DeeLight

I got a couple responses to the teaser/tester ad and they tell me they have xx to put down. They want to see the picks but----rats---i don't have a house under contract. What do you do??

Thanks Brian, I thot I'd read that it was better to just post and not do so in an accnt. What ever is easiest works for me

Has CL added yet another hassle in using their site? I just placed another ad and they made me submit a phn#---which can't be used for another ad for 90 days----for authorization. I didn't place the ad through any account; just posted a house ad. Can anyone tell me if I'm doing something wrong? Thanks

Yes Mike, that is correct as I understand it. So it would be $144k + $7k + $5k oc. I never heard back from the seller---big surprise. She wants to sell for more than is realistic because it's a good income property for them. The interesting thing is I am building a few buyers in the area. If someone turns up to be the perfect candidate I may email them and say, "Hey you are missing out. I've got a buyer right here and now". Meanwhile I am continuing to market like crazy. Thanks for your help Mike. I reeeeallly appreciate it!!

K, thanks Erik. I remember reading that now that you mention it. And I read something from Jonathan Rexford that says "Pick up the phone!!!" I'm just gonna keep it simple and do that for now.

Thanks Mike. In my state I won't be having to use an attny. Sooo, the check would be written and turned in with the escrow instructions----yes? Is the check made out to me? I thought that's what I had read. I will be talking with the sellers this morning; they got the short form letter yesterday; we haven't discussed everything after that. I think they are going to come back and say "Why is the sell price $144k when the comps point to $150ish?" So at that point I would explain that the rent credits are added onto the sale price---is this correct? When we get to the discussion of the option money if they squawk I'll let them have one month's rent $1200 out of the $4k. I already told her about the for sale comps and realtor fees and closing costs etc and that the seller walked away with way less than the sales price we can see. I'm not attached to getting this deal; it's been good learning as I go. I would appreciate any coaching you have for me! You all are the best. I'm sticking around in this forum even after I get comfortable with all the deals so that I can help others the way you help me.

Alrighty then, I see you keep on top of the news

I don't really agree with you Raquelm. If I had an agent handling my open house I would be setting up appts every 10-15 minutes. So an agent might work just one day to locate a t/b. Sooo, in my area if he/she was getting one months rent it would be about $2k. Not bad for a days work or maybe 2 days. Did I misunderstand you? Geez, if someone said to me I'll give you $2k for 2 days work I'd have a hard time saying no. I hear the point of view of a real estate agent but not the investor. Have you worked at all in crei?? This isn't meant to be harsh. It's just as I understand it.

Yes, that is great Mike. I am slowly building a team to help my crei endeavors. I am wondering if mtg brkrs and title offices have to be local or anywhere in state---i.e. California. Thanks for your help

Ok!! Got IT! I always get those mixed up Thanks as always!

Yeah but I've got the "what if I can't find a t/b now" butterflies. These are huge butterflies What's the worst that can happen? I learned something new. But I do want to get them unloaded quickly!! NEWS FLASH Just checked my email. i got someone (from the cl ad I placed lst night) "very interested" in the prop that I am expecting to sign docs on tomoro. He wants me to call him right away. Shouldn't there be some kind of introduction we go through? Should I ask him to tell me---in email---who he is etc?

I am going to send the docs to the sellers and let the chips fall where they may. I am sorry to ask a question that seems so elementary but I don't fully understand the rent credit set up. Is it like this: The t/b's will be paying $1200 for lease: 50% of that would be considered purchase ----is the word concessions? (rent credits). So if they exercise their option in 12 mo then they would have $7200 toward the down payment of the house. Yes? Hope this helps other newbies lurking here too

Ok I see now that I can't wear all the hats to do this in a big way. I have a friend that could put up a quickie website for me with pics. Is it best to do just one website per area with the houses available in that area or a mini site for each individual house? The website would be for giving out on the phone for info purposes, right? Is anyone using video for showing their houses? I don't know how I'd do that since my house are all OOA. Thanks for your marketing ideas !

What's in Cartagena???

First, assuming they agree to and sign the Short Offer Letter, then the next step is to get the CA Residential Lease Agreement, and the separate Option to Purchase Agreement signed. Ok good to know; thanks for the guidance.I would try and avoid having their attorney involved, if you can. They are known as "deal killers" for a reason. Instead, send the docs direct to the homeowner and suggest they review it with you over the phone. Holy cow that scares the holy beejeebies out of me---contracts and forms!!! I guess I'll have to master this phobia quick. This will give you the opportunity to highlight for them the strength of a good agreement for them. You'll also be saving them money by avoiding Larry the lawyer. As for the numbers, if the plan is for the homeowners to receive $145K net at closing, then you need to add to that any rent credits How do I configure what rent credits we are allowing the t/b? you are offering and the option money you anticipate receiving and keeping. For example, if the rent credits totaled $5K and you were expecting $5K option money, then the gross price you would be marketing the property for would nave to be $155K. I guess I'll just have to see if the market will bear this. She did say that her son's house on the same street and not as nice appraise 2 years ago for $159k. I don't know if that's a useful piece of info ?? The question we always have to ask ourselves is whether or not that is a market friendly figure. Speaking of option money, did you discuss with the owners anything about this? Not yet---I'm sure she's going to bring it up. Are they receiving a cut? I will probably allow a one month rent to them out of the option money. You should be expecting between $4K - $5K in this price range. One more thing Michael. If I was to act as a consultant in this rather than than a conducting a CA how would that change what I am doing in this deal. Thank you

uh-oh I don't have a "broker". You mean a mtg broker right? Hmm, another piece I hadn't thought of. I was thinking that I got the t/b and then received the option consideration and then I was out of the deal. I forgot that I want to help them get qualified for a loan too. I need to make a "steps to do" list and put it on the wall.

Thanks guys. Knowing the approximate verbiage and numbers helps. I've read The Manual 3 times but when I get on the phone with a seller I get all tongue-tied and blank-brained

YAY, thanks Michael. I'll keep everyone updated on how it's working.

I've been studying here for a long time (I'm on the eye donor list now) and find mixed views on letting the seller get some of the option consideration. Today's sellers are more savvy and most know that with a l/o there is $$$ down. No one has asked me yet. But what do you say to address this when it comes up?

I heard they are trickier to do than regular houses. Has anyone don these? The ones I'm talking about are on land not in parks. Thnx!

:lol: :lol: k then you host the next NI conference---rain forest is good. I like the " "election" ". I was plannin on headin down Costa Rica way but a friend of mine that studies the environment says it will be underwater in a couple years. Yeah, maybe I should follow my gut and market in AZ so I can own beachfront property.

Yes, Erik, the price seeeems realistic. Comps are scare because it's a rural area but they are in line with the asking price if figuring $persf. Agent said price is in ballpark and house has nice extras. I don't know what she bought it for and how much she owes. I only know that she is firm about the $145k price. I have seen Michael post a few times that the market will show us what it will pay. These folks will continue to market it themselves (I'll document all viewers of the prop) and we'll see if it sells. Erik, do you get these rural type props out where you are or do you deal only in-city? I'm not going to force this (that's only trouble) but all I need is 1-2 of these to be able to quit the day job and go full time. My ace in the hole (maybe) is that the son, who is the official owner, does NOT want to rent the house anymore. His mama is conceding to his wishes but says it's a great cash-flowing prop. He wants it sold. This may be worth the effort if I don't screw up the paperwork!! Time will tell.

Ok in the file of "being a chicken going into 1st deal" do you ever run a tester CL ad. Something like: RENT TO OWN Poor Credit OK Hurry NOW!! The best deal for miles around!! Lovely 1996 3&2 manufactured home on 2 acres in beautiful peaceful country setting and close to all conveniences. Special features are, freshly painted, beautifully maintained, a sunken tub and an above ground pool. All input appreciated. I'd love to hit the ground running when they send the signed docs. Plus it's nice to have a buyers pool in diff areas. There are several other long listeds in the area too

hmmm, what was it we were discussing?? So the latest update is they want the short form letter; I will fax it to the woman I've been speaking with and email it to the son who lives 30 min away. OK so when they sign the short form then I send the lease doc and the option doc to the attny "friend". Right? Their asking (and former list) price is $149k. I asked her what was the least she would want to sell for. She said if it was any lower than $145 they would just rent it out and wait for the mkt to change. So I would add my option consideration on top of that----say, 2k for me and maybe 1k for the agent I will have put up flyers and signs. Does this sound right? Or should I pad it a bit more just in case? What kind of doc would I have the agent sign? Whew, looks simple at 1st glance but there are a lot of steps!! I'm a nervous wreck! Thanks guys for such great input.

Yeah, that's the feel I'm getting Michael. They know enough about real estate to be a P.I.T.A. They are open to a l/o for sure and the numbers make sense. She's worried I might not have enough buyers in that rural area. . . . and what if they find their own buyer or decide to rent after a couple months. Jeez. I think I'll let them stew a bit. They seem a bit high maint but then I am not familiar with this niche---maybe they're all this way??