Sparetimeinvestor

Here's the situation I was wondering if I could get some help with: Tenant buyer for a property I have has just recently sold their townhome. Tenant buyers are going to put down $8,000 option consideration for the rent to own property. Can the $8,000 be deducted from their taxes since they are investing this money back into real estate or is it subject to sales tax on the sale of their townhome? Thanks in Advance, Kurt....

Hello Gang, This is Kurt from Chicago. I have closed on a few CA's in the last few months and am now working on selling my home on a rent to own. I started my marketing at the end of May. Since then I have close to 700 calls into my voicemail system. I have showed the house to 15 or so families but have not filled it yet. We do have a couple who want to move in but they have to sell their townhome first. Sucks because they really like the house and area. But we really cannot wait around banking on they sell their house. Its a nice home in a nice area. 6 year old subdivision. 3/2.5 2 car garage, rent at 1600/month with a purchase price of 231K at the end of one year. I have to say that I thought this would be a bread and butter property since the other deals I have worked on are much more expensive than my own home. 2100 or greater in rent with my other deals. Any ideas or words of encouragement. We decided to rent to own our property and take out an equity line for a down payment on a new house that we are building. We have not used the equity line yet since our downpayment is not due until our closing date. Our projected movin to the new house is at the end of September. Kurt...

I use bandit signs on the weekends. I put them all over the neighborhood and at exits off of freeway ramps. Kurt...

Thanks Gang. This is fun when everything is set up and done and everyone is happy. I am now trying to fill my own personal residence with a tenant buyer. Close to 550 calls into my voicemail system. No qualified tenant buyer yet. Should land one soon. Kurt...

Gang, Thought I would share another success story with the group. I filled a 350K home with a tenant buyer last week and collected a $15,000 option payment which I kept 6000 and gave my seller 9000 of it. Seller also has a positive cashflow coming into him each month. Thanks again to Mike's course, I was able to structure a deal that worked out for the seller, the tenant buyer, and me. Paid off my credit card. My financial statement is looking better. Kurt...

Cris, I would get some blank chloroplast, a black magic marker, and some stakes and put 10-20 signs up around the area. Especially at major intersections. To keep the village happy I usually put the signs out after 3:00 pm on Fridays or early Saturday mornings and then pick them up around 10 pm on Sunday night. I leave the signs out at major exits until someone takes them down since I want to capture weekly communters to the area. I put on my signs. Rent to Own 3 bed/2.5 bath 800# 24 hr. rec. msg Since I live in the metro of Chicago I also put above the rent to own the city in which the house is located. In one month I have gotten close to 400 calls with these handwritten signs. I would also get an ad going in the local newspaper with basically the same message. Hope that gives you some ideas. Kurt...

I am looking to any type of deal. Michael, your right about the expired with no equity. Could still work out a good deal with a CA or L/O. My broker/investor is a cash buyer so he is primarily looking for the all cash 50% off type deals. Yeah, I am pretty excited about having this access. Kurt...

Hello, I just recently found a broker/investor who is allowing me full access to the MLS at his office. I am thinking that my best leads to get off the MLS are expired vacant properties. Then filtering the expired/vacant through the tax records for a low mortgage or no mortgage on the property. Is anyone else familiar with using the MLS on this board? Or does anyone have any other ideas in using MLS? Kurt...

Thanks for the replies and help. One more question in regards to my CA's I have been making copies of all the agreements to disperse to the seller, t/b's and one for myself. Do I need to give a copy of the Assignment Of Agreement to the seller and T/B's? Should I be keeping the original or giving that to the seller? Kurt...

Hi, This is Kurt again. Just collected 1/2 the option consideration ($7500) for a CA I am working on. Finally signed up some tenant buyers. The new tenant buyers asked me this question. What protects them or assures them that the landlord is paying the mortgage and will not default himself or go into foreclosure or bankruptcy? Does not seem to be anywhere in the agreement that holds the landlord accountable for his actions. I have come across two tenant buyers now personally that have come from a situation where their landlord defaulted or went into bankruptcy and has to sell and kick them out of the house. So they lose their non-refundable option consideration because the landlord defaulted. Anyone run into this or have a clause or solution to ease the mind of the tenant buyers. Kurt...

I have another CA set up that we are hoping to collect 1/2 the option consideration this week to hold the property for the family. My concern is that in my agreement with the seller our projected rental payment date initially was May 1st. Well, I did not have a qualified tenant buyer by May 1st but my seller wanted me to keep going as far as marketing the house. He understands what we are trying to accomplish and is very cool about this whole process. Should I have an addendum to my Lease Agreement and Option to Purchase agreement that states that we have extended the term in finding a qualified tenant buyer or should I just change the date. I have changed the date on the agreement from May 1, to June 1 that I have with the seller since I talked to him prior to the Cancellation clause we have in our agreement to cover myself. Any ideas? Kurt...

Hi, My wife and I are in the process of building a new home. Our current home has 50K in equity and we are thinking about keeping it on a rent to own basis for one year. I am thinking about getting a home equity line of credit to use as my downpayment on the new home which I woulc pay off when my house sells to a tenant buyer in 1-2 years. Any concerns that I am overlooking with an equity line or things I should be careful with? Thanks to the board CPA I already know I have 3 years to sell to avoid capital gains. Kurt...

I have to thank Mike for his insights and wisdom and giving us all the opportunity to learn from his little $97 book. I have spent money on a boot camp which cost a lot. If I had only found out about the naked-investor first, I would of saved 5k. Oh, well. You learn from all courses. I completed my first CA as of May 1. I helped my neighbor fill his house. I collected a $12,500 option payment which I distributed $9500 to him since he was my neighbor and I kept the other $3000. Not bad considering I put out signs on a Thursday night (for an hour) in the beginning of April and filled the property on Sunday. All this happened even before my ad started in the paper on Monday. I have another property on a CA that is still pending a qualified tenant buyer. High end home so it is taking a little longer. I do have an interested party working on getting at least half of the $15,000 option consideration by months end to hold the property. As Mike states. "CA's were his calling card" I am liking them just as much myself. Thanks Mike again for your course. I highly recommend it to any investor. Kurt...

Thanks Kimberly. That will work. Kurt...

Does anyone have a good property inspection form for the tenant buyers? Since our CA agreement states that the tenant buyer is responsible for all repairs and maintenance and that they have fully inspected the property prior to move in date. I offered the tenant buyers a checklist to make sure they remember everything to inspect prior to move in date so no issues are brought up with the seller after the move in date. I think it would be a good idea for the seller and the tenant buyer to do a walk thru together and initial/sign the inspection form after it is completed to have everything in writing. Kurt...