BDRICH71

Ok, thanks for the answers! Everyday's a school day! Brian

Just a quick question.. probably an easy question too. What if the seller has an owner occupied loan, which they most likely will, and we do the lease option thing and find a tenant/buyer for the home. Couldn't the lender potentially call the loan due if they found out the seller was renting the home out? Brian

OK..sounds good... Do you think it would affect the value of the home if the backyard is not finished? Should I offer some incentive for that to the buyer? All it needs is sod. Its already fenced.

Comps are looking around $135,000 to $140,000.. Her neighbor sold her house for $146,000 but she said its nicer, so she decided to try $140,000.

I'm looking to do a CA on it. I found out she owes $117,000 and bought it in late 2001. Brian

Yeah I guess I need to get more info on it.. I dont think its worth more than $135,000 though.. if that. There are properties around it that are selling for that which have 3 bedrooms.

I've got another deal that could be in the works.. but I'm not too sure I could move the property. Its a 2 bdr/ 1 bath house..built in 96. Kinda small, but has an unfinished partial basement, where there could be a third bedroom. The backyard is unfinished..meaning there is no grass, but there is a fence. Her payments are kinda high too ($975) and she is asking around $140,000. I'm thinking she would have to go quite a bit lower than that though. She did say that if someone could only afford $900, and they were the right people, that she would pay the difference. I thought that was interesting. So she's pretty motivated. Just don't know if this is a good deal or not. Kinda leary of this one. Brian

My marketing plans include an ad in the paper.. (rent to own) and some signs around the property and one on the property. and some flyers in various grocery stores. any other ideas?

Well my first CA got signed, sealed and delivered today! Now its time to market. Also, a common question I'm getting from people is what happens if the buyers skip out.. who pays the payment then? They seem to have this common concern. Is there a good answer to make them feel more at ease? What is everyone telling the sellers about this? Because in a CA, we are out of the deal. So what should I tell them?

How do we handle the option deposit that we keep and the sellers asking price? I mean lets say the sellers price is $145,000. Then the T/B gives us $5000 for the option deposit. Well won't they think that the deposit would go towards the purchase price? So then they should pay $140,000. But the seller doesnt know this. Or is he supposed to? Wouldn't he then want part of that money or all of it, if its coming off his asking price? Hope that makes sense.

Great input.. thanks again guys! had another meeting today with another seller... He wants to do it as well. Very easy sell there. Just need to run the numbers and sign.

Ok thanks for the input. Now as for him signing the agreement, I'm considered the T/B right? So I could in essence sign the agreement with him to get the property, then go and find the new T/B and assign the contract over to them? Forgive me if this sounds trivial, but I'm still learning how this all works.

Well I just recently purchased Michael's manual. So while I wait for that, I'm out calling FSBO's like crazy. I met with a seller tonight.. really motivated or so he says. I'm thinking of doing a CA with him. He wants to go this route and wants me to bring people over to see the house but the problem is, he doesn't want to sign anything until he gets a tenant/buyer to accept his offer. The way I see it, I am the T/B until I assign a new one correct? So I could actually tell him, the deal is done and I will work the terms and close it? Then go find the T/B and reassign back to him, right? Another question, what happens if the seller is staying in the home while you go show it to potential T/B's? Does this happen frequently? What if the T/B says something in front of the seller such as "how much do you require for a down payment?" Then wouldn't the seller be thinking, "yeah gee.. I need a down payment!" Anyway just a few questions.. The numbers play out like this.. 5 bdr 3 bath, asking $235,000, payments are $1,050.. could probably get him around $1300 a month in rent.

I'm in Utah and was looking on the utah commerce dept website in the real estate division and found this: PROPERTY MANAGEMENT LICENSE License Requirement - All persons who, for another and for valuable consideration, engage in property management must hold a current Utah real estate license to function as a property manager. Property management is defined as providing the following services which may include, but are not limited to: Advertising real estate for lease or rent. Procuring prospective tenants or lessees. Negotiating lease or rental terms. Executing lease or rental agreements. I was just wondering if anyone might have thoughts on this... it seems like according to this outline, that I need to get a license to operate in this area. Brian

I appreciate everyones feedback. I'm actually using some contracts that are very simple in form. A friend gave me these from his Carlton Sheets collection. But I plan on buying Michaels package here real soon, so I can get the complete know how. Anyway, thanks again. Brian