Todd S

I came accross a blog about "wholesaling Lease Options" . It states that he uses an Option to Lease Option agreement with the seller, sets up the Lease and Option agreements between himself and the Tenant Buyer, then assigns the Lease and Option agreements to the Seller. I know this differs from the way I have done CAs in the past where you would make the assignment to the Tenant/Buyer. Anyone else us an "Option to Lease Option" agreement. Any pros or cons to either method? Thanks

I recently had a tenant buyer that was normally great with on-time rent payments then all of a sudden she got behind. I think the reason was that she was nearing the end of her lease term and if she was not going to be able to get financed she was going to try to milk a couple of months of free rent before having to move. I started the eviction process but also got my mortgage broker to contact her and aggressively work with her to get financed. She did get financing and I was able to collect 10k instead of starting the process over with a new TB. Especially since your term with the homeowner is almost up, I would urge her to get financing. Tell her regardless of your specific agreement with the title holder, you have the full legal right to deliver the terms you originally agreed to with her. "Lets get you financed so you can officially be a homeowner". But proceed with the eviction if she is behind. Just my two cents. Todd Strickland Midland Home Solutions,LLC

Thanks Dave for the info, Should I send the 1099-misc to all of my homeowners in a Sandwich lease option or just the one that requested one?

I think I know the answer to this question but I want to make sure. A Seller with whom I have done a sandwhich Lease Option just sent me an email that asked when I was sending the 1099 tax form for the rental income on the home for the past year. He is refering to the cash flow he had between my payment to him and his mortgage payment (about $50 per month). Is this something that needs a 1099 or just basic documentation on his taxes to account for the income?

I actually had a seller who was concerned about the legalities of a SLO and wanted to discuss it with their lender. The lender wanted to see a copy of the contract so I supplied a blank copy to fax them. The lender said the agreement was good with them and to proceed.

This is a post I am copying from a local discussion board in South Carolina about a bill in the state of North Carolina. It looks like this may be a trend. On March 16, 2005 there was a bill introduced into the House that would > effectivly regulate the following types of transactions: > > 1. Lease Options > 2. Rent To Own > 3. Subject To > 4. Options On Property > 5. Basically everything we do as investors. > > It would require us to carry bonds, etc. Frankly this thing is awful. To > see the entire bill go to: > > http://www.ncleg.net/gascripts/BillLookUp/...005&BillID=H725 > > The bill is sponsored by a.... realtor. > > So what can you do? You need to call, email, fax and contact your > representative to let them know your displeasure with this bill. > > Take action now!! You have a voice in NC and you must use it!!! > > Matthew Gillogly > Fellow Real Estate Investor Todd S. > >

I have tried different ways of attracting sellers. I got one deal from bandit signs, two from a newspaper ad, but what has really allowed me to jumpstart things is by joining an affiliate website. I have exclusivity in my surrounding counties and anytime a motivated seller does a search to "sell their home fast", my site is one of the higher ranked ones. The site I use is Fasthomeoffer.com. Once on the site, the seller enters their property information and contact information and it is emailed to me. The cost is kind of high ($700 per month for my area). But is well worth it if you can get atleast one SLO per month. I actually signed up 3 last week. Other sites are less expensive so you may want to do some research if you are interested. Do a search yourself and you will see the different sites available. On many of my leads I just reply with a basic response email I came up with that gets to the point about doing a lease purchase. Many don't respond but the ones that do I usually get a deal from. Once I sign them up I flood the area with signs and place an ad in the paper to get the TB.

I like the site. I placed 2 properties on today and may have another one in a couple of days to ad. How long is this service going to be free of charge?