Mr.B

BEV I would call around your town to different property management companies and find out what they charge per month for their services. Since this is basically what you will be doing for him. I don't know if you need any licenses to do that kind of business, but you may want to look into it. The biggest problem that I see with this is finding a tenant that is going to be willing to "pull up the tent stakes" at the drop of a hat. I know if I was looking for a place to rent and was told "I would like to rent you this house on a month to month basis, but I am trying to sell this place so you may have to move with thirty days notice at anytime after you move in." I wouldn't do it, personally because I hate moving. You maybe able to solve this by advertiseing it as Short Term Executive houseing. Then make sure that the person moving in is just that and not a family trying to settle down somewhere. Maybe even advertise it to Corporations in your area. Anyway enough babbleing from me good luck and continued success to you. ~Mr.B

In this situation you make the rules, don't forget that. I am assumeing with that kind of equity you are thinking about doing a sandwich lease option right? If so, I would ask for a one year lease option with a right to renew the lease for five, one year increments. That way you can control the property for six years if you choose, but are only locking yourself into a commitment for 12 months at a time. If something unforseeable comes up and you no longer want to deal with the property you can choose not to renew. I would also would not offer anything above market price, infact since they are behind in payments I would ask for a discount. I would be nice and let them know your happy that you have a solution for their problem. Good Luck ~Mr.B

MC its funny how you can almost give something away and still have people trying to get something for nothing. Let me ask everyone here a question. If I told you that if you could come up with a hundred dollars, and in 30 to 90 days I would pay you back 3000 - 11000 dollars could you some how come up with the hundred bucks? I don't think anyone would have a problem finding the money. I think you guys should do some research into other real estate guru sites and find out how much they are charging for their courses. Then factor in that any help or advice after the purchase is likely to cost you 20 times more than that. I don't know what I'm trying to get at I think Im just grouchy. ~Mr.B

Basically with Michaels Contracts the difference really is to whom the terms favor. In a Cooperative Assignment, the contract language favors the Home Owner. These include a Lease, an Option to Buy and a separate Assignment Contract that assigns both the lease and the option to the tenant buyer that you have found. In a Sandwich Lease Option, the contract language favors you. The contracts are a Lease and Option to buy. I would HIGHLY recommend spending the money for his course. Not only will your recieve invalueable information to help you get started, you will get all the necessary contracts that he has painstakenly went over to make sure your protected as well as possible. With the money you will save buying this course over the majority of the others out there you can easly afford to have a Real Estate Lawyer look them over to make sure they are compliant with your state guide lines. The best reason to get involved is all the free help and encouragement that you can get here on these boards. Good Luck ~Mr.B

You said Beaver Water ~Mr.B

I totally agree, I think the best thing to say when people ask if they can pay some now and some later would be to say, "I'm sorry my seller must have all the option money to pay toward the home they are buying and moving into." Since you most likely won't be doing business with them anyway, it doesn't really matter. ~Mr.B

http://www.vonage.com "Our records indicate you cannot keep your current telephone number!" I hate my crappy little town. I'm planning on moving the beginning of next year to the big city YEEEEHAWWW. ~Mr.B

Adam thats great! It sounds like you have found a real bargan "dream home". If your not really happy with the place you in now, I say go for it. If you are happy with where you are now, remember houses are just inventory. ~Mr.B

Thanks Dean, I have heard of internet phone, but I'm not sure how it works or if it would be available in my small town. ~Mr.B

With the way you are moving houses it might be a good thing for you. If the realtor is doing pre-screening, I would probably take her up on it. It would free you up to do other things. I would just make sure and ask her if she does a credit check and asks the appropriate questions. (Like do you have Option Money?) Otherwise, they may not be saving you all that much time. Just my Opinion ~Mr.B

My personal opinion, NEVER count on appreciation to make you money. You never know when the market will turn on a dime. If that sounds extreme, then I got my point across. ~Mr.B

Because they depreciate in value, getting financing on a Mobile Home has its own special set of challeges. I would make sure that you have one or two source that are willing to setup financing on used MHs in your area before you attempt to L/P one. There are some books available on investing in MHs. One is called Tin Can Alley and there are a few more. I would do as much research as possible before getting involved in MHs.

Yea you're lucky. There is an area in Jacksonville where on one street a two story 4 bd 2.5 bath sells for around 100k and less than a half mile away that same size house is worth around 1 million. ~Mr.B

Is this the first thing out of your mouth during the phone call, or have you built some rapport first? Doesn't really matter, the point of making this statement isn't nessecarly to get the home owner to jump right on board. It more to get them thinking. Nothing in that statement is decieveing or untrue. Its already been discussed here how to show the homeowner that they WILL net many more thousands of dollars doing a L/O than they could if they sold it themselves or through a Realtor. Well maybe thats what it sounds like to you and maybe if someone called you with this line you wouldn't respond to it, so don't use it. I personally think its a great line to use. But, if it doesn't "sit right" with you then don't use it. I was just offering a suggestion, if it doesn't work or apply to you and your style so be it. Good Day ~Mr.B

Honestly, when I first read this post I half expected to get to the end and see: If you want a really professional looking website at an affordable price email me at: hungry@webdesigners.com hehe Informative post though. I had dabbled in web design using Dreamweaver so I get a lot of what your saying. Especially about Monitor resolution very aggravating. Good Luck with REI maybe once your successful you can do what you love and not worry wether its paying the bills or not. ~Mr.B

You bring up a good point GL. I really think presentation means everything. Saying: "I saw your Ad and was wondering if you would sell your house on a Lease Purchase?", is not nearly as effective as saying something like: "Mr. Seller I'm looking to pay top dollar for a home in your Neighborhood, if I could possibly pay you MORE than your asking price would you consider selling on a Lease Purchase? See the difference? ~Mr.B

You're Right I haven't done a deal yet but if I can turn a sellers no into a yes by offering something that handles their objection why not do it? Not everyone will be begging you to L/P their house for them, but some might if you can handle their objections effectively. Why miss out on that money if you don't have to? All of the things that I am trying to incorporate have to do with L/Oing. I'm not really looking to branch out anywhere else. Anyway, I don't think that I'm over complicating things I'm just looking for ways to help the buyers and sellers be successful. ~Mr.B

Sorry to tell you this a L/P can trigger a DOS Clause. Is it more likely with a Sub2 versus a Lease / Option? I'm not sure as I stated I'm not an expert I mostly regurgitate things I have read or listened to. ~Mr.B

Im not an expert on either, but I will toss in my 2 cents. I think there are advantages and disadvantages to both approaches. Sub 2: Advantages - Strong (legal) position, greater protection from seller backing out. You own the property, instead of just having principle interest in it. Disadvantages - Can trigger the Due on Sale Clause, Seller must accept loosing control (ownership) of the property, Seller looses tax benefit. Harder to sell the idea to the homeowner. Lease / Option: Advantages - Seller retains ownership, easier to sell the idea to the homeowner. Less liability, Due on Sale not a problem (unless Seasoning is an issue). Disadvantages - You don't own the property, your position is only protected by a Memorandum of Option. Now there are things that you can do to strengthen your position such a using a Performance Mortgage and getting Limited Power of Attorney for the property. All that being said. A lot of people here like doing what we call a Cooperative Assignment. Where we get the House under a Lease / Purchase then find a Tenant Buyer and assign the Option and Lease agreement to the Tenant buyer. We take some or all of the Option Consideration as an Assignment fee and we are out of the deal. Its like flipping Lease / Purchase deals. Making a quick 2-11k for putting the deal together. I could be way off but thats just my take on it. ~Mr.B

A Title? How about, "Falls Ass Backwards into Deals!" ? Just Kidding I'm just jealous. It sounds like your having great success. Good luck will all these deals your working. ~Mr.B

I'm thinking of adding an A,B,C presentation to the interested seller. There are some idea's that I have been tossing around that I have gotten from various sources in REI. One that I think I will offer that fits your question would be if the owner is concerned about the T/B missing a payment or paying late you could offer to put a months rent in escrow, using some of your Option money. This way the seller can check to make sure that the money is available when ever he likes, it would give him some protection and hopeful end that objection. Also I think what I try to get for Option money will depend on my level of involvement. If Im doing a CA where I'm in and out I would be very happy with 2%. However, I'm doing a sandwich there then becomes a risk of holding the property since your obligated to not only make those monthly payments, but also guarenty the maintenance on the house. In this instance I would try to get as much option money as possible to offset the risk involved. ~Mr.B

Generally Sales are for Property as described the land and anything attached to it, a house, apt, parking lot etc. If the house is a shack that resembles an outhouse you may have a hard time finding anyone that would lease purchase it for 250k. Unless they are a developer or contractor / builder that plans to do something with the property other than live in it. Does that make sense? ~Mr.B

I have heard a good suggestion as far as terms. Ask for a lease for 12 months with the right to renew for 4 one year increments. This way you will have the right to renew the lease each year, but if you find that you do not want to purchase the house after all you don't have to renew after that 12 months. Also make sure that you have the right to assign your Option if you get to where you cannot purchase the property yourself after that 4 years you could always assign that Option to a buyer for a nice assignment fee. I'm Looking to do this myself when the right property comes along. Good Luck ~Mr.B

Mr.B <------------------- Lives in Florida. :ph34r:

Jay I think that is a government funded project that helps low income people afford houseing. You must first have your "Rental" Section 8 quailifed. If she is looking to purchase this home you may just want to ask her if she will be able to make the full mortgage payment on her own if she can even qualify. Then again, this may be completely inacurrate. See signature. ~Mr.B