timmym22

A relative of mine has 50k cash in the bank. He is very skeptical of real estate because he doesnt want to tie up his money. Where would be a good place to put the money that will allow to be pretty liquid yet get him a better return than 1% from his bank. thanks for the help

I just bought a primary residence with cash. I am now pulling out a HELOC against the property. I will have about 80k to work with. I am trying to decide how to use this line of credit. Here are my ideas: 1. Buy 3 Land/home deals at 25k each and rent them 2. Buy one REO and flip it, (Yes people are still flipping in this market, I see it all the time on th MLS) 3. Buy two stick built homes and either owner finance them or rent them If i buy the l/h deals i will have better cash flow, but not much of a chance to sell them in the near future for a profit. If i buy the stick built homes i have a better chance of getting cashed out in the near future share your ideas on what you would do

Hey everyone, Just thinking out loud right now......80% of all transactions go through the mls. Most homeowners when they want to sell go to a realtor. Most homeowners want the most marketing exposure they can possibly get. I have put out bandit signs, sent emails on craigslist, every marketing piece you can think of. When you avoid the mls you are going after 20% of the deals that are out there. Would it not make more sense to go where the low hanging fruit is? I have access to the mls and can run keyword searches on active listings. Should i send direct mail to these listings that have homes that are vacant? Also, send letters to expired listings? Craigslist mostly has investors advertising and savvy homeowners from my experience. Pilot do you still just send direct mail to active listings? What do you guys think?

Hey everyone, I lease optioned my former personal residence a year ago. I gave the tenant buyers a $250 rent credit per month on a $1000 month rent payment. They have paid on time on the 1st 11 of the 12 months. One time they missed they paid 2 days later. We had a one year agreement. I told them i would work with them on the time frame if they paid on time. They put 5k down upfront. Now are contract is expiring and they want to renew. I told them i could not give anymore rent credits after year one. 1.How do i give them an incentive to pay on time for the next year even though i am not giving a rent credit? 2. If they pay after the 1st from here on out, could i penalize them and take away some of the rent credits they have built up to give them an incentive to pay on time? 3. Would it be out of the question to charge them another 1k to "keep their option" for the next year again even after they put 5k down originally?

Hey everyone, I know during the last decade during the boom many people would buy a foreclosure, fix it up, then sell after living in it for 2 years. All the gains up to 500k filing jointly would be tax free. I understand this worked beautifully during the inflationary time. But what about today, in a falling or non appreciating market? Is it still feasible to buy an REO, fix it up, then sell it 2 years later to make about 50k-100k tax free? To me thats a pretty good plan. That equals out to about 2-4k tax free money every month. I understand there is some downfalls to this, such as moving your junk every 2 years, but if that is all you did it wouldn't be a bad gig. I know a lot of builders used to do this. But in today's market is this doable? what are your thoughts and ideas?

If your address needs to be near the center of town and you work out of your home, what should you do? Also, is it free to set this up? How many leads are you getting a day zanders?

hey zanders, that is a great idea. how much does it cost? how hard is it to get on the top 10 listing? do you recommend any website to help someone who is not experienced in online marketing. thanks tim

I talked to Joe on the phone after he went to see you, Pilot. At the end of the call, he told me that I should get a mentor. He told me about you, MC, todd toback and then he said............." I also mentor as well, and feel that I am the best in the business". I then said thanks and hung up. MC, thanks for watching out for us.

I like the information on your postcard. What is the most efficient way to obtain addresses for listed properties and for sale by owners so you can send direct mail to them?

Hey all, Did some investigating about needing a license in order to CA's, Leasing and sub leasing, getting an option then selling with owner financing, in the state of north carolina. I understand that you become a principal when you get a contract on a home and then you sell your rights to the contract. Here is something interesting I found while searching google about this subject. North Carolina is pretty strict. John "cash" locke does sub-2 deals, he actually contacted the North Carolina Real Estate Commission about this subject, here is how they responded: B. M. Brogden, Jr. Chief Deputy Legal Counsel NC Real Estate Commission" I emailed Mr. Brogden and requested his phone number so that we could discuss Subject To investing in North Carolina. He graciously responded with his phone number. I called Mr. Brogden in the afternoon of August 24, 2004. Here is a synopsis of our conversation and was reviewed by Mr. Brogden: North Carolina has no problem with Subject To investing as long as the following guidelines are adhered to: The problem with the use of a "Land Trust" as a means of concealing a violation of the "due-on-sale" (DOS) clause is that even where the designated trustee is a real person or entity, the identity of the actual beneficiary is concealed or obscured. This can constitute a deceptive, misleading or unfair trade practice in violation of Chapter 75, N.C.G.S, and, in the opinion of the Commission legal staff, is a circumstance tending to show the person actually controlling the trust is attempting to act as a real estate broker without a license. Much the same is true for agreements, such as installment land sale contracts or lease/option or lease/purchase arrangements that are not properly recorded in a timely manner in the chain of title. No reasonable person or prudent investor would fail to immediately and properly record a document transferring an interest in title due to the risk of loss associated with the failure to timely and properly record. A person or firm truly dealing on their own account would typically obtain a deed, option or contract, properly notarized and recorded, in order to protect their investment. Failure to do so is very convincing evidence that there is no real investment and that such person or firm is no more than an agent without a license. This is a little disturbing after I read this. So basically, if i don't record these documents at the public records it would appear that I am just trying to act like broker without a license? what do you guys think? Would it jsut be easier to get a license that way there is no question? From what I understand, if I did get a license I would have to team up with a broker or start my own brokerage. Would a broker be willing to assign my license to his brokerage if I am not going to be listing homes but just basically doing my own thing. He would be responsible for all of my activity with no financial incentive for him at all. Thanks for the help guys.

If you go the lock box route, what can you do to protect yourself? Is there anything? Do you get a copy of their drivers license before you give them the code? Have them sign in when they get there?

Hey everyone, I live about 45 mins outside the main city where I do business. I have several properties going at one time. It is very difficult to show the properties and continue to do business at home getting new properties, etc. What are some ways to show the properties without wasting time? All of my homes are vacant. Here are my ideas; please share yours: 1. hire someone to show properties for me (difficult to find trustworthy and dependable person) 2. lock box (how do you avoid problems with people having access to your home) I know screening the tenant buyer is very important. However, by the time I drive to one property, then drive to another the same day, most of my day is gone, which takes away time from me calling sellers about their homes. Thanks for your input.

Hey everyone, I know banks are changing their policies all the time right now. If you setup a one year term lease option with a tenant buyer, if they buy at the end of the term is it considered a refinance or a new purchase? So if the purchase price after the down payment and rent credits is $100,000, will the bank just treat it like a refinance and give them a mortage for $100,000? Or will you have to show the bank the option money put down as part of the down payment so they can qualify?

I have done some non exclusive deals here lately. I have been burnt from "investors" on the last 3 homes. If I am dealing with your average joe the homeowner it is no problem. But when I sign deals with investors, I think there just using me to see if I could possibly get a lease purchase for them, meanwhile they found a renter before I found someone to do a lease purchase. So that stinks, but its the nature of the business. You win some and lose some. If I hear this from the seller" Yea, I have several properties....." then typically I am not going to waste my time. Our focus should be on the typical seller. Thats my 2 cents.

Need some help from all of the veterans out there. 1. I am getting flooded with calls about my homes that i am doing a CA on. How do i efficiently screen these tenant/buyers? i know i need systems in place I also need to qualify them over the phone. I only have 5 CA's going right now at one time, and I'm about ready to fall over because I am showing all of these homes to many different tenant buyers. How do you efficiently qualify them, show them the home, etc? Do you have someone else show the homes for you? I feel like I am showing all these homes and wasting the day, when i should be talking to sellers and getting more homes signed up. Maybe my thinking is wrong on that. 2. How do you obtain the credit reports of the tenant buyers? i know, they can pull it themselves, but most of the time they never get it done. 3. what systems do you have in place to keep the process smooth for screening and showing the homes? 4. BOTTOM LINE ------ HOW DO YOU RUN YOUR BUSINESS EFFICIENTLY SO YOUR NOT WASTING TIME WITH - tire kickers?

What do you think about putting signs in the yard of the homes your marketing for a CA, do you buy "professional" signs that say rent 2 own, with your number and website or do you buy the blank signs and write rent 2 own and your phone number with your black marker? Sometimes i get the feeling that sellers think im some newbie, who just got laid off his job trying to survive financial disaster. What do you guys think? what do you use?

Joe, Great post! Great information! Here are some of my questions: 1. I am marketing the same way you are with craigslist for rent by owners, it seems that most of my calls are from Investors that have property, they know enough about rent to own, but yet are curious what i can do for them. I have signed up a few deals with them, one investor got it rented before i found someone with 3% down, the other investor and I agreed to have rent at $900 a month and then he rented it out quicker than I found a tenant buyer, he also advertised his home for $775 a month on craigslist. So I guess I am trying to change my marketing a little bit to just find the "typical" homeowner, instead of the investor that advertises on craigslist. what other sites do you market to for the "typical" homeowner? 2. I am still having difficulty getting the whole down payment from the tenant buyer. Most sellers I am talking to want some sort of security deposit because of potential repairs if the tenant buyer does not buy, how do you overcome this objection? 3. Does John ever take back a note for some of the 3.5% down payment, or is it all cash or no property? 4. I guess the big selling point for the seller on this is the 80% closing rate of the tenant buyer getting a mortgage in 6-12 months, how do you tell the seller this without guaranteeing this will happen? 5. With non exclusive deals, is it pretty common to lose quite a bit of the deals bc the seller finds a renter or they sell their home? 6. I am struggling with being more efficient with the business, I know that I will close more deals if I go meet the seller, however, I don't want to be driving all around the city without knowing that I am going to do business, how do you operate when trying to close deals? Also, what about taking pictures of the home and putting out the signs? What about showing the home? 7. what does he pay for with the credit repair company? If he has to pay for the evictions cost, does he get the option money for the new tenant buyer moving in as well? thanks for all the help joe

Hey Everyone, I have some general questions for everyone to get some input on what services you use and some of your techniques. 1. do you show a tenant buyer the home before or after they fill out application, or what is your process? 2. how do you set up an automatic bank draft from tenant buyers account to sellers? is their a service you have to use or will any bank do this? 3. How do you report payments made by tenant buyer to the credit bureaus so that it will rebuild their credit faster? what service do you use? or can you do this yourself or does credit repair company do this? 4. I am thinking about putting my tenant buyers in contact with credit repair company? which ones would you recommend?

hey everyone, When talking to a seller about option money for a CA? Are most of you getting all of the down payment? Are you giving them 1/2 of the down payment or and equivelant amount of the first months rent as the down payment? How do you strike up the conversation about the down payment? I am currently splitting a down payment on a CA with a guy, I am getting 1/2 of 6k. Which is ok, but 6k would be better. If they are not willing to give up all of the down payment money does that mean they are not motivated? Also, do you screen the tenant buyers for a CA, like credit check, background check. It seems as though many sellers don't like to do it because it is "WORK." That has been my experience, most of the time i make the tenant buyer pull their own credit and bring it to me. How do you go about this? How is business right now MC? I am doing decent but want more deals. I guess i have to work a little harder to get more deals.

Hey everyone, Where is the cheapest place to buy the yellow blank signs that you can put a h-stake with it?

Hey MC, I am thinking about opening up the option to find just a renter for sellers. I know MC that you do this as well. How do you structure the deal? What is your fee? how do you handle the security deposits? I am assuming it is just like a CA deal with a lease option. I have talked to many sellers that just want to rent and they ask me if i do rentals as well. thanks

Hey everyone, I had a seller contact me yesterday after 1 year and half of follow ups. They want to do a rent to own, the home is on a lake and I had someone contact me looking for a home on a lake. So i am trying to put the two together. I do not have a contract on the home, and i am not a realtor. So how do i go about this. Should i tell the seller i need a contract signed before i bring the buyer over? or should i just show the home, and if they like it just do all the paperwork then? also, when you have a tenant buyer that has a good amount of money to put down, and you know what there looking for how do you go about this as far as contracts are concerned? Normally you get seller first, get contract then market it. This is kind of doing it backwords. what is the proper way to do it? thanks

I have talked to many sellers and seems as though many are going with rentals instead of lease purchasing. Most of them are telling me that they don't want to lock in a price at todays value. Even though most of the tenant buyers end up not buying in the first place. how do you convince them to not rent?

Well then, i guess i need to use postlets. Where exactly does that post to? does it post to craigslist automatically? i have used backpage and kijiji and have never received any response.

Hey everyone, I am flat out frustrated with craigslist. I have about 10 different email accounts set up with them. I use a blackberry and tether it to my laptop, everytime i connect it has a different IP address. But still the craigslist police gets me. They delete my ads, therefore no traffic to my website, therefore no calls. What do you guys do about this? Obviously we want to get our ads at the top as much as possible. This requires me to post about 4 times a day. how do you do this on craigslist without getting ads deleted? Also, what other websites are you posting to? when posting ads, are you just writing about the details of the house, posting some pictures and telling them to call you or reply back to you. OR are you posting, writing some generic info then putting a link to your website on the ad?