vballdarin

Well, not good news. (Again) When I called the gentleman about the home he had advertised....I asked him "What purchase price do you NEED to sell the house and would you consider a 4-5 year lease?" He said that he didn't know about a purchase price...maybe 360,000ish and he's only looking for a 1ish year lease because it's not cashflowing for him. But...If I would be interested in leasing it for at least $2000 then he would consider at least a 2 year lease. <---- Talked to another seller who is relocating & bought at 283,000 last year (worth about 280,000) = numbers don't work. Talked to even another seller in Pre-Foreclosure who was willing to give me the deed(Sub2). Problem= For me to bring the house current, I have to come up with 26,000! God forbid that I would find someone that would be interested in me helping them with a CA! Sometimes I feel like I'm NEVER going to find a deal. And I need to get one soon as my checking account is going to go negative come this November! Every deal I look at doesn't seem to have the numbers working out. I can't get anyone to call from my Newspaper Ad: (Home not Selling?....Behind on Payments?....Relocating? We Buy & Lease Houses xxx-xxxx) and I can't put up any Bandit signs, none of the Realtors or Leasing agencies even reply to an email, Between being a caddy and Investor, I'm working 7 days a week/12 hours a day trying to market and find a deal. I realize it' just a numbers game but......UGGGGHHHHHHHH! Sorry about the rant. I'm starting to run out of options and money.

Well...i have been calling some FRBO's. One homeowner was a self-called-investor who was offering a rent-to-own at 1500/month on a 3/2.5 with 100% rent credit in a pretty nice little community. Normal market rent would be 1400ish/month for this neighborhood. He asked if since I was subletting it, would I guarentee the payments. I said absolutely. I'm calling him tomorrow to ask the more crutial questions..."What is the least you would need to sell?" & "Would you consider a 5 year lease?" Here are some more initial numbers: Built in 2005 (Newer community) Purchased on 8/2005 for $284,498 Annual taxes 2,409 POA fees $1392 2474 sq ft. Can't find any comps over the last calendar year.(probably worth 300,000ish) Besides the obvious questions of: How long would you lease it to me, Haggling on my purchase price, How much option money(which he never brought up in the inital conversation), Are there any other crutial questions to ask him? And...what different ways/scenerios could I make this deal work? Could I just find a straight renter for a year or 2 and work up some credits first before offering it as a L/O to a tenant/buyer?<------Thinking about putting it into my RothIRA.

It's finally here, it's finally here! It's in my town as well. It was such a relief to see real estate~broker and real estate~by owner the other day. I'm trying to come up with and tweak some ads which stand out in each of the different categories. (making sure i'm targeting the correct people in each category.) And yes...i'm still forwarding all ads where agents/brokers don't disclose themselves to our Local Association of Realtors!

What i'm going to try to do is to stress/offer my company's services as an extention to what Realtors can offer their clients. Besides....most Realtors don't want to/or can't bother with things that aren't typically retail buy~retail sell transactions. This past November, I attended our local Realtor seminar which offered an Attorney coming in to speak about Lease Purchase and Trade transactions. The room was absolutely PACKED and many didn't have a good understanding about the information. The South Carolina Association of Realtors is even doing a Webinar on Lease Purchase/Options and if I can attach my name with that webinar and be the "Lease Option Guy"...it will give me some "street cred". Even if I only get 3 deals per year...it'll be worth it. If they truly want to work in the best interest of their clients and care....I want them to know that if they don't have the understanding or feel stuck....I have the knowledge and the team (that's all you folks on here! ) to get things done. And i'm not scared of any questions they may throw at me. I've been a hermit/bookworm on studying Lease Options for 6 months. I don't believe there is anything they could ask that I couldn't answer. I'm also expanding my "toolbox" for other services I can provide. Just yesterday my friend came into some more money and wants to put it to work in some investments.

Great! I'll pick up MC's bar tab....pay for a Cuban catering service on a Choo Choo train from Cali to South Carolina.....put out the AeroBeds on my floor.....and break out a new deck of UNO Cards! But seriously...I'm going to tell the Broker that I'm in the process of getting some more deals under my belt but as soon as the tourist season slows a bit that i'll give her a call and set something up.

After sending an email to a CoraBettThomas Broker about how they left out the fact it was a Realtor listed advertisment in their listings on Craigslist, she sent me back an immediate appology, corrected the problem, and said "If we can assist you in disbursing information on your product line, please just ask." I figured, what the heck,...............I then sent an email back saying that if they have any listings from motivated sellers who would consider a Lease Option to contact me. She replied with...... "Yours is a very interesting solution to a problem that we have had some experience with ... Would you consider coming to a sales meeting and discussing it with our agents?" EEK! UM....not quite ready for that response! I have WendyPattons "Working with Realtors" and she included a powerpoint to do just this thing...................... but haven't actually done a L/O deal yet. MC/Bev/Doug/Jon/Steve....you don't happen to need a one day vacation to sunny Hilton Head Island, SC do you?(I'll throw in a round of golf at Harbour Town Golf Links)

Yea....and I don't know how well it would go over with the homeowner (explaining to them that the consideration IS the rental agreement)(it would just confuse things even more - K.I.S.S. Keep It Simple Stupid) It's probably just easier to say..."Well, we just have to put $10 into the deal to make it legal."

Hello ya'll.... Just a little update.... 1) started doing more marketing to find sellers and I'm learning to qualify them within about 10 minutes. 2) drove 3 hours to a South Carolina REIA meeting, got some great contacts, and asked some questions of Wendy Patton from a Realtors point of view.(It was VERY helpful) 3) dropped my Broker in favor for another firm who is investor friendly in our area. After interviewing them, I told them......"I'm NOT going to be a typical Realtor and get all the listings I can." I said "I'm going to be an INVESTOR who looking for deals for myself. Is that good for you or not?" They said "no problem...we'd love to have someone who is doing deals for him/herself." I ran an ad in the newspaper that said "Local Company needing 3-4 homes - Long term Lease-to-own". I can tell i'm getting closer to my first deal. ((Steve)).... The three times I tried to actually present a deal to another Realtor....one didn't understand at all (I didn't bother trying too hard to keep explaining it to her)....the second one went back to our Broker Associate who then went to our Broker in Charge and said some crap about me trying to circumvent paying commissions and being unethical by not giving them at least a letter of intent. (Hence i'm no longer there) The third one was a Broker who responded to my ad and asked why I wouldn't just put down a normal downpayment instead of just option consideration. I told him that I'm looking to purchase a few homes and if I tied up all my money in one property it wouldn't allow me to do more than one deal at a time. Basically I would give the Realtor 1%ish commission upfront-non refundable option money with the rest being payed at closing. I'm basically fronting the homeowners commission for their listing agent. If they aren't interested...I tell them "Well....I really do hope you sell the listing, BUT if you don't and don't want to lose all your advertising dollars....my door is always open." Question: I know to make a valid contract you need some type of consideration. Has anyone, doing a SLO, used the Residental Lease AS the valuable consideration? <---it was brought up in our REIA meeting.

Hey there Doug... If I may ask.....how did your conversation go with the Realtors when they replied to your Kijiji "Urgently Needed" ad?

They are telling me that "yea....i thought it would come up and look like....um.... Zillow....". I then tell them that they are on my radar and are a "person of interest"! Fool me once...shame on you. Fool me twice....I call the Real Estate Commission.

Over the past week, I've busted 4 local Realtors who have been posting their listings on Craigslist without disclosing their license and brokerage. (I'm kinda feeling like Dirty Harry meets the CIA (Craiglister Investigating Agent)) I sent them a message asking straight up if this is the homeowner or the listing agent. They responded "i'm the agent". I then follow up with a nice little paragraph: ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Code of Ethics and Standards of Practice, National Association of REALTORS® Article 12 REALTORS® shall be careful at all times to present a true picture in their advertising and representations to the public. REALTORS® shall also ensure that their professional status (e.g., broker, appraiser, property manager, etc.) or status as REALTORS® is clearly identifiable in any such advertising. . . . . . . . . . . . . . . . . . . In marketing properties, REALTORS® use advertising to inform the public about listings and to induce interest in them. REALTORS® are obligated to present a “true picture” in their advertising and in all representations to the public. A “true picture” is truthful, accurate advertising, and nothing less. Descriptions that go beyond “puffing” may mislead the public. Statistics indicating a REALTOR®’s sales volume and comparisons with other firms can be impressive, but if they are inaccurate, untrue, or misleading, their use injures the public and violates Article 12. REALTORS® must always disclose their status as real estate professionals in their advertisements. This may be accomplished by including the terms “REALTOR®,” “REALTORS®,” or “REALTOR-ASSOCIATE®,” or by disclosing their status as a licensed broker, appraiser, property manager, or other real estate professional. In advertising listed property, REALTORS® must also disclose the name of their firm so that the public will be aware that they are dealing with the property owner’s agent. Further, the REALTOR® must ensure that all brokers and salespeople affiliated with the firm include the firm’s name in their advertisements of listed properties. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ One good thing out of all this is that I'm starting to learn the code of ethics and real estate license law inside and out! It will make me a better Investor/Realtor in the future. P.S. (((WestCoastGirl))).......I just saw your Ted Truitt link! I haven't laughed that hard in a while! Darin

Happy Birthday Amigo.... Thanks for all the great posts and advice. It's nice to know that there's someone out there in Realtor Land who is successful. It gives all of us hope.

A FSBO contacted me about her 3/3 home. She said she had a bridge loan on it for a year. She easily negociated with the bank this past April to extend for another year. She had it rented but is kicking out the renters. She is offering it at market value in a nice neighborhood. ($250,000) She has never missed a payment either. Does anyone have some experience on negociating bridge loans with the lender and the homeowner (who is very nice & receptive to anything) to get a SLO, CA, etc? I just don't want to get caught in a a SLO with a 2-3 year tenant/buyer and then all of a sudden this coming April....the bank says, "Time to pay up."

Dude!....you've been holding out on me....telling me it's a "soft" market for women. It's like I don't even know you anymore. Oh, wait. Nevermind. I've never even met you. Carry on then......

I said something very similar the other day. It was simple....to the point....and they had no comeback other than......ah....um......well......... I'm slowing presenting myself as a guy who would like to help people out of a bad situation....but not a guy who DESPERATELY NEEDS to do deals. Does this mean i'm starting to think like the rest of the big boys and girls?

I have been toying with the idea of relocating to Tampa. This may be my chance.

Good Golly Ms. Molly! After filtering through the MLS for words containing "motivated" or "lease purchase", I found 8 listings and emailed each of the Realtors with my schpeal. Within 6hours, 4 of them replied back that their sellers would entertain a Lease Option. Guess it's time for me to start number crunching! 4/2.5 ~169,000mkt value(very close to foreclosure)(may have to be a sub2) 3/2.5 ~ 350,000mkt value(original owner-1998 & should have some equity) 3/2.5 ~ 320,000mkt value(may go for:"purchase price is mortgage balance at time of closing") 3/2.5 ~ 194,000mkt value(no equity)

I will be trying to set up all my deals as SLO's. What things would you suggest I could do to make the numbers "do-able"?

Doug..... I agree. Those numbers for my counter-offer would be the least i would accept on my end. The better terms/price I could secure....i would be more than happy to pass some onto the tentant/buyer. And I would apply all option monies toward their purchase price along with that $200/month credit.($170,000-$9,800=160,200) I'm just not sure that's enough of a spread for me to make the numbers = DEAL. (((Thinking that I, in some way/shape/form, have to get an ultimate purchase price for each house at >$150,000)))

Allllllllrighty folks............My first stab at negociations with a seller. Seller brought me 2 possible houses (basically the same) Here's his offer for each house: $172,000 purchase price........$1200 rent with $400monthly credit Lease term = 24months Didn't mention option money I'm toying with a counter-offer of this: $167,000 purchase price........$1100 rent with $500monthly credit Lease term = 30months Very little option money then offering to 2 lucky tenant buyers: $170,000 purchase price........$1200 rent with no rent credit (or some if they have more option money or decent credit) Lease term = 24 months Option money = $5000(=2.9%) Particulars: Actual home value = appx$165,000 Market rents = in line with $1200 Suggestions, Questions, Wonderments, Discussion? Thanks

After searching on the "real estate for sale" section of Craigslist today I noticed an unusual amount of Realtor listed postings. I got so fed up that I sent an email to each of the agencies. This is what I wrote them....... ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ (In response to your Craigslist postings) Just wondering if your agency was going to post EVERY listing they have on Craigslist? I'll let you in on a little trend that we have noticed.....The more listings Realtors post on Craigslist, the more buyers/investors who wanted to talk directly to the homeowner, leave the site. It should not be an extention of the MLS. If people want to sort through pages and pages of listed homes they can do it on the MLS ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ It will be kinda interesting to see what type of response I get. And this is my new posting to stand out from spamming Realtors (it needs to be tweaked a little)................................. "We are a Bluffton/Hilton Head based company actively acquiring homes that we need to fill on a Rent-To-Own basis and you don't have to worry about Realtors who want to get you Pre-Approved. Unlike most Realtors, we assist people who DON'T have perfect credit or 20% downpayment move into a home now. Give us a call for more information about our Lease Option Houses."

Just wanted to say that i've been calling FRBO's and have gotten some other seller leads from people calling my Craigslist ad. It really does get easier to talk to people/qualify them the more and more you do it. You go straight for their motivation. If they have it....continue. If they don't, tell them thank you for their time and keep my number in case they change their mind in the future. I'm slowly learning to not take rejection personally. (Must be a hold-over thing from my High School Prom days ) Deals are made if the numbers are correct for all parties involved. Simple as that. Thanks guys/gals!

"For the right person with the right credentials, the money's still there," said Terri Bersach, a Coldwell Banker agent in Miami. Ahhhh yes. The "right person with the right credentials". Outstanding commentary! Are they still taking applications for the game show "Are you smarter than a 5th grader"?

Well....i'm pulling this one out of the vault, Michael. I was speaking with a Realtor/Broker in NC about SLO's and Sub2's. This is what he said to me: "Because, part of the code of ethics states (paraphrased) that you, as a Realtor, will not knowingly allow or encourage a buyer or seller to break contracts already in place, ie, The DOSC in practically all mortgage notes today. So, if you do these without the written consent of the lender (not a sub2), you are breaking the code of ethics. Moreover, it goes on to state that if you KNOW about an act, then you should report or possibly be in violation of the code of ethics." I then sent an email to Wendy Patton's office asking if she (Realtor/Broker of many, many, sub2's and LO fame) had any comments to this. She basically said it's a bunch of malarky. Isn't it a Lenders CHOICE to call for a DOSC? As long as it's disclosed to the homeowner then everything should be ok, right? I'm just trying to Cover myself.

Thanks Michael. That's pretty much the way I thought most people would answer that question. I'm also trying to push myself out of a comfort zone and try to look at things in newer & more creative ways. And at least i'm starting to talk to sellers and make offers.