R/E Possibilities

Thanks for the great ideas. Michael, how much do you pay your assistant? I know it varies from area to area, but please give me a rough idea. I am thinking $10 and hour. Thanks everyone, Ed

Between working a full time job, taking care of my young kids (age 3 and 5), and domestic activities it is challenging to make the time to do this lease option business. Has anyone hired someone to do some of the activities, such as sending out emails to for sale by owners, calling landlords, etc? Any tips on how to go about finding people to do this and how to train them? Thanks Ed

I have been doing this lease option business for a little while now and one of my challenges is that I feel very isolated sitting in my house making warm calls and sending out emails for hours at a time. I work out of my house for eight hours a day and then do the lease option business in the evening. Too much home time. It would be so much more exciting to share this experience with someone else. Has anyone created partnerships (other than with your spouse)? Any ideas on how to go about doing this and how to structure it? Thanks, Ed

Do mind if I ask what you said in your ad? Thanks, Ed

Mike, Thanks for your tip on using www.actonelists.com to locate out of state landlords. They have exactly what I need. They charge $90 per 1000 names, minimum order of 5000 names. They can provide mailing labels for $30 or email me the list. I am having them run sorts for me for out of state landlords and for landlords who live outside of the county. Thanks, Ed http://www.actonelists.com/getalist/master...tate.html#State

I would like to mail post cards to out of state landlords. I figure these people are good prospects for lease options. Could someone tell me where I could find mailing lists of out of state landlords. Thanks Ed

1. Once I find a motivated seller that is interested in a lease option deal how much time should I allow to find a tenant buyer and allow them to move in? In other words how long should I lock up the contract. 2. During this time period is the seller legally committed to allow me this amount of time (after they sign the contract)? Or can the back out during the time period? Thanks, Ed

Thank you for your words of wisdome. I guess I am generalizing and pre-judgement the market. I like your reminder that there are record numbers of foreclosures. I think to myself, why didn't these people simple place their home for sale....procrastination, emotional issues, divorce, illness, etc. Thinking back about 12 years. The house I live in was a foreclosure I picked up. The homeowner never even advertised or listed it with a realtor. I always wondered why. I guess some people just never think they could loose their home until the writing is on the wall (or in the newspaper legal column). The more I think about it. Investing is 90% about how I look at things (beliefs) and breaking down barriers in my own mind. The deals are out there. I now just need to get off my @#%$$%#$ and make some calls. Thanks again. I will be talking with you shortly. Ed

Thanks Michael. Those are some good tips. I have a feeling that once I start making some calls that I will find that most people are not the monsters I am envisioning them to be and I will start to feel more comfortable. I appreaciate you sharing your personal experience with me. I guess I can look at it that I am giving the homeowner another option to choose from. The more options the better for the home owner. I can offer quicker financial relief than selling conventionally. The more I think about it the more I realize that lease options are actually a really good thing. About 12 years ago I was buying and selling foreclosures. I had one that I couldn't sell because the prices were dropping fast. I would have loved to had someone offer to take over my payments and maintenance using a lease option and pay me in two years. I just wanted quick relief and to get on with my life. Having options are good. I also like your reminder that I can just hang up and it's over. Anyone else have any thoughts on techniques to use for making cold calls less anxiety filled. The more options I have the better. Thanks, Ed

My biggest fear of being a lease option investor is making cold calls to FSBO and FRBO. When I think about making the call I picture a man on the other end of the line being extremely angry that I just disturbed his evening and then giving a piece of his mind. Does anyone else share this fear. I would love to hear for people who have overcome this fear. How did you do it? Visualization? Any assistance would be greeeeeeeeeaaaaaaaaatly appreciated. Thanks, Ed Ps. For you experienced L/O investors that call on FSBO and FRBO typically what do the people on the other end say/do when they are not interested. Do they yes, are they polite, etc.?

If the real estate market is booming(prices going up 10-15% annually and houses are selling fast) why would a seller want to do a lease option with me/investor? This is currently the case in the San Francisco Bay Area. I want to dive into L/O investing but I can't seem to get over this obstical in my mind. Thanks, Ed

Just a thought on negotiations: Ask the seller: If a real estate agent came in today and said he had a buyer willing to pay you $129,900 would that work? If they say yes, then say: Real estate commissions are usually 6%, that's about $7,800. So you would net $122,100. If they agree then you have talked them down almost to your $119,900. Now you have my two cents worth..might even be worth three cents. Take care, Ed

What happens if the seller declares Bankruptcy after a tenant buyer moves in? Is this a concern if the payments are current on the loan? What happens if a creditor of the seller places a lien or judgement against the property after a tenant buyer has moved in and the amount exceeds the equity int he property? Is there a way an investor can protect themselves from this? Thanks, Ed

Does anyone know of an internet site where I can get an LLC in California. I looked on www.Bizfilings.com They are about $215. Is there a cheaper place. Also, does anyone know of a book or web site that explains how to run an LLC. ie. meeting frequency, tax filing, how to put the LLC on title of a property? Thanks, Ed

Michael what he is referring to is something I have read in another rent-to-own book I read...paydown. An additional stream of income for a lease option investor (us) is the amount of money the loan is paid down during the lease option period. Over the one to four year lease option period the loan principle could be paid down several thousand dollars. There is some verbage you can put in the contract where we (the middleman/investor) would get to keep this paydown. Basically we would offer the homeowner a set amount of money when the house is sold. That way the paydown on the loan would go to us. Ed