suburbantim

So, the Leasing Rep that was going to begin marketing my first property can't do it. Apparently, splitting the fee with her broker doesn't make the effort worth it and she needs to work under the supervision of a broker. Do you guys used licensed agents as Reps? What kind of arrangement do you have? Could my unlicensed assistant market, show and collect paperwork on properties where I'm a prinicipal?

In filling out the Option to Purchase Agreement for a Cooperative Assignment, my understanding is that I put the full purchase price of the house as advertised. Under Option Consideration, do I enter the $6,000 that the T/B is going to pay to me and not the Seller?

Does anyone have a subcontract agreement I can use for my Leasing Representative?

Nice one Tim. Now if we could just get an agent to call the sellers and sign up the deals for us too... I'm actually gonna work on that part...."One step at a time"!!

I actually advertised for a "Leasing Representative" today and got at least a dozen responses. I contacted the best person who works as a Leasing Agent already and would like some commission work in the evenings and weekends, or by appointment during the week, without making a commitment to clocking in and out. This was just one simple ad on Craigslist. I'll let you know how it works out. Tim

Like I said in a previous post, I'm about to sign up my first CA deal. What are the high points for marketing this baby to move it as quickly as possible?

I'm about to sign up my first seller on a CA. Should I fill out and email the CA Residential Lease Agreement and the Option to Purchase Agreement? For the CA Residential Lease Agreement: 1. I want the Lease to begin when I find a t/b. What do I enter under the beginning and ending dates? 2. What do I enter under "Occupants"? 3. The CA Residential Lease says "Tenants may not sublet the premises...". Since I intend to sublet, how do I handle that? For the Option to Purchase: 1. What would I enter under the "option period" if I want it to begin when I find a t/b? 2. The purchase price would be what I agreed to pay the seller, and not what I'm marking it up to include my option fee? 3. The "option consideration" would just be what I'm giving the seller, and not what I'm collecting as my profit from the t/b? What date should I put, since I want to pay that when the t/b pays it to me? 4. Item 5 says the agreement "...the agreement cannot be assigned...". How do I get around that? Sorry about all the detailed questions, but my manual has not arrived yet and I don't want that to be my excuse for not "TAKING ACTION!". Thanks for you help. Tim

It looks like I'm about to get the deal and then.. duh, duh, duh... "Hi Tim, Do you have references from previous or current clients" My intended response is: "Hi Michael, I don't keep a list of references because I'm involved in the deal for such a short time. Your main concern will be the application and references for the tenant/buyer who will be paying the rent and exercising the option down the road, once I assign the contracts. Their finances, references and credit history will all be made available to you for your approval prior to acceptance. What do you think?

The offer went out this morning. Wish me luck! Once it's accepted, I fill out and we sign the "Lease with Option" form as well as the "Authorization" form so I can verify the mortgage?

How is this for an offer? As per our recent telephone conversations, I am presenting you with this offer to assist you with a lease purchase of your property located at XXXXXXXXXX. 1. Length of lease: 12 months 2. Rent per month: $1,600 per month with $200 per month credited toward the purchase price. 3. Maintenance and Repairs: your tenant/buyer is responsible for all allowable maintenance and repair costs during the term of this Agreement. Working with the above numbers, your net purchase price at the close is approximately $204,000 including the rent credits. You incur no out of pocket expense for our services. We advertise and market the property, show it to prospective tenant/buyers, and answer all the calls and questions that inevitably arise. When we have interested prospects, they will be required to complete our Lease Application. This information is presented to you so you can do your due diligence and make an informed decision. Please reply at your earliest convenience. We intend to move quickly with this deal. We have an existing database of tenant/buyers, and we would like to begin marketing your property, as well. Thank you for your consideration.

Rentometer says $1,300-1,500. Is there a better source?

Sorry for being dense, but he IS getting the rent credits over the year, so isn't that part of his $204K?

OK. Talked to the owner, at length and here's the deal. Please help assure me I'm on the right track. He has owned and redone the entire house over the past 8 years. He is advertising it at $225,000. We talked about the neighborhood comps, which are $195,000 to $216,000. He decided he could live with $208,000 to $210,000. I then asked what rent he needed. He said $1,600 would pay the PITI but, if necessary he could take a small hit every month with the pay day at the end....LOL. He thinks that's reasonable for the area and understands we would raise it a couple hundred per month as a rent credit toward purchase. Their daughter moved out to Texas and he accepted a job in Phoenix. As a matter of fact, he's there right now making plans and will be back on Friday. He bought the house on a Lease Option so he understands it and has no problem with it. What I'm thinking for my offer is a CA, $204,000 (explaining that at $1,600 per month it won't take long to eat up the additional $4K), $1,800 per month lease with $200 rent credit. I'll charge a $6K option fee to the t/b. I'll market the property to a t/b at $210K with a $200/ month rent credit and $6K down. Sound like a deal?

Yes, this would be a CA. I always heard that the t/b would pay above market price and rent due to the situation. So, in order for this to work, I would need the property under the market value by, at least, the option fee?

How do the numbers break down? Seller asking $225,000 Max retail shoud be $210,000 If that's what he needs to walk away with then the breakdown should be: Seller $210,000 plus Option Fee $7,800 plus Rent credits $4,050 (1,350 per mo x 25% x 12 mo) Option price to buyer= $221,900?? I then get my option for $210,000 at $1,350 per month for one year?

Awesome stuff. I can't take credit for the emails described above. I "borrowed" them from this Forum.

Thanks for the info. Ordered the manual this morning. Looking forward to getting it so I can proceed.

So glad to be on board. I'm taking action and hoping I can count on you good folks to help me along. Had my VA put together a list of, so far, about 100 MLS listings last week and expecting another 100 this week. Sent out a small brochure offering to Lease Purchase their property. We'll see how the response to that works out. Sent out 20 emails to Craigslist FSBO on Saturday and another 6 on Sunday. Got 6 responses. 2 that just need to sell outright, 3 interested and 1 maybe. One of the responses has at least 2 properties they would consider Lease Purchase on. I'm using the 2 part email. The first says "Hi, I saw your property online and wondered if you'd be interested in selling on Lease Purchase". After they respond to that I sent "Hi XXXXXXX, Thank you for the quick reply. Your house sounds like it may be just what we are looking for. Please let me explain. My company specializes in Lease Purchasing. This technique has proven to be quite advantageous for homeowners. Done correctly, you can receive market price for your home in less time than it would take you to sell it traditionally. We are not Realtors and charge no commissions of any kind. In fact, our service to you is free! We'll even arrange to have the tenant/buyers pay all closing costs, too! The bottom line is that you will net many thousands of dollars more when you sell your property using the Lease Purchase Advantage. Presently, and as is often the case, we have more tenant/buyers than we do properties to offer them. Your property seems to fit our needs quite well. I have attached a flyer with some additional information to further explain about the Lease Purchase Advantage. Please feel free to contact me with your questions. Or please pass along your contact information to me, along with a good time to call and I will contact you. Thank you for your interest. Tim Stevens" So now I have leads from 3 owners on 4 properties and I'm planning my next move. I 'm thinking I need to call, control the sitiuation, and just get the property details to make them a brief offer. I think, if there is equity and a potential rent spread I'll do a SLO. If there's no equity I'll just present a CA. On the right track? What's the format of the first discussion with them? What should the format of the short email offer be? If they contact me and want to move forward, I'll meet them at the property with the Lease Option and get the paperwork signed, take the picutres, and start marketing. Does that sound right? The funny think is, I don't even have the paperwork in place yet. Are the forms available online or do I have to wait for the info? Tim