AmyB

Are you serious?

Craig, that's one of the best ideas I've heard lately! I am going to figure out a way to use it to sell some houses!!

So you are saying that you advertise ALL your homes online at some type of fsbo/frbo website? No classifieds, flyers or signs?

Hello Bev... Just curious when you say that you advertise solely online, but to other communities, how do you do that without ads? Thanks!

Not an attorney, nor do I play one on TV, so take this for what it's worth. Without a time limit -- expiration -- in the contract, you may well have difficulties getting a Judge to enforce it. <{POST_SNAPBACK}> I think that is true but not for that reason. Because we hadn't made the first payment starting the actual lease term. How do you figure it's hard to enforce without an expiration?

happyardy, sorry I tried to highlight my answers with blue and it didn't work...if you can't read my answers between the [blue] notes, let me know.

Amy, What were the terms between the HO(A) and you ? Doesnt the option term end with the end of the lease usually ? How could you have your T/B[C] in that house after your contract with HO(A) expired ? I'm not sure what you don't understand. Yes they are both expired, but the HO(A) is only now saying they don't want to sell. I didn't think it's expiring would affect closing. This scenario could be possible if you had a lease of say, 2 years with your HO but your option term was only for the 1st year. That way after your first year, your lease with HO(A) would continue, but your option would end. Is that how you did it ? Did you lose your option money to HO(A) ?I didn't have to put up any money. Also if you have SLOed it, doesnt your T/B[C] get a one-way right to purchase the house as per your option contract, if T/B decides to exercise the option ? Can you tell your T/B[C] that you cannot sell the house because the original HO(A) decided not to sell anymore ? a one way right to purchase? I don't understand that. Technically their agreement expired too, so I wouldn't have a problem getting out of it. I bet the seller will let them stay or close with them for more money. Please let me know. I am a little bit confused. Maybe my understanding of this whole thing is wrong. thanks - Ardy <{POST_SNAPBACK}>

MC - Absolutely, a lease purchase contract to buy for 285k, $1500 a month and $500 a month rent credit, no expiration...in other words pay for as long as we want to. The new contract meant a reg. sales contract to buy for $285k - not a LP contract. Jeff...there was a contract, see above.

I put a LP contract on a very nice house that the seller was still living in, 3 mos. ago. They seemed overwhelmingly agreeable and ready to move the house and on and on...you know, oh SO flexible on purchase price and payments. I didn't think I needed them to be, they were willing to carry it for "as long as necessary" and I knew there was a good spread on this thing. I busted my butt and got the TB's under contract (SLO) and do everything the way the seller asked and they sit us down (couldn't just tell me on the phone) that they really just need to sell and dont want to do LP. WHAT?!? You couldnt decide this 3 MONTHS AGO?! or how about when you were at the house and I showed it to them and you wanted me to GET in there and get the house sold?! There was $65k spread, and a TB under contract so we are seriously considering just buying it. Figuring since they were so flexible we'd reduce their price for the amount of closing costs. Wrong..."THAT price was firm." Last night they emailed wanting $1k earnest money (I haven't given them a new contract YET) and a letter saying the LP agreement is null and void "for their records." I told them we'd first have to discuss my fee for the 3 mos work I'd done. Now...in their defense I realize they are older and the reality of 2 mortgages nearing their retirement time, finally sank in. But this has put us in one heck of a position. The only thing saving us is that the funds from the TB's IRA aren't here yet. ($6500 non-ref option money) I guess we're still kind of angry. And I don't think we're taking it personally, it gets old when these people change their minds. And that is why CA's are appealing to us! We have seriously considered telling them to forget it. They have absolutely no idea how they've screwed up my sweet deal! Obviously we have to add in all the closing costs, not to mention sharing it with my partner who would get the loan. I've said all that to ask this...since we haven't made the first payment, but we in good faith went and got the TB under contract, do we have any leg to stand on? Probably not. The lawyer didn't think so...but I didn't like her. And besides that, who would want to have to deal with them for a year or two if it was a forced sale. What would you guys do?

Wow! Am I glad to see this thread.....now I don' t have to start one! I have a SLO where the agreement I signed with the HO is "one." I put a TB in there a year and a half ago and now that we're getting ready to close, but the contract has expired, the HO/seller says they've "decided not to sell." This is a builder and the 3rd house I've bought from them. They do not need to sell for money, and since the house has appreciated it a lot, they want to keep it. I of course, do not want to lose my profit. I have faxed over our agreement to the atty and waiting for reply if we have equitable interest. Even though it's expired, I'm hoping a judge would think we do! Any suggestions?

Jeff, Do you record an affadavit to protect your 8k?

Not every creative technique will be right in every situation, or for every investor's need. And each has its pros and cons.A new investor should probably stay away from taking title. Things can go wrong, and if my experience with new investors is representative, they often don't have the funds to right that wrong. A lease option is a heck of a lot easier to get out of and save your backside than is ownership via Subject To. So while we aren't gaining tax benefits, we do have a greatly reduced risk to reward factor. <{POST_SNAPBACK}> I concur...BIG TIME...and as a guru always says..."how do you think I know that?!"

What my son is trying to say that this time around after putting out the signs and flyers for 2 deals that we have on hand we have not had a call I mean not one call is the market slowing down because of the school days coming up or what? This was our second week of ads and nothing next week we'er going at it again see what happens. <{POST_SNAPBACK}> We are having the same problem! We have flyer'd neighborhoods with no luck, all the usual signs and ads...so I am saying "we need to rethink this!" WHAT am I doing wrong? Are you guys flyering (like we put them in the newspaper box or if none - folded over the flag) the neighboring houses or what? I have to do something, my cash flow needs a boost.

Hi Bev, I was curious to see you solely use the phone and call FRBO's... do you just ask if they are interested in RTO or do you have a softer lead in? Thanks!

Sorry ignore my last question. Steve if the tenant bails are you offering to make payments while it's vacant?