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Need to talk to an accountant....but from my knowledge I would say no.

 

That's what I'm going to do. Like you said, I wouldn't think it would affect him but I'll talk to my accountant to be sure.

 

Speak to the guy in concepts. Forget alll the legal crap.

 

That's what I'm trying to do, but he keeps bringing up this stuff! I understand where he's comming from (not wanting to pay taxes on extra $$ he didn't receive), but c'mon!

 

I'm probably going to be starting the auction in 2 weeks (weekend of May 7th). I've talked to my mortgage broker and arranged for him to get me some of necessary paperwork (purchase contract, loan application, stuff like that). Do I need to contact the title company before the process starts or after the auction has been completed? Basically, what do I need to tell them?

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you need to make sure the title company or lawyer is in check before you start this process

 

Ok, so I contact whoever is going to be handling the closing and tell them what I'm doing (investor with an option who is going to sell traditionally via auction/open house)? What kind of info do I need to give them/show them? Are there upfront costs that need to be paid to the title company before the auction?

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Nothing up front. But you want to talk to title company and tell them that you buy properties and sometimes the Deed will transfer from the seller to the end buyer. Do they have a problem with that.

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Got it! If they say yes, then move on to the next company! Is there anything that I have to do with the title company before the auction, if they don't have a problem with the title transfer? Thanks!

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Here is a link of an auction that I will be starting on Sunday.  This is a purchase price auction.  I will be holding Two auctions that day in the same subdivision....sure save money on marketing.

 

 

Auction link:

 

http://www.homebodiesllc.com/property.cfm?property_id=11964#

 

If the market is HOT. What if you had a FSBO auction sight within a area code.

 

You sign the option. Begin the auction and market the home then take half of profits from the seller. You Could market this auction site but you would also get the phone ringing with lots of inquires from sellers who you might get some Sandwich deals from.

 

Just a thought.

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Jonathan,

 

What does the Memorandum that you record say? What points need to be in there?

 

I'm confused about cancelling it, what to include in it that the seller will sign right up front. He could be signing away $20K - $30K or more, right?

 

What information/clauses goes in that Memorandum?

 

Thanks,

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Rich,

 

I cannot post it here. But if you go to the court house you will be able to pull one up on the computer. But nuts and bolts of states prevents from future indeptedness and if anyone has a question about the option of the property just contact me and I have my telephone number.

 

To release the memorandum is usually a Quit Claim Deed

 

The difference part is where I use another form to get paid. Again I will not post it here. But lets just say you get one in the mail each month to pay your BILL.

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Now I am totally lost......... :angry::blush::o:lol:

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You get one in the mail each month to pay your bill. Could that be an Invoice perhaps?

 

Rich, you're overthinking, what Jonathan is doing it NOT complicated!

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Here is a link of an auction that I will be starting on Sunday.  This is a purchase price auction.  I will be holding Two auctions that day in the same subdivision....sure save money on marketing.

 

 

Auction link:

 

http://www.homebodiesllc.com/property.cfm?property_id=11964#

 

If the market is HOT. What if you had a FSBO auction sight within a area code.

 

You sign the option. Begin the auction and market the home then take half of profits from the seller. You Could market this auction site but you would also get the phone ringing with lots of inquires from sellers who you might get some Sandwich deals from.

 

Just a thought.

 

 

I can barely keep up with what I got going now....but it looks like an idea.

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I cannot post it here.  But if you go to the court house you will be able to pull one up on the computer.  But nuts and bolts of states prevents from future indeptedness and if anyone has a question about the option of the property just contact me and I have my telephone number.

 

To release the memorandum is usually a Quit Claim Deed

 

The difference part is where I use another form to get paid.  Again I will not post it here.  But lets just say you get one in the mail each month to pay your BILL.

 

Johnathan, I understand what you're saying about not being able to post the agreements here. It's like when occasionally someone comes to this forum and asks for someone to post a copy of MCs' agreements. Not gonna happen. Is there a place where we can purchase a copy of the form you use to protect how you get paid? That's really my biggest concern right now. I agree with what you've said in the past that the sellers biggest concern is getting their house sold and the check in their hands, but I can also see where a wiley seller may want to wait for the option to expire in order to make an extra $15-20k.

 

Now I am totally lost......... :angry:  :blush:  :D  :lol:

 

I'm a little confused also. I understand the process, but am a little unsure of the paperwork side of the deal. I realize that I'm going to need an option to purchase agreement and a notarized memorandum to secure my position. I understand about the quit claim deed to release the option, but am curious to what else I'm missing.

 

You get one in the mail each month to pay your bill.  Could that be an Invoice perhaps?

 

Rich, you're overthinking, what Jonathan is doing it NOT complicated!

 

I'm not completely sure what you guys are saying here either. You receive an invoice for.....? What do you have to pay? :o

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www.louisbrown.com is where most of the information is.  By the way Mike if I posted this and should not have please delete.

Not at all, JR. This is a great thread which, obviously, many are finding very helpful and informative. I appreciate all your input and sharing here. That's what this board is all about.

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