Kimberly 0 Report post Posted August 18, 2005 Deal first, then TB. Later you may have more TBs than houses. Share this post Link to post Share on other sites
JerseyJeff 0 Report post Posted August 18, 2005 Put all of your effort into finding an interested seller and have them sign the agreements. Put the lease start date out as far as they will agree to. Then go find your T/b's. Jeff Share this post Link to post Share on other sites
IStealHouses 0 Report post Posted August 18, 2005 I was looking at BEV!'s check page, and I dont see how you are getting option payments that are so damn large. With a CA, it is still Rent to own right, so why would someone put down 18 grand? With Rent2Own I was under the impression that what you recieved up front was not a down payment, but an Option Payment. That is generally significantly smaller than a down... Share this post Link to post Share on other sites
Guest Guest Report post Posted August 18, 2005 Yea I looked into this, and I think I am right. I am just being impatient here, but can someone shed some light? Maybe BEV Share this post Link to post Share on other sites
MichaelC 160 Report post Posted August 18, 2005 I'm not Bev, but I did stay at a Holiday Inn last night, so allow me to take a shot at your question...Receiving, say, $15K option consideration from a t/b for a $600K house is not a freak occurence, by any stretch. Think about it. If someone wanted to purchase that same house outright, they would need at least 10% down. That's sixty grand! OK, they found a great mortgage broker who helped them get in for only 5% down. That's still $30K, double what wouldl be paid in option consideration.The math works. Let the t/b tell you how much they have to put down. You may be pleasantly surprised. Share this post Link to post Share on other sites
IStealHouses 0 Report post Posted August 18, 2005 Michael, I am very excited about the CA idea. Have you had greater success with finding deals for CA than with LO? It seems to me (my n00b opinion) that LO is less appealing because they are working with you and dont make a profit for it. With a CA they make all the monthly cashflow right? and the payoff. Sounds foolproof, plus I LOVE the idea of no legal stuff attatched to me on my side. How much money have you made from doing CA? (sorry if its to invasive, just curious what kind of dough its bringing in) Share this post Link to post Share on other sites
MichaelC 160 Report post Posted August 18, 2005 Michael, I am very excited about the CA idea. Have you had greater success with finding deals for CA than with LO?Depends upon the market. With conditions as they are presently, (extreme sellers market), getting any kind of spread to work a sandwich lease is damn difficult. So, a great alternative are CA's. Years ago, when I lived in NM, we were in the midst of a buyers market. While CA's were still a good tool, motivated sellers weren't nearly the rare commodity as they are today. Sandwich lease deals were a good fit then.It seems to me (my n00b opinion) that LO is less appealing because they are working with you and dont make a profit for it.A sandwich lease isn't necessarily "less appealing". It's true that a homeowner will net less, but the appeal of the deal is a very individual matter. A homeowner may need the advantages of a sandwich lease versus the advantages of a CA.With a CA they make all the monthly cashflow right? and the payoff.Yes.How much money have you made from doing CA? (sorry if its to invasive, just curious what kind of dough its bringing in)It is invasive. Suffice it to say I haven't eaten dog food in a while... Share this post Link to post Share on other sites
IStealHouses 0 Report post Posted August 18, 2005 Thanks for answering so fast, and sorry about being nosey. BEVs checks just got me excited, and shes in california! So that means same market... I just cant wait to get it and start. Unfortunately it will probably take a week to recieve. Thanks again Michael Share this post Link to post Share on other sites
MichaelC 160 Report post Posted August 18, 2005 I just cant wait to get it and start. Unfortunately it will probably take a week to recieve.It was shipped today via USPS Priority Mail. If, and who knows for sure, but if the Post Office cooperates you should receive your package on Saturday, and not later than Monday. In the meantime, read through the forums here, particularly the Marketing and Lease Purchase forums. You'll learn a lot. Share this post Link to post Share on other sites
BEV! 0 Report post Posted August 18, 2005 I was looking at BEV!'s check page, and I dont see how you are getting option payments that are so damn large. With a CA, it is still Rent to own right, so why would someone put down 18 grand? With Rent2Own I was under the impression that what you recieved up front was not a down payment, but an Option Payment. That is generally significantly smaller than a down...Hey there, To answer your question, I mainly deal with brand new houses priced from around $600 - $1M + My consideration amount is between 2% - 2.5% of price of home. (do the math)Are tb's lining up to pay that much? Heck NO! I kill myself marketing this puppies to move them, is not easy at all but sure is worth it The other thing I want to point out is that if a TB has difficulties coming up with a lousy $15K or $18K consideration amount then that only tells me that this TB's will have a very hard time purchasing these homes if at all, when the lease expires, not a good sign when a TB complains about the amount of option consideration I ask for ... none of the TB's I have placed in all the homes had once complained about these amounts they put as consideration on any of the homes I had under contract, this only tells me these TB's are serious and will do whatever it takes to purchase the home at end of lease. Share this post Link to post Share on other sites
