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About BrianGibbons

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  1. Steve, yup, theory and real world, different. Its important to use the right strategy for your situation. Good example. Thx!
  2. Thin equity spreads out of town are dangerous, IMHO when starting out in Lease Purchasing, do local deals, a) find the best school districts, look at www.NeighborhoodScout.com and GreatSchools.org for great middle and high schools. Find the median prices there. Look for FSBOS, Listeds, Landlords, Expireds, go door to door, give them a brochure or postcard. Your Card Sell Your House Here is an example. Say, "If you need to sell fast and avoid fees like realtor commissions and closing costs, this post card will help you out. Just call the number!" Business Card Sell Your House FAST! Quick Sale - Fair Price (777) - 444- 5555
  3. A reverse assignment is when you put a note and a nmortgage on a SLO. Say $100K house, you lease w option for $90K. You sublease and sub option for $110. Your profit is $20K, so you put a lien on the house for $20K. When the house sells you get your $20K. The trick is in the negotiation with the seller. You say, "Mr Seller, if I can get your $90K with out agents fees and closing costs, do you care what I make?" Then when the TBer gets the financing, you create a lease with option with the seller and TBer in return for lien of $20K. At closing you receive $20K less some costs, maybe split the closing costs w the buyer. Avoids a double close and transactional funding.
  4. Being a transaction engineer is the secret. You need a tool box. A pretty house thin deal 80% - 90% LTV is a sub2 or lease option assignment or MAYBE a SLO. A pretty house kinda thin deal 70% - 80% LTV is a sub2 + note or lease option assignment or a SLO or SLO equity split. Rehabs are option flips or JV w sellers (JV agreement, you do not buy it, you do the rehab, put a lien on the property, sell it and get paid when it closes.) To be a transaction engineer the meeting with the seller has to be a great "Mind opening" experience. Here is an audio about negotiating with the seller with a handwritten 3 column explination. http://www.screencast.com/t/oEf3oG7lz
  5. I'll add... Dodd Frank "Investor to Investor" does not apply, only to OO. So you can be creative with a landlord, just dont live in it. Dodd Frank has an exception that a Homeowner can seller finance their residence 1 time every 12 months. See http://www.realtor.org/topics/seller-financing I have Dodd Frank resources here... http://bundlr.com/b/dodd-frank-safe-act-respa-tila Lastly, have every Tenant Buyer go through a RMLO, which safeguards the seller if the "ATR" or Ability to Repay rule is challenged. Dodd Frank and the SAFE Act has tightened credit, especially the 43% Debt to Earnings. This is your opportunity to assist home sellers to sell on terms and not pay commissions or closing costs with an agent.
  6. I thought I would add my Option Release Doc. _____________________, LLC City, State, Zip Date: ________________ Property Address: __________________________________________________________ (Insert “A” Seller Name): ____________________________________________________ (Insert “B” Option Holder / Investor Name): _________________________________________ (Insert “C” Buyer Name): ________________________________________________________ To Whom It May Concern: Regarding the sale of the above reference property, the Buyer (insert “C” buyer name here) will be responsible for the following fee’s to be paid out of escrow at closing. The fees are for the assignment of negotiated purchase price, negotiated rent and release of the recorded notice of option. Please add the above fees to the P&S agreement, initial and date by all parties. Amount payable to (insert “B” investor name or co. name) is (insert negotiated assignment fee / option release fee amount) for property contract assignment, negotiation and option release fee. x_________________________________ _______________ Signature of Buyer Date _________________________________ Print Name x___________________________________ ________________ Signature of Option Holder (LLC, Managing Member) Date ________________________________ Print Name
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