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CS1977

Help--pennysaver ad question

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Jean, you know you don't HAVE to have a fixed option price. When things were really hot here we were selling houses for the GREATER of either $X (which was more than we thought the house would be worth at the end of the option) or the average of the last 3 comparable sales minus the buyer's accumulated credits.

 

That protected us (or our CA sellers) just in case the market got out of hand. But also protected us in the event of an unexpected downturn.

 

If the market did go down we could always cut our buyers a break.

Doug, I'm going to take exception to your statement. I have been told by a few attorneys that to leave a key element of the contract unspecified, in this case the purchase price, is to render that contract null and void. The legal pinheads refer to this as an illusory contract. Now, having said that, you may have covered your butt by adding the specifics you mentioned above. Still, as a matter of avoiding aggravation, I think it's a wise approach to settle on a price from the get-go. Anyone who enters an option agreement needs to be aware there are price flucuations in the market, giving a potential for one party to gain an advantage over the other. This isn't malicious, evil, or deceitful in any way.

 

 

Actually, Doug, no, I didn't know that that was possible or legal. All the info I have studied has said that you had to have a "fixed option price" in place when the agreements are being signed by all the parties.

 

I even asked the Oz about what would happen if the market took a down turn on the buyers and the property is less in a few years. And he said, "Oh well, it can go either way, for either party. Just, like the Seller could lose when in a heavily appreciated time like we are in now. That's the risk people take when entering into a L/O.

 

He always talks about transactions being a win/win situation, however, the only one who ever wins is him.

 

So, now, I'm really confused, Doug!

 

Geez, thanks!

 

WCG

Jean, see my above response. . .and who is the mysterious Oz? :)

 

 

Like I said, with the information that I have on hand, is all the "correct" information that I have! Hence, me not being able to do this type of transaction which = ME THE POOR SUCKER!

 

P.S. I do have to admit (shame on me, I know, but I suppose if I had purchased Michael's course, I wouldn't have this confusion).

 

But, hey, I'm a broke sucker whose already spent thousands (literally) on other people's crap and mentorship programs who were also a waste of ...............................

 

People take note. Buy Michael's course. I'm going to foregoe eating for a few days now so that I can. I believe it will be well worth it since I don't seem to know anything based on what Doug has pointed out to me!

 

Thanks Doug!

 

 

P.S.S. However, there are other areas that I'm more versed in, so, I guess it's not all that bad! And no, I'm not that broke, just tired of paying for half ass crap!

 

WCG

Jean, I realize I'm to be ridiculed for telling someone not to buy another course or manual, mine included, but if you already have spent "thousands (literally) on other people's crap", I can't in good conscience have you spend another $97 on my crap! :( I'm in a good mood for some reason. . .oh yeah, my wife and kids are out of the house. . .PM me your name and mailing address and I'll fire you off a freebie. I guess I have a weakness for Canadian women. There's something about a girl in seal fur longjohns that makes me weak :blink: .

 

 

Does being up at 1:30am with the flu equate with being intoxicated? Not sure, ok you might want to take my words from last night with a pinch of salt. But this morning upon review I stand by them!
Have a cup of beaver soup and call me in the morning.

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. . .and who is the mysterious Oz? :)

The Oz, is the illustrious Mr. Ozzie Jurock (www.jurock.com). He's the guru for the BC market.

 

Jean, I realize I'm to be ridiculed for telling someone not to buy another course or manual, mine included, but if you already have spent "thousands (literally) on other people's crap", I can't in good conscience have you spend another $97 on my crap! :( I'm in a good mood for some reason. . .oh yeah, my wife and kids are out of the house. . .PM me your name and mailing address and I'll fire you off a freebie. I guess I have a weakness for Canadian women. There's something about a girl in seal fur longjohns that makes me weak :blink: .

OK, now I feel embarrassed. Mikey, I have always meant to buy your Awesome book, it's just that I haven't gotten around to it. By the sounds of all the knowledgeable people on this board (because of your content), you should be charging $1,197.00. I am so thrilled to see that you have a weakness for Canadian women and still like me. Lucky me. Phew! Just one thing though, it doesn't get cold enough in Vancouver for us sexy women to wear longjons.

 

Thanks again for the kind gesture. That's very generous of you. And, hey, I will even make you a sweeter deal. This is what I will do. Upon me completing a sale (which I have no doubt about), I will contribute a large percentage of my good fortune to a charity of your choice! ;)

 

Does being up at 1:30am with the flu equate with being intoxicated? Not sure, ok you might want to take my words from last night with a pinch of salt. But this morning upon review I stand by them!

 

Have a cup of beaver soup and call me in the morning.

 

NOW that was funny Mikey! :lol:

 

Seriously, Dougie, are you feeling better? I hope so! :)

 

Jeanie B)

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Doug, I'm going to take exception to your statement. I have been told by a few attorneys that to leave a key element of the contract unspecified, in this case the purchase price, is to render that contract null and void. The legal pinheads refer to this as an illusory contract. Now, having said that, you may have covered your butt by adding the specifics you mentioned above. Still, as a matter of avoiding aggravation, I think it's a wise approach to settle on a price from the get-go. Anyone who enters an option agreement needs to be aware there are price flucuations in the market, giving a potential for one party to gain an advantage over the other. This isn't malicious, evil, or deceitful in any way.
MC, I wholeheartedly agree that having NO price and no formula for determining one would qualify as an illusory contract. The way we did it read like this:

 

"Upon completion the Purchase Price shall be $200,000 or the average of the 3 most recent comparable sales, whichever is greater, as determined by 3 independent real estate agents."

 

This method of determining an otherwise uncertain price was OKed by 4 different lawyers, so I was pretty comfortable using it. Also by having a specified price (the $200k) we had something to fall back on just in case it was challenged in court.

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Doug, I'm going to take exception to your statement. I have been told by a few attorneys that to leave a key element of the contract unspecified, in this case the purchase price, is to render that contract null and void. The legal pinheads refer to this as an illusory contract. Now, having said that, you may have covered your butt by adding the specifics you mentioned above. Still, as a matter of avoiding aggravation, I think it's a wise approach to settle on a price from the get-go. Anyone who enters an option agreement needs to be aware there are price flucuations in the market, giving a potential for one party to gain an advantage over the other. This isn't malicious, evil, or deceitful in any way.
MC, I wholeheartedly agree that having NO price and no formula for determining one would qualify as an illusory contract. The way we did it read like this:

 

"Upon completion the Purchase Price shall be $200,000 or the average of the 3 most recent comparable sales, whichever is greater, as determined by 3 independent real estate agents."

 

This method of determining an otherwise uncertain price was OKed by 4 different lawyers, so I was pretty comfortable using it. Also by having a specified price (the $200k) we had something to fall back on just in case it was challenged in court.

 

NOW, this statement I LOVE. I could really live with myself to L/O's now!

 

Thanks a million for positng this phrase Doug and for making this crystal clear too!

 

Hugs & Kisses!

 

Jean :blink:

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Some of the ads I use to find buyers and sellers

 

Company looking for 3-4 homes in this area for long term lease. Call (123) 456-7890

www.synergyhomeinvestments.net

 

'll buy or lease your house, make

your payments, do repairs, close quickly,

any area, any price, any condition, (123) 456-7890

Visit our site

 

Rent with option to buy this 3 bdrm, 1 bath 1100SF home in Vernon close shopping and I-84. Nice yard and quite area.

Low monthly fee and small option fee gets you in.

Bad credit OK. (123) 456-7890

www.synergyhomeinvestments.net

 

Stop Renting! Buy Now! We have several homes available with lease option terms Tolland and Hartford Counties.

Start building your future today. Homes ranging $995 to $1995. We can help you!

Call: (123) 456-7890

www.synergyhomeinvestments.net

 

 

Let me know what you think

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Our bud, puls1234 (Pete), uses something like "....full asking price...." or something like that for his CA deals. Pete uses the phrase "We Buy Homes Above Market Price" in his marketing. He tells me this consistently gets the phone ringing and deals done.

 

 

Michael, I am little confused.

 

I can see how Pete USED this verbage in his marketing material awhile back, however, with prices on the decline (and for how long or how much further) how can you continue with those words when you don't know how much the home will actually be worth in a year or so. What if it is way, way lower than it is today (which is a real possibility) and then when it comes time for the buyer to buy he says forget it, it is not worth it. So, I'll lose my deposit, I'll be ahead in the long run.

 

Then you have the poor homeowner (probably knowing that their house will be worth less, but will get their price anyway) is now left holding the bag who REALLY NEEDED to sell so agreed to go along with a C.A. or a SLO.

 

To me this seems a bit unethical, don't you think?

 

I am only posing this question, as I would love to advertise this way too, but not by deceiving people along the way. So, I get my fee so what, who cares, I'm out of the deal now. But, what about the seller and buyer. They are the ones that get shafted!

 

Please, please correct me if I am way off base here, as I'm not trying to offend, just trying to understand. Hence me stating, I'm a little confused!

 

Cheers,

 

WCG

 

 

Nov 13 2006, 07:50 PM

 

WCG, you're not off base at all. And actually, I'm glad you raised the questions. They make for an interesting discussion.

 

 

AMAZING how I was able to foresee the future. Wow! I wrote this 10 months ago! It's amazing how this seems to be the case today!

 

I guess it is true, US Aquarians were born 50 years ahead of our time! :rolleyes:

 

Man, I LOVE Horrorscopes -- It makes me look brilliant!

 

P.S. JD, this is how it's done, if want that FREE book!

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Jean, it's only unethical if you mislead either party in the deal. I make a point of reminding every homeowner that a lease option is not a guaranteed sale. And if that's what they need to sleep at night, then this isn't the deal for them. Full disclosure, so everyone involved is on the same page.

As for the t/b, they are also aware that it's a bit of a gamble. Prices can go down, or they can rise. But they know this going in and are willing to take that roll of the dice, so to speak. In reality, though, if a t/b goes into a lease option for $250K, and at the end of the lease the property appraises for $225K, what is likely to happen? Do you really think a homeowner is going to stand his ground in a declining market with no sales prospects in sight? I don't. I suspect, and have seen, some quick and easy negotiating take place to make the deal go through.

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.. I make a point of reminding every homeowner that a lease option is not a guaranteed sale. And if that's what they need to sleep at night, then this isn't the deal for them.
Which is why FRBO are a goldmine to deal with when doing a CA as they don't really mind if the house won't sell cause they weren't selling to begin with until I come up with the suggestion with my CA .. and if it DOSE sell then more power to them :huh:

 

BEV!

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If I ran a add to get contracts I would take a more personal approach.

 

Family looking to Lease Purchase

a nice home in a nice area.

 

Then you have already screened them for the Lease and interested in selling and your not an agent.

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Jean, it's only unethical if you mislead either party in the deal. I make a point of reminding every homeowner that a lease option is not a guaranteed sale. And if that's what they need to sleep at night, then this isn't the deal for them. Full disclosure, so everyone involved is on the same page.

As for the t/b, they are also aware that it's a bit of a gamble. Prices can go down, or they can rise. But they know this going in and are willing to take that roll of the dice, so to speak. In reality, though, if a t/b goes into a lease option for $250K, and at the end of the lease the property appraises for $225K, what is likely to happen? Do you really think a homeowner is going to stand his ground in a declining market with no sales prospects in sight? I don't. I suspect, and have seen, some quick and easy negotiating take place to make the deal go through.

 

Oh Michael,

 

I wasn't insinuating anything other than what had already discussed; which was already laid out on the table, as per these discussions, which made everything crystal clear!

 

I was just bringing an old post back to life -- or shall I say, EXACTLY what is currently happening today! (Not to mention, giving JD a lesson on what it takes to get something for FREE!)

 

However, thanks again for reiterating HOW important it is to lay everything out on the table for all parties, as things can change on a dime like it has!

 

Forever yours, MC! :huh:

 

Jean

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