randian

That looks nasty. Surgery? What for? Looks like it's just a deep bruise.

Who's the market here? I don't see homeowners that already know they want to RTO (because they're Googling "rent to own") contacting an investor as a result of a Google hit.

Nice idea, but three grand is

If the property really is only worth about $200k, you're either selling it for 10% over market (if the net to seller is $200k), or your deal with the seller should really be $180k net. Which is it? Does the note substitute for rent credit, or are you giving rent credits on top of that? Chances are they're going to buy or abandon before 24 months is up, in which case they're certain to stop paying on the note. I doubt it's worth the time and expense to pursue them. The cash flow is nice though. One a month for a year and you have $6k/month semi-passive income. Rents seem to be a lot higher in Canada. A $200k house here would rent for more like $12-1300. I couldn't take $500/month out of the cash flow without offering an insultingly low rent to the seller. In a standard CA the seller gives up equity in the form of rent credits, but they're getting full market rent in compensation. This deal offers less than market rent plus the equivalent of rent credits. Seems like a harder sell. Is it? I'd like to presume sellers don't know there are alternatives to what I'm offering, so they'll assume what I'm offering is "just the way it is", but I am always surprised how sophisticated many of them are.

I'm not talking about an automated number, I'm talking about a a number that redirects to your cell, like Google Voice or RingCentral. You answer your cell as normal so you don't miss a seller. I haven't had a house phone for about 7 years. I'm cell only. I never got into Wasp, but I have 4 or 5 Scorpions albums. Rock you like a hurricane!

Shouldn't you see if you can make money, and like the biz, before spending money on this? Er, why? Keeping your personal line private is usually considered sound business practice. So I should have Kajagoogoo or Berlin playing when I meet sellers? How about Metallica and Megadeth? Master of Puppets and Peace Sells...But Who's Buying? are classic thrash.

They would if they had convinced every state legislature to give them a monopoly on such business. I don't know how the National Association of Realtors convinced the various state legislatures that a licensed monopoly was good for consumers, but they did. Unlicensed realty is a felony in most states, and while I believe we're on the right side of the law, it would be unwise to antagonize an agent because the cost and stress of an investigation isn't worth it. Realtors as a group care more about their commission than about doing right by their client. Ever read a listing agreement? About 90% of it is about protecting their commission. Only a small minority of its verbiage is about what the agent is supposed to do for their client, and a majority of that in substance releases the agent from any real duty to perform.

I'm a big-time spicy food fan. If it's hot and spicy I'm there.

Is the chili there as good as they say? I've been wanting to go for years but it's impossible to find a place to stay. I didn't know they had chili there. I'll look for it next time before I pass out. I fly the plane down every year for a guys trip. Oh. I thought when you said you were "down at the cookoff in Terlingua" you were referring to the Chili Appreciation Society International Chili Championship or the Frank X. Tolbert / Wick Fowler World Chili Championships.

Is the chili there as good as they say? I've been wanting to go for years but it's impossible to find a place to stay.

Oh, yeah. They have no shame. When I see that, depending upon my mood, , I may report the ad as miscategorized and move on. I used to do that, but once I realize that even if I report every ad by a Realtor that I find especially annoying, Craigslist doesn't do anything about it. It appears as if Craigslist will only take down or ghost posts by unlicensed peons like us.

For buying or selling?

Wow! How much extra are you getting from the t/b for such great terms?

Correct. You're a dealer in intangible personal property. It's all self-employment income. If your income is substantial you can save quite a bit on employment taxes by doing business through an S-Corporation or an LLC electing to be taxed as one. Your LLC would file a Form 8832 followed by a Form 2553.

The payment on the land contract doesn't have to equal the payment on the underlying mortgages. It's dangerous, however, since if they don't pay the deficit you'll get foreclosed on by the underlying lenders.

Every listing agreement I've ever seen awards the agent a full commission even if they didn't locate the buyer. You showing up and asking the owner to cancel their listing agreement pursuant to your signing a purchase contract is, technically, a breach of the listing agreement.

Note the caveat "pursuant to the sale of the seller's own residence". What if you're selling a rental house? What if HUD decides that lease-purchase contracts are disguised seller financing? Then you'd need a mortgage broker's license to conduct business because you aren't the end buyer.

I wouldn't even consider a series LLC unless you're in one of the 7 or 8 states that have a series LLC statute. The problem with single-member LLCs comes from outside liability (stuff you do personally like get into auto accidents) not inside liability (business activity).

It's my experience too. The second email scares them off.

As I understand it, most lenders will treat option consideration as a hard down payment, so long as it's paid in a cash lump sum and distinguishable from rent. Rent credits, on the other hand, are usually treated as a reduction in price rather than as down payment.

One of the more obvious questions is related to seller's net. The traditional appeal of CAs is what the seller nets compared to realtor-assisted sales. If you're adding your assignment fee and rent credits on top of the realtor's commission the seller is now netting quite a bit less, not more. How is that sold?

How do you decide which method to use for which ad? I use all the methods for all the ads. You cold call, email, text, and voice blast the same seller? That doesn't create a bunch of annoyed sellers?

How do you decide which method to use for which ad?

Yeah, that's the guy. I can hardly ask him about the quality of his own seminar, now can I?

Anything you'd care to share with the class?