maxmagic

I have an LLC set-up. Can I write off referrals and bird dog fees as expenses in my taxes?

MichaelC, Should I sign any sort of deal with this seller before I begin marketing or should I find a T/B that would make the deal work for me before going back to the seller for a deal?

Are there any other websites for finding tenant buyers besides tenantstream.com and jscinvestments.com?

I met with the seller and he still wants to list with realtor (For Sale and For Rent) but he told me if I can find someone to lease purchase, rent, or buy the property that he would deal with me. It is basically a race between myself and the realtor. Has anyone done this before?

Michael, If I understand you correctly for the CA, I could settle on a purchase offer of $179K after 12 months, agree to $500/mo. rent credits($6,000) and collect $5,000 from T/B. The net from this would be $168K. I plan to propose a deal like this or close to these terms this afternoon. I will then hope the seller drops his realtor and we can sign the paperwork. Thanks Michael for the help.

If I understand this correctly, for a Cooperative Assignment I would need to sign the Option to Purchase Agreement and Residential Lease Agreement with the seller. Where in the agreements can I put the time frame for me to find the T/B? I would then use the Assignment of Agreement when I find a T/B.

Mr. Saint and Gary(MO), For the flyers that I have been sending to expired listings I have been using the "short intro letter" and lease purchase advantage" that are part of the documents that came with Michael's manual. I have been sending the flyers right after the listing expires, then 30-45 days later I send it again. I got the idea of sending the follow-up letters from a post in the forum by Mark in St. Louis. I have been getting calls on roughly 10% of the letters, but no deals yet. Michael, Through the realtor, the seller is asking $169,900 and $1100 rent for the property that I will meet about tomorrow. The price is reasonable, I feel I could get more ($180-190K). It would be hard to get more on the rent. As you said a CA may be the way to go.

Does anyone purchase home warranties in sandwich deals to protect themselves against any major maintenance issues?

I received a call from a flyer I sent out to an expired listing. He has listed again with a realtor prior to calling me. I plan to meet with the seller this Saturday to discuss lease purchasing options. How do I handle the realtor situation? I plan to tell him to cancel his listing with the realtor and I will go wide open with advertising. Last opportunity I had like this, the seller called and canceled our meeting 1 hour before. I will keep my fingers crossed this time.

Michael, The Pure Option is between myself and the seller. What about the agreement between myself and the buyer? Would an assignment of agreement be the form to use? Also what amount of money do you normally put down to make the option binding?

What agreements or forms are needed for a pure option. I know I would need a pure option agreement. What about a Memorandum of Option or assignment agreement?

How do we ensure security to the seller in a sandwich deal? Do we need to provide the seller with any sort of security deposit to protect their property? What is commonly done?

No deals yet, but I am off to Daytona for the races today. I have talked to some prospective sellers, but I am having trouble selling the lease purchase approach. I feel the sellers are not motivated so I will keep trying when I get back. Maybe I will get some calls while I am away. Go Dale Earnhardt, Jr. !!!!! Be back Monday.

Adam, What you are saying is do a pure option agreement with the seller and then use the assignment of agreement to assign to someone else. I don't understand why she would have to cash out the mortgage in order to move. I plan to discuss a deal with her further. I am having some trouble with comparables because of the remote location. I am still trying to do my first deal and I will keep plugging along. By the way Adam I am formally from Wisconsin, but have been in Sunny Florida for the past 13 years. Thanks for your help.

I received another call from a seller. She has not had luck selling her home because it sits on 4 acres in the country and she is also asking $150K which seems overpriced. She said people would buy the home for $100K but do not want the extra acreage. She is in money trouble paying her last mortgage payment with a credit card. She says she needs $12-15K to move and has an $86K mortgage with $630 monthly payments. She says she needs the mortgage paid off before moving. I discussed lease purchasing with her, but I feel like she needs more encouragement. This would be an opportunity for someone to buy and subdivide some of the property. I don't think this would be a good sandwich deal, if anything she would have to come way off her price to make it marketable and then I would consider assigning a deal. Any thoughts anyone?