mpine 0 Report post Posted August 31, 2004 I just had a thought.... I am pretty confident in Michaels contracts... do i need to furnish lead paint disclosures or any other disclosures to either/both the seller and T/B and what not? I am in New York State. Mike Share this post Link to post Share on other sites
Kimberly 0 Report post Posted August 31, 2004 I am pretty confident in Michaels contracts... do i need to furnish lead paint disclosures or any other disclosures to either/both the seller and T/B and what not? I am in New York State.Mike, Lead Paint is federal and required for leasing/renting/selling any residential unit built prior to 1978 (although some smaller companies had lead still in the colorant* until the mid to late 80's). Property Condition Disclosure Statement would be state regulated and there may or may not be a standard form. Here the only thing you're required to spell out on a rental is if the property has flooded in the last 5 years. For selling there is a detailed 3 page form that is mandatory whether using an Agent or not. Technically, both of those would be the seller's responsibility, but I don't think it hurts to be prepared! Kim *The paint stores don't stock every color in the fan deck in every type of paint just in case you come in and want to buy. The paint comes in bases light, medium, deep, and ultra deep. Colorant is added at purchase to make the desired color. This is why you want to make sure they open the cans and check the color after mixing! Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 2, 2004 Mike, while I haven't concerned myself with lead paint disclosures, it wouldn't be a terrible thing to do so. My attitude has always been the less paperwork you're forcing folks to sign, the more likely you are to get the deal done.However, if you are concerned about liabilities you can always run it by an attorney, (although we already know what an attorney will say), or you can make it a routine part of your business dealings. Share this post Link to post Share on other sites
mpine 0 Report post Posted September 2, 2004 When the TB wants to excise there option, is there a special contract/form they should use? Mike Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 2, 2004 Depends upon how the local folks handling the deal want it done. You will probably need a Purchase and Sale Agreement to wrap it all up. Best advice is to ask the title company or attorney handling the transaction what is needed. Share this post Link to post Share on other sites
Doug Pretorius (ON) 9 Report post Posted September 2, 2004 We use a purchase and sale agreement here. The main reason is so the bank doesn't have a fit trying to figure out what happened (none of them understand lease purchases or installment sales). So we just write up a fresh one with the new--lower--price, and tell the bank that the landlord is selling to his/her tenant. Share this post Link to post Share on other sites
mpine 0 Report post Posted September 3, 2004 Same seller, STRIKE TWO... So I explained to them as a couple what I do, and they seemed very interested, Turns out they have 2 more weeks advertising in the FSBO and newspaper so would like to still see if they can sell and just cash out. They are holding another open house this weekend. if it flops like the last one, the homeowner told me to expect a call from him so we can meet with his lawyer *ugh* and review the contracts for signing. I am contemplating buying a Bronchick book and trying to slip it into this lawyers hands... maybe I can turn him to my side, Muhahahaha..... OH, before you all wonder why this guy is so into the lawyer looking things over... the homeowner owns 3 other properties, and he was fairly adamant about it. I told him I do not leave my contracts behind, if he wants to review them he can make an appointment. So as I am leaving feeling a sense of victory and defeat, the homeowners wife decides to give me a hot lead to someone else in town who is leaving the state and has been trying to sell for 6 months with no luck. All in all, not a terrible day... I now need to sign contracts on every first meeting... I hate the extra travel. Mike :ph34r: Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 7, 2004 the homeowner told me to expect a call from him so we can meet with his lawyer *ugh* and review the contracts for signing.Since you're working with these sellers doing a CA, the attorney should be quite pleased with the contracts. After all, they are very pro-homeowner, Mike.the homeowners wife decides to give me a hot lead to someone else in town who is leaving the state and has been trying to sell for 6 months with no luck. The best kind of "hot lead". A referral from a well meaning friend. Be sure to quickly follow up, and be quick to mention who gave you this new homeowner's number. Share this post Link to post Share on other sites
mpine 0 Report post Posted September 14, 2004 The lovely referral told me to F off, she wants all cash. She has been trying to sell it on her own for 3 months, and finally put an ad in the newspaper. I will test her motivation again in a week or 2. As for the initial homeowners I was dealing with, they are trying to get a phone appointment between me and there lawyer sometime this week as there open house yielded no results. Is a Performance Mortgage or memorandum of Option required on a CA? The initial homeowner also might consider an all cash price, so I offered 230k on a 350k house. I figure if the CA scares her away a pure option may be my way to go, maybe even turn it into a 24 month land contract and use the owners money to finance the whole thing. Mike Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 14, 2004 The lovely referral told me to F off, she wants all cash. She has been trying to sell it on her own for 3 months, and finally put an ad in the newspaper. I will test her motivation again in a week or 2.Tweak her, Mike! Make her a really lowball offer. She'll blow a gasket and once again tell you to F off.Wait two weeks and call back. Ask if the property is still for sale. If so, tell her you've reconsidered and want to make another offer. Then, make it even lower than the original. Keep doing that until the damn property sells, or she clutches her chest and passes out. Is a Performance Mortgage or memorandum of Option required on a CA?No. Since you are not remaining in the deal long term, you have no need to protect your position. That's a concern of the tenant/buyer. Share this post Link to post Share on other sites
mpine 0 Report post Posted September 17, 2004 Good news, the deal is dead for the moment. The homeowners feel it is way to risky to be a landlord at this time. I say this is good news because they are getting super motivated and have just dropped there price again on the house by an additional 15k. According to the homeowner, they can make payments for another 2-3 months before it starts to get difficult. Which also means my price to get this deal will be lower next time. I may meet with her in the morning while driving by my new personal residence and have her sign a pure option agreement with me for 320k (pretty high already actually) but I may be able to make 5k-7k off this where there was nothing to be made. The homeowner is also always giving me leads to sellers in the area which is nice, so at least we have a good rapport and at some point I will have her house, this or some other house she gets, Muahahahahahahahahahaha.... Mike Share this post Link to post Share on other sites
Mr.B 0 Report post Posted September 18, 2004 Mike I would call her back and say, "You know I was thinking since you lowered the price of your house I would be willing to manage the property for you." Tell her that you would Landlord for her and try to get a Sandwhich deal out of her. Might be a way to salvage the deal. ~Mr.B Share this post Link to post Share on other sites
mpine 0 Report post Posted September 18, 2004 Mr. B They need the cashflow to cover a second mortgage they have on another property. So me staying in the middle is not ideal. They need to sell FAST, or they have a lot to lose. I am just going to call them every 2 weeks and check up on them, I have a good rapport with Mrs. Homeowner. She did speak to her lawyer who told her any lease on her house is a bad idea and she should not do it. Her lawyer even wanted me to meet with her and pay her $350 hourly consultation fee. I told Mrs. Homeowner that I will not meet with her lawyer for $350, however in 2 months when they can't make double payments anymore, ask your lawyer if she will make her mortgage payments for her until it sells. The homeowner did tell me that if she gets too desperate, I may be her solution. They just want to cash out now and not ever think of the house again. Mike Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 19, 2004 She did speak to her lawyer who told her any lease on her house is a bad idea and she should not do it. No surprise there! "....any lease on her house is a bad idea....." Shakin' my head on that generalization.This is one homeowner and one potential deal. Don't tie up all your energies and emotions on it. You've done all you can at this point, Mike. Follow up every few weeks, but put this baby on the back burner. Look ahead to other potential deals which, I assume you now realize, are out there if you'll just speak with enough homeowners. Share this post Link to post Share on other sites
Sold ! 0 Report post Posted September 24, 2004 mpine you have your forms messed up on one of them. CA residential lease agreement- Between you and the seller, only the 2 of you sign Option to purchase- Between you and seller, only the 2 of you sign CA Assignment of Agreement- you, seller and t/b all sign Can't the CA Residential Lease Agreement and the Option to Purchase be combined into one document.........a CA Residential Lease with Option to Purchase? Why do you need to make 2 separate documents here? Curious Share this post Link to post Share on other sites
