dreamer

Got it Gene, thanks.

Missed the conference call. (ouch) Can it accessed online? Thanks.

Hi gary: Good idea. I'll consider a CA. I was stood up. I mean the husband was there but the wife stayed in the city late. He thinks she forgot. It's my mistake. I should have called before hand to confirm the meeting. Anyhow the wife is supposed to call me back. She seems to be the one that runs things. Did look around the house a little and it looks real nice. Can't wait to get the full tour.

Rest up, Michael!!

Spoke to a couple last night. They seem very nice. They have a 3/4 bedroom expanded hi reanch in diamond condition. They are selling the house because the wife's commute to work is too long (about 3 hrs. per day). They are moving closer and are intending on renting for about a year then purchasing. Here are the particulars- type of house: L shaped hi ranch (suitable for renting lower portion- in fact they did for $1200 per month- said they got over 100 calls from ad in local paper) asking price- 359k (they have an apraisal for 400k- still have to check comps in area) PITI- $2500/month They are hesitant about any terms over one year. The only problems I see are they high monthly (for a one family) and the term length. If I only do a year term, one option might be to make sure I get a good option consideration to overcome a negative cash flow to bring the rent to market value. I still have to dig to see what rents go for in this particular area to see if this is viable. I'm looking forward to my meeting with them tonight.

Thanks Michael and Adam OK. Her's the deal. I have a meeting with a homeower tomorrow to discuss his house. He had some idea of what a lease option is when i asked him. He DID mention that he wanted option consideration. I told him we do things a little differently and that since we are responsible for maintaining the house and paying for any months that the house might be vacant we do not give option consideration. He seemed to be ok with that. During the course of the conversation he mentioned that he has a realtor selling his home also but is free to sell it himself. The realtor has a sign in his front yard. The house 4/2.5 with a double garage on 1/3 acre. Although he says he lives in the house, I looked up his tax record and noticed that he has an out of state address listed for his mailing address so I suspect he might be in the middle of changig locations. He says he lives is the house and is flexible on his leave date. He is asking 489k. Realtor is asking 491k. The selling price seems competitive for the area. He says that his PITI are $2200 per month which is about what the rental market is for this this type of house. I could probable get $2300/month. I guess I could at least get him down a little if I split the difference on the realtor fee (3%). Does anybody have any experience with competing with a realtor also having a sign in the front yard?

Hi All: I finally geared out of "paralysis of analysis" gear and started marketing to find buyers and sellers. Designed a "rent to own" flyer and stuck it on the windshields of 150 cars in a local apartment complex in my area. I used 8 1/2 x 11 piece of paper and cut it in half with idential ads. I figured I would save paper and it would look less messy if people threw my message onto the grounds of the complex (I did go back the following day to clean up!) This netted 2 phone calls from interested parties. Last night, I made about 30 calls to fsbo's. Got answering machines and left simple messages. "Hi my name is steve. I saw your ad to sell your house and was wondering if you'd be interested in selling your house on a lease purchase. If so please call me at xxxxxx". Unbelievably enough, while I was sleeping I received 3 call backs. Two of the 3 were not sure what exactly lease purchasing was. Wow! I can't tell you how exciting this is!!! Does anybody have a short paragraph that sums up lease purchasing in a nutshell that ends in a question that is probing but not pushy for the seller. A question that is not a simple yes or no but might get them talking about their motivation? I need to call back these folks today!! Thanks. steve

That first sentence is good. That last one bothers me greatly . Why, dreamer, are you waiting to make calls "in the next few weeks"?? Why not this weekend? You are terrific, Michael!! You're absolutely right. My phone line just went in and I I just have a couple of issues/things to resolve before I start. 1) What are your thoughts on setting up a business entity (LLC or inc.) before doing business? I've read around that some people suggest trying the business first before spending the money to form an official business entity. This is to save money if you decide that real estate isn't a good match for your temperament. I currently have a business that operates as a sole proprietorship whose name is nothing remotetly related to real estate that I could use since I'm not crazy about using my given name. 2) I wanted to decide on a name and order business cards/letter head etc. What are your thoughts?

Hi Everybody: Thanks for all of your great comments!! Yes, I have Michaels manual and it is very good. I might also get John Lockes "subject to" manual as it seemd a good bang for the buck, not to mention his support as well. The concept of "subject to" is very interesting as you go right for the deed. The investor just keeps making payments on the existing mortgage. I've set up the phone line and am working on business cards etc. I'm working on getting over the "paraylsis of analysis" phase and jump into making calls in the next few weeks.

You da man, Thanks. PS: do you know a good source for learning about "subject to". I am leaning towards a guy by the name of "John Locke'. He seems to have a manual that isn't very expensive ($189)

Michael: Are the contracts that come with your manual cool for New York? I believe you come from these here parts :-)

I am reading that fewer and fewer title companies are doing double closings. Also because of title seasoning issues buyers (tenant buyers)are finding it more difficult to get conventional funding. Apparently double closings are illegal in North Carolina and being investigated in other states. I got this information from the thecreativeincestor.com website. Is this a bunch of malarchy?

What documents should we have notarized? I understand that anything that is filed, such as the memorandum of option needs to be notorized before they can be filed. Should we also have the option to purchase and lease agreements notorized?

http://www.realestatejournal.com/columnist...ldingvalue.html

Hi Michael: In other words the investor would do a deal with both the seller then the t/b. After that is settled he would then assign the deal back to the orignal seller and then back out of the picture. The original seller would be happy because he would now be getting a higher purchase price and some extra cash flow per month and the investor would have his assignment fee. The end result would be a deal between the original seller of the property and the t/b that the investor lined up. The investor having assigned the deal back to the origianl seller.