sell4freedom

Ok, Here’s a situation. I am just now returning to real estate investing after being gone for several months (started another business) . I began e-mailing FRBO’s from the paper and various websites. I even got a few potential leads that I’m working on right now. Last week I spoke to an attorney about what I plan to do as far as Coop Assignments. He told me that if there happened to be an eviction involving a lease option, then the normal eviction process would not apply (in my area). It would actually have to go to a higher court with depositions and the whole process could drag out to over 6 months. My question is, in a CA, how do I protect myself and the seller if they have to evict a TB ? I know I should disclose this type information to them and I know I should probably have a certain clause in the contract specific to this situation. I just don’t want any surprises down the road. Any advice as to what I should say to the seller and what I should put in the contract? Thanks, Patrick

Does anyone know where I can get more information on the Sub3 form of investing? I've been searching the internet with no luck. I've even been to David Alexander's site , sub3webtraining.com, but couldn't find any information about a specific course. I think I'm becoming obsessed with finding this course. I would very much like to learn this technique. Thanks Patrick

Thanks Michael.

Last night I sent out 15 e-mails to FSBOs on Craigslist basically asking them if they'd be interested in a Lease Purchase. So far, I have received about 8 replies. Two out of the 8 are curious, so I will follow up with these today. I noticed at the bottom of the craigslist ads: **it's NOT ok to contact this poster with services or other commercial interests Has anyone here had an issue with this after they've contacted a seller? Thanks, Patrick

You're probably right. Thanks Hassan!!

Hello everyone, I have been actively pursuing CA deals for the past several months and recently have been working on a couple of potential deals. Most of my advertising has been at the hospital in which I work. It is a large hospital with over 4,000 employees. I have been placing my ads on the hospital's intranet swap shop and have been receiving calls. Well, I was making progress until another employee had a bad experience with someone else trying to set her up on a lease option. So, she placed an ad on the same swap shop telling everyone to be aware of services such as these. Since then I haven't been receiving calls on my ad. I'm the only one advertising lease option services on the site, so it looks as though it was me that set her up with a bad tenant. Here is the exact ad she placed in the swap shop: "If you are considering letting someone "make your life easier", by doing a lease/purchase contract through one of these agencies, please do some serious research. And remember, if it sounds too good to be true, then it's probably not true I am still paying for the repercusions of a deal gone bad. After legal fees, almost a year of making the mortgage payments and having to get the repairs fixed after the deal went sour I implore you to DO YOUR RESEARCH. Consult your attorney and by all means do the back ground search YOURSELF. My "approved" applicant with a flawless work history ended up being a drug dealer with a terrible eviction history. He also had only worked for his current employer for 1 1/2 yr as opposed to the 12 yrs the "approval dept" supposedly confirmed. Trust me, you don't want someone like that in your house. Absolutely EVERYTHING had to be redone, replaced or fixed. In our case from the ceilings to the floors, plumbing, doors. This was only after 7 mos. It had been painted before he moved in with some new flooring. Every bit of it has to be re-done. If you would like to know more about my experience, I will be glad to share it." I was thinking about placing a rebuttal ad telling everyone that it wasn't me who did this. Can someone think of a clever rebuttal I can use to put on the site? Thanks, Patrick

Does anyone here offer a home warranty to their potential tenant/buyers in a Cooperative Assignment situation? It seems that this would make both the buyer and seller more comfortable going into the deal, knowing that the buyer would be responsible for the maintenance and repairs. By the way, I started making my first phone calls to FRBOs two days ago. I set a goal of 5 calls for the first day. My results were as follows: 1st call - Voice Mail: I did not leave a message. 2nd call - Voice Mail again : no message 3rd call - They wanted to keep their house as an investment. 4th call - no one answered - no voice mail 5th call - sellers said that they would be interested in selling their house through a cooperative assignment but they had someone who would be putting a deposit down on the house the following day. If that person did not show with the deposit then they would call me back. Well, I discovered that that person did show with the deposit. Patrick

Thanks for the advice. I will study the situation further to see what I can comfortably do. Patrick

Can someone tell me if the following is a potential deal? Seller is very motivated. 2bed/ 1 bath. House is brand new built last year. Comps are around $85,900. Seller said she'll take what she owes which is $79,000. Her payments are $575/month - 30year 6.75% conventional. Area is pretty stable and has not depreciated. We're expecting a big population increase in the next 2 years due to a another big company moving in. I asked the seller if she would be interested in a CA and explained the benefits but she wasn't open to the idea. Can I do anything with this? Thanks, Patrick

Thanks MC and Steve. I need to look further into this. I'm in the process of checking out prepaid legal. Patrick

I'm hoping to be doing CA's very shortly and was wondering if anyone here knows of any state laws against having the tenant/buyer be responsible for maintenance and repairs? Specifically for Alabama. Thanks, Patrick

Thanks for the info MC. I am located in Huntsville, Alabama. Although we are in sort of a buyer's market right now, it's still not as bad as the rest of the country. Patrick

OK, here's a hypothetical situation that I'm trying to figure out. 1. I'm doing a Coop Assignment and the seller wants full market value for their property.. 2. I, along with the seller's approval, increase the purchase price to compensate for the option consideration 2%-3%. 3. Also increase the purchase price to compensate for 12 month appreciation, ( assuming 4% appreciation in one year). Now, how do you know if the home will appraise for the increased amount of the purchase price? Generally, do most homes appraise for the asking price, if it's reasonable? If it does not appraise, what happens then? Can the homeowner and/or the tenant/buyer sue me? Or am I out of the picture since I assigned the contract? Thanks, Patrick

Thanks for the info Michael and C. I am in the process of searching through the archives now. My plan for this weekend is to place an ad on my employer's intranet for tenant/ buyers. My goal for Monday is to call 5 expired listings and see what happens. Thanks, Patrick

Hello Everyone, Does anyone here only do Coop Assignments? If so, how do you approach a seller. What is the best way to try to convince them to do a CA? I've been looking for advertising material and scripts. I do have Michaels course and it is wonderful. I've also been searching the archives. I'm just looking for some additional info that is strictly CA related. Me, my wife, and our future child will greatly appreciate any information you can give us. Thanks, Patrick and Anna