GetErDun

I suppose one could always lie to do better in business. Sooner or later, these "investors" will get sued, and lose when a TB does not buy the house. Of course the sellers want to hear what they want to hear, but as a professional, we should only, I repeat only be telling them what is true. Are fines/jail time worth that extra sale? I say no. There are enough deals to be had without lying for them. I think you already knew that.

that's pretty good Thanks for sharing

Ah yes, bicycling realtors. Only possible in Portland Oregon. Home of the hippie loving nature people. My sister lives there.. She'd probably go for that.

SO TRUE.... I have been overthinking it for the past year!!!!!!!!!!!!!!!!!

I have yet to do a LO, so this is just my opinion, but you should disclaim yourself just like I did. I don't see a problem with the sample contracts or even pointing out that this paragraph is supposed to protect you by doing this and that. BUT I would say something like, "I am not a lawyer and can't give legal advice, but these are the contracts I use. You are free to run this by YOUR lawyer" Most people won't want to spend the bucks and will go on your word that they are good. If you really want to cover your ass, make them sign a paper stating they understand that you can't and are not giving legal advise and they are free, maybe even encouraged to have the contracts looked over by their lawyer. Keep it short so it doesn't scare them off......now, let's see how the experienced folks respond

First, thank you for all your replies. Sorry I haven't been back to thank everyone. I have become so paralyzed by inaction that I find it hard to even drop in. I hadn't been to that site MC, but have done some looking around. Thanks! Thanks to everyone else, I am indebted to this site for all the quality information everyone readily provides.

This is normally deducted from the purchase price and is set up in your contract stating such (from the beginning) No actual check needs to leave your hands No. It's not a renters security deposit where you would have to worry about commingling funds. This does not need to stay in escrow Your"fee" is factored into the house purchase price in the beginning (read, added in. Seller gets 250 out of the deal, you give an option of 255) You leave the picture, the option price is still the same to the buyer, seller still gets the same amount. Nobody is left holding the bag because the money was "added in" at the very start. Nobody ever has to come up with option money (in check form) It is just deducted from the purchase price

I read GetSmarts post quoting These Laws are based on Arizona Legislation that has been in place for years. According to Arizona Law, here are five things that violate the law or cause the court to classify the transaction as a sale. 1. Collection of more than 1.5 times the monthly rent as an Option Deposit. 2. Collection of an ???Option Deposit??? or ???Rent Credit??? to be credited to a Purchase or to Discount the Purchase, as in a Down Payment. 3. Pre-Determining a Discounted or end Purchase Price as in delaying or disguising a sale. 4. The Lessee also holding an Option on the same property in which they are leasing regardless if it is one document or two separate documents. 5. The Lessee being responsible for maintaining the property. I am in Arizona and have not heard of these things. I tried to research it looking up AZ contract law, AZ lease option law, etc but am only finding the landlord/tenant act. Can anyone direct me to where I can look up the above points to see if they are valid? Thanks!

I have seen her live. She did a short (1 day) mini seminar for or REIA (whoever went paid to attend this training session) It was very infomational. She is strictly SLOs though. No mention of CA. She gives out a workbook which is of good (not great) quality. I loved the part where she makes live calls to homeowners and realtors from that days local newspaper to show you how "easy" it is. Overall, the course is well worth it, and motivational. I would recommend going. There is a bit of "commercial" for the Prepaid Legal services (which her husband does) and there is of course, her course offered in the back. The seminar is mostly information, not too much selling.

forget them then. Make your own LLC. Use MC's contracts, do deals, keep ALL the profits. All they have that you want is the MLS. Can you still use that?

Looks to me like TMW (Too Much Work) This guy thinks he knows everything about investing so I am wondering why he doesn't just do it himself. Hmmm. Doesn't want low creditworthiness in a LO?! Wants HIGH security deposits (for himself) etc. You don't need to be worked over for a deal. People like that are never happy with what they get, even if you give them everything. And in the words of Bill O'Reilly... am I wrong?

That is SO cool. Of course I alreay know this but its so cool to see you're just facilitating the thing... getting that tb a home and getting that seller out of one. Everyone loves you for it. I love it. Keep it coming.. Segment 3, segment 3, segment 3 (chanting) I really appreciate the insight! THANK YOU!

Go Darin Go! You can count on this board to kick your butt too if you need it. You're accountable buddy. Now make it happen!

Bev, you're freakin' awesome. Thank you so much for spending your time thinking that all out/typing it up for us. I can totally see the difference in approaches. I have even experienced your version when a lady saw my buisness card. She owed 20k more than her house was worth and I couldn't see how to help. She just told me all about it, what she owed, whatever, she was just happy to find someone who cared and maybe could help. I will focus on the friendly chat approach. I hate salespeople. I do. Sorry. ...I am also hoping for chapter 2 from Bev (I too want to hear how YOU explain the CA vs how generic salesman investors do it) rbaras... great point in that you dont CARE how much experience, you just care that you are confident they can do the job.

In every business, there are some people you just can't please. This sure seems like a prime example. That many qualified TB and the seller can't find ONE of them he can approve of just because of credit? guy doesn't get that the low credit scores are the reason WHY they want to lease option his house in the first place. They can't buy conventionally. rolleyes. This That sucks that you have put the time into this one but I wouldn't waste any more on this dude. Cut your losses and move on.

Crazy what is happening out there! I remember 5 years ago in CA trying for a stated income and they only asked me to show merchant acct statements to prove what was invoiced monthly... 650 fico 5% down! Today, wow, 800+ scores, 30% down and no loan. Thats nuts!

What about saying $500/mo rent credit! instead of 50% (if rent is 1k) Anybody use a dollar figure instead of %? Wow, I sure am full of questions today!

The post "TB Apprehension" got me thinking. That TB said his last LO fell though because the seller refused to sell. Seems there should not be a reason for that to happen. Wouldnt it be prudent to put the deed into escrow so the seller couldn't back out, and in case the seller died, the sale could still go through? Does anyone do that and how is it working for you. If you don't do it, have you had any problems with sellers backing out. comments?

I'm re-reading the manual and it brough up "no bank qualifying" Now, of course they wouldn' t need to qualify through the bank to do a LO, but they WOULD need to qualify to excecise that option. Seems misleading, like a TB could argue that point if the deal went south and they wanted their money back. Any troubles with this one guys/gals? Am I interpreting that wrong?

Just "assigning" it doesn't remove your liability. The Release in MCs manual is what releases YOU from liability. Gets legally out of the loop totally. Very important.

They don't call it the naked investor for nuthin (ok , well close to naked anyway)

Depends upon the lender. Usually, if they are allowing the rent credits to be a part of the down payment, then it's the difference between what the market rent is determined to be and how much above that the t/b is paying. Thanks MC, you're the best!

re-frigging-diculous! That is SO vague! First what is the license. Are we all supposed to become the coveted "realtor" Whatever! Give me a break. What we need is more REIAs doing lobbying against this crap. Meanwhile, I'm staying the heck out of CT! You're gonna have to get a lawyer to find you a good loophole or go out of state. Can't believe this man. I feel for you. What a bunch of BS!

And be sure they keep copies of the cancelled rent checks to prove they paid rent, entitling them to the rent credit.

The property taxes are usually already rolled into the mortgage payment (along with HO insurance)