Signatures

[Sold ! 0]

Do you need to sign your CA deals in front of a Notary Public and get it notarized?

 

Is it a waset of time to do so?

 

Curious,

[Kimberly 0]

Not necessarily a waste of time, but not a requirement. (I don't.)

 

Kim

[Adam King (MI) 1]

Speaking of time....

Heck, I don't even do the contacts until 15 minutes before closing because there's so little time! I'd have to have a blow up notary in the car just to justify using one!

That didn't sound right....

Adam

[BEV! 0]

Is okay Adam, we all know what ya mean.

 

I'm the same way, just minutes before my meeting with seller, I type up the seller's name and property address with my name in the agreements and number amounts, that's it... everything else is blank I just point and tell them where to sign when we meet and life goes on

Is like Romario when playing soccer (for those who know about soccer), just give the ball to Romario and is a sure goooaaal!

[Craig 0]

I just point and tell them where to sign when we meet and life goes on   

 

I would sign anything with that whip in your hand... Gone to the bar...

[BEV! 0]

I would sign anything with that whip in your hand... Gone to the bar...

Cute Craig

 

Actually what I do is since all my clients are now coming from other client's referrals (all FRBO) they already know the following..

 

- They call me when they're ready with their documentation (professional) stating house value.

 

- When they call me, I get their value numbers, rent analysis and mtg payment (which is always a negative one) info, I tell them I'll get back with them with my results in a few hours (while they're hot)

 

- I immediately prepare my " What You See, Is What You Get " form offer for the CA (my own personal rough draft offer) with all the numbers in their favor, specially taking care their negatives and adding cash flow to their pockets (which seems to be the reason for all my referrals as of late)

 

- I call them back right away and go over the numbers of my CA offer with them over the phone first, they like what they hear. I tell them I'll be emailing them the " What You See, Is What You Get " form offer immediately for their viewing (I always email this first) and that I will be stopping by their house in an hour to sign the agreements. (they agree)

 

- I drive to their place with all agreements ready to be signed, I ring the door bell, door opens, got my agreements on hand and point to where they need to sign and they sign... That's it!

 

So there was a lil more to my previous statement above than just pointing and signing

[-Tony- 0]

I get all My docs Noterized, dang common wealths.

[JCannon 0]

Bev, you seem savvy in the way of the FRBO market, what highlights should I go over on the phone when calling them?

 

Positive Cash Flow,

Better Tenants,

No or little maintenance....what else, and what should I avoid?

 

Do you recommend aging the classified ads? Are the seller/landlords firm on getting a security deposit, first and last mo. rent as they would be if doing a straight rental?

 

Thanks in advance.

[BEV! 0]

Bev, you seem savvy in the way of the FRBO market, what highlights should I go over on the phone when calling them?

Positive Cash Flow,

Better Tenants,

No or little maintenance....what else, and what should I avoid?

JC,

What I can do is tell you what works for me here in my area with the FRBOs.

Here, 1 out of 3 FRBO will say YES to the "Rent To Own" deal ( to me anyway). I don't know if is because rentals are very slow filling if at all or because the houses sell practically over night (whether FSBO or Agent).

 

Hightlights?

Again, in my area all the FRBO I've been dealing with and talking to have negative mtg payments on all their rental properties... why? I don't know so this is my most powerful weapon approaching them even though they don't care about the negative payments nor cash flow at all.... all they want is to just fill the property that's it.

Well I tell them that's too bad because I insist in taking care their negative paymets while creating cash flow for them whether they like it or not (of course if I hadn't done my numbers homework first I wouldn't be saying this to them). I then get their full attention after hearing me say that and once I get to this point they remain quiet and listen to what I have to offer them (RENT TO OWN)

 

Do you recommend aging the classified ads? Are the seller/landlords firm on getting a security deposit, first and last mo. rent as they would be if doing a straight rental?

Thanks in advance.

 

In my town, the rental properties ads last months and months because like I stated earlier, those take a long time to move, so it doesn't make any difference here to call a FRBO ad that just came out this morning or call the same ad 4 months later because it will still be available

And yes, all my clients have always require 1st and last months with a deposit as well.

 

Hope that helps a li'l

[JCannon 0]

Bev, thank you, it sure does help.

 

I think I need to focus on FRBO's because, like in your market, homes sell over night and at market value here.

 

I've called about 100 FSBO in the last two weeks and no real leads have come from it. I've had some interest and sent out about a dozen LPA flyers.

 

Anyway....If they expect first and last mo. rent along w/ a security deposit you must be doing all Sandwich L/O to make it worth while, is that correct?

 

Where does your profit come in?

 

Thank you much.

[BEV! 0]

Where does your profit come in?

Thank you much.

JC, I do all CA's ONLY and my profits come from my 100% Option Consideration Amount given to me via cashier's check by the TB with a big smile on their face

[JCannon 0]

Bev, sorry to keep bugging you but this seems like a lot of money for a T/B to put into a property, 1st and last rent, security deposit and option consideration. Obviously your market allows this, I'm not too sure that mine will. As an example, do these numbers reflect a typical deal you do?

 

$100,000 fmv

$1000 x 2 (first and last rent)

$1000 (sec. dep.)

$3000 (option consideration)

 

If so is $6000 feasible for a T/B in up front cash?

 

I have no clue, I'm just trying to get the numbers figured out before I start my FRBO calls.

[BEV! 0]

JC,

You're not bugging me... (I'll bill you later )

 

My market DOES allow it .

 

My first deal got me $11K

My second deal got me only $7K

My third deal got me $13K

and working on my next deals of $10K and $16K

I go the extra mile and do the extra effort to get the "right" TB's that are serious enough to commit to the deal ...is not easy at all sometimes I go over 24 hrs with no sleep just searching for ways to get the right TB's.

That's why when I show the properties I only show it to 2 prospects and one of them ends up leasing the property.

 

Those amounts are only my consideration amounts (they all paid 1st, last & deposits)

 

My consideration is 2%-3%

 

JC, it all boils to YOUR market allowance.

It is DOABLE everywhere and Allowable in my market!

 

Okay, where should I send the bill to now?

[MichaelC 160]

JC, a factor to consider in all of this is location. In an area of the country that doesn't have the higher incomes of, say, California or New York, it will be close to impossible to obtain option consideration, first and last month's rents, plus a damage deposit on top of all that. Heck, for most folks, that kind of down payment will get them a mortgage. Even in my area, which is very expensive and has a strong economy, I don't try for all that. It's option consideration and first month's rent only. So, don't hogtie yourself trying to get all that cash. Take a more basic approach, (OM and first month's rent), keep the OM all to yourself most times, and you'll be off and running.

And as for what I sense is some growing discouragement on your part, let me say something to you. You are right now at a critical juncture in your new career. It's about this time when a new and eager real estate investor wannabe hits the wall and quits. You know, two, maybe three months into the game, a hundred phone cals under their belt, and no deals done. The doubts begin to creep in. It's understandable, but you have got to fight the urge to bail or you'll seal your fate. 100 calls is nothing. Make more. FSBO's and FRBO's. Daily newspaper and weekly community papers. FSBO/FRBO signs on properties. Online listings, including Craig's List. And, of course, then there's marketing! Don't know what you're doing in this regard, but this is the key to your future success. And that is not an exaggeration.

If you need help or encouragement, post about things here and we'll do what we can to help. There is no reason why anyone on this board who wants to do a deal, can't!

[JCannon 0]

MC, thank you for your encouragement. You are right, I am a little disouraged, but not to the point of giving up. I don't think that will ever be a possibility considering RE Investing is the only real future I see in supporting my family. My marketing possibilities are pretty limited due to lack of funds, but through networking with people I know and calling on classified ads I know I can get that first deal done and then use that money to do some real marketing. Thank you again for your help. Thank you too Bev. I am going to make this work.