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And i already have a pair of shades like that to hide from the due on sale clause police! Disheartening as the owner liked this guy the most because he's a cop and has a family. Our current # 2 guy is a car salesman.

You guys are the best! Pilot, I almost had to make a trip to best buy to get another laptop after i spit my water up on this one laughing!!! This guy said "my wife wants the tv on the wall!" I was like W.T.F! Did you really just pull some low comps and tell me you want to buy the house in 18 months for the lowest current comp, with 9k in rent credits, less than 3months rent down, and then reduce the rent every month? I wanted to record that call so bad! This one is classic. Now he's harassing me by text. Sent 1 asking when i would talk to the seller and i didn't reply so 5 minutes later he sent "???"

Pure comedy! So candidate 1, the new cop, ex realtor, called today with a list of notes he had written down. It was so funny I asked him to type it up in an email so i could post it here. Remember, the comps are between 200-215k for the home in question, and this guys middle score is a 533 with 2 evictions on his credit. [all that's in my previous post.] My advertisement: sale price: 213k - rent 1375 - rent credit: 510 for 12 months - - lease term: 18 months - min deposit: 4k but i inform that getting as close to 3.5% will increase chances. His notes * Sale price to be 199,000 (which is what he has it listed for with Realtor) * 18 month lease option * 3,000 down non-refundable if defaulted or all being credited to purchase price * rent 1350 per month due on the first of the month with 5 day grace period. with 510.09 per month being credited towards purchase price for length of lease or non-refundable if defaulted * monthly confirmation from owners lender verifying mortgage is current * walk thru 24 hours prior to close * All utilities are to remain on for 48 hours after close to ensure no lapse in service * cost of any damage taken from monthly rent until fully reimbursed for repairs with monthly credit of 510.09 still being credited to purchase price from owner. * take possession no later than 25 march 2011 * monthly rent starts 01 april 2011 * agreed that in the event of property damage resulting in any type of insurance claim all monies go directly for said repairs and balance be credited to purchase price * no restrictions for property improvements as long as proper permits and/or local codes are obtained and followed with all liability falling upon company/contractor hired. * 1 yr home warranty to include but not limited to complete structure, roof, electrical, heating/air units, all plumbing to include hot water heater, security system, and all appliances that remain with property * services for warranty repairs being at discretion of Josh and/or Jodie Bond with minimum of two quotes giving before repairs made, due to owner out of country. Any out of pocket expense for repairs will be deducted from monthly rent until balance is paid with monthly credit of 510.09 still being credited to purchase price from owner. * Flat screen sony TV in family room to remain with property * Refrigerator in Kitchen to remain with property * Washer/dryer to remain with property * all other attached appliances to remain with property to include but not limit garbage disposal, hot water heater, outside tv equipment etc. * cost of gutters for side and rear of property be credited to sale price if installed before sale close date. * if owner defaults on sale all monies to include but not limit to full rent amount of 1350 per each month occupied up until relocation and prorated per day as needed, cost of any improvements and fees associated with improvements made, deposits for -address- or relocation deposits to include but not limit utility services, cost of relocation expenses due to owner default, all legal fees in connection with default, any interest of escrow monies or deposits held be refunded, and a 12% interest fee be added to said balances and be paid within 7 business days to -candidate 1-. * if owner default on contract before 25 march close date owner agrees to to reimburse -candidate 1- any and all expenses in connection with anticipation of occupying -address- trail plus 12% interest I don't even know how to reply. I feel like ignoring him from now on, but dont feel like marketing more.

Woman filed bk in 07 and house was included. She says the bk will be "clear" in september but she's not even sure if she can sell it. Anyone crossed this bridge before? Just curious?

Thanks MC. So I spoke to candidate 2 and he wants 21 days to get me 5k and pay an additional $200 per month for the 1st year to make up the remaining $2500. Candidate 1 when asked if he could come up with more than 3k down said "i can come with another 3 but i would rather put it towards repairs blah blah blah. Can I just meet with the owner this weekend and talk to him about the numbers and sign something?" I may have stated this wrong but i told him "i have been assigned the task of choosing the buyer, signing the contracts and taking the seller a check. Any numbers you need to look over i can email you for your review and if you want we can sign the papers." Should i have handled it differently? I haven't emailed him anything yet

Well i think the cop has just become a cop, not to long out of training i believe. The other guys repo was October of 08. Not sure if he's w-2'd or not as he's a car salesman but will find out. Quick question: The owner is not moving out until mid March or April. Do I have to put the deposit in an earnest $ account and wait until tenant moves in or can everyone sign their autograph's and I take my check and go?

I apologize, these are two separate applicants & i am trying to choose which one to put in the home. Of course my gut says the 1 with the biggest down but a part of me does want the 1 who'll get qualified 1st also. They both want it and are waiting to let me know if they got the home or not. John I was thinking substance abuse too when i got that email, but i figured maybe he knew something i didn't. Is it possible that either may qualify for a loan in 18 months from the info i have given or is it to vague?

Things to look for are judgments, tax liens, foreclosures, bankruptcy, as well as late payments in the last few months. candidate 1 experian 652 trans 539 eq 531 Has a credit card with a $500 limit and a 84 month truck note with 48 months left and a 28500 balance. State Tax lien for 1300 filed in 03/2010 & reported 10/10. Says income is 4600 per month. This guy just has little debts and 3 big black marks, 2 evictions [in 2000 & 2006] and a tax lien. Credit report summary: Trades: 9 Balance: $28500 [owes on a 50k truck] Terms: 850 Delinquent 30 days: 4 Collections: 12 State Tax lien for 1300 filed in 03/2010 & reported 10/10 Asked him how close to 3.5% he could come up with for the down so we can get him approved for a fha loan and he told me he's v.a. and wont need more than $500 for a down payment, but he did give me a 3k check while running his application. So I'm still not sure how close to 3.5% of 213k he can come? candidate 2 experian 613 trans 553 eq 544 so this guy has a repo, a lot of little debts but luckily no evictions or foreclosures. He also has a judgment against him [original amount was $180]. He has no accounts open now and i think just establishing credit will help him, but will it help enough to get him financed. Credit report summary: Trades: 7 Collections: 16 Public Records: 1 says he can come up with the 3.5% [$7500] in a week when his income taxes come in. The mortgage guy at a credit repair company told me he could have them both up to a 640 in 6 months for $600. When I emailed asking if the down payment needed to be made out to a title company or my company he didn't answer. He did say he was closing down his credit repair company to work for a home builder and would only be assisting their clients. Owner likes # 1 as he's a cop with a family. # 2's family is out of town so we haven't seen them yet. What should me next move be?

Ok cool. Every caller I've talked with was informed of the fact that 4k is the minimum but fha requires 3% down and the results from my mortgage broker will let us know how flexible we can be with that 3% etc etc. This was done in an attempt to not make it look like a sham. I've noticed by looking at some of the homes users on the board have on their websites are < 3% of the list price which confused me but i thought, when in Rome, do as MC does!

Equity Notes: His eagerness to start fixing the home puzzles me also. It's only 1 attic/ storage room upstairs in a 1.5 level home where the door can easily be locked to prevent his children from entering. The seller initially had a job relocation in March that has been pushed to April. The buyer requested permission to have workers enter the home in Mid March should the sellers leave early. Again, puzzling. He's a police office and ex realtor with an adorable looking family who from all outward appearances seems like the perfect candidate. The seller liked this couple more than the others, but we haven't gotten that credit report back! Steve: Very good point, I was thinking the same thing. MC: I will let him know that he can't do any repairs until he takes the title. Being a Realtor in the past he should already know the fine line he's walking towards equitable interest and should have no problem waiting. Had he said he wanted to use that $ to pay down some bills that would have made more sense. And I won't be adamant about the $6,400 and will take 3-4k in a second. I would like to get the home out of the current owners name by getting financing for a new buyer. If that requires them putting down as close to 3% as possible & making extra monthly payments hopefully that can be agreed upon. I'm all for quick cash though. Pilot: Credit hasn't been pulled yet and the check may be an attempt to blur my vision, but when he said he like the home and what's the next step I said "an ap & a check if you're serious." I also did market it as "Minimum down payment of 4k" due to the fact that other rent to own sites in the city market homes for < 3%. Many of these folks are in the business of leasing for a year, kicking the t/b out, & re-leasing with no intention of selling. I was just trying to be competitive as this is my 1st co-op assignment. Thanks for all your input you Jedi Masters! Any additional wise words would be greatly appreciated

BEAUTIFUL home, owner calls after its listed for a year. The numbers: owes 185 comps around 210. I put ads up for 213k with minimum of 4k down. After the 1st showing a family gives me a application and 3k check stating they can come up with more but would like to put the additional $ towards renovating an unfinished room. Now I told him we need to get his option $ as close to 3% [$6,400] as possible so our credit repair team can get him a fha loan in the next 12 - 18 months. This is when he says " I'm VA so my down payment wont be 3% but will only be $500. I told him we need as close to 3% as possible because previous experience shows the higher the initial deposit the better care the t/b takes of the home. He's extremely motivated and saw other interested buyers at the showing as well. What do i say to make him feel good about putting an additional $3400 [total of $6400] down now instead of towards renovations and how do you address the issue of him qualifying for va financing? Any help offered would be greatly appreciated Thanks in advance

I agree 100% Mike. The fact that buyer A was able to push the button while others kicked rocks was impressive as that is the type of investor I want to work with. It would make no sense to burn that bridge. the other buyers didnt give me a good feeling either. My gut told me to be honorable and do the right thing, but as I am new to r.e.i. I had to ask. For all I know it could be common place for some of the investors I respect on this and other forums to rip up contracts daily over situations like this. I was just checking.

You have a home under contract that needs 5k in repairs and has a 5k lien on it. You require the lien to be paid by the buyer at closing. After some marketing you get 3 initial offers: A. only $1500 profit [will pay lien] B. $1500 up front and 1k a month for 4 months [will pay lien] C. $4500 profit [tire kicker who wants you to pay the lien and be reimbursed by him] B makes a verbal agreement, then when you try to sign a contract he doesn't return your calls. C just calls every few weeks with a lower price and no commitment. A is ALL ABOUT IT! And why not he's getting it at a great price. You sign a contract with A and try to set a closing date, but she states she wants to pay the 5k lien as required by seller[you] and get the documents back from lien holder [which takes 3-4 weeks] before closing. 2 weeks after A pays the lien B calls asking if you are still going to close on the date he suggested, which is 2 weeks away. As it is an extra 4k and you have a clause that can get you out of the contract with A, do you: 1. Sell to B and reimburse A the 5k + maybe $500-1000 for 4 weeks wasted 2. Sell to B and reimburse A the 5k + nothing 3. Sell to A since he signed a contract 1st even though you have a clause to cancel. 4. Other

Thanks guys for taking the time to reply, damn I love this site! In retrospect, it's very much my fault because my initial approach with the seller was similar to John's. I talked to her, crunched the number's in my head, told them to her and sent her an email with them for her husband to review. In my email I told her that if everything sounded good so far, I could email them the contracts to review. After sending the email an inside voice told me that that was not the right thing to do, not yet at least. After reading your replies I feel a follow up call is in order to make sure they are hooked at which point i will probably tell her that company policy dictates i come with the contracts in person and also take pics etc. I still don't feel as comfortable as Adam and John with just sending the docs off, but maybe that will change with time.

Do you ever worry that a seller will cut you out of the deal after you sell them on the CA over the phone and they ask you to email them the documents to review? This just happened to me which is why I ask?

Meth lab update: I currently have a property under contract that I am flipping to another investor. The day we were to sign the contract I was informed by a neighbor of the property that 3 individuals were arrested for cooking Meth in the home & it is currently under quarantine until it is cleaned & inspected. Police say a lien will be put on the home preventing it from being sold until the quarantine is removed, but as of yet I have seen no lien. It will cost $5,000 to sanitize the home and have quarantine removed. I told the investor that I will just reduce his purchase price by $5,000 & he can pay to have the home cleaned. He will come to closing with the same amount of money, it just gets distributed differently. I also told him about the possible lien, which may force us to structure the deal creatively so he pays the $5000 and not the current owner, and still gets the deed. The investor does not want to pay $5,000 to have a property cleaned that he does not own which makes sense. He also does not want to buy a home under quarantine indefinitely. Because of this I have told him that before closing he can sign an contract with the contractors to do repairs for $5,000 to guarantee that price. What's the simplest way to structure the deal so the investor is guaranteed ownership in the property after he pays for the cleaning if in fact the deed cannot be transferred until after the quarantine lien is removed?

that is... the funniest thing... ever! I've always wondered... why... he does that...

I feel so bad for the old lady and her daughter who own it though. Not only are they extremely nice, i'm sure they were looking forward to the money from the sale. But you're right, at least it's not my house!

So I was scheduled to go to closing next week on a flip of a little 2 bedroom home, nothing major. Less than 5k was to be made, but we all need gas money right? I get a call from the neighbor telling me that there's a quarantine sticker on the door with a phone # to call. The detective tells me people were sneaking in cooking meth at night and leaving in the morning. The fee to have it inspected and taken off quarantine is between 2500- 10,000. Now the little old lady selling the home doesn't have that. No investor will pay that, thus the house will just sit vacant. Does that really make sense to the city? The city will eventually take it over after years of vacancy, I guess? Obviously this is not the best neighborhood but I was LITERALLY going to sign a contract on it 2 hours before receiving this news, so somebody wanted the home. Is there no way around this? I mean it's just a little meth...right?

Sounds like a plan. I'm sending it out to a list of realtors tomorrow.

send them an email asking if they have potential buyers for a house that I do not want to list but want to sell fast? I've been told that most realtors want to get your home listed and just sit on their but until another agent sees the listing and brings a buyer. Has anyone had success with this technique? Just curious

Hijack J.R. Hijack!!! LOL I started it and you guys finish it! When I initially typed this I didn't know if the guys whose posts I look forward to reading would come out of the woodworks and you all did [with the exception of Adam King and a few others] and for that, i am thankful. Glad I could spark this great dialogue. And I know return you to our regularly scheduled program...

Thanks for the quick reply Jon. Possible deal, small #'s: ARV 50k they owe 40 note is 440 rents for 595-650 i can probable get 1500 option This is almost a rhetorical question but I thought I'd ask anyway.

What are the deciding factors on which one you do? Do you try to get the sandwich 1st then go CA as plan b or start off with the CA? Just curious?

This would have to be a wholesale deal as both mother and daughters health is in bad shape. They are not open to terms. The numbers arent really attractive enough for a flip though if I'm looking at it correctly