GetSmart

I am glad in NC you don't have to give a deposit for consideration. In NC "A binder or earnest money is not consideration and is not an essential element of a contract." Here as long as you have bargained or given a price in exchange for something of value that is consideration.

i would tell the friend of the family if he is not careful, he could be held liable for giving legal advice without a license, just to shake things up a little. first ask him to read the agreement and tell you what he thinks it means and then hit him with the legal advice bit.

Thanks Mike, i think those sites might be a good option as well. Hey Bev, the yahoo group was an awesome idea, can you go a little deeper about how you find news groups? Plus i liked the visual search engine, it even brought up my website, in its earlier stages.

I have the deal under contract, now i need to find a tenant buyer that can put down the money to get this deal going. Here are a few ideas i picked up along the way. Pass out fliers two blocks away from the home in every direction Place bandit signs in the general area Keep an ad on craigslist Put a video tour on my blog as well as pictures. Backpage Kijiji Have tenant buyers bid on the down payment and rental payments. Is there anything else someone would like to ad to make this a great experience. The current tenant is moving out on the third week of July and I want to have a tb lined up before then. All tips will go to the good of the community.

I concur with the above statements about a lease purchase. It can be more dangerous than a subject to transaction, because at the end of the term, you are required to purchase the home. I don't think its a big deal, just tell the owner that your partner prefers the option agreement because its easier to convey your interest and it protects them as well as you more so than a regular purchase agreement. If you do renegotiate the purchase agreement then the seller has a new opportunity to walk from the deal completely.

Thanks Mike and Kevin for clearing things up for me. this community is very informative.

I am trying to figure how to protect an interest with l-t-o. a good point was brought up about would if a seller, sells to someone else, refinance the property, simply gets lost or file bankruptcy. how would one go about protecting an interest. this conversation came taking a property subject to is better than a lease option and i want to see if others can help to a conclusion.

oh yeah, mc i am in charlotte, nc one of the supposed markets to remain constant during the market fiasco. we are just like everywhere else. certain areas have depressed pockets while others are doing extremely well.

i would not have imagined. bummer that sux.

I know this is a social network, but i am referring to some different ones. like myspace, facebook, twitter and the other ones out there. i hear combined they are getting more traffic than google. a lot of the traffic can be coming from kids, but it seems like they would be worth a try. maybe if you get enough friends on these sites, they will become bird dogs for properties. i see this as a good way to attract sellers that you wouldn't come across any other way. plus i am sure they are willing to help you spread your web or reach more ground. any comments or ideas would be great!

i have read one course that says if you can profit monthly from tb rents then you should slo at full market value if there is not equity and charge more than market value if they area is appreciating. but don't over charge for the house if the house doesn't appraise. their book was titled how to profit from homes at full market value with l/o. i have used the method and it seems to work. but your site has taken things to a new plateau by collect a ca and leaving the deal. now that is innovative.

will do thanks. here is a question i want you to answer if possible. why would you sell a l-t-o to a tb for todays market value? it seems like they will be getting an awesome deal if the market improves, plus you are giving them a rental credit so this imo is working against the benefits of a l/o. i mean i would expect to get a l/o for myself below todays market value, because i am not looking for any rental credits, but for me to sell it at todays market value how is that working to your advantage? i am really confused now . i have been charging above market value for my tb's because they are getting such a good deal with the rental credits. plus in my market appreciation is 4% a year and i want to get that as well until they are capable of purchasing the house. now if the house isn't worth what i am charging them at the end of the lease, i will work the price down to market value so they can buy the house.

are you a broker, if not you could get in trouble advertising securities with the FTC. i am just telling you so you can run your investment technique by an attorney. it is my understanding that you can't advertised 100% return or any type of return on an investment unless you are a broker. you might be able to do it through a corporation selling shares. look up the blue sky laws. http://en.wikipedia.org/wiki/Blue_sky_law

i don't understand why companyies like that just don't control the whole process and charge a portion of the deal to either the investor or the wholesaler. i guess because the list might not be worth what they are charging. if i had a list of 8000 investors, i know i would sell the list, i would create a website for everyone to submit there properties and funnel the numbers to the investors and if they are interested sign an assignment agreement with the wholesaler. something sounds fishy.

how did you find this motivated seller?

sure, the comps suggest todays value is between $140-148k. i want to lock in a lease purchase deal with a tenant for $155k. I was always under the impression that its always best to charge the tenant buyer no more than 10% more than market value, since the value can increase and they are locking in a deal to become a homeowner. There usually is no other way for them to become a homeowner unless they go the lease to own route. Same way with owner financing, or contract for deed, you charge the tenant more because they are getting great terms to lock in the home. I think this is worth since most people are willing to pay more for rent to own appliances. Once you calculate credits and all they are back down to todays market rate which the value could increase over the next year or two. When the seller signs it will be a 2 year lease agreement, with the right to extend the lease another year for another $2k down. its a newer home, needs only carpet and paint which the tenant will be expected to take care of.

oh yeah thanks everyone for reassuring me that if the seller is reluctant to do things my way then go at it alone and possibly go to foreclosure. one thing i have noticed that when i present a good deal to a seller and back peddle out of the deal from their shakiness they become more desperate. oh yeah is a 15k spread good enough for this type of deal? purchase price:129k value: 144k sub lo: 155k sub lo rent credit: 7k closing cost:3-4k these are the numbers if the market continues stagnants or if it improves the tenant will have an even better deal.

one lady contacted me and i sent her my agreement and she said ok and she was willing to let me keep the equity. hmm it might be more to this tale spinning market after all. i will let you know if she signs the agreement so i can start marketing for tb's. i went right for the lease option deal since she only had like 15k in the deal and a possible 200 a month cash flow which i will keep. she felt more comfortable with the sandwich lease more so than me walking away with the profit leaving her with the tenant. one thing i did tell was, if that is what she chooses, i will collect the rent and send her a money order in the name of her mortgage company to keep her from pocketing the money & getting me in trouble down the line with the tenant. i wonder how many of the 50 leads i passed up would have been willing to do this type of deal.

If the seller is motivated to do a lease purchase but isn't receptive to you walking away with the option fee, what adjustments are you using to make the deal work? I have been trying this approach for awhile even before i found this community and i always get the same ole same ole "what security do i have that your tenant will pay?" I always tell them that there is no guarantee and if they find their own tenant there is no guarantee they will pay. What is the back up plan to gain trust in this approach?

if the buyer has the much cash to put down, why don't you do owner financing for a little more than market value and sell the note and cash out now?

i think a home warranty is a good idea, especially if the tenant buyer has a sizable option fee. that will give them a peace of mind knowing that they are investing into a solid home. i have used that before in my ads and i told them to mention the warranty but none that were serious did. only the ones with little or no money wanted a warranty and were picky as h*ll.

dang bev, you turned down a ten year old house? my biggest pay check came from a house that was almost 60 years old.

it will be hard to find out market trends if you don't commit to networking with others to stay on top of the market. if you aren't consistent here you should be somewhere else.

hey rex, i didn't know that you buy houses in north carolina. i see you are a richard roop fan. has his marketing worked out for you?

how has this mailing turned out? i want to know how you come up with all of those neat looking images and who is printing them up for you?