JordanLaubaugh

+10000. That's the perfect mindset sir. I have been having fake conversations out loud while driving. Seems to be helping. Thanks again.

I've never had it happen to me personally but a friend of mine owns a title company and has told me about this sort of thing before. I am guessing the situation is just he has a simple option with the seller at $135,000 and has a buyer at $150,000. Or number roughly around that and the buyers bank as you said is not wanting to pay the extra $15,000 to some random dude in their eyes. I don't know any way around it. From what I have heard some banks will have a problem with it and some will not. Tell the buyer to look for financing from another bank would be my best option. Or have him speak directly to the bank and state his case. Both make sense. I'd try talking to the bank first. Sighting his equitable interest in the deal and his recouping of marketing costs, etc. Be careful using the word fee though.

So i think cold calling is gonna be the next phase of my marketing that I launch. To be honest I am pretty nervous about starting to cold call. I wish it was one of those things I could hire out. But I know it isn't. I am planning on logging all of it on here for humor,

Thanks Michael, I still see quite a bit of work to be done with it. But I am only planning on having 5 pages. I agree that it is only one part of my marketing scheme. The business cards are in the mail. I plan to start cold calling this week. What do you guys think of the 7 day guarantee I put out to sellers. To have an offer in their hands within 7 days? It really doesn't mean a ton on my end. but I think it might be a good hook for sellers going to the site. I am giving myself $600 to get this started. Or at least hoping that that will suffice. The website I was planning on spending $400 to have someone design ended up costing me nothing now and $10/month from now on. (although I think I might upgrade to the $20/month package to get 5 email addresses on the site instead of one. and more than 5 pages). So I saved $400 of costs on the website so that was a nice touch.

hey thanks those are nice websites. Can you comment on the traffic? Do you derive a good amount of deals from it? Or at least contacts/leads?

Hey guys, I just had this website set up and would love it if some of the pro's around here would shed some input into what I should have on it for content. It is just a part of my marketing campaign of some place sellers and tenants can be driven off of my advertisements and get information. Here is what I have outlined as being important. Please feel encouraged to add and shed input on what I've written. 1. Home page: I am kind of at a loss here because all of the ideas of what I would put on the home page would make more sense under the about us page. 2. About us page: A page about the company. Maybe a look into the surface of lease purchasing and how it is advantageous for both buyers and sellers? 3. Seller's page: A page designed to draw in people who have a potential house I could lease purchase. Give them all the information they would need to do business with me. 4. Buyer's page: A page for tenant/buyers to get information 5. Contact page That is all. I was thinking of putting up a Buyer/seller faq about it. But more likely I will wait 6 months or so until I have a solid idea of what questions to add in. Anyone want to shed some insightful thoughts on this website I'd much appreciate it. Also if you'd like info on how to set up your own let me know. It was ridiculously cheap and easy. It's costing me $10 a month and is about as difficult to setup as typing in MS word. http://www.laubaughproperties.com Thanks a million, Jordan

But with anything like Lease/Purchasing deals I would have an interest and therefor not need a license. But then several other parts that I'd considered I would most likely need a license. I am in Michigan. I guess I'll speak with an attorney to get clarification.

Question, Operating a Property Management Company (that conveniently specializes in Lease/Purchasing, but that also offers other services, like managing rentals, prepping and staging apartments for in between rentals, and other services along the same lines. Would I need any licensing for all this?

Thanks JR. I am not sure but I think I briefly read on the state's site where I can bring in another company into a new or existing LLC. This would help with existing on-going SLOs. It is really just a name change though. I will have re-read and get more info. Hey Jordan, didn't mean to squash your post. Lol no problem man, Always love information changing hands. Doesn't have to be with just me.

lol, I read this for about 10 minutes confused as hell til I realized there was a post above it that you were referring to... Anyways....

I agree man, The LLC isn't specifically for doing L/P deals. It's the front for a property management business I am starting. That will hopefully encompass a lot more than just L/P

Dear fellow members, I have been considering incorporating for a few weeks now. I have since begun the process. I'll start this post off with a few warnings. First, it is not easy to set up any type of legal entity. You have to pick a name. I don't know about you guys but I have spent hours trying to find a suitable name for my entity that is business(y) and cool. Apart from picking the name though it is pretty easy. Here are the steps I took. First step: Deciding which legal entity to use? As I was going to be the sole investor I had to choose between a Limited Liability Company, a Sole Proprietorship, and an S-Corp. I chose LLC because it is basically the easiest and most common. S-corps aren't hard but you have to file a C-corp and then apply for S-corp status. Second Step: Filing the Articles of Organization (or Art. of Incorporation for S-corp). This is a painfully simple form to fill out. You can get it from your states website. http://www.michigan.gov/dleg/0,1607,7-154-...6737---,00.html (If you are unable to find it let me know which state you are in and I'll try looking it up for you) After you fill the form out you need to submit it. You can mail it in or drop it off in person. The address is at the bottom of the form. There is also a small fee (Usually around $50 that you have to mail in with the form) As of right now, I've completed this second step. It's all you have to do to set up the entity. There are things that have to be done to keep it "legally enforceable" that I will post more about later as I start doing those things. I will also expand more on this post when I get back later. ***Disclaimer: This is not legal advice from a legal professional. Should you be seeking legal advice you should contact your attorney or CPA.

Package got here. Nice work on shipping I'd say that was a $97 shipping job. I look forward to using it and sharing thoughts on here about stuff. You seem to back the book up with active forum participation so that is a plus already to have the author around to answer questions that come up. Nice work you. Jordan

Hey have you heard of Jason Loucks? I think he is a RE investor from South Florida as well.

How happy am I gonna be with this?

Jason has a pretty good course. It is a variation of Bill Effros' How to Sell Your Home in 5 Days. But then again, I think most all of those who are teaching what many refer to as "round robin" sales, or "round robin auctions" have based their methods on Effros. All, of course, have put their own spin on them. regards - Bill Yeah I had heard of Effros. I think he mentions him in the course. He just said 7 days is better than 5. That's what their research has concluded. Who knows. WHatever works for the market.

He put together a pretty cool course on how to sell houses fast. Called the 7 Day Sale Event.

gotta agree with you here. Seller is motivated though which is why I am considering trying to work something out. You are from South Florida Michael do you know or have you heard of Jason Loucks?

$1400 would be real steep. Only way I could pull that is if it was close to the city colleges which it isn't. A Pure Option would be a doable route. But even then they are gonna have to bring $15,000 Plus to closing. Which could be a big problem I think. I guess under the option that'd have to be specified. But she has said she wants to close the first week of june. So If I can market now and find a buyer for around $95,000 and get her to sell for $88,000 and they both pay their own closing costs. But I don't know if I am making enough money off this to make it worth the time.

latest emails ---------------------------------------------------------------- Email I responded to her with Andrea, Thanks for the additional information. That kinda brings into perspective what our options would be. #1. If you sell the house for $90,000 are you just going to pay off the extra $15,000 on the mortgage or keep making payments on that amount or refinance? What are your plans there. #2 what are your monthly mortgage payments (principle and interest)? If I could take care of your mortgage payments while you continue to own the house with me having something like a 2 year option to buy would you consider something like that? Terms on these are very flexible. It's what is called a Lease Option and is getting very popular in our declining market here in Michigan . Given the numbers here for me to buy your house outright wouldn't make much sense for me. However there are other options when you're in my business. That is why my niche is called Creative Real Estate Investing. Now this is a really easy process once we agree on the terms. Your response isn't going to be binding in any way but if you'd want to look into it with me we could discuss it some over the next couple weeks then meet in June to sign some paperwork. Let me know how any of this sounds or if you have any questions thanks. Jordan -------------------------------------------------------------------------------- email she responded with Jordan, When I sell this house in the next 60 days, if I can sell for 90,000, we’re going to pay off the extra 15,000. I don’t want to continue working with my current lender, or paying at the current rate 10%, which actually just came down from 12%; it’s ridiculous. I bought this condo for my mother, she’s since lost her job, and I can’t afford to keep paying the note for her. My last payment on the larger part of the loan (it’s an 80/20 with adjustable arms to make matters worse) was $1172.00; $45 went to the principal, and $766 went to interest. $360 went towards escrow. The smaller monthly loan payment is $237. I know I can get a better rate, and that’s why I refuse to keep paying these ridiculous interest rates. If I refinance the loan, I have to pay the difference in market value, and then I’m still stuck managing this property from Florida . I’m trying to focus on my job, and the bottom line is, I just want to sell this house asap. Andrea Judging by this new opportunity I don't even think a CA will work on it. Monthly payments are too high and variable and seller just wants the house gone. But they will pay the extra 15k in debt off.

I don't know what the sellers plan is for the spread between what they are asking and what they owe. $15,000 spread. I asked waiting to hear back if they are just gonna pay it off themselves or refinance it or what. Not my problem.

Not a stupid question at all. My plan would be this. Sign a contract with the terms as followed. Purchase Price $90,000 Monthly Payments $800 Purchase Window 2 years Monthly Price Credit: $75 Then I would find a tenant buyer willing to pay those terms. Require $2700 for Option Consideration. Close the deal and walk away with $2700. Then never pay another thought to it until the seller contacts me in 2 years asking me to do it again. Everyone gets what they want.

So this is kinda like a double closing or something? I get the option signed under the terms. Find a T/B who will pay agreed payments and purchase price. Collect a Few $1000 option consideration and bail hard? Sounds good. Might consider that.

With a Coop Assignment, I would be picking up an option consideration of a few thousand probably and 0 monthly cash flow? and also 0 ties to the property after closing?

Here are the emails that have been exchanged. This lady was a hit off my craigslist ad. ------------------------------------------------------------------------------------------ First email from her. I am looking for houses in the Grand Rapids area. Downtown, East, West, South, North makes no difference. I am mainly interested in 3 bed/2 baths but I would consider others. I am not a Realtor. If you have a house that you want to sell please email me the following information. Address: **** ***** Grand Rapids, Mi Asking Price: 90,900 Value of House: 94,500 based on comparable market from multiple Real-estate Agents When you would want to close: June 12th 2008-July 30th 2008 Reason For Selling: Can’t afford the mortgage payments anymore, and lender won’t lower the interest rate Basic Idea of Repairs Needed: nothing, shows like new- beautifully taken care of Basic Info of House: located in Grand Rapids, Mi within Forest Hills School district- West of East Paris, between Burton and 28th street. 3 Spacious bedrooms, 1 ½ bath, new carpet and fresh paint- contemporary upgrades with 1 (detached) garage. Breakfast nook & bar, living room with new electric fireplace, master bedroom connected to bath, slider & deck with wooded view off main living area, finished basement with daylight windows Feel free to call me @ ********** for more details. Andrea ----------------------------------------------------------------------------------------------------- My response Dear Andrea, I was able to go through all of your information. The house sounds good and I would be very interested in coming to see it sometime perhaps next weekend if that works for you. My name is Jordan Laubaugh. Your situation sounds exactly like the type I normally deal with. Sadly in our market today mortgages are a huge problem. If you don't mind my asking how much do you owe on the house. There are sometimes things we can do with the financing to make the deal work on both ends. If we are able to meet next saturday to see the house and maybe talk some specifics on a deal that would be great. Let me know if next saturday works for you and what time. Also, is the house listed? Thanks so much for the information. And if saturday works for us both I will call you later in the week to confirm. Have a great day. Jordan ----------------------------------------------------------------------------------------------------------- Her next response and where we currently are at in my decision making. Dear Jordan, Thanks for your response. Here’s the deal. I live in Fort Myers , FL and I’ve been talking with a realtor in the Grand Rapids area, which we plan to list the townhouse through, but not until the first week of June, since we currently have a tenant in the house, and I don’t feel comfortable listing the property until it’s ready to show. Not sure if I mentioned it before, so I want to be clear, this is a townhouse. My tenant is scheduled to move out the first week of June, which is the end of their lease. I’ll be in Grand Rapids that entire week; I want to go in and touch up the point, do a thorough cleaning etc. after my tenant has moved out. At that time, we were planning to list the property on the MLS through our agent, (which by the way, we haven’t officially contracted with yet). However, if we have a potential buyer (like yourself), I would love to show the property myself and see what we could work out. I owe approx 105K still on the house. If we could sell this property for around what we’re asking, we could close fairly quickly. Let me know if you’d be interested in meeting with me the first week of June, and I’d be happy to take you through the property and discuss our options. Andrea ----------------------------------------------------------------------------------------------- I still plan on going to look at it saturday. My problem is they owe more than it's worth. So I can't really get a discounted price. They are also asking 15k less than what they owe. So I'd say pretty confidently I could probably get a purchase price of around 87,000 hopefully less but we'll see. Is this something I can lease purchase out and get some money and a potential cash flow deal out of. I plan on responding to her to get some info on monthly payments so I'd know what I'd have to deal with as far as that. Any input everyone wants to chip in would be greatly appreciated. And if this is just a non-deal go ahead and throw that in.