vmoney

So let me understand this. What happens to the 25K spread if the realtor sells it? Let's say the realtor sells it for 175K, your contract with the seller was for 150K right so how does the 25K and the re commission get handled at closing? Thanks for your patience I just want to make sure I understand this. Vito

When you say "heading in" do you mean with an add campaign? Thanks, Vito

Adam, As you know I'm from MI also. What do you mean by your MI comment? Are you changing your approach based on the RE mrkt in the Detroit area? Just today on the front page of the Detroit News there is an article about RE taking longer to sell and anticipated problems with values going down due to the local economy. What's your take?

Thanks Mike, I have switched my marketing so people know what to expect up front. I'm hoping this will produce T/B candidates that are more qualified to afford my properties. Thanks, Vito

Yes, in the first case I returned the option $$. In all other cases they stopped payment before I could cash the check. I think I may have people bring money orders, or certified checks, or cash from now on.

I have been marketing for T/Bs and getting a lot of interest. In fact, in six weeks I have had more than 500 calls from interested T/Bs. The problem is that they are all unable to meet the financial qualifications required to afford the house I'm marketing. So now I'm thinking I'll focus my marketing by putting the required rent amount in my add. I'm hoping this will help focus my marketing to people who can afford the house, and will save me from having to screen hundreds of people that have no chance. Do any of you do this? What are the down sides of putting the rent amount in the add? Thanks, Vito

Started my marketing for T/Bs for a home I am L/O-ing. First appointment loves house, so I go for the kill, get her to commit to $10K option payment and $1450/mth lease payment. Next day she gets buyers remorse and cries to me that she really can't afford it...blah, blah, blah. Well I let her out of her contract, since she was my first showing, etc. I figured things would continue to go smoothly. Anyway fast forward to today (six weeks later). I have had this same scenario happen to me 4 time now. Buyer goes crazy for the house, commits to the option consideration and rent and then calls back 1 or 2 days later asking to be let out of the contract. What am I doing wrong? Technically I can go after these people and enforce the option payment since they all signed contracts that state multiple times that it is non-refundable. I really want to avoid that since I don't want to waste time in court and also don't want to get a reputation locally as a ruthless bastard. One thing I can think of is that all these people start out saying they can't afford the amount of option payment and rent. When they get to the house they fall in love and want it and when I smell blood I can't help but go in for the kill. So I end up getting them to agree to the option payment and rent I want. But this is just normal sales and I know I'm good, but I didn't think I could talk adults into committing to something they know they can't afford. It's crazy because I tell them they are signed a contract that makes the option payment non-refundable and they say they understand, but they still sign it. Go figure??? Thanks, Vito

Does anyone know how a land contract effects the SELLER's position? I mean if I am selling on a L/C does this become a sale and therefore do I lose my tax benefits? If so, is there a way to structure a L/C so I keep the tax benefits. I recently obtained a property and my exit strategy was planned to be a 12 or 24 month L/O. I have a couple of people who insist on just buying it outright. They are willing to give me my price, but will not consider a L/O of any kind. I don't want the have the gain taxed as ordinary income, since I've only owned the house < two months. Any ideas??? Thanks, Vito

No it's just that I have on occasion not followed all the rules of thumb and still it all worked out well. I think sometimes being too rigid with rules leads me to pass on deals where I would have made decent $$$. For example, I recently acquired a house that was not discounted as much as most people would generally advise considering the mkt. in my area (strong buyers mkt). My rent necessary to cash flow was going to have to be 25% above the avg. mkt. rent. and I was marketing in the middle of winter. Anyway, I sold the house on L/O for 21% higher than the avg. price per sq. ft., and had people banging on my door to pay 30-40% above mkt. rent. I ended up walking away with about $35K profit. I think it's way too easy to say "oh this isn't a good deal" if everything is not perfect and walk away. And for many people this means leaving substantial profits on the table. Just my feeling on it. -V

Just curious, I would like to read stories of times when you thought you may have overpaid for a property, knew you were pushing it on the amount of lease payment necessary to cash flow, house was in a less desirable location then the other houses in the CMA, etc. But for some reason your gut said go for it, and it worked out to be a nicely profitable deal. Thanks, V

I would like to know why you don't use the system any more. Did this ever get answered? Thanks, Vito

This type of stuff really irritates me, because it puts all investors, particularly rehabbers in a bad light and makes people suspicious of us. It's only a matter of time before some lawmaker will introduce some bill to make our lives harder because of these idiots. It's really too bad. Why can't people just have integrity and learn to make an honest buck. -V

Adam, Thanks for the great reply. When it comes down to it I guess my only real reason for becoming an agent is to have MLS access. I know that's lame, but the issue for me has been in areas where I am not as familiar with property values. I just need to do a better job of networking with agents to get them to provide the information for me. It sure would be great to just sit down at home and look up any property on the MLS though. Regards, V

Adam, Congrats!!! Can you give a few more details on how this worked for those of us who are newer to this. I really didn't understand what you meant below. Thanks so much and again congrats!! -V

I have done research that suggests (IN MICHIGAN), if you are a real estate agent, you can not sell a house without your broker being involved. If I become an agent how do I go about selling my personal investment property (sandwich l/o or otherwise) on a l/o without involving my broker? The reason I am asking is because on occasion I have considered getting licensed just for access to the MLS and other stuff that agents have access to. I don't want to give up my right to sell my own investments without a broker getting involved. Thanks -V