Let's all try something

[TPSG, LLC 3]

Okay folks,

 

Here is what I am proposing. It seems that everytime someone gets a deal done, they tell about the deal somewhat and that's it.

 

I think that's great, but what would be perfect would be if you are working on a deal, and it is going well, and let's say you finish the deal. Take the time to post here and explain:

 

Exactly how the deal went down

What issues you ran into

What things you had to say

What things you had to do

Marketing, etc.

 

The whole point of this forum, and Michael, is to learn from each other so I figure this way, everyone can learn exactly what can be done, how people are actually doing them and understand more about the process.

 

Just an idea, but I thought it would help others by learning what others have done.

[#1investor_cream 5]

Very GOOD point amigo..

Im still kind of having trouble closing these deals but once i do i will explain the whole process

i have plenty of t/buyers but there not really that serious i have properties but i need the right t/b to make it happen

So the more we explain in complete DETAIL we can gather our own thoughts and have a creative plus positive out come!!

BY the WAY very NICE webpage.

 

REGARDS

C.R.E.A.M

[Craig 0]

Christian:

 

Great idea. My suggestion would be to keep them together and told only after its done. We could also learn by fail deals. What we might have done wrong which makes us think differently the next time.

 

Craig

[MichaelC 160]

Christian, you make a good point, and one I have been flirting with for a few years. I have always wanted to have a separate Done Deals forum, or something like that, where deals that are either done, or should have been done and got away, are posted for all to share and see. Details, discussions, etc. I think it would a great purpose both as an educational tool, and as an inspiration to others.

So, the question for me is what the hell have I been waiting for?? Let me think of some lame excuse and I'll get back here with it. In the meantime, I plead guilty to procrastination in the first degree.

[TPSG, LLC 3]

Of course I make a good point

 

Yeah, I just know that often people are able to learn by reading through a scenario and understand it more fully.

 

Just let me know what your excuse will be and I'll let you know what mine is for not calling you

[MichaelC 160]

Just let me know what your excuse will be and I'll let you know what mine is for not calling you

Deal, Chris.

[Adam King (MI) 1]

Deal Number One

Straight Option Flip

 

Asking price: $9,500.00

ARV $20K

Repairs needed under $1,000.00

 

My offer

 

$11,000.00 on a 5 year land contract at 12% interest with $1,000.00 down

 

Scenario

 

I create the land contract verbiage within my option. I sign the option for 45 days. ($10.00 down) Once a find a buyer, I flip the option for $1,000.00 and assign to the seller. The buyer now pays interest on $10,000.00, which is $100.00 a month for 5 years. Total at 5 years $6,000.00 in interest. Total profit to seller $16,000.00 at five years.

 

Contract Used

Cooperative Option Agreement with Land Contract Clause. Just like MC's Cooperative Assignment Agreement.

Assignment Agreement

Assignment Addendum

Assignment Receipt

Seller's Disclosure

Lead Paint Disclosure

Land Contract

Memorandum of Contract

 

Negotiation

 

Telling the seller I would do the deal if I could pay him $5,500.00 more than he was asking was all I had to say.

 

Deal Number Two

Cash and lease option

 

Investor Subject To gone bad.

 

Property is under contract for $93,000.00. FMV is $175,000.00.

 

Situation

Investor took it over subject to and ran out of money. I paid the $12,000.00 to bring it current. I used a promissory note after running a title search securing the interest of my note. I am paying cash for the house at the rest of the $93,000.00. I am them brining in a credit buyer and taking out an interest only investment loan for 90%. ($157,500.00) I am purchasing it at 70% LTV so the seller (Investor) can recap their money. They are then (The investor) going to lease option it back from me at 90% LTV. I am making about $30,000.00 after closing costs. I will then split that 50/50 with my credit investor. We both hold liability if something goes wrong and we have to evict the investor.

I'm sure we wont.

 

Contracts Used

 

Promissory Note attached to property (To investor)

Lease Agreement (To investor)

Option Agreement (To investor)

Purchase Agreement (My credit investor and investor)

Partnership Agreement (With my credit investor)

Seller's Disclosure

Lead Paint Disclosure

 

Negotiation and issues

 

The Investor used a typical subject to land trust to avoid the DOS clause. Problems. One, that's unethical to me. Hiding things from the bank just ain't cool any more. Two, there aren't any land trusts in MI. I had to have my attorney do a TON of research on this one to make sure it was safe. I got my $12,000.00 back the next day from my credit investor. I then assignment my promissory note to him for security. We still have to cash this one out and refi. That should be taking place in the next week or so. So far, the investor that has the property has been an invedible person to work with. He's a broker of 20 years and great to get along with. I am taking him on as a student to learn options and do more deals. Great guy.

 

Gotta run Olivia is pulling on my shirt.

Regards,

Adam

[JerseyJeff 0]

Deal Three:

 

Adam sold ice cubes to an eskimo..details to follow...

 

That's great Adam. Thanks for kicking it off.

 

I think we should add another page that has explanations because you lost me half-way through both of your deals.

 

Maybe you can add stick-figure illustrations...

 

Jeff

[Adam King (MI) 1]

Deal Three:

 

Adam sold ice cubes to an eskimo..details to follow...

 

That's great Adam. Thanks for kicking it off.

 

I think we should add another page that has explanations because you lost me half-way through both of your deals.

 

Maybe you can add stick-figure illustrations...

 

Jeff

 

Damn Jeff, you keep cracking me up!

The truth is, I got too damn good at this and have been having a hard time getting deals lately. I talk to the sellers only to have them say; man, that was great information. And then a couple of days later I see a Rent to Own sign in their front yard with THEIR number on it! AHHH!!!

Got to start backing off a little and quit talking so much!

Adam

Bet you'd never expect to see that in a post....

[JerseyJeff 0]

The truth is, I got too damn good at this ...

Adam,

 

Your initials wouldn't happen to be T.O. would they?

 

Jeff

[tracy5963 0]

Now this is good stuf full version ,Forms uesd this is what a nerous new guy needs to see I hope I can post one here very soon .thanks guys

[Adam King (MI) 1]

Adam,

 

Your initials wouldn't happen to be T.O. would they?

 

Jeff

 

Hum....you lost me there bud..

[Craig 0]

Deal Three:

 

Adam sold ice cubes to an eskimo..details to follow...

 

That's great Adam. Thanks for kicking it off.

 

I think we should add another page that has explanations because you lost me half-way through both of your deals.

 

Maybe you can add stick-figure illustrations...

 

Jeff

 

Jeff,

 

Thats great Jeff. ..That might make the NAKED INVESTOR HALL OF FLAME AWARD.

[CS1977 0]

Okay folks,

 

Here is what I am proposing. It seems that everytime someone gets a deal done, they tell about the deal somewhat and that's it.

 

I think that's great, but what would be perfect would be if you are working on a deal, and it is going well, and let's say you finish the deal. Take the time to post here and explain:

 

Exactly how the deal went down

What issues you ran into

What things you had to say

What things you had to do

Marketing, etc.

 

The whole point of this forum, and Michael, is to learn from each other so I figure this way, everyone can learn exactly what can be done, how people are actually doing them and understand more about the process.

 

Just an idea, but I thought it would help others by learning what others have done.

 

 

Christian--great idea. I know that always helps me. Although I have only done one deal, I will be back soon to post how that all came about in order to help others.