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Chris43

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Posts posted by Chris43

  1. Posted · Report reply

    Just checking...would love to build relationships with others in the area doing CA's. If you are, anything I need to be particularly concerned about regarding my contracts and wording of contracts? Any additional paperwork needed? I plan on running everything by an attorney...but am just testing the waters with other investors before hand.

     

     

    Thanks,

     

     

    Chris

  3. Posted · Report reply

    Assigning back to seller vs. buyer..... is there a benefit to one over the other? What are the steps with each and what forms do you use?
    Chris, when I was learning this biz I was taught to assign my deals to the t/b. It's a heck of a lot easier in my experience and so I still do that today. I'm sure there are some who prefer to assign the deal back to the seller and, in some cases it may be necessary. But for the most part, if you are doing a typical Cooperative Assignment, assigning to the t/b is the way to go, in my opinion.

     

    Secondly, is it feasible to control the sellers property with a straight option for the period of time you are marketing for a TB or do you need to sign a lease and option agreement with the seller if you are assigning a lease with option to your TB? My idea is to purchase on straight option and assign to TB with new lease and option agreement with price and terms that seller has agreed upon or assign back to seller.
    If you are doing a lease with option with a t/b, then you need to have that same type of agreement with the homeowner. If you are looking to have an option to purchase without a lease involved, then a straight option will suffice. From your post it sounds as if you are combining two types of lease purchase deals, making things more confusing for yourself and probably for anyone else involved in the deal.

     

     

    Thanks Michael, as always your input is appreciated!

  4. Posted · Report reply

    As most of you know by now from my two previous posts that I am new and am still learning about L/O and CA's. With that being said, I have a couple more questions:

     

    Assigning back to seller vs. buyer..... is there a benefit to one over the other? What are the steps with each and what forms do you use?

     

    Secondly, is it feasible to control the sellers property with a straight option for the period of time you are marketing for a TB or do you need to sign a lease and option agreement with the seller if you are assigning a lease with option to your TB? My idea is to purchase on straight option and assign to TB with new lease and option agreement with price and terms that seller has agreed upon or assign back to seller.

     

    Is this how you do it or am I over thinking this?

     

     

    Thanks in advance,

     

     

    Chris

  6. Posted · Report reply

    Hi, Chris, and welcome to The Naked Investor.

    You're on the right track with this homeowner and his property. A sandwich lease is not something you want to take on in this particular case. But it does lend itself nicely to doing a Cooperative Assignment. . .with a few potential hiccups.

    My first concern is the owner. Owing this property free and clear as he does takes away his motivation. With no mortgage payments choking him, he may want to sell but he doesn't have to. As such, he can be somewhat demanding. . .such as asking for $10K option money in his pocket. Which leads to my second concern. . .

    How do you make money in this deal? If he is getting $10K off the top, there is little room for you to make a buck. Hoping you find a t/b with $13K isn't the way to work the deal. Tell him you need, (fill in your number here), and anything above that is his to keep. If he doesn't agree to that, move on. There are other, more motivated homeowners out there.

    Also, what MichaelG suggested is a possiblity. Work with the guy on a consultation, get paid upfront for your smarts, and put some fast, easy cash in your pocket.

    Finally, tell my bud Adam that the cans of Corona are damn cold this time of year. :D

     

     

    Thanks Michael, valid points and things for me to take into consideration. Love the site and look forward to being a part of its success.

     

     

    Thanks

     

     

    Chris

  7. Posted · Report reply

    Chris - There's smarter people than me on this formum, so take this advice with a grain of salt until you hear from the experts.

     

    With the info you've provided, a SLO is out of the question. And if the seller is wanting 3-5%, that doesn't leave anything for you on a CA. The only option I see is to use the expertise you gain from the NI manual and the advice you receive from others here and enter into a Consultation Agreement with the seller, as explained in the NI manual.

     

    If the seller is not interested in a Consultation Agreement...well, NEXT!

     

     

    Thanks Michael. Maybe I am looking at this wrong but seller mentioned that they would be ok with 10000 consideraton fee. Is it feasible to get this under contract between me an seller with zero option consideration find a tenant buyer that will put down 3.5% of $375,000 ( 13,125..if I am super lucky) and get a L/O worked out between us on sellers terms and then assign back to seller with $3,125 assignment fee? He gets his 10000 and I get my fee? I don't know, help me shoot holes through this...

     

    My concern is that I don't find a new t/b....am I on the hook with the seller with our L/O agreement?

  8. Posted · Report reply

    Hello Everyone,

     

    Introduction and questions... (a little wordy, sorry !)

     

    I am a new CPA investor who lives in Denver, CO. I have been reading the posts and lurking for a while but in the same time have been marketing for sellers, today I generated some interest.

     

    This guy owns a $375,000 home free and clear but is having a tough time selling it due to its location and due to the fact that it is essentially half of a high end duplex. The house has been on the market for a year, and is listed with a realtor ( ending soon ) to no avail. Its hard to comp due to the diversity of the area.

     

    I met with the seller, not super motivated as he owns the home free and clear, but there is enough motivation where I think I can help him somewhere and he doesn't mind being a landlord.

     

    I don't want to do a sandwich and just want to assign.

     

    Questions:

     

    1.) Do I enter a full blown l/O with the seller and then assign my interest to my t/b or does the t/b sign a new contract with the seller on different terms? I don't want to be on the hook for a 18-24mth period if I can't find a t/b. How do you structure this? I want to be in and assign out ASAP without a liability to the seller if I can't find a t/b.

     

    2.) He wants a 3-5% option consideration upfront, which I can work with BUT I don't want it coming out of my pocket. In addition I don't want to start making monthly payments after I sign with him, I want my t/b to do that. How do I avoid this while I am looking for a t/b for 4-6 weeks? How does it affect contract if I never find t/b? AM I on the hook until I find t/b?

     

    3.) If I get house under contract with him, do you do a preliminary title search BEFORE you market for T/B? What does a prelim title search entail and any ideas on cost?

     

     

    I am really new but have always been one to dive in and just do it, but am uncertain on some aspects of CA still. Any help would be appreciated.

     

     

    Best Regards,

     

     

    Chris

     

    PS- Michael C , Adam King sent me here and told me to tell you high.

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