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Found 11 results

  1. Background: One of my property management owners had expressed interest in a LO in the past . He bought a home in 2104 for $120K and today it is assessed for $150K. Comps are selling for $150-$165K. We had been renting the home for $1400. Since the lease is over I put a tester ad to see if anyone was interested in a LO for $1600 and over the weekend I got a call from a interested TB with $55K income, 580 credit score plus $5K option fee. She has a home that is too small and will need to rent her home when she finds a place so another opportunity possibility. I have 2 managed homes with this out of state owner and I want to make sure I am treating him fairly as he is a client. His other home the current tenant has expressed definite interest in a LO for the home she is living in in the spring when her lease is up. I know a sandwich I can make more but as this is my first deal , a client I am more comfortable taking the option fee and turning it over to the owner. I can possibly make something managing the property-making sure the rent is collected. I am just trying to figure out how I price it -Is the price $165,000 to the TB in the paperwork and I take my fee from that. So in 3 years she owes $160K. Or is the actual home price $165k and to get the $165K she gives me a option fee of $5K. We have not discussed rent credit at this point. I was going to go up on the house price and rent price a % each year. ------- I guess another way I could do this deal is to split the difference with the owner of $200 each month.This is from the $1400 traditional rent and the $1600 Lo rent. Or give the tenant $200 a month rent credit to get the deal. Don't want to be greedy but want to make my first deal and have to make it desirable for all parties.
  2. I am working on my first deal:) I have a owner that contacted me to sell her home ( I am a licensed FL realtor). I want to give her other options such as a LO. We had the home appraised and it is $143,000. She paid $160,000 and owes $119,000. Her Monthly payments including escrow$1020.00 Market rent is $1100. Home is vacant-she lives out of town. But she is not desperate. Said she wants to sell by Jan when she moves out of state. She just spent $10,000 doing rehab-so she told me. I need help in structuring this, I am not sure if I want to sandwich or just get out and assign since this is my first deal and I am nervous. Can you give me some examples on what I should offer her and how do do this deal ? Shelley
  3. Dear forum members, I am new to the forum. Recently I trying to do a normal lease option in the Caribbean real estate market. I have found a seller who has a property that is not completely finished. There will be an investment in cosmetics like: doors, sanitary, electrical wiring, gardening. I want to make an agreement that as a consideration fee I will finish the property. I am planning to rent the house to tourist visiting the island These are the details: Asking price 324.000 Costs of repair 10.000 Monthly market rent (due to seller) 2.500 Market value after repairs 350.000 My montly income would be +/- 4.000 I will propose a lease option deal for 4 years How would you guys as professionals look at this deal? Some other questions: If I understand correctly I will need 2 documents: lease and option agreement Do I need an escrow account? I know my seller has very good connections with the bank who financed the house. Is this a bigger risk for me you guys think? Regarding the Due on Sale? How can I avoid being double crossed by the seller with the Due on Sale Clausule? I hope to learn from the professionals! Maybe someday I will be one also. Thanks in advance Chaniël
  4. I am looking for an investor for a SF home in WI experienced in lease/ option deals. Home has 3 bd, 3-1/2 ba, 2 story, finished LL, formal dining & LR & family room with fireplace.
  5. Hi all, New here.. Just had some questions about getting my first l/o deal under my belt... I believe I have most the pieces..but how do I actually get paid? Say I have all contracts signed with buyer and seller, do I have to call a title company? attorney? Whats the actual process for closing on the deal? Does the buyer pay me the downpayment directly or does it go into some kind of escrow? If it goes to escrow, when do I actually get my check? I'm a little fuzzy on this part. I've started marketing for both buyers and sellers about a week ago, and providing the numbers work out should have something signed soon. I just wanted to be prepared to move on it and know what the next steps are. And can someone please explaine/tell me what rent credits are all about? I keep reading the term, just not sure how they're involved. Any help would be greatly appreaciated! Thanks in advance!
  6. My life has been so busy the last couple month, had a couple deals fell through and opportunities slip away. And I haven't had time to do any advertisement the past few weeks because of my job. This L/O deal was just sitting there and I got it done in about 3 weeks. Wow, where to begin, the story was so dramatic and full of twist, but now it's done I am too lazy to think about it. so here is a brief outline, got a nice condo apartment under contract, but this time i used a very simple contract with the owner, because I read online from another guy that he always use a simple option paper, and then later fill out the entire agreement when signing deal. here is my experience: DO NOT DO IT THAT WAY!! (well, Michael could have told me that had I asked him earlier) I had this deal under contract, but because I didn't write all the detail down, in the middle of the deal the seller changed his mind. I already had a buyer with $12000 down payment ready to go, but the seller doesn't want him!! oh dear...and then there was another buyer who wanted it, and the seller switched between the two persons, first going with buyer A, then go with buyer B.... after much mental torture and 100 negotiation, it was finally done. I sold this condo apartment without putting a single sign. showed 4 people total, and 3 wanted to buy. I've learned a lot from this deal, and even though I lost control of the deal, I still end up making $7000 upfront, another $2000 in 3 weeks, and then a $1200 promissory note which I probably won't ever see it realized. I need a couple weeks off, relax a bit and then look for my next deal.
  7. Please comment on how the option money and rent credits should be applied when working the T/B toward qualifing using FHA financing? It has been my practice to apply the option money toward the down payment (the 3.5% that FHA requires). I usually apply the rent credits toward the purchase price. The property is offered somewhat higher in price than the seller will end up with to cover the rent credit and option money, however. I realize the lender will dictate this, but I need to have guidelines up front when I discuss this subject with the seller and T/B. I want the T/B to understand how the process works so he can keep good records and be better prepared when his credit repair is completed and he applies for his loan. Thanks. Don
  8. Hi All, I do "virtual" lease option flips in a few different cities/states. The one big challenge has been finding local agents to market for tenant buyers & show the properties for me. I started out offering them the equivalent of 1 months rent per tenant buyer placed. I even increased that amount thinking they were lazy because the money amount wasn't motivating enough. In terms of "lazy", what I mean is, these agents would barely lift a finger to market the properties (online or to any buyers that were just turned down for a loan). All of which I told them how & where to market for tenant buyers. I even got to the point where I was doing the marketing so all they had to do was show up & show the property & collect the tenant apps. I kid you not, they wouldn't even do that! Mind you, this is after a SUPER explicit ad of their expected duties & going over all that with them in the first convo to set expectations. I would even tell them I had to fire my previous agents because they were lazy & just wouldn't do anything. They would assure me that would never be the case with them...lol. I've gone through this with about 20 agents now. The whole process of screening them, (grilling them on what's expected upfront, where & how to market, etc). This is the last snag preventing me from expanding to any remote markets I want. I'm just kinda dumbfounded by the pathetic laziness & the fact that they have to do almost nothing to get their paycheck & that's still too much! Right now, I'm just partnering up with newbie investors in those cities & having them do that stuff. I train them & do the marketing & we split the profits 50/50. I just want to get a local agent to do the buyer side stuff so we can focus on closing sellers. I mean, if it were 1 or 2 agents, no biggie. But that many in a bunch of different areas is really odd. Especially because it's not as if I'm "mousey" with them in the beginning. If anything, I'm more like Kramer in Seinfeld (where he tells the girl "she looks fine, she just needs a nose job")...lol. I tell them upfront to not waste my time or theirs & I can't stand lazy agents. Anyway, has anyone had this experience & have any solution ideas? Thanks, Jay von Mohr 657-777-3540
  9. Hey gang, i sent this to Michael but then thot it might make a good lesson discussion here in the forum. I am still not sure what can and can't be done with crei. There are many strategies that I haven't studied yet. I know I've read about investors that go on deed and take partnership in a prop like this scenario---I don't know how to do it tho. So here's what I found on CL: There is one comp---sold at $212 a couple months ago. It looks like an investor comp tho cuz it was sold by a home auction & realty co. $249k 2 + 1 1/2 nice condo 999 square feet, 1 year old carpet and tile, double pane windows, fireplace, grassy areas outside, not close to a bunch of others ....this complex only has 5 condos in it and the owners are the association. The association fee is less than $250 a month .... Need help, need someone to purchase for $249,000 right away so I don't go into foreclosure...been on unemployment over a year and finally got to where I can't make the payment....Owned the condo for over 10 years and hate to let it go. Need to come up with around $35,000 at least to put it back online and rent out or perhaps bring a partner in to help get it back online. Things are going back up and at one time this condo was up to $550,000, should have sold it then! Oh well, maybe there is someone out there wanting a small beach get-away vacation home! Really cute place - has a single car detached garage also. Thanks for inquiring and will send pictures to those really interested. I emailed him but considering his sitch I don't think a l/o will work. Any thoughts? Thanks!
  10. Hey All! I am so happy to have gotten the L/O course! Sure enough I have some questions---many---but here's just a few: 1) I read somewhere here NOT to use the word sublet---right?? 2) In Calif. there are many qualifications to be a "property manager". I think this could cause a snag in the ease of the conversation. And too I know that occasionally realtors call on ads---or I may call on one of their props. I ran into this years ago. They get super ticked off (to put it nicely) that we are doing the job of a realtor without a license. How do you handle this? Maybe use a different word than property manager? 3) In marketing materials has anyone run into a problem with offering a referral fee? 4) What determines how long you want your rent term to be for your t/b. I've heard 1 yr, 3 yrs etc. Is there an advantage for me to have a longer period? Or is the point that I get a 3 yr from the seller and then give the t/b 1 yr at a time? What percentage of them squawk at the additional option money required to extend their lease for another year? Do you just kiss them goodbye if they do? I will not always be this ocd : !! Thanks!
  11. Hi Michael (& everyone), I've been doing lease option assignments for a while & have been assigning to the buyer. I have Adam King's course & have studied Michael's & really want to switch to assigning back to the seller instead. It just seems cleaner & easier to me. My issue is, I have the assignment docs that assign to the buyer, but I can't figure out how to change the language to assign to the seller. I'm doing deals in SoCal, NM & some other cities. I've been signing up sellers with a simple 1 page lease option memo that is super easy for sellers to sign (Joe Crump method). I then fill out the option & lease with the seller & me, then assign to the buyer. I want to keep the 1 page memo signup with the sellers. Then create an option & lease between me (as the owner or landlord) & the end tenant buyer as the tenant /buyer, then assign that back to the seller. I'm not sure if the assignent docs needs to refererence the original 1 page memo I had with the seller (that gave me the principal interest), or just the option & lease I have with the buyer. Plus what the names of the parties are (optionor, buyer, seller/optionee? etc.) Any help is greatly appreciated! Thanks, Jay von Mohr 657-777-3540 www.isound.com/jvm
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