scotty205

Yes Yes I guess I do, lol. Thank you Michael for clarifying that. The big reason I have'nt done deals with lease options is because for some reason I have a hard time wrapping my head around doing it the right way and getting the numbers right. I really want to use this strategy though so now me and my investor partner can get the numbers right together and start getting deals. Again thanks for your help, I understand the whole process a lot better now.

I would like to break down this deal to make sure I am correct on the whole process of this deal. My investor partner does not think this is how it works so please clarify if I am wrong on anything. The numbers changed a tad.. Seller price: 75,000 My offer: 80,000 Rent 1,000/month 2500 option fee 2500 rent credits 2 years with only 1 year rent credits Now here is where we disagree big time. The $1,000 in monthly rent goes toward the purchase price correct? So, lets say the TB exercises his option after 1 year. How much would the TB owe? They would subtract 12,000 in rent and owe 63,000 correct? Please let me know if I am wrong. Thanks...

Greatt, I was thinking that exact same thing. I thought the option money was to high. I'm sure the comps are correct so I will reduce rent credits and see what the homeowner says. Thanks a lot Michael...

Hi Michael, I know its been a while, lol. I have a potential deal and here are the numbers. Seller owes around 70,000 for a property that doesnt need much repairs. Comps in the area are easily 80,000. Rent is 900/month. The seller doesnt live here and is tired of renting it. Here is what I would like to do. Offer 70,000 and give say 50% rent credit for 1 year on a CA and collect around 5000 option money. So the purchase price for TB would be 80,500...I know you like 1 year deals but dont you want to get more than one year if you can? Your thoughts everyone on how you would structure it? Thanks....

Hey Dustin, I'm here in OKC if you need help in determining comps...The tax assessor site is awesome in Oklahoma County but still not very accurate.I havent done any lease options yet as I have been trying to wholesale but I'm thinking of trying to work some lease options. Let me know if you need help or would like to get together and talk real estate or work some deals together...I was just wondering what is a good price range to market if the Median house range here is about 140,000? Scotty

Here is a post from a FRBO here in OKC I just responded to. Hello, Thanks for your email, I personally own the house, i want my property to be well taken good care of, and there are some rules and regulation in which i do give out to tenant willing to rent my house, so please don't disrespect my order, But if you are still capable of renting my house the rules and regulation goes this way. You must keep my house clean including the surrounding, you must know the way in which you use the stove so as to avoid fire outbreak,you must not disturb the neighbor.I decided to rent out the property due to our transfer to (West Africa) on a Missionary Work in a church here named World Mission, so we are renting it out since we need someone to take good care of the property on our absent. Don't be surprise if you find the home with another site and deference price, I have plan to rent it through Real estate before, but they are not serious simply because they have a lot of house to lease out, And they added some money to the rent while there commission is not fair. Have this in mind ,you must know the kind of person that I'm, But nevertheless i am giving you this rules because of what corresponded between me and my last tenant. the keys and documents are with us here in West Africa... So i will need to ship them to you before you can occupy the house, But you can drive by the house anytime to take a look at the area and surrounding, You can also peek through the windows if you don't mind. So let me know if you are still interested so that i can forward you the Rental Questionnaire to fill out... Number of Bedrooms: 4 Number of bath: 2 Pets are welcome!!! Rent: $1000 Deposit: $700 Address: Thanks and God bless you. Regard David R I looked up the house on my county assessor site and it said the house was owned by a sjs properties in new york city. Rents in that area are valued at least 1300 and thats 3 bed, . Red Flags all over emails like this. I'm new to responding to craigslist ads but I know fake ads. Just be careful everyone.

How did that turn out Steve? I was wondering what you say after the headliner in the email. I want them to know I'm not the T/B before I talk to them. I'm thinking I will get a good responce but I want to present it right. Thanks...

A wholesale deal might work if the investor has the cash upfront. The wholesalers here in my area will pay up to maybe 70,000 cash or more on the deal but not much. I started out trying to do wholesale deals, marketing to probate. I talked to a very nice lady that lost her sister and got the house. She was motivated in trying to sell the house and I made an offer after looking at it. Nice house in a good neighborhood. She wanted to think about it and have it appraised. I called her back after a month and she said she was still thinking about what to do. I got to thinking, I dont like offering half of what the property is worth. So, I came here where everybody in the deal can be happy. Thanks to Michael and his site. Sorry Michaeld, didnt mean to ramble, but is your investor friend cash friendly and you can just sign a purchase agreement with seller at 200 and assign it to her for 215? Thats alott of cash, so just a suggestion...I'm a rookie...As far as what to tell the owner, I was upfront and said I have buyers that will pay cash. If you sign a purchase agreement you are in control, thats my 2 cents...

Hey Steve, this questionnaire looks great. Are you still using it and how do T/B's like it? How did you find your mortgage broker, I need one. What kind of CL ad would you run if you needed one?

Michael, I'm looking at past sells in the area and then running the numbers. I dont use an agent. Yes, in love was probably harsh in my statement as they want to get the most out of the property. Thanks Chris I will keep that in mind..

I agree Steve, I want the phone to ring alot. Thanks for the help guys...

Thanks Michael, I appreciate your help. Only kidding about number 13, lol.

Hey guys, I'm testing myself on answers from sellers. 1) Can I get a mortgage if I have one on this house? Why would you need a mortgage when the T/B pays everything. Talk to your mortgage broker. 2) What if the tenant/buyer trashes the place? Well, if there renting to own they want to buy the house so if they want to buy your beautiful house, they will not trash it. 3) What if they don't pay the rent? Well I have screened my T/B's very carefully and they want to buy the house, so there should be no probs in paying rent. If there is a prob, you can take action to get them out. 4) What if they decide not to buy? Then we will find you another T/B. 5) How do you get paid? I get paid option money by T/B. 6) Must we set the purchase price in advance? Yes, we will sign a contract for the agreed upon purchase price. 7) How much rent can I charge? The agreed upon amount we set in the contract. 8)How does it work exactly? We put all the work into puting T/B's in place. You pay nothing and still get all the tax benefits. T/B's are responsible for all maintenance. Not sure on who collects rent, I know Michael said in the manual that he collects all rent and then pays to seller. Is this still the norm Michael? 9)Do I get a deposit? No, your selling your house at market value. 10)What's the difference if I manage my property or you do? No, I don't manage the property it is yours. 11)How long does it take to find a tenant/buyer? Not sure on this, I would tell them 30/60 days. Your thoughts... 12)How long have you been doing this? I have been in real estate awhile, just not L/O's. But I have alot of T/B's that would be interested in buying your house. Complete BS of course but you gotta start somewhere. 13)Do you have any references? Yes, call Michael Carbonare. 14)Don't you need to look at the house first? Yes, I would. 15)What if I find a buyer? If the house is under contract, you would be violating a binding contract. DONT DO IT..... 16)How much can I change on your contracts? Huh.What would you wanna change, no you cant change anything unless we both agree. 17)Why can't you just call me back when you find someone who wants my house? I can call you back and you screen them as well. 18)How do I know that you're not just stealing my house? Because we are in a binding contract and I want my T/B's to live in a nice house. 19)Well, if you're going to make $xxxx, then why can't I just do it myself? Well, you can but I already have T/B's that are looking for houses like yours in good areas. So, why do the work when I can do it and it wont cost you anything. Please tell me what you think of any of my answers. I just wanna feel comfy talking to sellers and know what I'm talking about to an extent. Critque it and say what you think.

If I market right, the phone will ring. I have a job and not alot of funds to pay people to answer my calls when at work. I was thinking about using a VA to screen sellers to see how much they are motivated. I'm not to worried about T/B'S, I can send them to fill out a form. I just hate sellers calls going to voice mail. Any thoughts...

I have been looking at sellers ads on Craigslist and most are about ballpark 10,000 overpriced. Which of course means the seller is in love with the house and wants over market value. Do you email marketers just send an email to all listed? I know some realtors also post ads in the FSBO section as well,which they should'nt but well you know. Do you respond to them as well?