time, for us investors, an agent only gets in the way. Most of the time for agents, an investor only wastes the agents time and energy. In a good "business" relationship, both the investor and the agent find satisfaction in one another and both reap rewards. Eventually they can trust and lean on each other for wants and needs. An agent is licensed and an Investor is not. One has special access and the other does not. Both can make things happen and that takes team work. Both should appreciate the other but it does not always happen when it matters the most. I typically don't mess with agents unless it would come time to sell a property for maximum profit, after all, agents are experts in that area.

Thank You Michael and yes it has been a long time =). Thanks for reading as well...you have always been good with responding to posts. =) I am still no expert at any one niche but have accrued a lot over many different things, however, I want to become really proficient with L/Os and I know this is the place to be. I also appreciate that your system also allows for co-ops which is really interesting and helps investors to be straight forward about folks' homes as far as finding solutions is concerned. So now, once again, I gotta buy your course =). Only this time... it is much more feasible than long ago when I was struggling.

Hmmm.... think like investors folks =). Investors usually jump in when the masses are thinking its a bad place to be. Anyone who looks like a terrorist wouldn't want to do much, as far as business goes, in the US.... so its like the bottoming slope of a stock in the market. These guys know that it is the perfect time to get involved and make some real money =). Give it some time... these guys will eventually sell everything to the next people we go to war with, heh. Thats my broad opinion. I would be studying the why and stuff that has them all concentrated there and duplicate it myself. Im sure there is a reason that makes perfect sense!

Hi all, My name is Dustin... I have been registered since 2005 and before that I was RatRaceHater or something when I first ventured into entrepreneurial endeavors after exiting the US Air Force. I'm returning to share some things and continue my path of learning, networking, and my journey to success which I believe all of us define uniquely different. In 7 years from the realization that the impossible is really just a mental hurdle and a matter of effort, discipline, belief, and stone cold-sheer will... I have experienced a level of personal growth that is priceless! I think if I had to do it all over again then the one thing I would change would be the amount of time I wasted thinking negative when the world around me, like crabs in a bucket, pulled me down because I did not conform. Today I have learned that working hard and keeping up with the Jones' is rather easy and that creative genius is the real challenge... as I expand on an already well built foundation of knowledge, experience, and utter failure. When I started my education in REI (real estate investing), it began in a few places and this web sight was one of about 4 (I wanted only the best). I conclude that being able to surround yourself with like minded individuals is as important as any other basic fundamental required in REI which includes the application of a certain "niche" of investing such as Lease Options. You will not succeed alone. If you should choose to work alone in this business then you will surely find yourself needing answers and a web sight like this can answer faster than your own due diligence at times... no joke FOR FREE! Today, I'm still amazed that investor communities do not charge for forum access! An individual can connect the dots in a matter of hours (sometimes faster) due to quick transfer of information in this modern age we live. I am not to the point of millionaire status but that was never my purpose... at least not until I had figured out how to balance "making a living" with "The American Dream". You have to work your A** off regardless so you really have to balance and focus your efforts and time. I am damn near it too! I work a job and its funny because I pursue RE deals when I'm out in the field as a technician (where I come across a ton of homes for sale daily!). Long ago it used to be about getting rich but I have learned that, in my pursuit of monetary gain, I had some major deficiencies in character and virtue (not to mention lack of experience). I never would have learned this without applying myself first. These things are far more important than riches.... although riches are sure to follow as one may progress. I have learned that the pay is excellent for being able to "structure" deals more than anything and that is why L/Os are one of the first things that all investors should be familiar with so they can find solutions when things start looking dreary. After about 3 years of study, in which I still have no college degree to show for it (oh, yea...its the school of hard knocks not recognized by educational institutions that exist today!), I did my first deal that really stretches the boundaries of creativity and nervous break-down! First, an investor approached me because I was knowledgeable of manufactured homes...and he wasn't, though he had a package deal under contract for 6000.00 dollars ( 2 manufactured homes on acreage from a motivated seller @ 3K per assignable contract). I had a friend eager to learn and join in who knew someone who would provide a private loan for both. So we borrowed 8K which would assist with problems or/and holding costs for valued assets where we did not possibly have an end buyer in time as we originally were going to just flip the 2 homes. So we had the deal and the up front cash needed. We found a way to get money without normal red tape from a financial institution... which means we operated at lightning speed! Did I mention... no credit check? Imagine that. Next, we needed time to control the properties so we could maneuver and operate without huge bricks on our backs(weight coming from needing to close the seller out). So I went to the negotiating table with a motivated seller and locked up a L/O! He wanted 1 year and I wanted 3... we met in the middle at 2 years... for both homes! So we had 2 homes at a purchase price of what was owed at the time (both at 70% or more of market value). So now we had control and time (terms). We had Price from the get go since the previous investor already locked it up as such...we were just happy we could renegotiate everything else and create new contracts. Amazing huh? Well, it was stressful! Thousands of dollars were on the line, the need to perform, lenders, and a seller bleeding for a solution. Then, we marketed the first home at reduced price for a quick sell. We sold it for 69K in 30 days. We owed 56K for this manufactured home on 1 acre of land...built to FHA standards which allowed it to appreciate like a normal stick built home. It was worth 81K (I wish we would have sold it closer to its FMV (Fair Market Value) but this goes to show that a good deals are not dependent on what speculators say on the news but rather a matter of structure for that individual home and seller/buyer, yada, yada, yada. We made 13K, paid our lender 9K after waiting only 30 days, and pocketed 2K each. It was fun watching the bank teller count 13,000.00 dollars out in hundred dollar bills cash! I remember laughing when they were asking for reference info about our job and stuff! I was like....we are cashing a check not borrowing money! It felt good regardless! At this point...we were operating in the green with no money owed and another house to sell =). Eventually, I sold my interest to my business partner for A 50% reduction of the projected profits on that last home because I hadn't figured out how to balance making a living and building business. It was projected (or structured) to generate 20K in profit. 10K was my half so I took 5K cash as a buyout. 8 months later, my partner sold it and made 40K. after expenses and all, he made about 28K profit on a deal I structured. We had a falling away before hand that I only blame on not having contractual agreement... even between friends. He still owes me 1200 bucks for the deal which I will never see. It doesn't matter now because I know that the work I did is what made it possible for him. He was wise to buy me out because I would have made 14K instead of 3800 bucks. All should remember that friends or not, business partners should have contractual agreement with well defined terms. I must say that it was the Lease Purchase structure that enabled everything to fall into place. So today I will now focus on it entirely as the primary way to generate cash and sellers I speak with will hear about it first before I attempt to venture into any other creative purchase agreement. I return to this sight because Lease Purchasing has the least risk and the most benefits at this point on my own path. Since then I have flipped a few homes, including a burnt down house (structure is everything and investor networking helped), and today I remain focused on the balance rather than the millions. I hope all new investors learn by others here that REI is a life game that takes practice, like a job, to get right and never quit and just strive to accept baby steps and understand that there won't always be someone there telling you when your doing things right or wrong or to always congratulate you when you succeed because success at this level places you in a no mans land where few venture and even less make it to the point of full time investor where they fire their current boss. If you should attempt REI then stay in it for the long haul and be willing to grow and fail. Stay with like minded players in the game who perform daily. Do not do it to get rich quick but to live the life you want. I still have a million milestones to go with my goals as I work a job and work business on the side... but I'm in the game. After all I know and have learned, I'm still going to buy the naked-investor course with all its materials. Its just another expense for an improved education where the value is in the material... not a piece of paper, degree, or certificate that says your qualified for a certain pay or salary every year. Get used to this concept for those of you who are educated by standards of today's society. You can pay a fraction of the costs of formal education that you will for material that will make you exponential returns. So go build your foundation and then become an expert in your niche. I like this place so I will stay and build on my own expertise. Thanks for reading!

Hi all...MC, I used to visit these forums known as Rat race hater and I forget the rest of my name so you admins can delete that account. It was too hard to remember the name and such. I wanted to say that I have flipped a home for retail already and made a profit (13K) and I have another home under L/O and have frequented these web forums off and on. Im thankful that Investors take the time to create manuals and web resources in this day and age. It really makes it easy for the budding entrepreneur to take action. Some of the things I have learned about L/Os through experience is.... 1) learn to create your own comps as well as rely on several others for advice if possible. This has really helped when the numbers go sour...there was still room for profit. 2) Try and find tenant / buyers with decent and inprovable credit scores and use your own mortgage broker to get them financed sometime within their term. This leverage has caused me to be bored many days because theres nothing to do...but I guess I shouldn't complain...ehh? 3) Make sure you include insurance costs and taxes in the total amount required to pay every month on a deal. Forget this and you'll be breaking even or experiencing negative cash flow real fast! 4)Learn to make use of team members often. You can find them at local REI clubs or simply making a phone call using the ads in the phone book...believe it or not! Many times, referrals and word of mouth can make a difference too! These are just a few things I have learned in the past 4 or 5 years that I have studied and applied myself in REI. Not a day goes by where I feel like I know it all...ever! Lately I have plans to L/O 15 homes with a goal of 100 to 150 per month cash flow on each home...not to mention back end profits. I am giving myself 6-12 months to do this...pretty reasonable. After I used L/Oing as a vehicle to invest in RE, it has become the most lucrative and accessible path for profit in the field of real estate. Its great to have solutions for so many people in a market where most believe there is only 1 way to acquire and profit...buy, then sell. ANyway...Im happy to be back posting here and appreciate the investors who provide these web pages and the training material to educate. Dustin