MichaelC 160 Report post Posted August 28, 2004 For what it's worth, mpine and I had a few telephone conversations and he is straight on the CA paperwork, and ready to roll. Share this post Link to post Share on other sites
mpine 0 Report post Posted August 29, 2004 Hey Y'all .... Yeah I got the CA's straight, and other then not getting the deal signed up yet, it provided some priceless insight into how these deals can and should work. Today I need to speak with the husband and convince him this is the right thing to do, the wife is already sold on it. They move into there new house in 2 weeks and have been making double payments for 2 months already. The kids already need to be driven to the new house everyday (30 mins) as thats the school they are registered with. Mike :ph34r: Share this post Link to post Share on other sites
Kimberly 0 Report post Posted August 29, 2004 Today I need to speak with the husband and convince him this is the right thing to do, the wife is already sold on it. They move into there new house in 2 weeks and have been making double payments for 2 months already. The kids already need to be driven to the new house everyday (30 mins) as thats the school they are registered with. That ought to give you an edge depending on how long he's comfortable making double payments. Good luck when you talk to him! Kim Share this post Link to post Share on other sites
Mr.B 0 Report post Posted August 30, 2004 Yea I remember reading something and the author said in capital letters "NO WAY" should you go and talk to just a husband or a wife without the other one present. If you do you will most likely be making another trip. Sounds like thats what happened to you. Hopefully time won't kill you on this one. Good luck ~Mr.B Share this post Link to post Share on other sites
mpine 0 Report post Posted August 30, 2004 Alrighty, I am going back in on Thursday evening to meet with the happy couple. I will have contracts in hand. The couple is very paranoid about payments, so I was thinking of including a payment service along with the deal. They also seem worried that the tenants will start a redecoration process and leave it incomplete. I tried to alleviate those fears by using the "home buyer" not "renter" mentality. So they are desperate and motivated... now i just have those 2 small hurdles separating me from the deal. Mike :ph34r: Share this post Link to post Share on other sites
Adam King (MI) 1 Report post Posted August 30, 2004 Mike,You can further put in your agreements that if there is any alteration to the property that it must be in writing by the landlord/optionor. This way they CANNOT do anything without consent. This usually makes the homeowner feel more comfortable knowing that they should also be able to inspect once a month within legal reason regarding your state laws.There's an answer for everything with these types of deals. Regards,Adam Share this post Link to post Share on other sites
mpine 0 Report post Posted August 30, 2004 I am going to show them in the "CA Residential Lease" that no repairs may be done without prior written consent from the homeowner. Had I read the agreement in full before running out with my schpeel, I'd have had that at the tip if my tongue. On Thursday I will get it right, and will walk out with the deal (little bravado anyone?) Mike :ph34r: Share this post Link to post Share on other sites
MichaelC 160 Report post Posted August 30, 2004 I am going back in on Thursday evening to meet with the happy couple.There are no happy couples. Just tolerant men. I just want to see if any women are paying attention..........Way to go, Mikey. A payment service is not a bad idea at all. Each deal is unique and listening to the concerns and then addressing them is your best shot at success. As for alterations, tell Mr. and Mrs. Bundy not to worry. The CA Residential Lease Agreement you are using has a paragraph which addresses this specifically, (Page 3, Paragraph 21, I believe). It simply says that no alterations can be done without the written permission of the homeowner. Share this post Link to post Share on other sites
Kimberly 0 Report post Posted August 30, 2004 Mike, The couple is very paranoid about payments, so I was thinking of including a payment service along with the deal. They also seem worried that the tenants will start a redecoration process and leave it incomplete. I tried to alleviate those fears by using the "home buyer" not "renter" mentality.If there are rent creditsyou may want to point out that not paying on time equals the loss of rent credits, another reason why the tenant/buyer WILL pay on time. Kim Share this post Link to post Share on other sites
mpine 0 Report post Posted August 30, 2004 If there are rent creditsyou may want to point out that not paying on time equals the loss of rent credits, another reason why the tenant/buyer WILL pay on time. Kim, I have pointed that out several times, but then comes the "what ifs" ... they stop caring they lose there jobs unexpected medical expense blah blah blah and etc ... Which of course I then have to inform her that these are renters not owners and removing them is far easier them having to do a forclosure.... but the "what ifs" remain no matter what... I just need to calm there nerves enough to sign on the dotted line, and collect a few $200-$400 monthly rent credits. Thanks all, Mike :ph34r: Share this post Link to post Share on other sites
Kimberly 0 Report post Posted August 30, 2004 Mike, I just need to calm there nerves enough to sign on the dotted line, and collect a few $200-$400 monthly rent credits. I thought you were doing a Cooperative Assignment. If so, there are no rent credits for you to collect, there's only the Option Money as an Assignment Fee. "what ifs" ... they stop caring they lose there jobs unexpected medical expense blah blah blah and etc ... "they stop caring" -- not likely too much money involved between the Option Consideration and the Rent Credits"they lose there jobs, unexpected medical expense...etc." -- Mr/Mrs Seller the reality is that could happen, but if it did, worse case senario, 1) we'd start looking for another t/b, 2)I'd step back into the deal and assist you with getting it taken care of, 3)in your price range, Mr/Mrs Seller, we aren't looking for anyone that close to the line financially. Just some ideas. Keep the focus on **no more double payments!!!** Kim Share this post Link to post Share on other sites
mpine 0 Report post Posted August 30, 2004 Kim, I have gone all over those, they are just worried at having to pay for 2 mortgages. I think once I sit with them and explain the contract to both of them it should be cleared up. My solution is to use a payment service instead of escrow company to divvy out the funds and make sure everyones a$$ is covered. The real good news is they saw there listing agent today, and cancelled the contract one month early, complaining that in 2 months exactly zero people have shown up from the listing realtor. So they are at least able to sign with me immediately. W0000000h000000000 Mike :ph34r: Share this post Link to post Share on other sites
Kimberly 0 Report post Posted August 30, 2004 Mike, I have gone all over those, they are just worried at having to pay for 2 mortgages. I think once I sit with them and explain the contract to both of them it should be cleared up. My solution is to use a payment service instead of escrow company to divvy out the funds and make sure everyones a$$ is covered.If I'm your seller neither a payment service nor an escrow company is going to relieve my worries that the tenant/buyer makes their rent payments or that my mortgage is paid on time. What I've said is "Mr Seller the tenant/buyer will make his payments directly to you, and then you will still pay the mortgage just like you are now, so you don't have any worries that your mortgage is not being paid on time." I know that doesn't protect the tenant/buyer, but if the tenant/buyer protests, it could be renegotiated with an extra payment or two sitting at the payment service as an extra precaution in case the tenant/buyer is late with rent. The real good news is they saw there listing agent today, and cancelled the contract one month early, complaining that in 2 months exactly zero people have shown up from the listing realtor.Good news indeed! Kim Share this post Link to post Share on other sites
mpine 0 Report post Posted August 30, 2004 I want to use a third party company to cover my tenant/buyer just as much as my seller. I want to be sure when they come to me for a mortgage in a year that the house has been paid on time, and that the credit of my T/B is as good condition as it can be. Being that I am planning my strategy around doing mostly CA's, I need a an extra cash strategy at the back and that will be my l/o refis. Mike :ph34r: Share this post Link to post Share on other sites
Kimberly 0 Report post Posted August 30, 2004 I want to use a third party company to cover my tenant/buyer just as much as my seller. I want to be sure when they come to me for a mortgage in a year that the house has been paid on time, and that the credit of my T/B is as good condition as it can be. Being that I am planning my strategy around doing mostly CA's, I need a an extra cash strategy at the back and that will be my l/o refis. Mike, Then I'd emphasize the fact that, if the seller wishes, there can be an extra 1-2 months worth of mortgage payments sitting in that account, so that even if the tenant/buyer is late with a payment, whether 1 day or 1 week, the mortgage will still be paid on time. Kim Share this post Link to post Share on other sites
