vballdarin

I hear ya my brotha.... I just recently got into a little battle on the Trulia.com forum with a Broker from California. He said that what we were doing required a license, was shady, and that "why would anyone want to do a Lease Option"...etc, etc. After he copied and pasted the California rules and regulations about what "he" thought I was doing, I referred my "somewhat unfounded" concerns to two other friends here on the Naked Forum. Simply stated here is what they said: "Here's what I say: "I own the Option. It's mine. I signed the Lease. It's mine. I can -- with the seller's permission -- assign those documents for any fee the assignee and I agree on"." When I'm talking to tenant/buyers, I tell them that I may be able to find&acquire a house for them to look at. That, to me, should cover all bases as it gives it away that i'm the principle in the deal. I'm finally starting to like NOT having my RE license while feeling very confident in defending my position to currently licensed agents. Knowledge is POWER!

Many courses teach people to ask for as long a lease as possible. (usually 5 years as I was taught in the Rich Dad Education Classes) That way you can have the ability to put more than one tenant/buyer in the house in case the first one doesn't exercise and have more of a possibility of appreciation (if that even exists anymore). I guess it's the kinda "basic structure" of a Lease Option...Ask for 5+ years....hope to get 2-3. He may be targeting the people who just want someone...anyone to come in and take over their financial problem. I would think that he's not going to get too many takers if he insists on a minimum of 5 years though. Just like everyone else on the forum, I've been finding it difficult to negotiate anything more than 12 months ~~~>(turns into a CA). Darin

Just wanted to wish you a Happy Birthday. Thanks for all your help and posts on the forum. They've been extremely helpful in my "learning the business". Take it easy today Buddy! Darin

Hey there SteveK... There was a topic back in September 2008 where MC and the folks explained it a little more. Use the search feature on the forum ( "showing the property" ) or search back through the postings under the Marketing forum for CA's. Here is one from 2005.....Here Hope this helps. Darin

Happy Birthday Man! Welcome to the 30Something's.

As long as I can get some deals under my belt before December 21, 2012, that's the only date i'm shooting for. So when signing up Tenant/Buyers.....What happens when they ask me to sign a lease for a date AFTER the day the world is supposed to end? I guess the Option Consideration is TRULY non-refundable then, huh? Darin

I'm starting to email FRBO's to find some CA's outside my area (in another state as well). (I've all but givin up on my market) I'm getting some responses but i'm finding it challenging to determine market value so that i'm not just wasting my time with someone who's unrealistic. I've used a couple websites MC suggested. Anything else I should do to determine an accurate contract purchase price to agree upon with the sellers? How exacting are all of you when signing up CA's? Should I just go with my best guesstimate, sign em up, do my marketing, and let the market/Tenant-Buyers tell me whether it's too high? Thanks, Darin

Thanks for the birthday wishes everyone. Unfortunately, my working 2 jobs caught up to me. I spent the day before my B-day in the Hospital getting 3 bags of iv fluid for exhaustion and de-hydration and my big 37th on the couch recovering and watching the Players Championship golf tourney. Thankfully i'm back working again and ready to give MC some golf lessons. (Or just to hustle some $$$ out of him)

Just want to take some time to wish all the mother's out there on the forum a Happy Mother's Day.

Just wanted to say Happy Birthday and thanks for all your help and posts. Make it a great day! Darin

Finally! I think found the link to what I believe was the interview you guys saw: http://www.foxnews.com/story/0,2933,513239,00.html THis link "MAY" happen to find it's way into my emails.

When signing up a Lease Assignment, do most of you use the state provided lease agreement (then add in an assignment addendum), or do you use MC's more standard Lease agreement and Assignment paperwork.

My Dearest Bev, Even though we are on different coasts............ "Ain't no mountain high enough, Ain't no valley low enough, Ain't no river wide enough, to keep me from getting to you baby!!"...... compliments of the Temptations. MC....... you said to try to "woo" her. Do you think this will work?

Happy Birthday Jh... I've learned soooooo much from MC and the rest of the folks on the forum it's unbelieveable. Don't let Analysis Paralysis cripple you. (TRUST ME...I WAS THERE) Take action first then if something comes about, just search for a similarly asked question on here or post a new one. MC and the gang are great about sharing and exploring ideas.

Hey there everyone... I may have the opportunity to write an article for our local newspaper partaining to L/O's. After reading an article today about the frustration of local buyers and Realtors concerning short sales, i shot a short message to the editor asking if I could talk to him about writing an article about Lease-to-Own real estate. I told him that it would tie into the short sale article as another creative/beneficial way to buy and sell real estate for those people struggling for solutions. The gentleman at the newspaper I spoke with had heard of Leasing-to-Own a car but never Real Estate. I'm going to be calling him next week to cook something up. Any other Investors on the forum have any experience writing newspaper articles? I know many of you have blogs and I have probably read most of them (Doug's piece on CA's, the late/great Bob Bruss and his columns on Real Estate Investing, etc) Any suggestions you would give to me in writing this article besides being fair and balanced (Just like FOX News... )

Nice find. At least I'll have a "few" more months to work the L/O's and CA's.

Hey there Thomas.... I've purchased Wendy's "Working with Realtors" system, i've attended a REIA meeting with her as the guest speaker, and i've spoken to her at length about many different topics concerning L/O's. I've tried doing this in my area with ZERO success. Don't solely look at my experiences because what doesn't work for some...may work for others. MC and others on this board have WAYYYY more experience doing deals but I figured that I would give you the gist of what Wendy teaches. Without going into too much detail, IN THEORY Wendy tells you to do this: Contact 3-4 quality listing agents: You can call them or send them some letters/emails and say something to the effect of: " I'm calling about your 123 Main street listing. I'm wondering if it's still available because it's been on the market for quite a while. Would your sellers consider something a little more creative such as a Lease with the Option to purchase? If they don't need their cash out yet but would like their monthly payments made, would like to sell the house, and you get your full commission, let me know. I know it's discouraging for you to spend all kinds of money on advertising then have the listing expire without any chance of you getting paid for your efforts. Instead of an expired listing, give me a call if/when you hear your seller say that "if my house doesn't sell soon, I may have to RENT it". I may be able to work a deal with you." You will also have to TRY to educate the Realtor as it refers to doing things a little more creatively. They are not taught to do anything other than find a listing, throw it on the MLS, wait for a fully qualified buyer to put 20% down and close in 45 days. You also have to remember that they look out for the sellers best interest (AS WELL AS THEIRS) The key is to play off the idea of...."Um, so what are your sellers going to do at the end of the listing if the house HASN'T sold or what happens when they say to you that they might-as-well just rent it out?" Here is the link to the Realtor's PowerPoint Presentation I've made that Wendy says you would give to a whole office. This is where you could network with them and try to start educating them on the benefits of Lease Options.http://www.scribd.com/doc/6082420/HHI-Inve...ion-to-Realtors NOW.... IN REALITY ..... It's virtually impossible to convince a Realtor. As it's been said 1,000 times on the forum before, trying to work with a Realtor on a listed property for a Lease Option is like getting oil and water to mix. They are not going to want to get paid their commission 2 years from now when we/our tenant /buyers exercise our option. Even if you tell them that you will "front their commission" in the beginning, you will get this look: Is it possible to work with a Realtor on a Lease Option....Yes. Is it probable to get many deals done as Wendy teaches....Maybe. Are most of us on this forum suggesting to call FSBO's and FRBO's and stay away from complicated deals involving Realtors........Absolutely. I think it was Adam King (MI), or Doug Pretorius who posted a comment on the forum about trying to work with Realtors with no success either. I'm sure that MC would agree that there is a WAYYYYY better chance of doing more deals without Agents than with them. I tend to feel more comfortable with the "Naked" way of doing things.

Thanks Ya'll. As long as I'm able to wake up each morning, open my eyes, breathe, roll out of bed, and walk to the kitchen.....How bad can it really be? There are people who can't even do those things. Just like Jimmy Valvano (Former NC State Basketball Coach) said: “To me, there are three things we all should do every day. We should do this every day of our lives. Number one is laugh. You should laugh every day. Number two is think. You should spend some time in thought. And number three is, you should have your emotions moved to tears, could be happiness or joy. But think about it. If you laugh, you think, and you cry, that's a full day. That's a heck of a day. You do that seven days a week, you're going to have something special.”

Hey there JR... Sorry....Took care of it at 9:00 am this morning. I understand your point of view that if i can't buy it i'll list it. Problem is that I don't have the time to devote to giving good client level services for a listing, on top of working 4-5 days a week as a Caddy and then working 4-5 nights a week as a waiter, all at the same time i'm trying to advertise as an Investor and return calls and emails. I would also have to battle the other 900 Realtors that live on our 12mile by 5mile Island (I would probably make $15,000per year in commissions if I went full time as a Realtor). I'm running out of hours in the day. I'm back to working from 8:00am till 10:00pm six days a week. I don't see any of my friends(don't have too many of those anymore), go to the gym, or have any free time for myself. The LAST thing I have time for is to babysit some guy's/woman's condo that wants more than the actual value. And I'll also be the first to admit that I not an expert when it comes to Real Estate Investing. I try to learn 1 new thing every day and listen to as many different points of view before coming to my own conclusions/decisions. That's why I LOVE this forum so much. Maybe it's a good ideal for me to ditch the license....Maybe not. But i'm going to make this decision and stick with it....Right or Wrong, Mistake or Not. Only time will tell. Questions I had to answer: Q: How are you going to pay the commission to Keller Williams when you do your "deals"? A: If I'm buying an investment property from a FSBO then there IS no commission to anyone...etc, etc. Q: But you HAVE TO go through Keller Williams for everything you do. A: Um....No i don't. It doesn't meet the criteria that you have set forth in your "Personal Transaction Policy" Q: Well, I don't know about that. That seems to be toe-ing the line don't you think. You need to go talk to the Broker before you do each deal, etc, etc. -------------------------------------------------------- Keller Williams Realty Hilton Head Island Keller Williams Personal Primary Residence Transaction Policy ***(NOTICE THAT IT SAYS PRIMARY RESIDENCE!!!!!!!!) Policy and Procedure  All Agents have the opportunity to earn up to 2 personal sides per capping year for which zero Company Dollar will be collected.  "Personal Primary Residence Transaction" is defined as any transaction with the agent's name on the Property Deed or the Transaction Contract that is their primary residence***(BUT IT'S AN INVESTMENT PROPERTY!!!!***). This will include any entity on the contract of which the agent is a principle or member participant.  Once the agent has paid in $6,000 in Company Dollar he/she will earn the first personal transaction.  Once the agent has paid in $12,000 in Company Dollar he/she will earn the second personal transaction.  For agents who have either capped in their prior anniversary year or for recent transferees who have sold at least $2.7M in closed volume in the last 12 months, the 2 personal transactions can be used at any time within their subsequent anniversary year without regard to the Company Dollar paid in.  Once an agent has met the above qualifications and IS NOT receiving a commission, they do not have to pay royalty. If the agent IS receiving a commission, even though they do not owe company dollar, they WILL owe royalty.  Once an agent has used 2 personal transactions, if he/she has not yet capped and would like to represent himself/herself as a listing agent on one or more personal properties, he/she must pay Company Dollar based on a 3% listing side commission. Buying side transactions are to be based on full commissions (minimum 3%) paid for calculating Company Dollar.  For liability purposes, all Personal Deals must be processed through the Market Center's system, regardless of whether or not commissions are earned. ***(YEA, RIGHT....NO WAY JOSE') -------------------------------------------- Q: I notice that you don't disclose your affiliation to Keller Williams on your website? A: It's not MY website. It is the LLC's website. I just do deals with the LLC. And i've mentioned on the website that i'm licensed. That's all I need to disclose. Q: No it's not. You need to say your an agent with Keller Williams. A: I"m not doing deals as an agent. I'm the principle in the deals and I hold the properties in the LLC. Q: So you hold monies in escrow with your LLC? That's Dealing as a Brokerage and you don't have a brokers lic.!! Is this LLC even registered with the state and do you have your business license to do this in Hilton Head? A: OK, listen here........ #*%(#@&$()&_*_^$#@(^_&%*#@&$%^^)^($#*%)&_*+&*)%*$#*. and these conversations have occured weekly. I'm mentally spent trying to appease everyone and anyone. AND I HAVEN'T EVEN GOTTEN MY FIRST DEAL COMPLETED YET! JR....your a better man than I. Something i've really started to learn lately is this quote: "I don't know the key to success, but the key to failure is trying to please everybody."

Time to blow off a little steam. (I figured that the Corner Bar was the best place for it) Tomorrow i'm going to see my Broker and tell him thank you for the opportunity for allowing me to try to hang my license with his company and try to be an Investor at the same time. Unfortunately, I am no longer willing to adhere to our Hilton Head Association of Realtors or his Brokerage's rules, regulations, and confinements. I will also be telling him that I do not want to be associated with the National Association of Realtors in any way, shape, or form POST HASTE! I've had to jump through too many hoops and answer to too many people that know less about Real Estate or Investing than I do. It's hard to soar like an Eagle when your surrounded by a bunch of Turkeys. The best analogy I can come up with, is for someone to tell you that you can drive their really nice car any time you want....BUT.....you can only drive in a straight line, you have to keep it under 35MPH, you're not allowed to roll down the windows, you can only use the headlights if you have someone else turn them on for you, you're only allowed to listen to 1 radio station at a certain level, you can only have passengers in the car if they are approved by the owner of the car in advance, and the the cost of filling it up the gas tank while I use it is going to be $9.50 per gallon. What's the point? There were only 2 reasons to keep my license. 1) Being able to do my own research and comps: TRUTH: Is it really worth $1800 per year to do it myself? With 1 phone call i can have someone else do it. 2) Hoping that people would see me as more legitimate and professional because I had my license: TRUTH: I've had to answer more questions and make more adjustments BECAUSE I was licensed. Not one person i've ever talked to said that they were more comfortable in dealing with me because I had a license. I look forward to dealing with the public and all those stories that i've read about on the forum who say they are going to call the FBI or the Real Estate Police because this or that. Those petty people who accuse us of doing deals illegally or brokering w/o a license will be a piece of cake. NOTHING WILL BE AS DIFFICULT AS HANGING MY LICENSE WITH A BROKERAGE AND DO MY OWN INVESTING AT THE SAME TIME. Thanks to all of you who have tried helping me on my "Quest" to do both. I'm going to be free to spread my wings and join MC and all the rest of you. My little rant/hissy fit is now over. Say Goodnight Gracie.................

I've posted this ad again in 2 different cities. Let's see what kinda results it pulls in. Do you find that people actually look at the "real estate wanted" too? I found that nobody was really calling or emailing me till I posted in the "real estate-by owner" & "apts/housing for rent" categories even though my ad read ***Wanted...etc, etc.

Ok... I have a very good potential tenant/buyer who is looking for a Lease/Option with terms such as $550,000-$800,000, 1-2year term, 5%option consideration, must have pool (or potential for a pool), and wants it for a 2nd home. (They don't quite have the 25% downpayment for a 2nd home yet but don't want to miss out on deals that may not be here in 2 years). I have not had them do an application/credit check yet. (I have emailed them pics of the house to see if it's something that they would like to take a look at) I found a listed property(good condition) (mentioned above) that was mentioned as a short sale possibility. It's listed at $799,000 and probably worth a tad less than that. (It's pretty much the only 4 bedroom house that is beach-oriented under $1,000,000 in that area) I also know of a woman that is tired of losing money in the stock market and had mentioned something about purchasing a beach house to rent out and get some possible cash flow. (Possible Private Money Partner) What i'm thinking is this........Do a Purchase (with a Private Money Partner) then L/O Use her as a private money partner to buy the property via short sale (offer $550,000ish or whatever the LOWEST price that would make the numbers work)(me receiving 3% commission as the buyers agent/investor partner), then offer the house to the tenant/buyers as a L/O (Cashflowing between the PITI that she/I are paying (unless she/I pay all cash for the property)and the monthly lease payments made to us) at a $700,000ish option price 2 years from now. 550,000 short sale from the bank (She may buy with all cash or we get a new mortgage) -700,000 option price to tenant/buyer (w/ 5% option $ upfront) _______ 150,000 back-end profit + (tbd) Cashflow per month (minimum $500) for 24 months _______ 150,000+++ Total Profit to be split I'm just throwing out ideas to TRY to get a house to offer as a L/O. What do you think? All suggestions/questions/thoughts/other ideas are welcome. It seems like the only way i'm going to get any deals done is to do deals with Listed Properties or ShortSales/REO's. I STILL can't find any motivated/realistic sellers in my area that DON'T have their properties listed.

I'm smelling a spin-off from the Naked Manual.........a book from MC exploring the "unique" tales of sellers and buyers from the Investors perspective. Whatcha' think?

Finally!!! I just got off the phone with a gentleman who is looking for a Lease-to-Own house on Hilton Head Island. He said they are looking for a 2nd home to use (they live 1 hour away) to get away from the daily grind with their family. He didn't see spending $3,500 per month for a year to strictly rent a house when he could at least have some of it work FOR him to buy it in 1-2 years. The Realtors he contacted said all their clients want 10-20% upfront. He said it was rediclious. He and his wife have appx 675-700 credit, he runs a hotel and she just got a promotion in her business. He just wants a 4/3 with a pool that they can L/O for a year or two until they have the 25% to put down with their lender. He said 5% upfront sounded great! He also had a pretty good understand on the L/O process. AND they are looking in the $550,000-$750,000 price range! ***Is this how BEV! feels everyday? Now the hard part..........all i have to do is SOMEHOW find a motivated person with a non listed property! I would think this is a good CA. A Sandwich L/O may be a little out of my league. Wish me luck ya'll. Thanks for all the encouragement/help/suggestions over the last year. Hopefully i'll be able to post the video of my victory dance for you veryyyyy soon.

When i happen to find unethical/secret real estate agents i simply send them a form letter stating that i've already talked to the local association of Realtors office and i'm forwarding your unethical ad along with your name/info so that they can police you as they see fit. And then i tell them that the next time i catch them i will send their information to the State and National Assocation of Realtors office so that they have your name and brokerage on record. I love being a undercover Realtor! When i was a kid, every time we played good cop/bad cop....guess which one i always wanted to be?