Jonathan RexfordFL

I have toyed the DEPOSIT game for several years. I finally just said the heck with it and started advertising what I want. I figured that if FHA wanted 3.5% so does Jon. I explain that I need to document the money for future consideration of buying the home if they choose to get FHA financing. Now I do things a little different if I own the home. I also put a provision in my lease option documents that they can convert it to Owner Financing if they can pay in 10% of the purchase price. I will do an agreement for deed. It seems this provision, helps them to think they will get a loan one way or another. For SLO this may not work, in case the seller wants there money.

You can use a Joint Venture agreement with your option if you want to make it easy and spell out what needs to be done. Personally, I would just do the deal as a straight up as an option.

The easiest way to credit the assignment fee to the option for a pure assignment is to make them party of your contract. In part you and he are partners in the deal. You are on the right track. You just take part of down payment based on terms you agree to and RUN like a mad man to the bank.

Well consideration for me on a Pure Option is $100.00 and the reason is that you are BUYING the right. One establishes EQUITABLE INTEREST in most cases. But if you use 10 bucks do you really care?

Steve, Every time i have failed on one of these type of auctions (downpayment, Price) I can always trace it back to marketing and not getting the numbers.

Yes. I used one phone number for my signs and those were the calls. From Craigslist I do have a tracking link and seen that 2 of the registrations came from craigslist. I suspect most of the visits came from CL as I did not give my website on the VM as I wanted to speak to them and chat with them on phone. My Voice Blast went out to 850 phone numbers. Of those it seems that 130 of them are no good "as they were non deliverable. Some of my tenant buyer list goes back to 2002 that have been on my database. My emails bounced back 45 out 1300 emails. Which is not bad as I have not really maintained a relationship with them via email. Several had OPTED out. So all in all. I don't have a BUYER on the dotted line but I am sure I will soon from this activity. Total cost (my labor) is about $230.00

UPDATE: Well I started this auction a week ago. I have had 1747 hits to the page of the property. I have had a total of 87 phone calls which 19 had left messages, 6 people registered for the auction and 5 regular registrations. Total of 11 new tenant/buyer leads. I had two online bidders and 1 offline bidder. None which came up to my reserve. But they did top there offer for what they had available. Which was 1900.00. Barely enough to get my interest. But what did happen is that since it was over I have had a rush of calls asking if it was still available. One couple drove over today and I told them that I had several applications and it would take 5K to move in. They said it was not a problem and they LOVED THE HOME. Well we will wait until I get the applications. Interesting observations.

Lynn, I have been using Round Robin auctions for years.

Advertising the auction is preprinted signs with arrows. Auction -------> __Br __Bth 772-xxx-xxxx Which they call me directly and I explain to go online to view.

I did several deals before getting an attorney to look over contracts or starting a company and I was doing real estate for at least 10 years before I got a website. Now things have changed quite a bit. I was looking over a old book by William Nickerson about How I turned 1,000 into 3 million dollars. What was interesting is he did this in the 50's and 60's. No web No LLC So I would just go get leads and bring questions to the board so we can help you out. Of course this is my opinion.

Acutally Chris it is both. The property is older competiting with newer homes that are in or near foreclosure. But, I am also finding the tenant buyers not the ones that I really want to put into a property. They have the down, they just don't have the depth of income to make me comfortable. As the old saying goes, you may get the 1st payment, but what about #2

1) Yes I have used this method several times. Results have been good. Sometimes you win and lose. But I have had an empty now for 2 months. So I set my base rent to the lowest I can and I am allowing the market tell me what I can do. 2) Yes it is for Option consideration only. Terms are firm. 3) MC that is a mix bag. It is for that week, for two of my reasons. People are out driving around this week and families are here for Holiday's. If I am wrong we will know next week.

Well thought I would test the waters for a property that has had a lot of calls but, no takers. Going to experiment with an online auction. Marketing is going to be signs, voice blast and online marketing. Should be interesting. Check it out, book mark it to your friends and help me spin this. http://www.jonsellahome.com/130

I POSTED THIS ON ANOTHER WEBSITE RECENTLY. MAYBE IT WILL HELP As a investor/realtor I send out a lot of direct mail and also post a few signs (which I have to have a FREC reg disclosure on sign). But I get a lot of calls from listed properties. I don't come right out and say that I cannot speak to them until the property is withdrawn or expires. But I will give them my creative speech. It states that most agents are only educated in two type of offers: CASH or BANK FINANCING. I have been using this for years. What happens is that I tell them that I would love to make them an offer but there agent would not understand the kind of offer that would solve your problem. I said if we were to do business that we would have to include the agent. That I would not go around the agents back and try to undercut them. I said I would be more than happy to present my offer to you BUT only in person with the agent being present. Now if it is a good deal, I will go through that stuff. But half the time they are not. But my offer also goes into my presentation, and then ends with offer. What I have found out over the years is that an agent is either on board or not. The one's that are not on board with an idea of owner finance, lease option or sub2 type deal are usually brain dead and have NAR shoved up there "you know what" that it isn't funny. The ones that are on board will be good referral source for you. Sometimes, I cannot make the deal work. But at least I got one more realtor on my side.

Ah...the joy of being a licensed carrying member of the NAR. Here is my 2 cents for what they are worth. Please don't ask for change. I for one am going the route of the agent when putting together a CA deal. Why? Because I can and make the same money and remove myself from POTENTIAL liability. Each person has there own way of doing this biz. I prefer to call a duck a duck. Now in a Lease Sub-Lease then I am in like peanut butter and jelly.

If a deal is good enough why not give him some money after you get it done. I mean if it is 1st and security. Just pay him 2 months rent if it makes sense to you. If not then move on. I mean look at the numbers:

Darin, My friend, you have talents that we all don't even know about.......

Besides there has been case law in Florida where single member LLC's have been pierced. So I think if you are thinking about setting up an LLC you may want to consider a multimember LLC or an S corp.

Okay I am going to spend 2 more cents here. I battle this every day with my short sale business. We BUY on DISTRESSED sales. We sell on NON Distressed Sales. When an appraiser looks at a property, they will take it into consideration when looking at the area. It may even be in there remarks. But you have to be proactive with the appraiser. Just like when we meet the BPO agent for short sales we are proactive. Here is what some appraisers may not do. They may not call the agent that handle the sale that they are trying to comp. WE DO! They may not research LISTING HISTORY! WE DO! Again, take control of what your outcome is. Determine what you want to accomplish. I can pull distress comps just as non distress comps in most cases. But in some areas, that is all there is. Okay... 2 cents gone.

I can't stand GURU's that say get a company etc....before you do a deal. I did probably 10 deals before I got my corp set up.

Mike, Appraisers will take distress properties into consideration when figuring an appraisal. It is not the stand alone. I have had to challenge several appraisals because some are just plain LAZY to find information.

Mike, The board has great information. Just dig in and get to work. It is all about marketing. Fill the funnel. Bring questions or call.

I am with Steve on this. The only thing that I would use the money for is marketing. Keep your HOME FREE and CLEAR. With the downturn of this market. One bad move can move you out. One of the best decisions I made was to pay off my home when the market we going NUTS. I made a vow to my wife to never borrow against the HOME. If my ship goes down. I have a place to live. Some think I was nuts at the time. But, I look around my neighborhood, and see REO's and Default.

Affilate programs.....Not YET as we are expecting a new RELAUNCH in the coming weeks. It should reduce the pain!!!

I am having a Seminar next week on my Medicated Toilet Paper. It will ease the pain of Hemorrhoids. Let me know if you are interested. Chris, there have been a lot of recent information marketers out there trying to HAWK there own spin of doing assignments. Some have been active on this board. I can come up with about 7 names that are doing it right now. The issue with Info Marketers is that the money they have is in the List. If they don't feed the list it will die. Kinda a piss poor way to make money I think. But hey...it is there business. Just like my Hemorrhoidial Paper.