NickC

First off, I'd want a full commitment from him before I proceeded to screen him. Hopefully you charged him for the application so it wont cost you? Once he does commit, I'd check his credit, verify his employment (how to check his ss, you got me, but good idea!), and I'd check with his ex-landlords as well. This should give you enough to go with, and of course he would need the cash upfront as well. Good luck! Nick

Jason, The first thing that came to mind when reading your post is that I noticed you did not establish any rapport with the seller. I could be wrong, but you didn't ask about the property, and get the seller talking. This is how you can draw out the motivation in the seller, and find out their needs. Once you find this out, then you can step in with a solution to their problems, and make a profit out of it in the meanwhile. A motivated seller is a homeowner who's biggest priority at the present time is to unleash this burden on them of their house. They could be moving, or going through a divorce, or just got a job transfer, etc... The key is that they need to sell, today! Now, you've started cold calling, which is great! You will get turned down alot, so be prepared! You will run into alot of unmotivated sellers. This is why you should also be marketing to get sellers to call you! Get some signs made up, flyers, business cards, etc... Put them up everywhere! Get the word out that you buy houses! But before you do, have you picked up a course? I would recommend it, to give you the knowledge how to proceed, and the proper paperwork. Nick

Well, I here MichaelC's got a great course right here! Check it out, pretty good value too if you check around. Any questions you have, MC's right here to fire back his wise words, along with the rest of us! Just keep reading, learning, and then the key word; applying! It's a business, and you have to treat it like one. Persistance is key! Good luck Nick

twilliamsen, First off, I'd recommend picking up a course. You'll learn how to do these deals from beginning to end, as well as give you all the proper paperwork. After you move, make sure you get them to a local attorney for local compliance. Contrary to MC suggestion, I would recommend getting some reserves saved up first. There are some costs you'll have to cover, the biggest is your marketing campaign. If you can get some from your dad, great! Pick up a course and take action! Nick

I would assume you do. The key word here is assume though. The fact that you have a valid license would need to be disclosed to the seller. You just aren't working with a brokerage at the moment. Nick

Congrats Troy! Great to here of the success coming your way! Out of instinct I'll throw in my 2 cents; all depending on their motivation, I'd offer in at mortgage balance ($51k), taking over all maintenance and repairs. Good chunk of equity! Just my thoughts. Nick

First off, I'd wait until the listing has expired to deal with this property. If they sell, great. If not, you could approach them with either a co-op agreement, or a co-op assignment. Don't think I'd want to stay in the middle of such a high-end home; well, in my area at least. Unless the rent is marketable. I'd explain that the house is a high-end home, and may require a little while until it is sold. I wouldn't make any guarantees. Don't make someone else's problems your own. They may not get what they're asking for retail, but may be able to via l/o. The only problem is if they need all cash. They probably won't be able to refinance either? In my opinion, I'd look for deals that are around your areas median. Nick

One idea I was thinking of, was to negotiate to put my flyer in with the local papers, pennysaver, and mail. Along with the rest of the flyers and coupons you get. Anybody try this? Nick

Have you guys tried pennysaver.com, or something similar. Try giving them a call, just keep an eye out for one. Samantha, instead of spending $76 on one ad that'll run for two weeks, why not make up some signs with that cash? $76 sounds pretty pricey for the pennysaver to begin with! I'd check out your local dollar store, pick up some bristol board and markers. Make up your signs, and take them to get laminated. Then just pick up sticks to get them in the ground, and tape to get them on poles. You could probably get a dozen or so made up cheap! and it will probably get the word out more than an ad in the pennysaver. If someone steals them, just get some more made up, cheap. Just my thoughts. Nick

Well, you could be honest with the seller. Tell him you've marketed the property but just haven't received a satisfactory response. It is a condo, which do not have as much of a market than single family detatched homes. You could cancel the agreement, or continue to market the condo to find a qualified t/b who will cash out in the near future. And you will be successful. It's really up to you. Persistance is key! Sure, your family may put you down here and there, but see what they say once your paydays come! Nick

Steve, The first thing I would think of is purchasing the property subject2; just switch the l/o to a sub2. However, you stated that you do not want to buy for various reasons. Would the owner be willing to renew with you at all? If so, you could go through the process over again, collecting 3%-5% upfront. Never put your own money into a property you don't own. If your t/b's want to fix up their new place, great! Just let them know it stays if they don't buy! Thanks Nick

No. I can't speak from my own experience, but finding a lawyer who is knowledgable in this field is rare. Almost like finding a good agent to work with. In a lawyer's case, a confused mind will say "no, this is illegal", or something similar. The best way to approach this, in my opinion, is to get a hold of some good contracts, such as in MC's course, and take them to your local attorney(s). Go to them with a business plan. "This is what I'm going to do. I know it is completely legal, I just need the paper work reviewed for local compliance." Or something similar. If you walk in saying "Umm, er, umm, I'm thinking about doing something like this or that..." make sure you run to the bank before hand! Thanks Nick

Samantha, Some wise words in the previous posts! Don't look at this situation in a pesamistic view at all! If REI has to be thrown in the trunk for now, so be it. It's not permanent though! I haven't been able to even start my business yet because of my cash restraints. Take care of your family first, get a job & finish your schooling, and save up some reserves; that's my thinking anyways. Then, when your financially ready, go get them deals signed up! Once you do get another signed up, as MC stated, market and get the word out! If someone was to drive by the block your house is on, they should see signs and flyers everywhere! You have to get the word out! Follow MC's 6 step plan in his post, along with putting an ad in Sunday's paper, and your phone should be ringing off the hook! Good luck Nick

Quick and to the point! Very motivational I must say! Nick

I'd have to agree with the other posts. I'm in the same position where money is very tight! Instead of trying to squeeze a quick deal out, I'm focussing on getting a job as well, to get some reserves saved up. You never no what may happen, and I'd like to be prepared to an extent. I'd like to have my "team" set up, as well as cash reserves, especially for marketing. Just like the other posts stated, never lose sight of your goals. You may have to push them back for the time being, but planning today for tomorrow is a wise decision; even if it means getting a job. This could be hard to take as a buyer if your focussing in on what you could lose if you don't excersie your option. However, considering the t/b who you will be accepting should be too excited with the fact that now his family can own a house that they have been dreaming about, and it's all because of the flexible terms you offered! They don't need to keep saving, working on their credit, and deal with banks, all while renting. They can get in now! Just my thoughts. Nick