blaklabrat

I'm back! I've had a busy couple days with my JOB and school. I haven't gotten a chance to respond to anyone that's emailed me. There's a t/b asking me for any listings I might have (which is none), but I'm not too worried about it because I don't know if she has a big enough down payment or what not. I got my business cards in the mail yesterday also! I just woke up so I'm still tired, but I'm about to hit up Craigslist and militarybyowner.com to email for leads.

Sounds good! very helpful. I have another nother question now. I have a homeowner that I emailed asking if they would consider selling their house on a lease purchase and she responded "not at this time". Well I didn't take that as a no and sent another email saying that I understood and sent a copy of the LPA flyer. She emailed me back this morning saying that she talked with her husband about it and they'd consider a lease purchase if they don't sell by the end of April. I can deal with that. Then she had a laundry list of questions, some of which I am not worried about but I'll list them all here anyway. 1. Are you located in Colorado? (I am, so this one doesn't bother me) 2. Are you listed with the BBB? (I haven't even incorporated yet so... no, and I'm hoping that doesn't lose a deal) 3. Do you have an affiliate service in Florida? (MC? would you like a referral lol? 4. Do the lessee's have to put any money down up front? (Of course, and that's my fee, but I think she might also be thinking about a sandwich lease) 5. How well do you screen potential lessee's? (I might need a little help on this one also) 6. What if they break the contract, then what? (They don't get their money back and I find a new t/b, right? I know I asked this question before, and I can look for the answer here, but it's still a question that makes me nervous.) That's all. I'm off to the doctor. Be back soon. I'm so excited about all the correspondence I'm getting from homeowners!

Another question. How do I explain that I need the house under contract before I start marketing it for her? I don't think it will be too hard, but I'm not sure how to really go about putting that out there.

Thanks guys. I agree with everyone lol. I am not gonna try to take all the properties on at once because two are a commercial property and I know I'm not ready for that. I don't even know how I would find someone to get into them. Also the townhouse has someone in it until June. I was confused on that part. I want to get the house under contract because that one is a great deal! It could even work as a sandwich lease, but I don't want to get in too far over my head on my first deal. I have to get to my JOB now though, so I'll check in later. Thanks again.

Got it. I am on fire today. Getting an email for my website really seemed to help. Or maybe I'm just talking to more desperate people. I emailed another Craigslist ad and got a response that the homeowners are open to lease purchases and to call. So I call and this woman very nice. She sounds like she's been on some of that legal Colorado grass. Really cool. Anyways she tells me about the property that I called about and then proceeds to tell me about all of these other properties that she owns that she would like to get rid of. Her and her husband are planning to move to a lower altitude. At first I was worried because I asked how much she would want down and she said $10,000. It made me think that there would be no room for my fee in there, but she also said that she would consider taking less than that if the t/b was serious about getting in the house. She asked how I got paid and I told her I would take my fee out of the option consideration and she was fine with that. She even asked if I do market research and everything to make sure the price is right. She is really interested in getting rid of one townhouse that she owns. There's no one in it now. She pulled a number off the top of her head as $125k for it, but I haven't really seen anything yet to justify that price. It's right behind the house that I actually emailed her about, but there is an "excellent" tenant in that house right now. She was so out of it, I'm going to have to email her for some clarification on the details of each place. She's already offered to email me pictures of the townhouse and a little cabin in the mountains. Oh, and I called the homeowners I made this post about. They didn't answer, but I left a message for them to call me back. I'm supposed to be getting a call from another homeowner I emailed some time this afternoon. I got so many responses at once I got nervous. I finally just breathed and took my cell phone in my bedroom and made the call. I have my fingers crossed. Thanks for all your help!!

Got it. So I'm laying it all out on the table for the homeowner because they'll be the ones in the deal. So on the Option to Purchase Agreement I'd put the terms that Chris gave... or whatever terms we come up with. The $162k wouldn't have to be written down anywhere because that would just be what the homeowner would end up with at the end mathematically. Am I right?

Thanks Chris and MC! I'm waiting for a decent hour to call people on a Sunday. I don't want to interrupt someone's church time. lol So the key here is to get as long of a lease period as I can. I think I'm a little bit confused on the tenant/buyer end though. Only give them the rent credits for the first 12 months? That seems like a good idea, but I just anticipate resistance lol. Maybe I need to look over the contracts again, but I thought when you assigned the contract the t/b got the same deal you did. How do I change the numbers to reflect what the difference would be with their rent credits and option consideration... Like if I agree to 162k with the homeowners and write that in the contract, do i just change it to 172,750 for the tenant/buyer? I'm slightly confused on the paperwork.

Yay so my diligence paid off a little. I've been trying to use the two email method on craigslist. I've discovered that going back a month is helpful also. I read that somewhere here. Anyways, I finally got a response to email #2. Here's the thing. The sellers seem very motivated. They've already relocated to TX and they are still paying the mortgage on the house here. Thing is they still owe $162k on the house and it's only worth about $169k or so. So obviously not a sandwich lease. The owner also let me know that their mortgage payment is $1204. It seems kinda high. I did find some other rentals listed in the same zip code for around that amount. Would it be plausible with a 50% rent credit or something like that? What would be the best way to set this deal up? I appreciate you guys' help. I'm going to give the homeowners a call tomorrow and I would like to have something good to tell them.

Welcome Matt!! CA is Cooperative Assignment. That's all I have for now cuz I'm marketing and reading the manual.

Ok. I am in correspondence (hehe) with a homeowner that has been posting the same house of clist for the past couple weeks. I finally emailed him and he bit. I sent the flyer with the second email and he responded by saying that he was offered the same deal by "one of my competitors" (i think that's awesome, that I have competitors), but his goal is to sell in 2011. If I can find a way to close on the property this year then "we can talk". Do tenant/buyers even do 6 month leases? That seems too short. This guy probably wouldn't even agree to that since there'd be no way to guarantee the tenant/buyer would buy. Anyway would this be a Pure Option deal?

Yep, I got MC. Thanks for clearing that up. So it is kind of like a regular assignment of a contract to purchase, but much less risky for both homeowner and investor.

MG, Did you try it out? How did it work? I haven't even looked into how the Pure Option works. Is it just a contract saying that you might buy the house? Do you let the homeowner know that you will be using that time to market to an end buyer? So they think of you as working for them as a marketer, but they do not have to pay you themselves.... I like this idea. I am a little confused on how to approach the homeowner with the Pure Option, though.

Oh I know who you're talking about JJ. It's not him. I have that guy's book and when I started looking at everything that he "specializes" in I saw the red flag. He looks like a douche too. This local guy in just here in CO Springs and runs the REI club that meets every month. He actually does invest, but I was still more impressed with MC and the good folks here at the Naked Investor. I figured I'd have the guidance I needed right here. And I can go to the law office on base and make sure the contracts work in my state for free! Gotta love being a military wife.

Hi birtane!! Yay new friends!! Don't worry about the hubby. Mine was a skeptic until I started talking to people and telling him about how some people were interested. You'll make like 30 times what you'd pay for the manual back on your first deal. And when we bring home that first $3k check I'm sure we can get whatever we want! Congrats on getting things going. Of course MC is right and you have to let the homeowner know that you are looking to make a profit on this. How did you approach her with the option of a lease purchase? Did you tell her how much option money the t/b usually pays?

I finally ordered the manual!!! Missed the 3pm deadline tho Stupid Mountain time zone. I almost bought a local guy's course, but it cost more and I like you guys lol. Besides I still need a website and business cards.