moveright

I work with only 1 mortgage person. The reason I do that is because he knows EXACTLY how my business is structured. He knows how I explain the process to sellers and he knows what T/B's need. For example, if a T/B calls me and has a mortgage person they want to work with, I view that as a bad idea BECAUSE, I already explained to the seller that my mortgage broker organizes the figures in such a way that the option fee credits toward an FHA 3.5% downpayment AND that the rent credits credit toward closing costs. This to me, is a selling point to sellers AND tenant buyers because it increases the potential for actual consummation of the CA deal. Plus, my lender knows how to work with credit risks. That having been said, if my seller approves a T/B that has hooked up with some bozo-mortgage rep, that could spell bad news for the deal. I got paid up front but my reputation is on the line, and reputation is everything.

Beautiful. That's exactly what I was looking for. some good verbiage! Thanks MC.

I got a reply to one of my second emails I sent to a CL ad. She asked if I had a contract/agreement she could review in detail? What's the response you all go with on that one? My natural inclination is to call them and say "I don't distribute my unsigned paperwork, however, let me send you some preliminary numbers and if you think this is something that will work for you, of course I'll need your signature so you will be provided with the docs" thoughts?

correct correct correct correct At least that's what I was told. I asked a similar question not long ago.

The LPA paper was a .doc attachment in an email I received from MC after I purchased the manual. Once I received the Manual in the mail, the instructions were to email MC in receipt of the manual, then in his reply, there were many document attachments, LPA being one of them.

GREAT WORK!

Kyle, I do use that line as you quoted. Of course I am also licensed agent. Now when it comes to agents, they need to eat just like investors do. If she was more open minded, you can find several ways to pay. 6% is nuts, unless you can fund it on the back end. My standard is 25% of the collected balance at time of option paid and the remainder of 4% paid upon exercising of option. Of course the deal has to afford to pay it. If not then numbers can be adjusted. Now, this is for one of MY OWN DEALS!...not a C/A Perhaps I missed something. Why would we pay ANYTHING to a realtor? Because I bought my tv at HHGREGG because they had a better deal than Best Buy, does that mean HHGREGG owes Best Buy some sort of commission? Seriously, I'm lost.

Still no word. Oh, for the record, that was me saying HOLY SMOKES. He told me that he had his own lease agreement "if need be". Also, he mentioned "they will be on a lease agreement one way or the other come monday, I'll make sure of it. And, if you get them to sign yours, I'll just tear mine up". He's definitely confused and here's what I think happened. I think the tenant wasn't explained to about all of this so they just figured $7k to sign up with me or $3k to sign up with the homeowner. easy choice. So, I think the seller just signed them up on his lease and never even thought about the fact that he was already in an agreement with my company. I mentioned to him early on that it's non-exclusive although I don't think he even listened. Also, it's one thing if he SOLD his house before I could get it leased but this is a totally different situation.

Well, I had an out of state seller who was leasing his house here. He wanted to get rid of it and was really excited about a lease purchase. Anyhow, I sent him the agreements, he signed them and returned them, then this weekend he flew up here to clean up the house since his tenants had just moved out last week. I met him at the house, took all the pictures, then he told me he was so motivated to "get someone in here" he's dropping his price. GREAT! He had been posting on CL to rent the house and had a huge response. He told me he actually had someone coming to look at it that afternoon. So, I left to come back to my house and redo some of the numbers. He calls me and says "Mike, these people are ready to move in like NOW. How much do they need down? I told him the figure was just over $7k. He said "ok, well I'm going to take a 3k deposit from them now since that's the amount I was going to get at move in from you". I told him he can do that but if he wants the lease purchase, the whole amount needs to be to me and I cut him a check. PLUS I need them to sign my paperwork to make it official. Mind you I had already told him this was WAY out of order of how the process should work and that by not even checking them out background/credit wise that this was really a hasty move and may not turn out well. He didn't seem to care, he was so pressed to get someone in there. So, he calls me 10 minutes later and says "ok, they're gone, I took the deposit and they told me they have the other $4k for you. Originally they just wanted to rent but when mentioned the rent credits and so forth they were really interested in the lease option, so give them a call". I told the seller that he just handed keys to his house to someone who has not been screened and IS NOT EVEN BOUND TO ANY LEASE AGREEMENT! holy smokes! he said "well I've got my own lease paper and they are going to be one either that one or yours come monday, I'll make sure of it!". so, I called the new tenants with no answer. left a message, no call back. emailed them, no reply. Honestly, I feel like calling the tenants and saying "looks like we have a small problem because I'm in a lease agreement with the seller and scheduled to take over november 1st. So, unfortunately, you've got keys to my house, unless of course you'd like me to assign the lease agreement to you". I'm not going to do ANYTHING until I get some feedback from you all. In closing, I'm pretty sure I just got cut out of my first deal.

Ummm, This is the same guy that ramrodded unconstitutional legislation through congress, bankrupted the United States and personally popped the middle class's security cherry. Then runs for another term? Tool? confirmed.

Spoke to my mortgage guy yesterday. When I told him that I needed rent credits to count toward closing costs he stumbled on it for a second and said "FHA allows for a seller to contribute up to 6% in closing costs, is the seller actually paying any closing costs?" I told him "TECHNICALLY, the seller is not paying closing costs, BUT this needs to be set up creatively and the numbers of the deal are just that, numbers. What can we do?" His answer... Addendum to the Option Agreement. He told me that if the rent credits are say $3600, then we just simply need an addendum to the Option Agreement which states "Seller will contribute $3600 toward closing costs". Genius. That's when it dawned on me that this truly IS creative. Fair game and totally legit, the numbers are what they are. It's how you write them down that matters. Moral of this story: One document that is required for ME is Addendum to Option Agreement.

FASTWEB = tax records for all states and counties in the US. Every investor should apply for access to this site. It provides tax record scrapes for all states. It even lists comparable sales based on your selected criteria. of course, these are title comps and not MLS comps.

Just wondering if anyone ever looked into this. seems like a "too good to be true" type of thing. http://www.freedomsoft.com

Very good point from both of you. I do have a mortgage guy and he's totally on board. When I talk to a potential TB, even if they have a mortgage person, etc, etc, in MY program, we use my mortgage broker. This is to ensure accuracy and consistency. My broker knows my program inside and out and, he understands that the goal is to secure financing for actual purchase of the property. I remember in one of my other posts about the option money counting towards the mortgage downpayment, it was suggested that this is mostly the mortgage broker's protocol. That's another reason why everything has to go through my guy. I appreciate the help. This will become easier after a few deals completed. You know, despite how frustrating learning can sometimes be, no matter how many times you read the book, when it's time to DO THE JOB, it's like total amnesia.(at least for me) I learn by doing.

What does the contract between you and the homeowner say? Does it mention the amount of option money you paid and the date? If so, just follow that. Fair enough. You know, as far as showings go, the reason I assumed that you would want a TB to be approved is to avoid tire kickers and also buyers who just don't qualify for this program(or couldn't get a loan otherwise). So, I figured no sense in showing a house to someone who can't qualify anyhow. totally insane thoughts?