hanwellboy

Wow, 90 degrees! Although it's sunny here in Fredericton New Brunswick it's currently a balmy 6 degrees celsius - 43 fahrenheit. Actually quite nice for this time of year. Enjoy those Sam Adam's - and maybe pick up a case or two of Canadian - if they sell it! Cheers, Aaron

Happy Birthday Michael!! I hope you have a great day and make plenty of deals! I really appreciate all the help you and the other members of this forum offer. Have a cold one, put your feet up and relax! Here's to many more years and many more deals! Take care Aaron

I understand it's new, and very hush hush. I would really like to hear how it's done from someone who has completed a deal. Any chance of me picking your brain? By the way, I went through your website - very interesting! Thanks Aaron

Hey all, I was surfing the net reading up on various R/E sites, when I came across an article about a twist on "subject to" deals. This guy from Texas apparently has been doing them with success for awhile. He calls them Sub3's and says that they are pretty much hands off, without the risk associated with a regular subject to deal. I can't find any info on how this guy is doing these deals. Seems they are exclusive to him and that's the way he's keeping it - for the right amount of money that is. Anyway, just wondering if anybody here has come across this and can shed any light on it. Sounds interesting. Aaron

Hello forum, Being new to the real estate game, I am still trying to figure out all the angles. I have been reading alot about creative financing. Owner financing is a great way to buy a property without going through the hassles of the bank (or so I've been told!). But a question popped up in my mind. If I own property that the bank is currently holding a mortgage on, is it still possible for me to sell it AND offer to finance for the buyer? The way I see it, if I'm currently paying say $800 a month at an interest rate of say 5%, then could I offer to finance the sale of my house by charging 10% to the new buyer? So in essence, I would still be paying on a mortgage of $800 a month, but would have a payment from the buyer of say $1200 a month. Isn't this something like creating a note? I hope all this makes sense. I look forward to your comments.

It does get frustrating at times, but you've got to keep going forward. I have also debated whether to buy outright and then do a lease option. I think I would have more success. But then I think of the landlord gig and shudder - been there done that. How about you Doug, or Michael? Do you buy and then lease option along with doing CA's? I am reading everything I can get my hands on in terms of creative real estate. Does anybody have any good books they could recommend?

I've thought of that. I've explained it in as 'layman' as I can get. The reaction I get from sellers is "why do we have to sign a lease agreement with you, then you assign everything to the buyer"?. Why can't I just sign a contract with the buyer? I've explained that if I don't do it that way I could be hassled by the realtors. I think I may be starting to doubt myself. That's why I asked the question. As for the TB's, they are concerned about the assignment contract. Probably because they have never had to deal with something like that before. I have been getting pretty good response by both sellers and TB's to the initial offer, but things seem to cool off soon after. I am quite sure I am coming off as professional and knowledgeable, maybe it's just that most people in my part of the country havn't heard of lease purchasing before.

Hi all, and happy holidays. I seem to be encountering some resistance towards the structuring of a CA from both sellers and TB's. Most of the sellers I've spoken to seem to understand the concept, but are reluctant to have 3 people involved in the deal. Can I not work as a middleman, and match the buyer and seller and collect a fee from either or both of them? Or is this blurring the line between investor and real estate agent? My fee would come from structuring the deal and matching buyer and seller, but my name would be nowhere on the contract to lease or to purchase. I would essentially be providing a service. Please let me know what you think.

HH, nice website. I've really got to get cracking on mine. I noticed just a few things that you may consider. 1. Go through your text as many times as necessary to delete spelling and or grammatical errors. 2. For a contact email address, avoid using a public email service such as Yahoo or Gmail. Since you have a website, most hosting companies offer multiple email addresses for free. It looks more professional if your email address is something like inquiries@hhiinvesting.com as opposed to hhiinvesting@yahoo.com Other than that, it looks great. Good luck with it!

Thanks for the welcome Michael, and thanks for the response. I am starting to understand the CA concept more clearly now. You're right when you say don't limit yourself to a specific percentage for option consideration. I would feel sheepish if I asked for 2.5% and found out later the TB would have given me 5%!

Hi all, I am new to the forum, but have been reading alot of the posts related to doing Cooperative Assignments. I just want to get my head wrapped around some numbers. I would appreciate if someone could review my numbers and let me know if I am in the ball park in my thinking. Homeowner is asking $200,000. Market rent is $1300 Homeowner willing to do a 1 year lease with option to buy. Now my questions: 1. If appreciation in the area is roughly 5%, should I market the house as $210,000 to the TB? 2. If I do market the house at $210,000 to the TB, can I ask for 2.5% of that number as Option Consideration, or do I have to take it from $200,000? 3. If the TB agrees to $210,000 and the seller wants $200,000 then I have a $10,000 spread with which to work? 4. Can I then offer rent credits of $5000 to the TB? ($10,000 - $5000 option consideration = $5000 in rent credits). 5. Summary: Should I look to build a 'spread' so that I can make the deal look sweet to the TB? I hope I have explained myself clearly enough. I look forward to your replies. Thanks