Newbie who has decided to give it a go...

[wademattingly 0]

Well, I have fully immersed myself into the Sub2/Lease option investing. I've been and investor for 3 years flipping and doing rentals. Currently my credit is low and I don't really have any financing available.

 

It appears this is my only option. I have begun by both trying to get rent to own people from craigslist. I have also been submitting "I buy houses" thing on there as well. Well, of course I have gotten a good amount of interest from rent to owners. Only one person wanting to sale. Too far away.

 

Now the challenge is to find people willing to sub2 for these houses.

 

I guess my question is should I just call all for sale by owners I can find? Send an email to all people renting in that range on Craigslist?

 

It's unfortunate b/c if I had a little money there are some good foreclosures that would be very beneficial. But Of course at that point it is too late in the game to do this. Should I just ramp up bandit signs in areas of interest for sellers? All of the above? I'm curious how successful submitting to renters is?

[MichaelC 160]

Hello, Wade, and welcome to The Naked Investor!

Where are you located and how is the local market? If it's like much of the country there shouldn't be any problem finding willing homeowners. Are you saying you want to buy Sub To and then lease option as your exit?

[wademattingly 0]

Hello, Wade, and welcome to The Naked Investor!

Where are you located and how is the local market? If it's like much of the country there shouldn't be any problem finding willing homeowners. Are you saying you want to buy Sub To and then lease option as your exit?

 

You know, I guess I really need to figure that out. I've been approaching people about lease with option to purchase then go out and find someone who is willing to lease option with purchase at a higher amount.

 

My problem is I'm a conventional investor switching to a new style do to limited funds. It seems the best deals are found through motivated sellers but I also understand that this can be done anywhere with anyone. Right now I've attracted several potential buyers. All in the lower income limit range. Hard to fnd sellers in that area who don't need there money out now.

 

What I'm trying to do now is isolate more of those lower range sellers to do options with. Hoping to connect them with the buyers I am lining up. I'm just having difficulty finding those sellers.

 

I guess I'm kinda putting the cart before the horse here b/c I don't have everything lined up just yet.

 

I'm trying to tackle the marketing segment now but figured I'd just start spraying around to see if this is even feasible.

 

Guess I'm kinda lost and thinking I can't do this...

[MichaelC 160]

Wade, of course you can do this. I'm sensing the problem is one of focus, not ability. You don't seem to be sure of what approach you want to take. So it's pretty hard to make any progress. Simply things for yourself and focus on one approach.

In your original post you mentioned poor credit and little in the way of financing. Makes it somewhat risky to pursue a Sub To deal or even a sandwich lease. What happens if you're stuck with a payment and no way to make it? If your situation is this, I would think either Pure Options or CA's are your vehicle of choice.

[alexlocklear85 0]

Wade, of course you can do this. I'm sensing the problem is one of focus, not ability. You don't seem to be sure of what approach you want to take. So it's pretty hard to make any progress. Simply things for yourself and focus on one approach.

In your original post you mentioned poor credit and little in the way of financing. Makes it somewhat risky to pursue a Sub To deal or even a sandwich lease. What happens if you're stuck with a payment and no way to make it? If your situation is this, I would think either Pure Options or CA's are your vehicle of choice.

 

 

 

Like Michael mentioned, the only real "no risk/no money/no credit" investing in my opinion : pure options and co-operative assignments.

 

CA's so far have been the best strategy for myself!!

[wademattingly 0]

Wade, of course you can do this. I'm sensing the problem is one of focus, not ability. You don't seem to be sure of what approach you want to take. So it's pretty hard to make any progress. Simply things for yourself and focus on one approach.

In your original post you mentioned poor credit and little in the way of financing. Makes it somewhat risky to pursue a Sub To deal or even a sandwich lease. What happens if you're stuck with a payment and no way to make it? If your situation is this, I would think either Pure Options or CA's are your vehicle of choice.

 

 

 

Like Michael mentioned, the only real "no risk/no money/no credit" investing in my opinion : pure options and co-operative assignments.

 

CA's so far have been the best strategy for myself!!

 

 

Well before I made this last post I had a long post made that gave all my background(3 years in investing: 4 flips, 20 rentals) Using hard money. Working with a bank. Having my realtors license which put me on the front line for REO listings, etc. I screwed it up and didn't want to relist it. Too long. Anyhow, my credit isn't terrible 640 or so. And I do have some funds to carry payments if necessary. Just not a lot. Anyhow, I heard back from someone I've been working.

 

He has a duplex that rents approx $800 total. I would need to pay him $657 to take over. It needs some repair. I'm working on marketable value as is. It is next to a university so I'd think it is decent. It has been listed two years ago at $79k no sale and a year ago at $90k no sale. I have my license and can pull off MLS but not much in the way of comps for this sort of property. I was considering taking over payments and trying to sell "as-is" for a small profit. He will take 60k as of May and 65k before due to prepay penalties. Curious what you all think. I can provide more info if necessay. Told him I'd need 45-60 days to market property. One tenant has to be evicted. Other side empty.

[Jason (AL) 1]

In your original post you mentioned poor credit and little in the way of financing. Makes it somewhat risky to pursue a Sub To deal or even a sandwich lease. What happens if you're stuck with a payment and no way to make it? If your situation is this, I would think either Pure Options or CA's are your vehicle of choice.

 

I was thinking the same thing.

In fact, I've quit doing sub2s altogether, seeing that I enjoy

my sleep at night just a tad too much. I'm no longer going to

worry about what happens should I not find a buyer to carry the payments.

If I'm doing anything remotely close to a sub2, it's a somewhat

similar variation (we call 'em sub3s in the underground. that's a different

topic as well).

Same benefits, no liability.

 

Given all this, CAs are the way to go.

A few singles, with an occasional double or triple here or there, without

the inherent risk and financial burden found in sub2s, is my personal game plan.

Not trying to steer you away from the sub2/lease option route, but if you're strapped for cash and/or credit like you stated,

then I'd do what best fits your current situation.

 

Good luck!

[wademattingly 0]

In your original post you mentioned poor credit and little in the way of financing. Makes it somewhat risky to pursue a Sub To deal or even a sandwich lease. What happens if you're stuck with a payment and no way to make it? If your situation is this, I would think either Pure Options or CA's are your vehicle of choice.

 

I was thinking the same thing.

In fact, I've quit doing sub2s altogether, seeing that I enjoy

my sleep at night just a tad too much. I'm no longer going to

worry about what happens should I not find a buyer to carry the payments.

If I'm doing anything remotely close to a sub2, it's a somewhat

similar variation (we call 'em sub3s in the underground. that's a different

topic as well).

Same benefits, no liability.

 

Given all this, CAs are the way to go.

A few singles, with an occasional double or triple here or there, without

the inherent risk and financial burden found in sub2s, is my personal game plan.

Not trying to steer you away from the sub2/lease option route, but if you're strapped for cash and/or credit like you stated,

then I'd do what best fits your current situation.

 

Good luck!

 

 

I hope I'm not "stealing" from the forum but how exactly does the CA work? Is it basically setting up a lease option then assigning it. With the twist that you basically do a NEO whereby if you don't find someone, you don't exercise the right?

 

I guess that is where I need the clarification.

[Jonathan RexfordFL 8]

Start everything with an option....sub2 or even sub3...lol. You can flip it.

 

Signs are working great.

Direct Mail is better

Cold call........well I will let the other people chime in.

[Jason (AL) 1]

I hope I'm not "stealing" from the forum but how exactly does the CA work? Is it basically setting up a lease option then assigning it. With the twist that you basically do a NEO whereby if you don't find someone, you don't exercise the right?

Pretty much.

Sign up a property as you would a sandwich lease option, then assign the deal

to a tenant buyer. You keep the option consideration as profit for your "troubles".

 

You can also just do a search for them here on the boards.

In the meantime, here are a couple of (archaic) posts to give you an idea:

 

Click HERE

 

Click HERE

 

And if you're not quite sure on how to do a search for "cooperative assignments" here on

the boards, I've already done it for ya.

 

Just click on this link.

14 pages, spread out over 6 years of nothing but cooperative assignments.

Now, turn on a pot of coffee, put the kids to bed (if you have any), turn the tv off, and enjoy.

[alexlocklear85 0]

Great information..

 

Jonathan, what do your signs say to attract sellers? Are they specifically for CA's or just motivated sellers in general?

[Jonathan RexfordFL 8]

CA is just a tool if needed. But handwritten signs say:

 

We Buy

Houses

772-321-2290

 

I don't get any fancier than that.

[kah5683 0]

Rex:

 

Heard in past that putting out HANDWRITTEN signs are good when selling (looking for T/;), but to get pre-printed signs when looking for sellers - more professional.

 

Have you tried pre-printed signs?

 

How are your responses with the handwritten?

 

Do you have problems with the bandit police or theft?

 

Do you put up and leave up, or just do over the weekends - putting up and taking down - limiting the loss?

 

TIA for your response!

[Jonathan RexfordFL 8]

Handwritten signs always pull more than printed for both buying and selling.

 

Signs get taken down I just put them up again.

 

Sometimes I will do weekend runs. It really depends on how my pipeline of leads are coming in.