aaronj231

Is it possible your being too business like? Remember nobody likes to be sold. When I started doing the email thing I was overselling them on the 2nd email and not getting anywhere. In the second email I let them know right up front that I do this as a business and I would be putting a client in the home but then I start asking them questions about the home, getting them to sell me on the idea of working with "them" I wouldn't go into all the wonder things you can do for them right away. Just give them enough to peak their interest and then go from there. Works for me!

I agree with everyone above, however rather then walking away I have let some sellers take the contracts to their lawyer's. The results have ranged from a few minor changes, to my last deal where the sellers lawyer rewrote the entire contract and charged his client $1200.00. But in the end I could live with changes, it was a hassle but I had a tenant/buyer ready for the house and I will make probaly $40,000 on it ove a couple years. So I would let the lawyer look at it and see what happens, I have had some lawyers ok the docs "as is"

Working hard and I think $25,000 a month is feasible. Thats only 5 assignments at $4000 each I know its possible because I have done it. That was a good month of course but I think you can easily average 5-10K.

Thanks MC and others. Steve, How are you making out with your SLO's? It's been a little tough this year with vacancies and also hard to find T/B's but things seem to be coming around this year where I am at anyways

Hi Guys, It's been a long time since I've posted on the board. I purchased the manual about a year ago and since then I have been busy I have 5 active sandwich lease options and have done numerous assigments The cashflow from my sandwich l/O's is now enough that it pays almost all my familys living expenses each month, not to mention the $100,000's or so I take in for consideration, so thanks MC! With the sandwich lease options I was just wondering if anyone checks title on a regular basis like every 3 or 6 months just to make sure nothing ugly has popped up like bankruptcy or unpaid taxes etc? Up here in Alberta Canada it only costs $5.00 each time to check title so I was thinking about doing it every once in awhile. Any other thoughts how to protect myself from the seller not paying the taxes, putting into forclosure etc?

Hey guys! I just signed up a tenant buyer for another sandwich lease option deal. I haven't done this in the past but I think it would be a good idea on this one for me to make them mortgage payments to the sellers bank. I was just wondering how you guys do it? What forms? Whats the procedure? Is it as simple as just making the cheque out to his bank? Thanks again~

Doug, Sooooo funny because it's true

That's exactly the attitude you must have. Take what the deal will give you, get it done, then move on to others. Michael, You were absolutely right about that! Now instead of spending my time and energy trying to work out a complicated deal I have my $3000 and now 2 other prospective deals lined up. If I would have spent my time trying to squeeze every last cent out of this house I would have missed on these other 2. Thanks for your advice in my other thread... You're a wise man!

I just wanted to thank everyone on the board for their help. Did my first CA this weekend!!! $3000 Assignment fee to me and the t/b's took over my 3 year contract for a 15 year old 4 level split 1800 Sqft they are paying $2500/month including $500 rent credit. They put $4000 down to the seller for option money and there also giving him $1000/month extra until they reach a total option fee of $10,000. I really wanted to do my first SLO on this house but the seller really wanted to deal directly with the client so I took what I could and got out.

My backup plan would be to do a contract assignment get the $2500 up front and then $350/month for 18 months for a total assignment fee of $8800. That way I would still get my $2500 plus my cash flow Then I guess I would just walkaway from the $10,000 profit on the backend and let my tenant buyer have the contract at my price. There should'nt be an issue with accepting part of the assignment fee in installments would there? Thanks for the help

Thanks MC, What I was thinking, because the issurance company is going to want a copy of the lease/option agreementwas deleting the section that says "I have the right to assign/sublet" and replacing it with "I have the do not have the right to sublet or assign without written permission" Then I would just have the seller right me persmission to sublet after the fact, would that work?

I have almost put together my first SLO. I got a call from the seller/landlord today. He talked to his property issurance company and they told him they will not cover the property on a sublease deal. They will only cover it if the primary rent is living there. I called around to other companies and town and got the same story. The reason they have given is that there is no tie from my tenant/buyer to the homeowner. If the tenant/buyer burns the house down then the issurance company can't sue the tenant buyer because they did'nt have a direct agreement with the Seller. What do I do? Nobody will insure the property and the Seller is not going to risk his house being burned down which is completely understandable. FYI I am getting $350/month cashflow and $2500 option consideration for this deal with $10,000 cash if the option is excercised.

Thanks for the advice guys! So what I got from all this is that It would probaly will simpler with a lease/option or a pure option and then a seperate lease? So I can now just have the seller sign the option contract and void the purchase the contract? Also I am in Canada, I've never heard of a performance mortgage, option memo, we have caveats that cloud the title and let would be purchasers know that you have an interest in the property, is that the same thing?

Okay, the reason I did it that way is because I felt if the guy decides not to sell a purchase contract would hold up more than an option? Any truth to that? I definately will try to get a financing condition in, I do have " subject to inspection satisfactory to the buyer" although now I could see that one not holding because I kind of agreed that the property is satisfactory by moving someone in there, right? Also would you mention the lease in the terms of the purchase contract? I have "The seller will lease the property to the buyer at $2000/month for a 3 year term starting July 1/2008"

I just did a deal where I tied the property up a purchase contract that had a long closing 3 years and I have "subject to business partners approval" right till the closing day giving me an out. Then I have a seperate lease agreement with the seller. No my question is this the right way to do a lease purchase deal? Or should I be using an actual option contract instead of a purchase contract with subject to's? Let me know you thoughts on this please. I plan to find a buyer with a downpayment and sell it to them the same way with a seperate lease and a purchase contract for a 3 year closing.