How's Business

[Jonathan RexfordFL 8]

Steve,

 

I can see how to make a few bucks with it. My only issue is I am probably thinking too much.

 

Since I collect 1st and Security. The payment would come from the rent for sure. State of FL makes the landlord to tell the tenant where they keep the security.

 

Now the issue is the Landlord. I take my lease and write it up and state that payments will start some date in the future. Now the assignment issue comes into play.

 

My lease doesn't have any assignment thing in there. I lost all of MC's documents including his FAMOUS manual during the Hurricanes of 04. But I am sure I can make it up.

 

Lets keep the juices flowing. I am going to Kennedy Space Center all day Saturday. Just to get away from the Phones.

[<Steve> 82]

Since I collect 1st and Security. The payment would come from the rent for sure. State of FL makes the landlord to tell the tenant where they keep the security.

I was thinking doing away with the security deposit and replacing it with the assignment fee.

 

Now the issue is the Landlord. I take my lease and write it up and state that payments will start some date in the future. Now the assignment issue comes into play.

I would assume you tell the landlord the same thing you would tell a seller in a CA. The assignment fee is how I get paid and there is no security deposit. And if the landlord has a problem with that split the assignment fee.

 

My lease doesn't have any assignment thing in there. I lost all of MC's documents including his FAMOUS manual during the Hurricanes of 04. But I am sure I can make it up.

MC . . . Jonathan needs the naked bible.

 

Lets keep the juices flowing. I am going to Kennedy Space Center all day Saturday. Just to get away from the Phones.

I hear ya. I got a call yesturday all the way from Alaska yesturday. sheeesh

[Jonathan RexfordFL 8]

Found my clause.

 

16. SUBLETTING: Lessor hereby grants to Lessee the full and exclusive right to sublease Property.

17. HEIRS, ASSIGNS AND SUCCESSORS: The provisions, covenants and conditions of this Lease shall bind and inure to the benefit of the heirs, legal representatives, successors and assigns for each of the parties hereto. Lessee shall have the right to assign, transfer or encumber this Lease or any part thereof, without written notice to Lessor.

 

I will polish it up later. Leaving for Cape Canaveral.

[MichaelC 160]

'Renters' are used to paying a security deposit with it being refunded at the end of the lease term. An assignment fee is not refunded, so I can see "deer eyes" from a potential renter.

Steve, your thinking is wrong here. That assignment fee is not coming out of the tenants pocket. The homeowner is paying you. For example:

Let's say I have a 2/1 condo on the market right now for $1,000/mo. Homeowner wants first, last, and damage deposit. Preferably the damage deposit will equal one month's rent, but with the market the way it is, one half of one month's rent will fly. In addition, the condo association requires all tenants apply through them, and must pay a $100 application fee.

So, the tenant must come up with a total of $2,600 to move in, (first and last month's rent, one half of one month's rent as security deposit, plus a $100 application fee). Out of that the homeowner pays me $500 as agreed to. This fee comes out of that $2,500 the homeowner received and in no way affects the tenant. He has paid his first and last month's rents, plus his security deposit. My payment from the homeowner has no bearing on that whatsoever.

I refer you back to post number 20 in this thread.

[MichaelC 160]

. . .Leaving for Cape Canaveral.

I had no idea you were an astronaut!

[<Steve> 82]

That assignment fee is not coming out of the tenants pocket. The homeowner is paying you.

MC, Wouldn't this be seen as an agent for the homeowner and a license be required? Or is the payment after the fact.

 

Jonathan, paragraph 16. & 17. are powerful and saved my butt with the re commission.

[MichaelC 160]

That assignment fee is not coming out of the tenants pocket. The homeowner is paying you.

Wouldn't this be seen as agent for the homeowner and a license be required?

That argument could possibly be made. But, I believe the Assignment Agreement I use which reads as I mentioned previously, puts me on the right side of the line. Again, I realize someone looking for an issue could try and create one. But who's watching these things? The Real Estate Police? It's just a straightforward lease agreement and I'm comfortable with this approach. Your mileage may vary.

Not to muddy the waters here, but I have also approached some of these deals as a Consultant, and used my Consultation Agreement, tweaked for use with a straight lease instead of a Lease Purchase.

The bottom line for me, Steve, is when I look at the big picture, I am not taking advantage of anyone, no fraud is being committed, no misrepresentations have been made, and the deal is a simple lease agreement. Not much can go wrong and so I'm flying under the radar.

[<Steve> 82]

The bottom line for me, Steve, is when I look at the big picture, I am not taking advantage of anyone, no fraud is being committed, no misrepresentations have been made, and the deal is a simple lease agreement. Not much can go wrong and so I'm flying under the radar.

Yes, that is true, and that is the bottom line.

 

I didn't think about the Consultant Agreement!!! I think I would feel more comfortable using it if getting paid by the homeowner.

 

Steve, your thinking is wrong...

My wife tells me this all the time MC

[<Steve> 82]

I will polish it up later. Leaving for Cape Canaveral.

What? Is the shuttle coming back today?

[Jonathan RexfordFL 8]

It doesn't come back for another week. We go up there several times per year. It sure does beat Disney World.

[megabucks41 0]

I totally get it, (Owner is going to pay me to find him a rent) but I must say or better ask, Why would an owner pay for something that he can do himself? And as a renter what am I getting in return for doing business with you? And what kind of a rent is the owner asking market o below market.

 

I can see if I am a renter and someone finds me a home to rent that is lower then market values I wouldn't mind paying a one time fee.

 

If the property is in a middle area where most people are owners and someone finds me a deal whereby the average person would not be able to find this deal unless he went with an agent I could see me paying more to get in.

 

Ex. In Miami $1,500 rent then there is first and last plus one security

if you tell owner you can put a quality tenant in their unit but instead of 2 months rent he will get 1month plus security. you keep what ever part of the second, I could see this helping the owner.

Renter still has to pay 1st 2nd and security

 

Ex. In Miami Lakes $25001st & 2nd plus security 3Bd/2Ba

But they come to you, You put the in for $23001st $0 2nd plus security. Owner pays you a consultation fee of say $700 for Marketing and qualifing Tenant. Then I can see how renter wins and you win and home owner fills propeties fast with quality tenants But why would he pay for something that he could do him self after all times are hard.

[MichaelC 160]

I totally get it, (Owner is going to pay me to find him a rent) but I must say or better ask, Why would an owner pay for something that he can do himself?

Most of the business I get with this approach is not from experienced landlords. It's from Joe Homeowner, who maybe buys and sells three houses in a lifetime. Now he finds hinself in a situation he neither understands nor likes: a house he can't sell and a mortgage payment he can't make. I come along, offer my know how with lease purchasing, and suggest that we also consider a straight rental so as to cover all bases. All he wants is debt relief, and that's what I'm offering to take care of.

And as a renter what am I getting in return for doing business with you?

That's easy. The house or condo you want to move in to. And at no cost to you, the tenant. Do you think the prospective tenant cares that his first call and conversation is with me and not the owner? That hasn't surfaced, not once.

[megabucks41 0]

I totally get it, (Owner is going to pay me to find him a rent) but I must say or better ask, Why would an owner pay for something that he can do himself?

Most of the business I get with this approach is not from experienced landlords. It's from Joe Homeowner, who maybe buys and sells three houses in a lifetime. Now he finds hinself in a situation he neither understands nor likes: a house he can't sell and a mortgage payment he can't make. I come along, offer my know how with lease purchasing, and suggest that we also consider a straight rental so as to cover all bases. All he wants is debt relief, and that's what I'm offering to take care of.

And as a renter what am I getting in return for doing business with you?

That's easy. The house or condo you want to move in to. And at no cost to you, the tenant. Do you think the prospective tenant cares that his first call and conversation is with me and not the owner? That hasn't surfaced, not once.

 

once again the perfect answer, I'm going to try this also because it's kinda of ruff out here with these prices and market conditions.

[jesmar424 0]

my head hurts

 

Just when I was getting the hang of talking with people re: CA's and l/o's there's more...

[MichaelC 160]

Hehe. Really, it isn't difficult. Near the end of my conversation regarding CA's, I will casually mention that offering a straight rental in this current real estate market can only help us get the deal done quicker. The homeowner usually replies with something like, "Good idea. I need all the help I can get".

That's it. One more possibility on the table.