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MJ Smook

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Everything posted by MJ Smook

  1. Thanks Guys. If neither of you do it then I guess there is no need for me to.
  2. I have heard about lease option investors putting their Seller's closing docs into escrow at the time of entering into the deal.This is so that they don't have to go looking for the Seller when the time comes to exercise the option, and is an additional protection against a Seller not cooperating with the closing.. Does anyone have any experience with this? I am assuming that this somehow includes a deed. However, a Seller must also sign the HUD and that can only happen at the time of closing, so escrowing the deed seems redundant.
  3. Thanks Michael. I have found a real estate attorney who also owns a title company less than a mile from me. He also works with people who are in debt. So our services compliment each other too.
  4. It appears to me that there are only 4 ways to do this: 1)Drive down to a notary with the seller - Maybe 2)Ask the seller to get it signed and pick it up later.- Risky, as too much opportunity to change mind 3)Ask the seller to go to my attorney's office to sign all docs including the notarizing the notice. - Best, but risky because seller might not want to drive all the way to wherever the attorney office is. 4)Send a notary - Nice, but costs money, especially if Seller does not keep appointment. Not sure which one to choose. however I am leaning towards the attorney if I can find out how to further cement my deals by having the seller sign and place closing docs into my attorney's escrow. However, Its down the road for me at this time so I am not going to let it hold me up at this stage. Thanks to all for responding. Much appreciated.
  5. Thanks Steve. "This also allows the seller and tenant/buyer to modify the option agreement". I am not sure what you meant by this - my buyer's lender will need to see a proper purchase and sale agreement. However, it sounds like I have to ask my attorney to draw up a purchase and sale agreement between my seller and my TB, reflecting the purchase price that my TB has agreed to buy the home from me for. My attorney will then show my profit in the HUD as a "release fee" and close the sale. At that point my TB and Seller both become aware of the extent of my profit and I have to hope for zero objections from either party. How does the FHA underwriter react to the "release fee"?. To answer your question Michael: I am in the process of trying to locate a "investor friendly" title agent or lawyer in the Tampa Bay area. The one attorney that I did speak to said that he would not be able to do anything with me without reviewing my contracts first for which he wanted to charge me a very large up-front fee without any commitment as to whether he would be interested after that. No thank you! I will find the right players, it just takes time, which is very frustrating because I am chomping at the bit to get started. However, that's just how it has to be for now as I don't believe in "ready fire aim". MJ
  6. Thank you for your replies. However, I should not have muddied my question with with option 2. So please let me rephrase my question: For non-licensed investors, which is the recommended /most efficient strategy / method to close a SLO deal? Thanks MJ
  7. Does anyone have any recommendations for a LO friendly title agent and an attorney in the Tampa Bay area or anywhere else in Florida? Thank you, MJS
  8. I am considering three optional strategies to close my SLOs, and need some guidance choosing one and about whether I am even on the right track or not. The choices that I am considering are: 1) Double closing, with one standard purchase and sale agreement between me and my TB and another between me and my seller, and having the title company pay me the difference. I dont like this because it is going to cost extra taxes and I don't like having to go back to the seller for his cooperation. I would prefer to put his closing docs into escrow way back when we first signed our LO agreement. That way I dont need to see him again. 2) Write up a new, standard purchase and sale agreement between my TB and my seller and include a real estate commission equal to my profit in the deal so that the title company pays me at closing. Cleaner and cheaper, however, it requires going back to the seller for his cooperation. 3) Write up a standard purchase and sale agreement with my TB and assign it to my seller after he accepts an assignment fee agreement equal to my profit so that the title company can pay me at closing. Clean if lender will allow the "and assigns" ?. Also requires going back to the seller for his cooperation, which I don't like. I want to choose the one that will work best when my TB uses an FHA purchase loan. I would appreciate knowing how everyone prefers to do this, especially if licensed. Thank you for your support. MJS
  9. So as you are going to be part of the deal for some time, you're making double sure that the TB is quality. I understand. Thanks for your help Steve
  10. Steve, "A SLO is a little different because I am managing my interest in the deal with a tenant/buyer." Would you mind elaborating on this aspect please? Thanks
  11. Thanks for your response Steve. So I am assuming that at the same time that you show the house to the prospective TB, you collect: $40 FEE check Completed LEASE APPLICATION form Completed TENANT BUYER PROFILE form Then you go and do your due diligence on the applicant and it he/she checks out OK, arrange to meet again and then at that 2nd meeting, collect: Signed OPTION TO PURCHASE AGREEMENT form plus Option consideration check Signed RESIDENTIAL LEASE AGREEMENT form plus small security deposit check plus 1st months rent check. Is this how you do it? Thanks for your support
  12. In the Lease Application form, the TB applicant agrees to pay a non-refundable Application Fee. 1) How much should this fee be? 2) Do we have a particular Lease Application Receipt form to give to the Applicant or should I just use a regular Receipt ? 3) Does the Applicant pay any portion of the Option Consideration at the time of completing the Lease Application form? 4) If yes, do we have a particular Option Consideration receipt form? Thanks for your support.
  13. No specific concern. Just wanted to see one if something that you are using.
  14. I hear a lot of investors talking about using a CYA letter, especially when licensed like I am. Is this necessary with a lease purchase transaction and if so, do we have one? Thanks for your support
  15. The short offer letter refers to 2 ALLOWABLE costs. Maintenance and Repairs: your tenant/buyer is responsible for all ALLOWABLE maintenance and repair costs during the term of this Agreement. Closing Costs: Purchaser will pay all ALLOWABLE closing costs.Can anyone please tell me if these are LEGAL allowables and if so what are they? Thanks for your support
  16. Thanks for your reply Michael and for the welcome. This forum is a great opportunity to get clear on exactly what to do to make a success of this business. By facilitating it in addition to your book, you have delivered above and beyond.
  17. Michael, Thanks for your response. Do you ask him to go with you to the notary straight after signing the paperwork in his home or when?. I am assuming that this is not a step that one wants to delay and give the seller too much time to reconsider. Without the memorandum the deal doesn't have great legs, right?
  18. In clause #1 of the Residential Lease With Option To Purchase Agreement, what date should be entered for the BEGINNING DATE? My understanding is that this date starts the lease and the clock starts to tick for me to make the 1st lease payment at the beginning of the next month (as per clause #2), even though I might not have found a TB yet? That would force me to cancel in terms of clause #20. How do I write up clause #1 so that that my lease BEGINNING DATE is only after I have found a TB? Thanks for your support.
  19. I was under the impression that I should send the seller and the TB to my closing agent / attorney to finalize the paperwork on each deal. I like this idea because then any documents that have to be notarized gets taken care of at the same time. I asked Michael about this, and he told me that he does not use an attorney for this. Therefore, if the kitchen table signing is the way to go, can someone please tell me how to handle the notarizing of some of the documents, like the memorandum of option? Do you ask the seller to go and notarize it and then you pick up the next day? Or do you drive down to the UPS together, or what? All of those options seem messy and cumbersome. Thanks for your support.
  20. When I do a SLO, my understanding is that the TB should make out his option consideration check to a Title company so that it will count towards his down-payment for future purchase financing. Is this correct, and if so, how do I get the money out of the title company and back into my hands? Thanks for your support
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