<Steve> 82 Report post Posted June 11, 2008 I have just started advertising a CA condo I have as both a L/O and a staight rental. And I have begun to receive more calls the last few days and a good showing today. When I ask the potential tenant if they are interested in a L/O or straight rental most all have said L/O. And that makes sence. Who wouldn't prefer a L/O. Also out of the blue, I received an email from another seller today who's property I have as a CA, and they asked if I would consider offering there property as a staight rental and a L/O if this could help.Go figure? MC, I think you have a crystal ball for reading the future of this market. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted June 11, 2008 I have just started advertising a CA condo I have as both a L/O and a staight rental. And I have begun to receive more calls the last few days and a good showing today. When I ask the potential tenant if they are interested in a L/O or straight rental most all have said L/O. And that makes sence. Who wouldn't prefer a L/O.Many people, apparently, if you are located in Florida, California, or Nevada. Why lock in a price today if there is a very good chance the property will be worth 10% less in a year? That's what I'm running into here. Also out of the blue, I received an email from another seller today who's property I have as a CA, and they asked if I would consider offering there property as a staight rental and a L/O if this could help.Go figure? MC, I think you have a crystal ball for reading the future of this market.Wonder if I should join the Psychic Friends Network? Share this post Link to post Share on other sites
Jason (AL) 1 Report post Posted June 12, 2008 Howdy gang!Long time, no chat....been away at the poker tables. Love the idea of getting paid on thesetype deals. A few quick questions:1. When a potential renter contacts you, how much are you screening?Are you picking the ones that look best on "paper", then sending them to theowner for their final approval? 2. You mention using your (modified) Consulting Agreement with these deals....Are you using it on every deal to keep yourbases covered?Have you found it better with or without it?..just wondering the best "combo" for all involved.. Thanks! Share this post Link to post Share on other sites
Jonathan RexfordFL 8 Report post Posted June 12, 2008 I have always screened for lease option buyers. So I would think the same way. The way I look at it if I would not rent to them then why should the owner. Just my opinion. Of course this type of transcation is new to me. I really never thought the CA was a good business model....only to be proven wrong. But then again. Everything works if WORKED. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted June 12, 2008 Greetings, Jason. I was wondering what mischief you got yourself into. I figured it was women, moonshine, a Dukes of Hazzard revival, or gambling. Sure 'nuff, you've been hiding them aces up your sleeve. . . Screening? Sure, to some extent I screen the prospect. Their first contact is with me, usually via email. Before I bother the homeowner, I want to be sure the individual is somewhat legit and serious. At that point I will contact the homeowner and let him know what I know. Both parties have one another's contact info and, hopefully, a showing follows. Got one just like this scheduled for the weekend. Homeowner is thrilled to have anyone interested. If you've got a condo in south FL these days, you may as well have leprosy. Each deal is different, Jason. My preference is to use a Consultation Agreement because it's quicker and lighter and less paperwork to fuss with. But every once in a while some homeowner either wants to go with a full agreement and assignment, or makes me want to go that way. Share this post Link to post Share on other sites
randian 0 Report post Posted June 15, 2008 Many people, apparently, if you are located in Florida, California, or Nevada. Why lock in a price today if there is a very good chance the property will be worth 10% less in a year? That's what I'm running into here.Does that mean you can't sell your CAs, you have to take a much smaller assignment fee, or they just take a lot longer? Or maybe all three? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted June 15, 2008 randian, I don't see the market affecting assignment fees. Two to three percent is the going rate, at least from what I'm seeing. Keep in mind, with the mortgage industry tightening up as they have, putting down 3% is a steal when compared to trying to get a mortgage.But, yeah, it's taking longer to move properties. Buyers have quite an inventory to select from. And there are some sellers offering all sorts of gimmicky give aways, throwing cars into the deal, free dock space, vacation cruises, two months free rent, etc. Share this post Link to post Share on other sites
BEV! 0 Report post Posted November 11, 2008 I have no problem finding willing "homeowners". The biggest problem is finding folks who aren't upside down with their mortgages Foreclosures are rampant over here!! When in doubt, Always Check Here first (or your local area) BEFORE making an appt to meet with a homeowner (I always check this first as it covers my local areas) BEV! Share this post Link to post Share on other sites
phil43 0 Report post Posted November 11, 2008 I have no problem finding willing "homeowners". The biggest problem is finding folks who aren't upside down with their mortgages Foreclosures are rampant over here!! When in doubt, Always Check Here first (or your local area) BEFORE making an appt to meet with a homeowner (I always check this first as it covers my local areas) BEV! Thanks for the resource, BEV! How are you doing? Interesting article in NY Times about Mountain House...worse foreclosure rate in the nation, yikes! Phil Share this post Link to post Share on other sites
BEV! 0 Report post Posted November 11, 2008 ...Thanks for the resource, BEV! How are you doing? Hello, Amigo. I'm doing good, thanks for asking.How are you doing? Interesting article in NY Times about Mountain House...worse foreclosure rate in the nation, yikes!Yeah, these parts are very isolated now, the parks are empty 24/7, houses are empty.What I can't seem to understand is... "Why would anyone choose an adjustable loan (be in the dark always) over other loans?". I could never go for something as unpredictable as an adjustable loan, no matter how provocative / tempting they make it look or sound, no way! BEV! Share this post Link to post Share on other sites
MichaelC 160 Report post Posted November 11, 2008 C'mon, Bev, you know better than to wonder why folks go for adjustable loans. They are perfect for the American mentality of instant gratification. They allow us to buy more home than we can possibly afford. That's why we're in this mess in the first place, ( a big round of applause for Rep. Barney Frank). Share this post Link to post Share on other sites
GetSmart 0 Report post Posted November 12, 2008 hey, hey (in defense of Barney Franks ), adjustable rates aren't so bad if you can structure the deal properly. lenders are now in the business to protect their assets which means keeping their loans performing or full pay off. with these adjustable rate mortgages you have to be more creative and request to speak with their lender to see if they will re-arrange the loan to a rate the owner/you the investor can work with. if you think people are not making money on these bad loans you are in the dark ages and need to step into the new day of investing. of course there a certain qualifications, but if you get it down packed you will help more homeowners and start a new trend of pulling through the recession. the more foreclosures there are in your area, the lower the home values will fall, but if you can perserve your market then you are helping more homeowners and their neighbors. just food for the thought , wanted to mix things up a little Share this post Link to post Share on other sites
MichaelC 160 Report post Posted November 12, 2008 Just what is this guy smokin', and why is he so happy? Share this post Link to post Share on other sites
<Steve> 82 Report post Posted December 4, 2008 With the market being what it is here, most every homeowner is open to every possibility. So even straight rentals are being considered and accepted. Definitely easier to find a tenant than a t/b these days. I mean, if you think that the house you're moving into will be worth 12% less in a year, why lock in a price today via a Rent To Own? So I'm pushing the rental angle and it's filling a need. I charge half a month's rent for my troubles, but I don't show any of the properties. I tell the homeowner I'll do the market analysis, the marketing, take the calls, etc. But they need to show the property or have someone else who can. So far, not a one has squawked at this arrangement.MC, with these straight rental deals you collect your fee and you are out of the deal. Is it possible to stay in the deal, similar to a SLO, if you can get a positive monthly cash flow, and keep all of the deposit? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted December 4, 2008 Although I haven't taken that route, I don't see why not. I guess we can at it as another type of property management. I think the sticky part would be making the numbers work so there is some cash flow each month to make it worth your trouble, and being able to convince the homeowner of the benefits of this approach. Each deal is different, of course, but staying in the middle of a deal for one or two hundreds bucks a month doesn't see worth it to me. Share this post Link to post Share on other sites