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BTI last won the day on June 26 2016

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About BTI

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  1. Lenders like to see above market rent and a contract that states that X dollars of the monthly rent is option money to be credited toward the purchase price if the option is exercised. It makes the regulators Happy and avoids them claiming it was rent paid the seller and not funds belonging to the tenant buyer.
  2. In the future consider throwing a few bucks to the agent an make them sort of happy. If the agents deal is to rent,the the total commission is usually the first months rent and usually is split with an agent that brings in the renter. So what I am getting usually enough where this amounts to nothing and I can usually turn this agent into a sort of bird-dog or scout instead of a foe.
  3. You don't say what state your in. So you will need to check with your state but for example in California you don't need to disclose your an agent. That requirement is one required under the Realtor's code of ethics, not state law, so you could be fined by the real estate board but it is not a reason that would cause the loss of a license. Another factor is your contract with your broker may require it. However many licensees had the deal done by their spouse as the official principle in the deal and keep the licensee out of it, Snicker, Snicker.
  4. Just a quick note on homeowner associations. When I first started I used to fight tooth and nail with them but my state had a sign law that a 18x24 sign was allowed in front of the home period so they couldn't enforce their rules. But the directional signs could be pulled. Well I started putting an ad in the HOA newsletter and they started being nicer because I was helping cover the cost of the newsletter and my directionals stayed up as long as I put them out Friday am and pulled them Sunday pm but that was good enough. I had a kid in the tract do it for me. And the ad usually gave me a deal or two each year that I wouldn't have know about. So of course I expanded to other tracts. Now the investor benefit of actual bs with the powers, they would inform me of non payment of dues and thus a potential lead. Now some did not allow rentals, but gave in if it was a lease option classifying it as a slow moving sale. but they did that because we had a nicer relationship and when they played hard ball I used my secret weapon to get a tenant buyer in.
  5. OK, cold calling, something I happen to do if I don't have anything else to do. The don't know why I'm calling call, works better if you call someone renting or selling something. I used the someone left this number on my desk saying call you, but didn't say why, are you selling something or have some kind of service your offering. Oh, your selling a car, I was looking for a second car maybe that is it, what kind of car is it? Why are you selling it? There is a point where you can inject that your a investor, e.g. Oh, I was looking for something with very good gas mileage or whatever it lacks, to use because I am a real estate investor and I put on a lot of miles doing my job so I was looking for... by the way as long as I have you on the phone, do you know of anyone that maybe mentioned... Rental, it's not for sale, that is what I wanted to find out, I am a investor and I do lease options and wanted to know if you were a potential seller and of course your not. May I ask have you thought of adding to your holdings at todays prices by buying another home on a lease option and renting it out. No I'm not interested. Well thanks for talking to me, I do run into people wanting to rent but not buy and if that is soon I will be sure to give them your number, if that is alright with you. It is a rare person that gets upset at this approach. As I think about it I can only remember one.
  6. Deelight Michael is right, agents even the experience ones, like leads, same with mortgage people and others. Just make sure you give something in return. I can't believe the number of investors that just want to take, take. and take. I was talking to a woman investor a few months ago and she was bragging about how she had all these agents jumping around doing stuff for her and then she complained about how things have changed recently they don't seem to have time for her, duh. I speak as an investor since 1955 (one week after my 16th birthday) and an agent/broker since 1964. Just make sure the agent is halfway competent whether new or old, and try and find one in the separate areas you work so some level of local expertise.
  7. yes, I include a clause that in the event of the death of any party to this agreement that it shall be binding upon any and all heirs... They don't have to be old, read the obits, the young die all the time too.
  8. If it is a deal with a double close and a seasoning issue I avoid the double close and just step out of the deal so it is a direct deal between seller and end buyer and get my fee in escrow for me releasing my interest. Paying the seller a few extra bucks that I would have spent on a separate closing anyway for his co-op makes him happy even though the purpose was to hide a big profit by double closing. If it is too much for the seller I just add the buyer to my deal and let him buy me out using one of a few ways. Seller doesn't get the extra bucks.
  9. I never give rent credits on my personal deals. If I am going to give a "credit" I have market rent due each month plus an option payment that extends the option and all option money paid to date shall be deemed down payment money in escrow contingent upon exercising of the option in a timely manner and the close of escrow. T/B feels better about higher "rent" and it keeps their mindset up as to being future owners and not renters. Failure to pay the option money terminates the option and the lease.
  10. Yes the stats are right, we are becoming a nation of renters. What the stats don't tell you is how many of those renters don't want to be renters and are trying to forge ahead and become homeowners when they get the chance. With the right knowledge you can make that happen for many of them.
  11. I agree don't use the word sublet just because of the negatives attached to it. However in California you are legally allowed to master lease and thus lease or technily sub-lease with out a real estate license because you are not acting as a property manager for the owner, you are the master tenant and can sublet if you want to, you are acting on your own behalf as a principle, not as a agent of the owner. You are dealing with your rights not the owners rights so to speak. I have suggested to a few smaller property management companies to give up what they are doing and just master lease because just the tax savings make it worth while. and they did.
  12. DeeLight Had a friend that got Michael's book and did very well. Haven't seen or heard from him due to one of those divorce deals he and his wife had where you have to chose sides. Not my game they were great people just couldn't live with each other, and my wife and I refused to pick a side. Anyway he said what he found useful was reading up on the lease option books at the library and also various sites. Said it helped build a better foundation for doing this and he felt more comfortable, and later on when he ran into a few great deals doing this he didn't assign but made them part of his investment program. Good luck, Almost moved to you neighbor Oxnard a few years ago.
  13. David Spoken like a man who thinks with his wallet. I learned most of my ethics from my grandfather where a man's word was his bond, rare in this world today but it was still alive when I was involved in million dollar deals with Arizona Ranchers, their word was gold and they would step out of the way when it was the honorable thing to do. Never met such a group of honorable people. Other words, do things right and make things right. Full disclosure and and no unearned rewards at some one else's expense.. The way I see it is the first tenant made a deal and intended to keep it, but along comes a TB with option money and the word to the first tenant is just a problem to be taken care of. Yes you can make the noble excuse the seller can get what they really wanted, but the truth is the option money is the real factor, just because there is a TB doesn't mean there is a sale, and at this point the only one with any honor is the first tenant. And shame on your ethics for trying to rationalize any thing else. He earned it, BS, he is just hoping to screw someone for the dollars, and if that is not true then he should be willing to give up the dollars..
  14. Back on the serious side, Yes high prices and low rent ratios make it tough but there are still sellers that want to reduce the flow of money leaving their wallets and I have found takers in Santa Clara (Silicon Valley) and Contra Costa County. $600k+ I also agree there will be less activity not due to price range but to a better market and the chance of a straight sale. The average rent in those areas were one half of one percent for the average priced house, and yet many deals could be put together, the higher the price the lower percent of rent. . 3-5% option money is the same hardship for a $100k buyer as it is for a $900k buyer, well almost..
  15. I have never seen the forms used in Michaels course but one thing I personally would never do is label something as the down payment even in passing I would make sure it is clear that it is nonrefundable option money but it will be allowed as a credit toward the total purchase price in a manner acceptable to the buyer if the option is exercised in a timely manner..And of course the purchase price reflects that. Labeling it down payment may come back to bit you in the rear in some courtroom some day.. And I've been bitten there enough times and would like to avoid more teeth marks.
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