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Jason (AL)

New challenge

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Guest guest101

thanks Mr. Saint.

I got the first part. I am assuming I have to find a seller who as a rental property and find a tenant/buyer and establish a lease/purshase between them two. Now the

second piece "then assigning your contract for a fee"; who am I assigning

the contract to for a fee. In the example above, I assign the contract to both the seller and the tenant/buyer?

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I read through this post but could not find what's CA stand for,?

can someone explain what is CA?

 

thanks

guest101, if you do a search for CA or Cooperative Assignment, I think you'll find many, many threads on the topic. They are popular here, to say the least!

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Sorry I've been so quiet lately...

I'm in on this challenge! AND I signed my required CA yesterday!

 

off to market my property.

 

option8

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Ah come on Natalie!!!!

 

Give us some details...........please? :)

 

 

Thanks

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Okay, Jason (AL)

 

Here it is! This was a simple deal...

 

Seller is relocating to Florida and told one of my tenants they were going to rent it.

She suggested they call me and use my system. She called me on the spot 2 weeks ago and I got the skinny on the property. The seller then went out of town and we finally got together for 30 minutes on Monday evening.

 

I walked thru the home and it is really nice. 3 beds, 1 + bath, garage, large porch, original woodworks with built-in bookcases on either side of the gas fireplace, dry unfinished basement...

 

Because I knew he was more than willing to let me do my thing and he travels alot, I wasn't willing to risk not getting the house on the spot, so I took a short offer form with me for a CA

 

I offered $89K in 2 years, $825/mo w/ tenant paying all maintenence, I get all the option and have 60 days to move it. I wrote the offer up on the dining room table with the disclaimer that I'd start marketing immediately to test the offer and we'd come back and renegotiate if I couldn't get these terms from a TB. This is the first time I ever did any documents on the spot.

 

It is a nice home and we shouldn't have any difficulty getting this moved. Beecuase of how this was set up, the whole thing took 30 minutes from start to finish, small talk included!

 

The even better news is he has several friends who are struggling to move properties. They asked him what he planned to do when he moves and he told them about me! All of these motivated sellers want my phone number. I'd love to move this property fast, show these other MS what we are made of and get a great referral from him.

 

Based on what transpired in this transaction, I also plan to alter how I do things from here on.

 

1) The document creation was pretty painless. I always come home, type them up and take them back. I now feel pretty confident of my ability to do write these up on the fly. I think I'll start carrying the CA and Short offer with me and plan to write them up on the spot, as often as possible.

2) I'll take my pictures right then and there.

3) I also plan to carry my outrageous signs with me in my car and put them out while I am there!

4) I'm adjusting my business strategy to try to meet with 5 sellers per week and hope to sign up at least 1 property per week.

(Adam, how many sellers to you meet with per week?)

 

option8

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Option 8,

I'm adjusting my business strategy to try to meet with 5 sellers per week and hope to sign up at least 1 property per week.

(Adam, how many sellers to you meet with per week?)

It's always different. I have only physically met with 3 sellers (that I can think of) in the last week. All three signed contracts. Because of my team, I don't always have to meet the seller to do the deal though. There are deals I'm involved with that I don't even meet the buyers. :)

I do however think your strategy will be very successful even with that closing ratio. (Plus I know you're always improving it)

Regards,

Adam

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Ok, I got mine!!

 

...well sort of...she needed to 'run it by her attorney'. She seemed very pleased with the idea...and we all know MC's contracts are made of concrete...so I'm not too worried.

 

It's a 2/2 townhome and the owner is an investor. She picked it up in foreclosure, threw a little money at it and it is selling for a decent profit.

 

I'll keep you posted,

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Congrats, Mr. Saint.

 

Curious as to how you got the lead with this seller, her motivation, and also the #s.

 

Thanks.

 

Hope you get it!

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Hey Jason,

 

Here's the skinny on this deal.

 

I found the seller when doing research on market rent for another property. She had this property listed for rent online and I emailed her with some questions. She ended up calling me and we just got to talking. Turns out she's a new investor and was interested in someone to market her townhouse for a lease purchase...hey I do that :D

 

Anyway, I sent her some information on our Lease/Option programs (basically the CA, Sandwich, and Consultation). She liked the idea of someone marketing for her so she could concentrate on finding more deals. Here are some numbers: She purchased the townhouse in foreclosure for about $80,000. Recent sales in the area from $88,000 to over $100,000. She's asking $105,000 and is looking to get $950/mo rent; which is a little high, but that's with a $200/mo rent credit. She will go lower if we have to, but no credit. After looking at the market and the quality of the townhouse, I'm pretty confident we can find a T/B in a fairly short amount of time.

 

I met her today to sign the paperwork...but of course she needed to have her attorney review the agreements.

 

Oh yea, she wanted an out in case she needed to cancel...so I put a cancellation clause in the contract where she can cancel within a certain amount of time but she has to reimburse me my marketing expenses.

 

It's a fairly straight forward CA and I should walk with about $2000 in a fairly short time.

 

There you go, did I miss anything?

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There you go, did I miss anything?

 

Nah, you pretty much answered my questions.

 

Now, I'm just waiting on ya to get that sucker sold. :)

Good luck.

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Mr. Saint,

 

She's asking $105,000 and is looking to get $950/mo rent; which is a little high, but that's with a $200/mo rent credit. She will go lower if we have to, but no credit. After looking at the market and the quality of the townhouse, I'm pretty confident we can find a T/B in a fairly short amount of time.

 

You will gain more leverage with time if this rent is too high. Which I don't believe it is.

 

Oh yea, she wanted an out in case she needed to cancel...so I put a cancellation clause in the contract where she can cancel within a certain amount of time but she has to reimburse me my marketing expenses.

 

Make sure she can't cancel if there's a signed agreement with the tenant/buyer. You don't need problems from them either.

 

That fact that her attorney is looking at it shows a little lack of motivation. Although I advocate that people have their attorney look at the agreements, I would make sure I put myself in front of the attorney to answer questions. Don't let the attorney give advice without you being there to rebuttal it if it's inaccurate to your intentions.

Regards,

Adam

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Make sure she can't cancel if there's a signed agreement with the tenant/buyer.  You don't need problems from them either.

Ooooh that's good...I hadn't thought about that one. That way I don't set everything up and in the end get screwed.

 

 

That fact that her attorney is looking at it shows a little lack of motivation.  Although I advocate that people have their attorney look at the agreements, I would make sure I put myself in front of the attorney to answer questions.  Don't let the attorney give advice without you being there to rebuttal it if it's inaccurate to your intentions.

 

This isn't a bad idea either.

 

Thanks Adam!

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As a gentle reminder, I'm sending this to the top!

 

We have two more days in this month to meet the challenge.

 

Alot can happen in 2 days.

 

go get 'em

 

option8

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hum I don't remember entering this but finished signing a sandwich today $$$ :lol::P

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What do you mean you just

finished signing a sandwich today
:P

 

Either you mentioned this somewhere else, or you've been holding out. What's the deal Tony?

 

I just closed with a t/b collected 2K front end and the first month of $675 on a property I already own. No more traditional renters for me. mama's getting a new pair of shoes.

 

OK, sorry for interrupt back to the challenge.

 

<S>

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