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About Sj900

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  1. Thanks John, I think the idea of more money clouded my judgement.
  2. Hello All, This Lease option deal just got more complicated. Originally I had the deal set up like this: Lease Option Price: 218,000 Option Fee: 6,000 Portion of option fee paid to seller: 2,000 Lease Payments: 1,600/MO Rent Credits 200/MO 1year lease I just got a potential t/b that has a bunch of money with little credit. Both husband and wives credit score is right above 500. They both work and have good jobs. The husband has 70k worth of medical bills and the wife has foreclosure 7 yrs ago, few medical bills and credit cards… Husband also thinks he should file bankrupctcy once in the home to get rid of the medical issues Note: The seller needs 1,600/mo to cover mortgage The potential T/b's propose 21,000 upfront, they want the money to work like this: First 6 months of rent paid and then after the first 6 months rent would only be 1,000/mo based on the money given upfront. They would do a 1 yr lease if they felt they could purchase. but would prefer a 2yr. How would you structure this deal to get me more than 4k, make the deal attractive to the seller and not take advantage of the tb's and actually put them in a good position to buy? Btw, I will run their credit tomorrow. They would like to move in by Oct 1st and could give me the 21k this weekend.
  3. I had a meeting yesterday with a big time investor in my area. The meeting was to discuss ways we could work together. She asked me about my business and I explained how I do CA's and SLO's, but when I talked about double closings with SLO's she laughed and took it more as a joke. Her response to my SLO explanation 1st was no one would sale there house to me for 100k knowing I would sale it to a tenant buyer in the future and make 10k profit. So, I explained to her a little more how that would sound in a conversation with the seller. After my explanation she was a little more understanding, but insisted that even if I got the seller to agree it wouldn't work because no mortgage company would finance the deal. She explained that if I bought from the seller and got an appraisal around 100k and there was a simultaneous or double close. And then Closed with the buyer and there was another appraisal for 110k they wouldn't do it because the deal would seem fishy. Maybe it could be done if there was a 2k profit but never, I repeat, never if the profit was 10k or more. She said those days of real estate are over. Especially since back in the day Mortgage companies could use their own appraisers. But have to use a 3rd party in todays market, it simply wouldn't work. I have never actually done a SLO, so all I have is theory. So my question is, how right or wrong is she? Are SLO's dead?
  4. Recently I've been asked quite a bit, who holds the option consideration since it's going to be used as a down payment. Some ask will it be in an escrow account. When I say no, sellers ask so you just hold that money and give it back at closing. They also assume that the part that I give them of my fee. They have to hold for the seller until closing. Another thing sellers say is: How can it be a down payment if it's your fee? Does that mean if the buyer pays 5,000 up front and you take 3,500 of it, only 1,500 can be applied towards purchase. I would like to know how to explain this better to the sellers. I was under the impression that the buyer pays 5k up front, I get 3,500 to go to the mall with (not really) and when it's time to get a mortgage it shows that the buyer made a 5k down payment and everything just works out perfectly. Is there something I'm missing?
  5. To make sure I understand MC: If I agreed to give the seller 1,500 of the 4,000 I receive from the tenant buyer, I would put 1,500 for option consideration on the Option to Purchase agreement and 4,000 on the assignment of agreements because thats what the T/b is paying as Option Consideration?
  6. I am a little confused on how to write the "Option Consideration" on the Option to Purchase Agreement and Assignment of agreements. For Example: If the Option Consideration I'm collecting from the buyer is $4,000 and I am giving the seller $1,500 of it. Does that mean I Put $1,500 on #3 in the Option to purchase agreement and $2,500 on the assignment of agreements? or Do I put $1 on #3 of the Option to purchase Agreement and $4,000 on the Assignment of agreements. If I do it this way, how is it documented that the seller received $1,500? At first I believed you would put $1,500 on #3 to show that you what you were giving the seller and put $4,000 on the Assignment of agreements. But in my mind that reads there would be $5,500 (4,000 + 1,500) in option considerations. I'm totally confused, I just want to know how to write it and explain it to the seller so that it makes since
  7. Sj900

    Sales Reps

    Thanks John, this helps a lot!
  8. Hello, I've read many times that that the big boys like John Jackson are using sales reps on their lease option deals. My questions are: -How are you getting them? -How are you structuring the employment? -How are you paying them? -What are you paying them? -What are all of their duties? -Are they agents? -Do you recommend more than one for a single area? Thanks, Noob
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