option8

In my world, I make the rules and my rules say I get the option money for a sandwich. In this case, you can find him a TB using a cooperative assignment and take your $1000.00 now or NEXT! option8

Derric, If this is a Sandwich Lease Option, we don't have enough information You don't say anything about the purchase price or the selling price of the property or what he's willing for you to get on the back end. I need a few more pieces of information. Has he ever listed with a realtor? Did the realtor have a 6% listing? If he ever listed it This sounds like a "GUS" to me ... (thats Greedy, Unmotivated Seller!) Lets see if I have this right: He's willing for you to do a sandwich option for $1.00 option consideration. He wants to keep all the upfront option money: this is after you go to all the effort to do your due diligence, market the property, find him a TB, do the screening of the tenant and all the contracts and , make sure all the legalities are done, completely take care of his property challenge and allow him to get on with his life. Additionally, He is willing to allow you to the priviledge of managing his property for him for $200.00 per month. And then after the option is exercised, he wants to give you 30% of the option payment. (Once again, I have to make some assumptions here: if the sell price of the home is $100,000 and the option is $3000.00, you'll make $1000.00 2 years from now...MAYBE! What happens if the tenant doesn't exercise the option? Do you still get your money? Like I said...a GUS. If he won't allow you to keep the option on your Sandwich Lease Option, he's not motivated. If he won't give you any of the Option on a Cooperative Assignment, he's not motivated. It appears what this seller needs is a realtor or a property management company. I'd tell him so and go find a motivated seller. just my 0.02 option8

If you are not using the phone to find properties, I'd like to challenge you to change your thinking. My experience has proven that this is a valuable method of finding properties and it costs nothing but a little time. I've located several motivated sellers using this method. I also have noticed realtors listing houses for rent or even RTO and I'm thinking this is a great opportunity. They obviously already know something about the RTO system or they wouldn't be advertising. Over the last 30 days, had several opportunities to craft deals with other investors by dialing for houses. I'm amazed when the person on the other end has more than one house for sale. Some people think it is a waste of time, but I beg to differ. If you just carve out 1 hour per week calling these ads, I'm certain it will be worth your while. What would just 1 more deal per quarter do to your financial statement? If fear of cold calling is your stumbling block, what exactly are you afraid of? Rejection? They aren't rejecting you, just your solution to their problem Ridicule? Don't you face this with family and friends who think your REI plan is nuts? Physical harm? Over the phone?...NOT LIKELY! ...Press *67 and dial! Sounding like a fool? Practice makes perfect! Use this method to get in your practice in a short amount of time. Press on thru the uncomfortable process of sounding like a blathering idiot until the words become comfortable in your mouth. Just cringe and keep going. Conduct a personal review after every call and ask yourself "How could I have stated that better?" "How could I have answered that clearer?" Questions/Objections? None of us has all the answers. If you don't have the answers, someone here does. With practice, you'll get better handling the routine questions and objections (and trust me, they are all routine!) A Deal? AH HA! So, before you pick up the phone have your next step in mind. "Mr Seller, I'd like to 1) see the home or 2) make you an initial offer. What would be a convenient time to meet." What's the worst thing that can happen? They say "NO WAY!" and you say "NEXT"...and dial the next number! I challenge anyone who is up to it to make the committment to dial 50 numbers in the next 7 days and keep track of the responses. Did they say No, Yes, or Maybe later? Did you get an appointment?...Report back here and tell us how it came out. Post a reply here if you are willing to take the Cold Call Challenge. now go find another motivated seller.... option8

ShaneMcKenna, Here's an internet page that will allow you to calculate the results of the different payoff scenarios. It will generate a report showing you how much you will save over the term of the various options providing both years and dollars. Give it a try---I hope this helps you make an informed decision. HSH Mortgage Calculator option8

Thanks, Mike just what I needed to know. option8

I have a few more questions regarding funding. (I'm putting this in the funding forum, but perhaps it goes in the LP Forum) What is the impact of a bankrupcy on the tenant buyer's ability to obtain funding? Let's say they just filed and now need a home. What is the timeframe when they will be able to qualify for a loan? Will it matter if they file 7 or 13? I have a few buyers standing in the wings with bankrupcies, but want to more acquainted with the necessary time parameters to construct a deal. Thanks, option8

Andrew, Thanks for this. ..I'm so busy working deals, I haven't had time for the news. option8

Here's another angle: Use and expanded version of "What you don't know can hurt you." while exhibiting some of my personal fundamentals of negotiation--Validation, Agreement, Cooperation, and Value. I understand your concerns, Mr/Mrs. Seller, and, of course you can review my contract. You are wise to do your due diligence and desire to protect yourself in this type of transaction. However, I am concerned about your liability should you decide to take this information and attempt to consumate the deal yourself. Our goal is to craft a win-win-win solution to your property challenge and this contract represents only about 1/4 of the sum effort necessary to complete the sale of your property. We provide a total solution and have experience and the knowledge to implement the whole package. (or some such language) Certainly there will be some unscrupulous types out there and by planting this seed, I hope to cause them many, many sleepless nights should they decide to proceed without me. option8

Beautiful, First, let me say that you are to be applauded for your initiative and your goal. (which is achievable, BTW!) Second, let me echo Adam's response. You are in the right place for help and Michael would be a great choice for a mentor. Finally, With an attitude like this, you are sure to succeed! Best wishes in your investing career and welcome to the board. I'll be happy to tell everyone "I knew you when!" option8

We use Investor-Pro affiliate website...best money we ever spent. Lynn Hahn and his staff are the best. They put our system on autopilot. Investor-Pro can be found by clicking here...there is a $50.00 rebate included. option8

Wow. What a great find! As any fulltime investors know, the phone is ALWAYS in your ear and good equipment is a necessity. I've been frustrated by my panasonic phone---50 number memory limits, horrible user interface, one large cumbersome handset, flimsy beltclip and a crappy headset and then Adam informs me that it will interfere with my soon-to-come future wireless. The only thing the old phone has going for it is 2 line capability. A few things get my attention about this toy: 1) 100 number memory storage 2) headset capable 3) doesn't interfere with wireless! -- REALLY? 4) expandable to 4!!! ---this means never a dead handset. 5) small size Reviews on Amazon give these Uniden phone high ratings. Thanks for sharing. option8

Hurrah! The deal is signed, sealed and delivered with the certified funds already in the bank. The total time from start to finish is exactly 1 week! Wrap your arms around some CAs. They are too sweet! option8

another Update on my first CA The seller is now fully on board. Their desire was to put nothing else into the property...so we will use that great home warranty program, paid for by the buyer in exchange for no rent increase in the second year. They really like the idea of using their property to help a young couple get a start. (2 others have been through to see the property since Tuesday, but we are the ones they want to help) Buyers met with seller today with a contractor in tow to look over the property with a clipboard in hand. I couldn't be there, but it didn't matter... Everything is a go with all parties. I just hung up speaking with each one and we all meet to sign the contracts at 9:15 tomorrow morning. YEA!!! I LIKE CAs! option8

Doug, Just for starters, here's the path I take every day: 1) Sunday Classifieds--identify for sale or for rents and call them. If they say no, ask them to keep your phone number, just in case their first strategy doesn't work. Then, put them on a list and call them back later. 2) FSBO sites---call them or write to them 3) Old Listings on MLS--write them 4) Tell someone living in the area the TBs live in that you need houses. Ask them to drive and call you with the addresses and phone numbers on the signs 5) my website 6) Show your buyers how they can help you help them... Drive around in their desired area and call you with the FSBO details. 7) Put a well worded classified in the newspaper Doug, I'd say you need to change something in your process. Either, your LO advantage message isn't being presented to the sellers clearly and simply or you are not speaking with enough sellers or you are not being consistent. I guarantee you SOMEONE, SOMEWHERE has a PROPERTY CHALLENGE that you can help them SOLVE. Pick 3 strategies from the list above and pursue them consistently. That means day in and day out for 2 months. Do you have FSBO signs or classifieds in your community? I DOUBLE DARE you implement what I suggest and not uncover a motivated seller in the next 45 days. hope this helps option8

(I apologize for this up front, but it is absolutely beyond me to resist the temptation....It's just too great!) WHAT ? ? ? ? Pointless to advertise ???It's never pointless to advertise. 500 buyers... Now here's what I would do with 500 buyers! (Hint: It's green for a reason...) I'd go find 20 properties myself and while I'm doing that I'd find 20 more investors with 10 properties each and at the same time I'd send everyone of those hungry buyers out to find properties (free birddogs!) I'd run Michael's Really Nice Family Needs Rent To Own Home Ad And then I be doing a . . .HaPpY DaNcE. . . all the way to the BANK! Sorry again, Doug! (I do intend it as encouragement)... Now I just hope MC doesn't throw me off the board! option8

Now that's what I call MARKETING! option8

Michael, Wow, this is so near and dear to my heart! I currently am in the process of developing my ideal software tool. The ideal software program would have the following: Category for each of the following: Sellers Buyers My Properties My TB records Investors who buy Calculations for Profitability Mortgage Calculator Web site links Appt tracking Mail Merge for contract creation, creation of Comp Page, RTO Worksheet Contract logging Phone logging To Do sets defined by type of transaction AND more... I'd love to speak with your contact about this in greater detail. option8

Update on this first CA: After speaking with the seller, I emailed the LO Advantage and FAQ along with a Short Offer Form. I answered her questions over the phone first thing yesterday morning, explaining how she would get top dollar and a great tenant buyer. I then met the buyers and the seller at the property later in the morning. The house doesn't show too well because the previous tenant's stuff is still in there, but it really is a great house. The property is sound, is surprisingly large and bright, all the original unpainted woodwork, hardwood floors, a remodeled bathroom, new roof and a finished basement AND it is priced well below market value to boot! It only needs cosmetic I went prepared with my comps for the buyer (showing the good price for their little bit of sweat equity---most of the houses were 2 bedrooms vs. this 3 bedroom AND the price we have is a little under the average comp in 2 years!). The sellers are getting over their asking price, but in 2 years. I had all my contracts for everyone executed. The seller's sister is a realtor and they want to review the contracts with her before they sign....FINE WITH ME! We have a buyer at the door with cash in hand and they have already rented this place for 10 years. They indicated that if they agree, they will sign before the week is out. I went knowing that no one would sign on the spot. My buyers called back within 2 hours saying "Yes, we want the home". Can we sign on Thursday? So, now the ball is in the seller's court. However it turns out, at least the ball is in play!!! I'll keep you posted! option8

Gary, I'm still low budget marketing, so I am doing insignificant mailings. These TBs are from an ad. Remember that when you market a property, some will fit the one currently available and others won't. For the one's that don't fit the properties you have, tell them to drive around and look for FSBOs they may be interested in. Instruct them to call you with the addresses & phone numbers. You get more property leads (and a motivated birddog), more practice talking with sellers, and you just may get a deal. I think that Doug's realtor strategy is a good one. I'm trying to figure out how to implement it in a big way! I'll keep you posted. More encouragement... You can tell your buyers that it is best that you act as an intermediary since you have the specialized knowledge and experience. Many of the sellers I speak with tell me that they have been approached by people who want to take the property on a rent to own or land contract. That means someone got there before me! One of several things dynamics are at play in this situation: 1) their proposal wasn't presented in a manner that made the seller comfortable OR 2) the timing was not yet right. Whatever the reason the seller didn't seriously entertain the proposal and a deal didn't get done. In we come with our specialized knowledge, the correct contracts and the well presented benefits to the seller and A DEAL GETS DONE! option8

My color scheme recommendation is always NEON! (with the disclaimer that I have no billboards!) Others may disagree, but all the IBH signs in my area are black on yellow or blue on yellow and you can't distinguish them. Be outrageous! option8

Well... A potential TB informed me that there is a Section 8 Homeownership Assistance plan! A search of the Internet revealed a few sources of information on this program. Homeownership Vouchers Here is the upshot from Realtor.org Effective October 12, 2000 HUD began offering a program permitting tenant-based Section 8 holders to use their voucher payment towards the purchase of a home. Local public housing agencies (PHA's) have the option of offering the homeownership program to their residents. HUD has set several specific criteria for eligibility of residents, but PHAs may also set their own conditions. PHAs also have the choice to make the program available for any qualified participant, or to restrict the program to certain families. They may also limit the number of families they include in the program. PHAs interested in offering the program must be able to demonstrate that they have the capacity to operate a successful homeownership program. Because the program creates a new audience of homebuyers, REALTOR® interest has been high. However, few PHA's are participating in the program. NAR's is working to provide education and outreach to state associations and local boards to fuel PHA's involvement in the program. We will also be working with HUD on developing a program to make this program more usable by PHAs. The entire scope of the program can be unraveled by clicking here. There just may be another opportunity to help someone with rental vouchers become a home owner. option8 BTW, Do you know your financial goal for this month? Have you written it down? Are you on course to make it happen? It's midmonth... Do you need a course correction to attain your goal?

Tony, I have absolutely no idea! And frankly, it really doesn't matter. (I don't mean to be harsh here, but this is the truth in my experience.) I take the attitude that every situation is different, every property is a possibility and every FSBO has some motivation for selling. All I do is let them tell me about their particular situation and talk about the fact that "time is money" and "no action is frustration". My goal is simply to provide a solution to get money on the table, get the property occupied and remove the frustration ASAP. I can provide a solution to this property challenge NOW! I can't say it enough... the statistics really don't matter. Every situation is different. The only thing that really matters is the sellers perspective so you have to put on their shoes: Two additional weeks can be an incredible frustration to a seller who has to do something now (in the middle of a corporate relocation or with another house under contract) and, likewise, 4 years can be nothing to a home owner who owns the property outright and isn't going anywhere. (I do know of a house on the MLS that has been there for 4 years!) In order to walk in their shoes, you have to get them to tell you their pain...don't sell, LISTEN! BTW, The seller did inform me that this particular property has been a FSBO for about 5 months. (and lest I seem ungrateful, my thanks to Michael for the assistance!) option8

I had an awesome day yesterday! Due to some aggressive marketing along with assistance and inspiration from Adam, I have an even bigger tenant buyers list. (Thank you Adam!) I spoke with one of these tenant buyers on Thursday. They have the necessary cash to put down, specified what they were looking for and need to move within 2 weeks. I had a property in mind for them but also suggested that they drive around looking for FSBOs in the neighborhood of interest to them. They called me back on Friday with an address and phone number. Saturday morning, while I had a few minutes to spare, I called this number. The seller is a tired landlord that just finished evicting a tenant and they decided to sell the house. Since they are already accustomed to renting this property, I told them of the advantages of Lease Option and let them know I have an occupant at the ready. It turns out the property is vacant, needs a little work, is priced below market value, is actually more than the TBs had asked for and they are willing to take a handiman special. I suggested the seller run the idea past their spouse and give me a call back. The call came back in the afternoon that they are willing. The bottom line is, I now have my first CA--- a fast $ 1500.00 in spendable cash within 2-3 days--- with only couple of phone calls and the application of some practical knowledge! AND I haven't even left my house yet! The best part is I spoke with 2 more sellers later in the day on Saturday and have 2 more possible CAs ---- One seller said "When can they come see the house!!!" Every week I love this business more and more. Talk about momentum! (posted with the intent of encouraging everyone of you) option8

Wow! Sorry you are faced with this challenge. Here are a few questions... Did she try to sell it outright? You say he doesn't want the home, but he wants his equity. He has the option to bring the loan current if he wants to save the equity in the house. IMHO, she has the deed to the home and can do what ever she want to with it including sell it for no profit (or in this case, at a loss of equity) to save her credit! I guess you can always assign your contract to him (for a fee, of course)? just my $0.02... Option8

Does anyone know if it is possible to rent to own to a section 8 tenant? Do they have to come off their certificate? Any ideas? Thanks in advance... option8