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About bpmiller2

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  • Birthday 02/25/1978

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    Atlanta, GA
  1. Ok, after years of alcohol consumption, I only got two brain cells left in my head and they are at war with each other of this using the option fee as downpayment. Now for a CA deal, I understand the whole net price and then marketing it to my t/b at price with rent credit and option fee. But if we are saying to t/b that the assignment fee can be used as down payment and pocket that money, when the t/b goes to lender for financing the lender is going to say "ok where is that money at now....we need it as part of the down payment for the loan? Does that make sense???? Now I would think that the only way you can say that the option fee is going to be used as down payment is if you list this money as earnest money in the purchase contract. You see, when a t/b tries to purchase the property and goes to a lender to get their FHA loan they will need 3.5% down and that lender is not going to just say "sure we wil credit you the money you gave as an assisnment fee to the investor as part of the downpayment". So in my mind the option fee, just like the rent credit, will only be able to be used to lower the actual purchase price, not used as part of the t/b downpayment. Please weigh in on this as I would like to hear how others are handling this. Thanks.
  2. I wanted to know if anyone has, or has heard of someone, working directly with the banks REOs to lease purchase? The reason I ask is b/c I talked to a guy that works with a lease purchase company here in my area and he said that because banks are so loaded with these non-performing assets that they are desperate to get rid of them, therefore they are now considering creative options such as lease purchases. If this were true, I would have to assume this was local banks and not the monster mega banks. I am planning on meeting with this guy at a networking event later this week and plan to dig further into this, but I wanted to ask if anyone here as had any success doing this and if so, how are your presenting this to the banks?
  3. I had a seller that I am doing a CA for and I brought by a potential tenant/buyer to show the house last night. While we were there the tenant/buyer said that he would be more comfortable do a straight rental instead of rent-to-own. Well, the seller overheard this and contact me this morning saying that she would be willing to do the straight rental if that is all he wanted to do. Although I told her this would not be a good idea since she is moving to another house out of state, but she insists that she does not want to chance not finding someone before she moves. Luckily she does not have this guy's conatact info or she might cut me out of the deal all together. So, as far as charging a fee for doing the straight rental, should I charge equivalant to one month's rent? Should I use the consultation agreement to do this?
  4. Thanks MC and Jason for the reply. Just to clarify, I will put the purchase price of $210,900 in line 1.c and then my RC and OC will go in line 1.d and that will reflect the net price that my seller will get....correct? Sorry for getting so techincal.....I know I am overthinking the whole thing!
  5. I am having a hard time figuring out how to properly structure a CA. If I have agreed with the seller on a PP of $205,000, Rent $1400 with a $200 RC, OC of $3500, and a 12 month term........now if my net PP is $205,000 do I put on the contract a gross PP of $207,400 to reflect the $2400 in rent credits, or do I need to set my gross PP $210,900 to include both rent credits and option consideration. And just to clarify, when marketing for a TB, I am using the gross PP reflected on the contract.....right?
  6. I have a few potential CAs that are in the works, however, on two of them I feel the homeowner is setting their purchase price a bit too high. I am worried that when the tenant/buyer goes to get financing that the appraisal will come in below the purchase price. At that point, I am not sure what would happen between the homeowner and tenant/buyer, but I want to avoid any possible problems for myself down the road. Would it be possible to add an addendum to the contract stating that if the appraisal comes in lower than the agreed upon purchase price that the appraisal price supercedes the original price? Also, should the addendum state that if the seller believes the appraisal to be inaccurate that they can order a new appraisal at their own expense? And lastly, can anyone help me word this so that it sounds professional enough for a contract? Thanks in advance for your help on this!
  7. If you use Clearnow (www.clearnow.com) for your electronic rent collection then they will automatically report your t/b rent payments to PRBC. By doing this you are killing two birds with one stone......easy rent collection and improving t/b credit.
  8. Are you just doing credit checks, or are you doing any type of employment/income verification, rental history, criminal background checks as well?
  9. I don't know about everyone else, but in my market it seems like every investor has jumped on the lease purchase bandwagon. When I scroll through CL ads, it seems that most of the listings are investors offering homes as rent-to-own. However, in my area, I don't see a lot of maketing by other investors for T/B besides the conventional listings on CL and other online sites. With that being said, I think there might be an opportunity to work with these investors by marketing their properties to my T/B list in exchange for a portion of the option fee. I just wanted to see if you all though this was a good idea? Also is anyone else is doing this in their market? If so, how are you presenting it to other investors? How much of the option fee should I expect? Thanks in advance for your responses.
  10. There are a few different companies that offer software to automate posting on craigslist, backpage, etc. The one that I have heard of most often is: CL Auto Posting Tool There are also a couple other that I came across when I did a google: Craygo Living Easy Software Power Postings.com There maybe some other legitimate ones out there that I did not find. If anyone has had experience using any of these, I would be curious to hear your feedback.
  11. Has anyone had any experience using Craigslist Auto Poster Software? I was curious if it was worth the investment.
  12. MC, I understand what you are saying about being upfront with the seller at to my intentions with this property. And I will use that follow up email on future follow-ups, however, on this situation I feel that we are past the point of introducing my self/company and what I do since we have been going back and forth a few times now. I feel like at this point I need to go ahead and begin explaining what a CA is but am worried about confusing the seller once I begin to explain it in detail......and as I read in another post "a confused mind always says no". So once you have an interested seller how do you explain in detail how a CA will work without making them confused?
  13. Ok, so I have my manual and have been reading through this forum for about a month now. Well last week, I decided to take some baby steps in actually applying some of the knowledge I have gathered and e-mailed a few FSBO & FRBO (2 of each) thorugh Craigslist. My reply to their ad was just a simple "would you be willing to consider doing a lease purchase?". So out of the four that I responded to I got one positive reply back saying " I'm open to idea's. What terms did you have in mind". There were no pics or address listed with the ad, I told him I would need to get the address and any pics if he had them before I could discuss terms. I also asked him at what price he would be willing to sell the property (he had mentioned in the ad that he wanted $1100/mth. for rent). He then sent over pics and said that he would be willing to sell the property at $120,000. Well, I have done my due dilligence on the property and looks it looks like this house was bought as an REO from the bank. Also, there have only been two comp sales in this neighborhood in the past 6 months at $107,000 and $112,000. Based on the information that I gathered it looks like this would need to be a CA rather than a SLO. Now I feel like I have a good grasp on what a CA is and the process of it, however, how would I go about explaining what a CA is in laymen's terms to this seller and make it sound beneficial to him? Thanks in advance for the advice, Miller
  14. MC, when you get your T/B to sign the assignment agreement do you give them any type of receipt for their records or do you just consider their signed assignment agreement enough. Also, in your business, do you accept credit cards as a means of payment for option consideration.
  15. Just wanted to let everyone know that I am running my 2nd annual TOP DOG Office Pool this year. If interested in getting in the pool let me know and I will e-mail you more info!
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