nashvegas

I get what you are saying. I was thrown off because the example he was using was a cash buyer.

I'm confused here. If you found a buyer in 5 days, You are assigning your option agreement to the buyer for a fee. correct? So if the option is for 75K and you market it for 85K, then the buyer gives you 10K and they have the 'right' to purchase the house for $75K with the existing time frame that was originally agreed upon. So, why force them to close if it's a cash buyer? What am I missing?

I found a mortgage broker and explained what I'm doing, and asked if he would like to work me. He said sure, and offered to do my credit checks for free since they might be potential clients. As far as background checks, For now, I am leaving that to the seller. I will point them in the right direction, but I don't want to be responsible if I use a service that 'misses' something and something bad happens. Just me, and I'm still new at this game.

UPDATE Well, I politely took back control, and got the deal done. Thanks for your help getting me through my first deal!. BTW Michael, I don't know if you remember, back in 2009 I signed up for your mentoring program, at the time I had a lot going on in my life and had to shelve everything. Always knew that this was a great opportunity and always had it in the back of my mind to get back into the game. Well that time is now! Just for the record, though delayed, your mentoring program has another success story Thanks for everything Warren Nashville TN

Thanks Michael. Have you had Home owners and/or TBs that wanted you to change or add things in the agreements? If so, how did you handle it?

You are so right. She is not thinking clearly. I was able to talk to her directly last night. I reminded her that they get $2500 free money if the T/B does not exercise their option ( I split the option fee with them) plus, they have a security deposit. She's going to think about it. If I do have to cancel... How is that usually done. Do I need to get that in writing? If so, what would that look like?

They wanted me add a few minor things to the lease. That was one of them. I didn't realize at the time that they meant no smoking anywhere on the property. This is my first deal, I'll know better next time.

This deal is sooo close. All the terms have been agreed upon except for this: Seller added this to the Lease Agreement: SMOKING: No smoking on the property or in the house/garage. Response from T/B: 3.The smoking clause: It states no smoking on the property or the home. We can agree with no smoking in the house, because we don't allow smoking in our home, but, We can not agree to no smoking on the property. We can't and won't ask our friends or relatives to go down the street if they want to smoke a cigarette. We don't see where there is a problem with someone smoking outside in the yard or on the porch. The wife of the owner doesn't want the house to smell like smoke if they ended up not buying the house.The husband agrees that not smoking in the house should be the only restriction but his wife wants to leave theclause in place as is. Even if it ends up being a deal breaker. Wow... So much for them being motivated. Trying to save this deal. But If the owners do not budge, and this deal falls through, I think I am going to cancel my agreement with them. I don't want to waste my timemarketing the house under these restrictions. Thoughts?

Erik, just for a reference, I did a credit check on a potential tenant/buyer and found out that they had two bankruptcies. Chapter 7 in 2005, and chapter 13 now. Plus, judgments and charge offs. Their scores were in the mid to upper 500s. My Mortgage guy said if they got their act together and established good credit that they could qualify in two years or so. But he also said that is easier said than done, Some people just plain have poor habits, and will always continue to make poor financial decisions. (Oddly, after presenting the owner with all the credit info, they still decide to go with them.) I do know that mortgage companies look at medical collections differently than other debt. Some don't count it against you at all.

Michael, Thanks for the quick reply. Just a little info on this deal. It's hard to say that this is the easiest deal I've ever done when this is the only one I've done BUT..... On the first day that I decided to get back into it, I saw an ad on CL for someone wanting owner financing in a particular part of town. So I figured it would be great experience for me to pick up the phone and give them a call to see what their situation was. They were relocating back to this area and needed a 3 bedroom <= $200K and had 5K to put down. Literally, 5 lines down from her ad was a FSBO ad for the location she was looking for, with just about all the amenities she was looking for. So I called the owner and asked if he consider selling his house as a Lease purchase and he said yes without any hesitation. I told him what I do, and mentioned the women, and everything fell into place in a matter of days. I guess I will get my 150 NOs in a row on the next one, and the next! I'm finding that picking up the phone and calling is a great way to jump into it. Your fears of not knowing what to say go away quickly.

Hello Everyone, This is my first post. I've had MC’s course for some time now, and finally decided to give this the attention that it deserves. My first week has been productive. I'm a few days away from closing my 1st CA. On this deal, I'm splitting the option fee with the home owner. 50/50. (my offer) I'm sure as I gain experience I will not be so generous. The option fee is $5K. The Tenant/Buyer only has half of that right now and will have the rest in a month or so. The way it looks, I will get the initial $2500 and be on my way, and the home owner will work with the t/b for the rest of the option money. My question is, what’s the best way to write this up? When we sign the Assignment Agreement should the amount be for $5K and show $2500 was paid, and the balance due to the owner? Or, should the Assignment Agreement be for $2500 and let the home owner and tenant/Buyer work the rest of the terms out? Thanks in advance, Warren

Hello all! I’m new to this form, however I have been lurking and burning the midnight oil reading as much as I can! I must say that I am really impressed with not only the experience and knowledge on this form, but the willingness to share and help others. I feel very much at home here! A little background. I have studied SLO’s using Wendy Patton’s materials but did not feel comfortable utilizing that technique right off the bat with no RE experience at all. Then I read someone talking about CAs on another form but had absolutely no idea what that was. There was a link to this site and…. here I am! This technique makes so much sense to me especially since I’m a beginner. Previously, I have been in the “analysis-paralysis” mode for way too long! However, once I read about the CA’s within an hour I was convinced to buy Michael’s manual. That was last Friday. (btw, ordered it 4pm on Friday and got it Monday! ) In the mean time I got busy and started my marketing. Monday of this week I went home during lunch and just started replying to all the FSBOs on Craigslist using the basic “Hi I saw your ad on Craigslist would you consider selling your house on a Lease Purchase?” I fired off 30 emails, copy-paste, copy-paste, took me 10 minutes. Before I was done, I had 10 responses in my inbox. 6 yes, 2 depends, and 2 no thank you’s. I kept this going all week, adding Backpage.com, FSBO.com, and Owners.com. Ended up talking to several home owners You vets out there are right! Us newbies do talk way too much! …and I already have that problem! Probably scared some off. Oh well! I'm getting better. They are actually still on the phone when I get to the end! I now have four very hot leads. Monday, I have an appointment to sign my very first contract. The others say that it sounds really good and would like to go over the contracts. I’m very encouraged by this. I know it’s not going to be easy, but I know in my heart that I can do this! I have Incurred about $5k in medical bills this year and had no idea how I was going to come up with the cash. Now I do…. Do one deal! Okay, now for one of my two my questions. It has to do with the short offer form. Is this a necessary step or can this be skipped and just fill out the Lease Agreement and the Option to Purchase agreement? (and of course the Ca assignment agreement when I find a tenant/Buyer) The other question is, what if the owner still wants to market their house while you are? I’m imagining two ads in Craigslist for the same house by two different people. Or two signs in the yard. (I’m exaggerating a bit here) I know you can set up the agreement to be non-exclusive. However, how does this usually play out? Wow, I just looked up at what I wrote. Sorry for the book!