Lydia

Ha Ha! You sure did miscommunicate to me! I was confused that this was supposed to be "cool news", so what was "bad" about it! I'm very happy for you and your wife. I waited many years for my first, and the second came along so quicklyl, I wasn't ready. My kids are 15 months apart. My second child was definitely NOT in my plans as far as timing goes, but I guess it was in God's plans. Now that they are 6 and 7, I'm glad they're so close together. Lydia

This is NOT "BAD"!!!! How about saying something like, "this pregnancy was not in our plans". Congratulations!

What is the best way to find out what the rate of appreciation is in a particular area?

This house appraised (full blown appraisal, not "drive-by") for $250,000. I think they owe $238,000. I did go look at it today. I didn't consider it a waste of time at all, even though I don't know it will be something I'll be able to work. I feel like I learned some things by making that trip. I was thinking I'd buy it subject to the existing financing as soon as I found a tenant/buyer and lease it out. The bad thing is that I've been talking only to the wife. She told me the husband would do whatever it took to keep it out of foreclosure. He's been out of town on business. I am getting the feeling, though, that he might not be as cooperative as the wife hopes. I'm still researching the rental market. The bad thing is that the higher the price of the house, the harder it is for me to determine fair market rent.

Divorce and military deployment are the double motivators in this seller's life. Anyone in Charleston, Savannah, or Hilton Head, or anywhere who might be interested in this lead, call me or e-mail. 615-781-0374 or cashbuyorsell@yahoo.com

I've been called about a $250,000 house. No equity. They refinanced at 95% and filed for divorce. They are one month behind. What should I do? I don't have the money to make up their back payment. They have "mostly" moved out. I plan to go see the house and meet with the owners within the next day or 2. This is an extremely nice house in a good area in a county that seems to be in an expanding market. The whole county seems to be booming. I guess I have nothing to lose by just not making any promises, agreeing to make up the back payment if and when I get a big option deposit from a tenant/buyer. Any comments?

One way to avoid feeling "awkward" is to send a "generic" "I buy houses" letter --that way you might avoid the "vulture" image, yet you're getting the message across that you have a solution to their problem, if in fact they do need to sell.

Glad to know you're"back". You have been greatly missed.

I was wondering the same thing, too. It is quite mysterious...I was wondering if she had joined the witness protection program or something. Lydia cashbuyorsell@yahoo.com

I have a second line, which is a dedicated fax line, and I also have a Ringmaster number on my main line, which is the number I use for business. My kids are old enough to know not to answer when it is the "double ring"

My ad read "Family needs home to lease with option to buy. Call xxx-xxxx" Ran Sunday only in the paper, a week online. Ran in the "Area 1, Homes for Sale" which is the area where I prefer to work. The BIG paper, The Tennesseean. Cost about $44. Costs $115 for a week. I'm checking into running a display ad in some of the free papers, and also a free local parenting magazine. About 12-15 people run "I buy houses" ads in the Tennesseean under "Real Estate Wanted". I'm still following up on some of my old radio leads. I've talked to some other investors who are just now doing deals on leads they got a year ago. Follow-up seems to be crucial.

I just ran a classified ad and had disappointing results. What has been your BEST newspaper ad, which paper did you run it in (freebie or regular paper?), and under what listing in the classifieds. Also, what about display ads?

When I said "high-maintenance"--I meant not the building, but the tenant/neighborhood. It is pretty low-rent, but the reason the guy wants $10,000 is because he has put that much into it. He is looking only to break even, and I don't think I have to give him ANY money up front. I have had a horrible week physically this week--worse than any in about 2 or 3 months. I was originally toying with the idea of keeping this and being landlord. The seller told me it needs to be checked on once or twice a week, to make sure trash is picked up, cars aren't parked where they shouldn't be, things are in order, etc. After this week, I am inclined to flip it. I might meet with the guy today and get some kind of agreement written up.

He is selling because he wants to get out of the landlording business. He has several duplexes in addition to this one. This is actually the most "high maintenance" property he has. He has a "regular" job that has become increasingly demanding, and he just doesn't have the time to landlord.

This Quadraplex appraised for $162,500 about 5 years ago. Rent is $450 per unit. Seller wants $10,000 (which he'll wait on) and someone to take over the payments ($1,050 payments (P&I on about a $135,000 mortgage)The seller is very flexible. I know I can do a 3 year lease/option(or longer) and assign it, or else do a CA, but I was wondering if there is any advantage to taking it Subject to the existing financing. Comments?????

A guy called me who is very flexible, has a quadriplex for sale---tired of being a landlord. I was wondering if a lease/option might be feasible--to sell to another investor rather than tenant/buyer. I think money-wise, he isn't offering a tremedous deal, but flexibility might make up for that. Any ideas or suggestions? I'd want to pass this on. I don't think I am ready for a multifamily unit, don't want to be a landlord (that is the appeal of lease/ops for me!!!). I'm fixing to run another newspaper ad. Something short, sweet, and straight out of the book. This guy with the quad (and several duplexes) called me off the free ad I ran a few weeks ago. Lots of people called wanting to know if I had properties to lease/option out. It was really an ad looking for sellers, not tenant/buyers. One guy called me a few weeks ago and rather than doing a lease/op with me, listed with a realtor. I'm keeping in touch...I think he'll eventually see the advantages of doing a lease/op with me. He is relocating to Florida!

Who was giving the seminar? I think your local real estate investor's group would be a good resource. Was it a "free" seminar?

I was told by one of the mortgage companies trying to get me to refinance that you can have your credit pulled 10 times in 3 months before it affects y our score. Is that incorrect?

Anyone have names of specific lenders who are open to accepting option deposit and/or rent credits as part of "down payment?"?

Okay, to keep the paper trail clear....when collecting option deposit and first month's rent, should they be separate checks? Should I be making copies of checks received before I cash them, or is a receipt noting money paid, for what, and check number sufficient? What "verification" do lenders want to see? Also, do I provide a letter (when the tenant/buyer is exercising their right to purchase) verifying that the tenant/buyer pays rent on time and in full? What all can I do to help a tenant/buyer to qualify for the mortgage? Is there any way to make the purchase price that goes on record the price BEFORE rent credits, sweat equity, etc? I am thinking that the higher the price, the better, especially if I'm doing other deals on comparable houses---my thinking is, the higher sales price on comps, the better, and this might be a comp on my next house--the idea being to make it an "appreciating neighborhood". This is what I'm really fuzzy on. Does anyone know of specific lenders who DO look at rent credits or option deposits as being applicable to the down payment?

I recommend that you find a local real estate investor's group and get a referral for an "investor-friendly" real estate attorney. I also recommend Michael's course. It has "all" the contracts and good explanations.

How do "sweat equity" and "rent credits" effect financing? Do they simply reduce the purchase price, so the loan the tenant/buyers qualify for is less? Or, does it "count" for something from a lender's viewpoint. Or, does only money paid as "down-payment installments" help the buyer?

At an Art Supply store, I got some sign-lettering paint called "One Shot" brand. It comes in many colors, I got black, white, and red, and I use it on Corrugated or plastic or wood signs. I do lettering and arrows with it. Needs to be cleaned with a solvent, though--they have an odorless turpentine type solvent they sell at the art supply store, and lettering brushes in different sizes, too. I do not recommend using spray paint and stencils--It can be SO MESSY! Hand lettering is fine, REALLY! And surprisingly quick! Fat permanent marker will hold up for a few weeks (hopefully, you don't need it longer than that!) but the lettering paint will last for years. I use lettering paint on my more generic signs (For sale, Phone number) and disposeable signs for details (price, address, etc) I am also using the neon posterboard. Lime Green and Fuschia do make an eye-popping combination. I had been using plain old neon orange with black marker. The contrasting colors just make a HUGE difference. Also, with the posterboard and marker, there is no waiting for paint to dry.

How do you work sweat equity credits, should a house need repairs? I have read you can give rent credit, or credit off the purchase price. Does that go on the closing statement??? I was inspired by Option 8's story of the house that wasn't even swept out between previous tenant and the new tenant/buyer. I do very well understand that there is to be no reduction of option deposit under any circumstances. How many of you all have successfully dealt with the "sweat equity" issue? I'd better do a search.......this might have already been covered in detail!

About the "SAD" label--it does NOT define YOU, it is just a name for a group of symptoms. Sometimes it is nice to have a "reason" for why you are the way you are, or feel the way your do.. Just don't let it tmake you think you have no control. Stay away from the "victim mentality", whether or not you get an "official" diagnosis. (I'm speaking from experience) I'd say the appointment will fall in the "challenge" category. And if you fall short of your goal, re-aim! You are doing great!