Shar NJ
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Posts posted by Shar NJ
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Yes, I do in the Philly/NJ area. It makes me click a box indicating I am not a robot. Ha!
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Thank you, I appreciate the quick reply MC!
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Hi, Shar. What do you mean the option money has never been applied to the down payment? Where does it go then? I'm assuming a credit towards the purchase price, no?
Yep! Seller wants 200k, I sell for 205k and either keep the 5k or split with the seller if necessary. I'd like to set it up where a portion of the consideration goes towards the 3.5% required for FHA.
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I've come across a situation I have not had before and I wanted to get some input here....I have a seller considering Chapt 7 or 13 BK. I have a TB in his property, how is this going to affect the transaction?
Thank you!
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Hello All! Just rereading some of the forums. This place is great and where I learned to do L/O's 5 years ago.
I have been getting option consideration of $5-8k through these years, sometimes splitting it with the seller. I'd like to take bigger considerations of $8-12k and while I've never had it applied to the down payment, I think some of you are structuring it that way.
How is your mortgage broker structuring it? How is it showing on the settlement sheet?
Thank you!
Sharyn
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I thought the same, I wanted to get a more experienced opinion here. Thank you for your quick reply!
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Good Morning All,
Now that I've been in the business a bit I have some contracts closing and this particular one is being extended. Thank you for answering my more sophisticated questions lately.
I assigned a lease and option a year and a half ago. The seller and tenant/buyer have decided to extend the agreements. The seller says she spoke to an attorney and he said because I was the original principle I will need to be involved. The seller sent me paperwork she wants me to sign: an extension of lease, option, and assignment; three separate documents.
Based on the wording in the original Agreement of Assignments, I have assigned all rights to the Tenant/buyer so I don't want to be involved in the extension agreements between the two of them.
Have any of you that completed a CA had to be a part of extending the agreements eventually?
Thank you again,
Sharyn
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Also, regarding protecting everyone involved in a CA, does anyone do a title search?
Thank you,
Sharyn
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Hello All,
So far I have done 6 successful CA transactions, all with financially responsible sellers.
In reviewing my business, I am wondering if I should recommend to the buyers to cloud the title with a Memorandum of Option as in the circumstance that I come upon a seller of lesser integrity/financial responsibility, we won't have a problem with other liens on the property by the time closing comes around.
Any recommendations on this?
Thank you,
Sharyn
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I use email mainly because I like everything to be in writing, plus the sellers can refer back to it if necessary; lease options are a new concept for most. I also like to be able to address everyone on the deed with the same information at once.
I only talk to them on the phone if they request and have done entire transactions via email, up until it's time to get the key and endorse the paperwork. Same with buyers, I usually don't talk to them until I call on my way to confirm a showing.
Both my cell and my email are on business cards, website, Facebook page, and all correspondence.
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Terrific, thank you, I appreciate your help.
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Hello All! I have a property that the tenant/buyer wants to close on in the fall however, it has just been discovered that the property has termites. As is outlined in the paperwork, the tenant is responsible for the repair; but they are really fighting me on this. It is a CA, both the tenant and landlord are seeking my advice....typically how do you handle it when there is a large repair such as termites or structural?
I have advised both to each pay 50% but neither will agree at this time.
Thanks!
Sharyn
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I work with a mortgage broker in our area, it was actually him that found me! He pulls all my credit reports for free, credit counsels them and then he gets the benefit of the end loan.
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My husband and I have realized that we get a much better response rate if we use my email address as opposed to his. Must be Girl Power
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It seems I get a better response, it's as if they are no longer choosing between do I want to do this or not but now which offer do I take? I heavily slant the numbers to CA's, because that's what I prefer.
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If i were you I would do a few CA's to build reserves/cash flow before taking on a SLO. How did you come up with the market value for sale and rent? Typically you can sell and rent for a higher price because of the option and offer a rent credit to motivate them to go through with the purchase.
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My system is... I send one email asking if they would be interested in selling on a LO and I attach Advantages of Selling on a Lease Option for the Seller. When I get a yes reply I send a detailed email explaining the specifics of how it works and ask for their address.
Once they reply I put together offers for both a CA and SLO and send it along with the Seller Price Sheet.
It gets easier as you go as it is really the same system over and over for each house.
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Also, just remember this!
Empty pockets never held anyone back. Only empty heads and empty hearts can do that.
Norman Vincent Peale
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I would probably start talks with the guy about a gameplan for his exit. He can't buy it, and unless his mom can buy the house on her own and wants to, then it's just a rental now.
IF you keep communication open with the guy, then maybe he won't trash the house.
That's the problem here, him not being able to qualify for an end loan which is the ultimate goal. His mom could co sign but she would be a non-occupying co borrower which makes things more difficult regarding qualifying for the loan. I would explain this to him, have him and the mother talk to a mortgage broker, and give him the option to move on and you find another Tenant/Buyer.
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They may not be motivated now but sometimes they come back months later. I follow up 2-3 months later...just got my latest property that way and working on another from May, we just have to come up with a price.
I have a folder of all the Seller Price Sheets I send out and follow up within 90 days.
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Muster up as much confidence as possible! When you sound knowledgeable, confident, and assure it eases the sellers mind. When faced with the sellers fear I always assure them that we are very careful when screening potential applicants and we look for buyers that have a strong driving factor to go through with the purchase (and I do!). These people want to care for the house and I tell my sellers if there is a problem please contact me, this is my business and my livelihood and I care about it. There are risks in everything and while you cannot guarantee there will not be bad Tenant/Buyers you can screen to your fullest capacity and professionally deal with any problems if they crop up.
Good luck and have fun!
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Great, thank you. I am going to check out Credit Plus, you are the second to recommend them. I have been in contact with NTN, they did say I would have to schedule an onsite inspection at a cost of $75.
Thanks much John!
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Where is everyone pulling credit from? I use AAA Credit however it is only a single file and I am wondering about a tri merge at a reasonable price.
Does info still vary that much between Experian, Trans union, and Equifax?
Thanks!
Shar
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Also, you are not getting an apraisal at time of your agreement with seller. So when you go to close you aren't going to have an apraisal at 100K and then one at 110K. You are going to have an apraisal at time of closeing for the 110K and your contract with the seller should be at 100K or less. So your criteria should be buying the property at around a 15% discount. Wholesalers are finding properties at 30-40% discount. It comes down to being a numbers game. Ramp up the marketing and only speak to motivated sellers who need their mortgage covered and are losing money by keeping the house especially if it is vacant. So don't let anyone tell you that you can't do something. Period. Their are people out there that are finding homes at much larger discount and doing double closings. Find a good mortgage broker to work with and have all your buyers use him for their funding. They don't use your mortage guy, they don't buy your home. Same with your title company. Also, make sure you have good criteria for your SLOs. I would say 300 mo cash flow, purchase the property at 15% bellow market value, and shooting for a 15-20K profit when it closes.
A man is measured by the size of the obstacles he overcomes.
I agree with all of the above. It seems you already have the upperhand if you believe it is possible, go get the business! All you need to do is talk to enough people to find one to say yes. One will. And then just start hitting the numbers again. I don't do a lot of networking with other investors, I find the more people in the deal (investors/agents) the more complicated it is.
Due date coming
in Lease Purchasing
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Any update on this? Were you able to find a tenant buyer on this one before the 6 month lease was up?