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Spiderwoman, You are very welcome!!! I am more than happy to share my little pearls... option8

Okay folks, I have had 2 offers for purchases on properties I submitted. The sellers really were stuck on too high a price. Yesterday, I also recieved a follow up call on a 11 unit building that needs extensive repairs. The property is offered at a low price. The conversation I had was very fruitful and helped me understand the business model. I am still hopeful that something will come of this. I am also encouraged that I have heard back of 3 opportunities submitted. They are swamped with submissions and they are also getting a lot of things that don't meet the criteria. Hang in there or find somewhere else to submit your deals. option8

We wish you a speedy recovery, Michael! We'll do our best to hold down the fort for you. I know you will be reading the posts if not actually responding. I know we don't say it enough, but we appreciate all you do for us --- hosting this board, giving generously of your time, wisdom and encouragement and showing all of us that all of this is possible. Thanks... option8

vmoney, Is it a good deal? I think this is a better CA opportunity. I do know that you are taking action, talking to sellers and making offers. This is "good" no matter what the spread or the outcome. Keep it up! option8

Congratulations, Gene! I'm happy you accepted my challenge and that it resulted in a consumated deal for you. I personally think that FRBOs are an overlooked goldmine. May this be the first of many, many more. option8

Spiderwoman, The process is pretty simple and you don't need to pay anyone to do this for you. You need a software package called VersaCheck and some blank check stock. VersaCheck is a check printing software package that is pretty inexpensive. I think it retails for about $49.00 at any office supply store. (I did a quick search of ebay and it is there at a substantial discount.) This tool allows you to print your personal and business payment checks directly out of any financial package like Quickbooks, Quicken, Peachtree, etc... You know how Intuit charges for your custom printer checks---not any more! You know those ubiquitous adds for designer checks that you find in your advertising circulars---They don't have any special tricks! This company even sells the tools to bind checkbooks and sells registers. I have been using this software for many years. I don't know when I have paid Deluxe or any other check printer a fee for purchasing checks. There are others out there, but I know from experience, that VersaCheck and the VersaCheck blank stock are useable with out any special magnetic ink or special printers. I believe the software package comes with a substantial quantity of blank checks to get you started. It is important that you acquire a package that is for both business and personal use---these packages are the ones with the bank drafting capacity. With this software tool, a signed Bank Draft Authorization from your tenant/buyer and a voided check from the account they want you to draft, you can print 12 months worth rent payments in the form of checks, put them in a bank deposit file sorted by month and be ready to go to the bank with your deposits, on time, every month. The voided checks are used to get the routing and account numbers formated and lined up correctly. It takes a little work to get the software aligned to print the checks correctly the first time, but once it is done you are ready to roll. Here's the marketing spin to sell it to your TBs: Help me help you get funded for this property. The lenders will need to see documented on time payments in the form of cancelled checks. We can put this on auto-pilot for you by setting up Auto-debit. The process is simple, then you never have to worry about writing the checks, mailing on time or paying for postage. You can even print this stuff up on behalf of your seller in your CAs . In other threads, we've discussed taking your option payment on terms out of the alternate paycheck. Here's a way to get your payments drafted directly to you, if it is a CA. What about charging higher rent with no drafts, discounted rent with auto-pay. I can't take total credit for this idea...Lynn Hahn from Investor-Pro made this suggestion in his customer newsletter. This was just one of the benefits of being one of his clients. Fortunately, I already had the software and was able to implement the idea. Here's 3rd way you can use this tool. You can use the blank check stock in your marketing efforts, mailing to your potential sellers using a non-negotiable check in a window envelope. This ups the chance they will open your envelope! Hope this helps. Let me know if you have any questions. option8

I agree with Adam here... The network I have only begun to develop includes: mortgage brokers, sellers that love what I did for them, TBs that are thrilled for their opportunity to own a new home, other investors that I have helped find buyers (it gets my buyers a house), friends, family, birddogs, utility employees, etc is keeping me hopping. The success of this strategy makes me want to expend energy to develop it further. Three of my birddogs want to put signs on their cars. I can honestly say that since last Thursday I have received leads for properties that need to be moved to the tune of 74 houses! (to be sure, I just counted them!) Some are sellers that I can just option at 30 to 50% discount and and sell my option, others are CA potential, one is an investor with a list of 15 that are up for CA, LO, LC or Sub2, another is a list of 15 units worth close to 1Million available for a retail sale. I even connected with a group of realtors that I haven't met with who do LOs and need buyers! I even did some listing research on possible CA and intend to mail to thoses stale listings I found. I love checking my email box....There are always leads rolling in! The problem I have now is keeping the leads in order. Several of the birddogs have submitted the same property within 24 hours. (I think they will have to put them in online so I can track the date and time of submission. Out of all of these opportunities, something should pop off resulting in some sort of payday! I never dreamed that the networking I was doing would result in activity like this. I actually think I need to consider getting help! hang in there, keep talking and asking for the business. option8

Okay, Jason (AL) Here it is! This was a simple deal... Seller is relocating to Florida and told one of my tenants they were going to rent it. She suggested they call me and use my system. She called me on the spot 2 weeks ago and I got the skinny on the property. The seller then went out of town and we finally got together for 30 minutes on Monday evening. I walked thru the home and it is really nice. 3 beds, 1 + bath, garage, large porch, original woodworks with built-in bookcases on either side of the gas fireplace, dry unfinished basement... Because I knew he was more than willing to let me do my thing and he travels alot, I wasn't willing to risk not getting the house on the spot, so I took a short offer form with me for a CA I offered $89K in 2 years, $825/mo w/ tenant paying all maintenence, I get all the option and have 60 days to move it. I wrote the offer up on the dining room table with the disclaimer that I'd start marketing immediately to test the offer and we'd come back and renegotiate if I couldn't get these terms from a TB. This is the first time I ever did any documents on the spot. It is a nice home and we shouldn't have any difficulty getting this moved. Beecuase of how this was set up, the whole thing took 30 minutes from start to finish, small talk included! The even better news is he has several friends who are struggling to move properties. They asked him what he planned to do when he moves and he told them about me! All of these motivated sellers want my phone number. I'd love to move this property fast, show these other MS what we are made of and get a great referral from him. Based on what transpired in this transaction, I also plan to alter how I do things from here on. 1) The document creation was pretty painless. I always come home, type them up and take them back. I now feel pretty confident of my ability to do write these up on the fly. I think I'll start carrying the CA and Short offer with me and plan to write them up on the spot, as often as possible. 2) I'll take my pictures right then and there. 3) I also plan to carry my outrageous signs with me in my car and put them out while I am there! 4) I'm adjusting my business strategy to try to meet with 5 sellers per week and hope to sign up at least 1 property per week. (Adam, how many sellers to you meet with per week?) option8

Search this board for Harbor sales.... They sell blanks. option8 Here's the link... Harbor Sales

Hey Adam, I signed my CA yesterday! (Actually, I neglected to enter the challenge officially, so maybe I cheated a little...) My new goal is to meet with 5 sellers a week. option8

Sorry I've been so quiet lately... I'm in on this challenge! AND I signed my required CA yesterday! off to market my property. option8

Way to go, Pete! I like the $$$ in this one. option8

Gary and Jason, What a great scenario that gives you the opportunity to be creative and think outside the box and generate some good cashflow! Here's how I'd do it (and I'd also be interested in hearing the input of others)... If your TBs have little money saved, then you can take the option on terms. I have had TBs pay me AT LEAST the first month, plus security deposit before they move in (they'd have to pay this in order to do any straight rental). Take the balance of the option payment over 3-6 months at a 8-10% interest rate. Simply write up a promissory note for the balance. Remind them that their option to purchase contract isn't valid until the full amount is paid. I allow them to pay me this out of their 2nd paycheck each month. I don't lower the option payment, but instead, I take the sweat equity out of the purchase price on the back-end. If I am doing this, I'd ask for the full 5% over time, not 3%. That's the cost of my financing on time---more money. Here's what I tell them: "Do you like the house? Tell me why this property works for you." (Make eveyone state why they like it right there on the spot. In doing this, they are selling themselves. If the husband hears the wife state why she likes it, you are half way there...) "If you really like the house, I might have some flexibility to work with you. We don't usually do this, and of course, I'll have to speak with my partner about it. They aren't going to like this... BUT if this is the home you REALLY want, I'll go to bat for you. I'll try to get them to agree that we will finance the option payment for you. I think I can get them to go for it....Understand, we aren't landlords! This is not our business! We are looking for people who genuinely want to be homeowners." Now, the only thing you have to be concerned with is whether this is a CA or a sandwich lease. -If it is a sandwich lease, you are ready to go. You have the choice to do this because you have control over the property. -If this is a CA, you need to tell the seller that the condition (or location) of the property demands some flexibility in the terms. If the seller is willing to let you take the option on terms (and remember, this is is your fee for services rendered that you are willing to take on terms! You are getting the entire option payment aren't you?) ---you have just generated additional cashflow for youself over the next 3-6 months and as always, the seller got top dollar for the property, has super-tenants who handle the maintenence and they've put their property on auto-pilot. Take the additional step to set the option payments setup on Auto-debit and take the cashflow ride. If, as you say, you have 3-4 of these in your funnel and they are paying $500 addiitonal every month, you just got a $1500-2000 regular paycheck for the next 6 months. I'm sure your bank account could use that that monthly financial boost. Eveyone wins, seller, buyer and you. You just built incredible gratitude from the TB and the seller, if they had a tough property to move. After I set something like this up, here's an additional step I'd take to boost my marketing. While that TB is feeling extremely grateful and feeling that I just executed Herculean jumps thru hoops for them, I'd get the names of 5 other people who need houses AND I'd get them to write me a personal testimonial about what a great service I provided them AND how flexibile and easy I was to work with AND how I got them a house when no one else would. Do the same with the seller....you just negotiated with your fee in order to solve their property challenge so they could get on with their life! Hope this helps... option8

Tony, All I can say is WOW! Great job following up and making it happen! option8

-Naomi, Here's what this particular Saturday in my office looks like after developing a few low cost lead sources: 1 conversation with a renter 5 seller leads put into my website by a birddog 5 conversations with new buyers from my ad---one led to an additional TB referral 1 additional TB lead from the above 4 TB packages sent out I still have to call about 30 sellers, mail to 15 others, call 5 on my TBs about another house I have available. I won't get everything done, but it has been a productive week. Hang in there... option8

-Naomi , I can be encouraging to you. You see, I have been there, done that, have the t-shirt AND Michael will confirm I've cried the exact same lament to him! Some weeks you can't steal a deal and other weeks the phone won't stop ringing. Just be consistent with your dials and try to implement 4-5 other sources of leads... Other free and inexpensive ideas: Email FSBOs, mail to stale and expired listings, tell everyone breathing what you do, stop a UPS driver or utility employee and give them an Earn Extra Cash Postcard, cultivate other birddogs, ask for referrals, network with a few professionals who know folks in trouble, put signs on your car, run an ad in the newspaper for sellers, etc. Keep your chin up and your fingers on the dial pad. Another one will turn up. option8

CoNgRAtULaTioNs! Naomi Not that it matters one single bit, but you did ask for suggestions. If I had been blessed with a girl child, I would have loved to named her Naia (it rhymes with Maya). I've only heard this name twice, and have no idea of it's origin, but I always thought it was beautiful (and my name begins with an "N" also). Whatever name you select, it will be perfect and your daughter will be your best work ever! Enjoy the miracle of the process, relish every moment AND get ready for the ride of your life. Children are awesome additions to our world. I wish you an uncomplicated, joyful pregnancy! option8

I actually take the time to look up the owner of the property on the county records and mail to the owner, not to the address. option8

Jump on in there and edit that LPA to make it appropriate to your audience. Are you tired of dealing with Tenants and Toilets? Did you want to sell but resorted to renting? Put your rental on autopilot and maybe even get it sold AT TOP DOLLAR! option8

Barry---thanks for asking the question! LPA Flyer- the Lease Purchase Advantage (LPA) document that is in Michael's materials (or something similar). My goal was to get us to stick some stamps on a few envelopes and start mailing. It really doesn't matter what we mail, just that we consider the mail as a relatively in-expensive option for finding more deals. option8

Okay folks, The last challenge was a success. Some of us have gotten over our fear of warm calling and even located a few possible deals. I'm thinking its time to issue a new challenge so here goes: In the next week, locate 20 properties you are interestd in and mail the Lease Purchase Advantage to the address. These can be FSBO or FRBO properties that you have located thru the newspaper or on your drives arounds. This is an inexpensive proposition...$0.37 per property or $7.40 total plus a little for copying or printing. Do this and come back and let us know the results. Go take some action! option8

Okay, Adam Before I get going on the next week's activities, I'll take time to review what happened over the last week. Cash generating activities: 1) Consulted on the rental of a home---brought the tenant, signed contracts, etc... $1K at signing. 2) Collected Deposit to Hold on a CA 3) Spoke with 10 new buyers 4) Spoke with about 6 sellers 5) Found buyer for 250K house 6) Worked on a deal with Anthony (on this board) for a LP flip to an investor Marketing 1) Sent out a few LPA over email---not enough 2) Put new ad in paper 3) Set up relationship with realtor What one "legal" factor/experience have you become more familiar with? the Distinction between the Assignment of Agreements from CA Assiignment of Agreements---thanks Michael! Did you meet with other investors to work with? Yes (6) What was accomplished by that? -1 referral -1 possible CA -1 desiring many houses on terms -2 well-connected wholesale contacts -1 investor out actively shopping for properties for me to fill on CA. -Put the seller of a 21 unit intouch with a buyer....good karma, good deal---they've met twice already Misc, but important stuff... 1) Worked on filing system 2) Business Plan - Spent a great deal of time on formal finincial projections, setting goals and planning next steps to take this to a higher level! Carry over into next week: I ended the week with 4 uncontacted leads on my plate for buyers and sellers. Have about 5 properties to flip-need to get these off to investor. What inspired you during the week that helped you to stay motivated? THIS THANKS! I kinda' like you too! And a friend took me to meet with some sellers this week (if you didn't know, I'm doing this business without transportation right now!) She heard my "sales pitch" and was very complimentary about my delivery. I respect her opinion and appreciate her feedback. And the results recently posted by everyone now making phone calls! And Adam's entire post! Man you make me want to dig in harder! Your activity level really is an inspiration---I guess I need to go back to my projections and alter my numbers....DARN IT!----your level was to be my activities for a month! Once again, you are raising the bar. This is a good exercise and I thank you for suggesting it. option8

Good going, Lydia! Following in Michael'l train of thought...our CAs and LO solutions lend themselves quite well to not so ideal situations, including handiman specials! I have moved a home as a fixer-upper without so much as even sweeping it out after the previous tenants moved. People looking for a chance to own a home ususally aren't too picky! You can sell it "AS-IS" at a slight discount---say $2000 sweat equity credit off the back end purchase price. This can be a great value to someone who would otherwise not be able to get into a $170K home. Way to stir up the action option8

Absolutely... Pain is pain and she sounds like she recognizes relief when she hears it. Here's the challenge. If the properties are already rentals, and you take them on a sandwich lease, you inherit the landlord headaches for the duration of the lease. If you are interested in having these properties in your portfolio, and you are willing to ride out the leases so you can RTO these with new tenant buyers, go for it. OR You can get them under contract on Lease Purchase with Option to Buy (individually) and find another investor who'd like to obtain properties on terms --- I guarantee they are out there! All it will take is a small ad. Since they are occupied and can't be LOd until the leases are up, she can't expect any upfront money. Where are you located? option8

Congratulations.... Take a deep breath! Call them ask them to tell you about their property? Ask why they are selling? Find out what they have tried so far? Try to find out what their situation and motivation is? Try to find out how you can help them... Just have a converstion..... YES IT DOES! option8