Akinwale

Not sure. I am not from that area. Akin <{POST_SNAPBACK}> ANYONE interested in this Pennsylvania LEAD......????? I know that he was in somewhat of a pinch to get something done. Please contact me if you would like more info. Best Regards, Akin P.S. I also have a very good quality TB that is looking for a RTO in Florida. I will have more specifics by Monday. It's in the Melbourne..Cape Canavaral area. Hope I spelled that right. They have been renting for about 5 years.

Not sure. I am not from that area. Akin

CHARGE THE OWNERS - I like the cancellation clause the Kim uses. I also use something like this in all my contracts. I dont even give the owner an option. I will take $2500 anyday if the owner wants to find someone on their own. Akin

Hey bdsh99, Do you have the manual? IF NOT..BUY IT. It took about a day to determine that I needed the manual so that I would better and fully understand the LP (Lease Purchase) world. If you need more step to step help, I am pretty sure MC would be more than willing to Mentor you. Check out the mentoring link to see what it is all about.. http://www.naked-investor.com/mentoring_programs.html If you need more questions answered, the forum is the way to do it. However like MC stated..start slow, introduce the deal and yourself to the forum and ask away. You do however need more specifics Akin

That is there to help protect you. The more specifics we have in writing, the better off we are. I want in writing the homeowner to say that he has a first mortgage of $150K. Let's assume our t/b exercises their option to purchase, and it turns out the crafty owner actually had a first of $185K and a second of $25K. Well, when the lawsuits start flying around, I want to cover my backside as best I can. Not to scare you, but it's just one more safety net in place in the event we need it. And, yes, the Release of Info form allows you to verify these things, too. Correct.And other thing from an earlier post in this thread, Brian. The Short Offer Form is used by me only for making offers for a sandwich lease, as Kim mentioned. I just want to be sure you're clear on this. If I'm structuring a CA, I'm a lot more informal in my approach. <{POST_SNAPBACK}> Not to sound dumbfounded...But before we enter into a SLA with a homeowner, we should verify all this info prior to signing any agreements. (verify first mortgage balance, second.., are payments being kept up, etc.)??? Or do we sign the agreements (lease/option), get the authorization agreement signed, check out the info, and if there is something that raises a red flag, just use our cancellation clause to get out of the deal...??? Thanks, AKin

I would love to see another poll in 6 months. In my first 2 months, I made about $13K. This was going at it very part-time, with a full-time job, family, and other things that you sometimes wish you didnt have to do. Now 2005, I have all of the above still to do, BUT no Full-time job. Yippieeeeee. Now my goal for each month is at least 2 CA's each month ($10K a month). Good luck to all. Sorry for not being online for the last month or so. I have been going through some family issues that I need to take care of so that I may be successful in 2005. I hope to be at the Expo as well. Happy Selling..... Akin

Hey Pete, I have an employee who is capable of building a professional starter or full blown site for a very reasonable price. If anyone would like to get more info on this, please let me know. Akin

Hey All. I got a call from a guy in PA. Have no idea why he called me because he knew I was in WI. But he wanted to know if I knew of anyone in his area who would be able to help him out. Here is the email he sent me: Hi I have a SFH in Berks County, PA. I currently owe $111000. The house has been appraised at $116000 in November, 2004. I need to sell or lease out to own the property as I need to move. Do you work in this area of the country? Rich PLEASE LET ME KNOW ASAP if anyone wants to help this guy out. I will get you his contact info right away. TIME IS TICKING.... Akin

Hey all. Happy New Year ALL... Havent been on here since last year. What a long time... I closed my first deal!!! Well just wanted to update the group on how my first deal was put together: When I first signed the deal with the seller, my intentions were to perform a CA. I signed with the seller on November 26th, 2004. I figured that since it was just after Thanksgiving and that Christmas was just around the corner, I was going to have a tough time moving this property for at least 1 month. In additon, the home needed still a little updating (furnace and kitchen) so it was not attracting the possible TB's that were needed to move the home. I talked to about 80-85 people about the home and showed it to about 30 people. Had 4 applications filled out but neither of the applicants (TB's) wanted to move forward unless the option deposit amount was lower as well as the rent. The option amount and rent amount for a home in that area was very reasonble. I mean I was looking for $5,000, they were thinking $2,500 including the 1st months rent. That was crazy...At that time, I had an agreement with the owner to split the option deposit, so I would have received little to nothing. Those applicants weren't going to work out... Started out as a CA and ended up as a consultation.... So I was patient...patient...and I finally talked to a gentleman who was in the process of a divorce in where they were going to sell their home. He liked the home a lot..so much I was able to have him place a $3,000 option deposit down on the property with the right to extend the option period for an additoinal $1,000 each time he would have to extend the option. The longer it takes to sell his house the more cash the owner will have coming in to start paying for his monthly expenses i.e. mortgage, utilities, etc. When he sells his home, he will pay an additional $20,000 option consideration on or before March, 5 2005. The TB wants to purchase the property either in 6 or 12 months. I would then create a lease agreement for him to rent the property for the period of 6-12 months and attach the option to the lease agreement. I drew up a consultation agreement with the owner in which they signed. I would recieve $3,000+20% of the $20,000 or more option consideration paid by the TB. So at least an additonal $4,000 for a total profit of $7.000 ($3,000+$4,000). My questions about this deal and how I structured it: 1. Since I originally had a lease agreement and option to purchase agreement with the seller, but created a consultation agreement, what type of documentation do I need to give to him (just for legality purposes) to cancel out the lease agreement we originally had? I would assume its just a plain ole' "I am cancelling the lease agreement dated...." type of letter. Any helpful thoughs??? 2. If the option to purchase contract expires on March 5, 2005 and he pays the remaining balance due on or before March 5, 2005, what would I have to do to change the option to purchase period in the agreement to extend out to the end of the lease agreement that I would be creating. 3. Would you as a courtesy tell the buyer to make sure he goes down to the Register of Deeds Office to file an Affidavit of Equitable Interest? Here are the numbers and how it was all broke down: 1 Year Lease/Option TB Strike Price: $154,900 Monthly Rent: $650 with a $20,000 additional option deposit - (I would determine the rent when the lease agreement is drawn up which would be at the time the remaining option deposit is paid.) Monthly Rent Credit: 50% Option Deposit: $23,000 ($3,000+$20,000) My Profit: I get the $3,000 paid up front and 20% of the $20,000 for a total of at least $7,000. The TB might place $25.000 down so that would even be better... Things I would have done differently: 1. Advertised a lot more... 2. Plan all showings on 2 days out of the week instead of trying to fit all schedules. I was pretty good with this, but I sometimes made exceptions for people instead of just saying wait until the weekend when everyone else would be coming. Just be patient and schedule your showings for specific days out of the week and stick to it. The TBs will come if they are very interested in the property. 3. Let my voicemail pick up on all my calls:) I know I rambled through all of this and I hope I made sense....it's 1:00 AM here and I am frantically trying to type this email so that I can get some rest. Please let me know if you have any questions. I am working on another deal that should close by tomorrow. I have the lease with option signed already with the seller and have a TB already lined up from my advertising. The TB is a retired pastor and mortgage banker. The reason I mention this is that we are going to work on selling the seller's note so that he would be able to cash out right away while I make my profit and the TB gets the home. We are still working out the details on the selling of the note, but I will get back to the group to post.. Update on a few other things: I made 3 calls to builders in my area and went to present the RTO solution to 1 of them. They seemed to be very interested in the idea. The president of the company was like, why didnt we think of something like this. They are more of a higher quality builder, i.e. they build a lot of homes in the high figure range for this state (WI) versus other builders in the state who build more of the starter homes, mid-range homes etc. The president felt that it wouldnt neccesarily work too well on the higher priced homes (I beg to differ though and will look to prove him wrong) but would work very well on the smaller priced homes. When he mentioned this, he stated that they just formed a smaller company, an offspring of their main company, that would be building some of the smaller scale homes and would think the the RTO solution would be a perfect fit. I also suggested to him that it might be a good idea to let me locate and structure an agreement with a TB to lease/option a home before it would be completed. I suggested I find some land in areas that offer affordable land (the president said anywhere from $50,000-$75,000 each lot would be the best) and have them build one of their smaller scale homes. While the home is being built, I would advertise, locate, screen and accept a TB that will be placed in the home prior to it being completed. I dont see why the builder would not love this.... ANy suggestions would really be appreciated... What do you think my next steps should be with this company? I want to contact another company next week that I can go visit and lay down the spiel.. Until Later...Happy Selling in 2005...Sorry about the long blab... NO WAY SPELL CHECKER>>>I must have been gone for some time... Thanks for that update MC.........

If its a BEV thing..>I need some of that..well just a bit.

Thats what I was thinking. $4K or so. Will keep you posted. I would love to post my deals in the completed deals section... Thanks, Akin

Congrats!!!

To Add Alan: When you do find a TB, get the assignment agreement signed by all 3 parties AND have the TB initial all pages of the other contracts (Lease and option) showing that they except the terms. Just one more acknowledgement from the TB's that they know what they are siging. Akin

Hey Pete, Can I ask what you have on you sign on the truck? Also, what are the details of the new home deal? I assume you are working with a builder? Thanks, Akin

Thanks MC. I am trying to get things done..LOL :xbiggrin: Everyone has been great. The more I do this the more I love it!!! I like to play by the straight an arrow and would rather collect what I can upfront and be happy with that. I dont want to have to leave it up to the owner to collect the remaining option money and I definetly dont want to have a headache dealing with collecting the remaining balance if the TB decides not to pay. I had an offer for $2K and I told them they would have to come up with more than that. I will be patient for some time and hope I dont have to resort to excepting that $2K. Talk to all later.. Akin

Thanks Adam. I definetly am working on finding a team I can put in place. Akin

"Take the bull by the horns" :xbiggrin:

:xwink:

THANKS MC!!! Yeah I have been reading, listening, and taking action. I have learned a lot from you, the manual, and of course the many successful people on this board. The 2 deals are CA's. I am definetly willing to take a lesser Option amount just to get the deal rapped up. If I have to lower the Option amount that works for me. Just going by #'s, and have to correct my math...I would be shooting for about $12K for the second deal not $15K-$20K. Sold..some money is definely better than none. If I can get more..I sure will take it. LOL :xbiggrin: I do have a note contract just in case the owner/me (in a sandwich deal) would have to carry some of the option money for a short time at 0%. I will begin to put signs up for the second deal this weekend. I have already began posting ads on the internet for it. Just trying to wrap up the first deal then get on to the second and the third......and so on. I am also meeting a builder next week to discuss some of the benefits of a LP vs. selling it conventionally. I am putting together some docs that clearly state what the builder would net working it both ways. Keep my fingers crossed on that one. SOME GOOD NEWS I talked with a couple who would rather buy the property outright (first deal). The seller has agreed to a 2.5% commission for me on the sale. I will be talking with the buyers tomorrow to negotiate the terms. The purchase price should range from $145K-$147K. Not a bad pay day. Regarding the cancellation clause. I pretty much used your (MC's) contracts which have a cancellation clause which gives me the right to cancel at anytime before the start of the lease. I also added in a sellers right to cancel clause which states (not exactly): If the seller finds a Tenant / Buyer or end tenant before me they would have to pay a set fee ($2500). If the seller finds a TB interested in a rent-to-own, they would refer them over to me to complete the transaction. Any comments?? Thoughts?? More to follow...

Not to sound ignorant on this subject. But the reason we should network and get to know mortgage people, title company employees, attorneys, etc. is because we obviously tap into their resources. Working with Title Companies I am meeting the owners of a title company next week to discuss how we can work with each other to secure some deals...foreclosures, lease purchases, etc. How should I prepare for this meeting? I am sure some of you out there have had dealings with title companies and other resources out there. What have you used them for in the past in terms of resources? What can they bring to the table? Any ideas would be helpful... Working with Mortgage/finance contacts I know that mortgage contacts can be a good source for TBs that could not get approved for whatever reason. Being able to access their files, fill a home with their clients, while giving the mortgage company another opportunity to work with the buyer to finance the home later on in the future. I see this as a great relationship and a win/win. Locating foreclosure homes, that we can work with to Lease Purchase. Are there any other benefits or resources we can utilize mortage employees for? Has anyone ever worked with a bank or lender who has foreclosed on a property to fill it with a TB using a Lease Purchase? They would obviously avoid commission fees, holding costs, marketing costs, etc...Would there be any benefit to a lender/bank to work a LP rather than just short sale it or list it with a realtor??? Working with Realtors With a realtor, I see it as a tricky uphill battle. I know it would be hard for a realtor to step aside and let another person run the show if they had trouble moving a home. But I guess if we can present a win/win situation for both realtor and myself, there shouldnt be an issue. However the realtor could percieve us as a threat to their prize. Any thoughts? I understand we can utilize realtors for running comps, referring clients who they know couldnt qualify for a home(s), etc. What else would they have to offer? Working with Builders Bev, I know this is your BALLPARK EXPERTISE... My first question would be, why would a builder want to do a Lease Purchase rather than an outright? I guess if they want to hold their homes for some time it would work. But why would they want to hold their homes? How do you approach builders with the Lease Purchase solution? What builders are a good fit? Is there anyway to determine if this would work for any builders? I can easily get on the phone and want too...so that I can make some proactive calls to the builders in my area to propose the solution to them. I know this could potentially be another source for great deals... I would love to hear any thoughts, comments, additions... I might be totally off on some of my statements and would like to hear any opinions... Happy Holidays/Selling Akin

Welcome abohlig!!! Make sure you keep focused on the goals you have set. Do not deviate from them! Do not increase your output until you have a good grasp of what you are doing. I signed my first seller on November 20th and have been actively marketing the property. I have fielded about 70 calls (some serious some just kicking the can) I do have a TB in mind, but they dont have all of the option deposit. Sucks for me. Ill keep on looking and see if I can find them another home that would fit their budget... Be PROACTIVE!!! For example: I have fielded all those calls about the home..but the home I have was a little out of the TB's range. If I found a home in the same area for about $20K less, I could fill it quickly with the people who couldnt qualify for the more expensive home. Keep an ongoing list of your TB's and go out and find homes to match their needs. Details of first Deal: Purchase Price: $162,000 Term: 12 months Monthly Rent: $1,000 Rent Credit: 50% Option Deposit: $5,000-$6,000 (Split 50/50) While that one is in the works, I went out and found another seller that was motivated.. Should have those contracts signed by the end of the week. Details of second Deal: Purchase Price: $396,000 Term: 24 months Monthly Rent: $1,800 Rent Credit: 50% Option Deposit: $15,000-$20,000 (Split 50/50) Advice: Your on track....Keep on reading, learning, asking, and doing... This is a very helpful team here and I think we will be all successful because we lean on each other for success. Again thanks to the Naked Investor Forum Members and guests.... Happy Holidays.... Akin

Just like Adam said.... I am a principle in the deal working with the seller to get the home filled. AK

I like what Adam stated : Dont waste your (#$&(&% time on them. I ran into so many people like that in the sales world that just irritated the crap out of me but I couldnt let them be the reason for ruining my day or making me feel like I didnt know what I was doing. We are not going to be able to help out everyone...PERIOD. It is a numbers game. I can say if I can play the #'s and get 2-4 deals a month to start I will be rocking... Akin

What I have found to work well too was: if you are using an internet site to locate FSBO's or FRBO's, I found that if I sent out an email then followed up the next day or two, the seller always seems to remember my email. I am able to get in the door with that and give an explanation of what I can do for them. Direct mail is ok and tricky and I just think it can get costly....those 3 attempts to contact the homeowner could end up being failures because you are letting too much time go between the seller and the sellers timeframe for selling the home. Why not send out postcards right away if your going to and then follow-up with a call. I normally call the sellers to talk to them, if I get a seller that doesnt say yes but also doesnt say no, thats when I send out a postcard or letter stating the benefits. I then have a CB date on the card for them to give me a call back before that date to get $100 cash (seller would have to meet requirements). I know that $100 is more cash out of my pocket, but if I can get a home that will pay me $5K option consideration, what's $100 (pocket change)... Has anyone ever tried to incent the sellers to call you back by offering an incentive of some sort? I might be opening a can of worms on this one!!!!LOL If so, what was the incentive? Akin