JacquelineBurch 0 Report post Posted February 24, 2011 Hello All - I am a newbie...and when I say newbie, I mean I JUST ordered the Naked Investor's course and started researching investing using cooperative and sandwich lease options. Well, I found a seller willing to sell his home on a lease option term. Now, what do I do?!! I didn't think I would find a seller this soon. Also, how do you calculate and analyze if a home is worth your time to find a tenant-buyer? Any insight would be appreciated. I need to get back to him with my lease option agreement by the end of the week, so I am hoping the forum can help! ~Jacqueline Share this post Link to post Share on other sites
MichaelC 160 Report post Posted February 24, 2011 Hello, Jacqueline, and welcome to The Naked Investor! Let's see if we can give you a push start. . . I am a newbie...and when I say newbie, I mean I JUST ordered the Naked Investor's course and started researching investing using cooperative and sandwich lease options. Well, I found a seller willing to sell his home on a lease option term. Now, what do I do?!!Hehe. Be careful what you wish for. Do you have any details to share about the property and the homeowner? What's his motivation? What about the numbers? Let's start with that.Determining value isn't difficult. At some point you are going to need to establish some friendships/relationships with some folks in the industry: an Agent, a mortgage broker, a title company rep, etc. They can all assist you with running comps. In the meantime, you'll need to do your homework. Start with some of the free online sites, the most popular being Zillow. But don't take their word for it. You'll need to sift through the data and find the best comps for your subject property to determine value. I need to get back to him with my lease option agreement by the end of the week, so I am hoping the forum can help!What's the rush? His house isn't selling this weekend. And do not put your contracts in his hands if he tells you he wants to "review" them. He may sense you're a n00b and just want a good set of agreements. Those contracts don't leave your hands. Share this post Link to post Share on other sites
JacquelineBurch 0 Report post Posted February 24, 2011 The seller is in his early 30s. He is an attorney. The home is in a nice area. He did not disclose what he is thinking as far as a purchase price to me yet. He is taking a day to research/think about it, but he said it most likely will be for the balance of the note...sounds like potential short sale situation to me. He is motivated to sell, because it isn't renting and he just wants to move on. Doesn't like dealing with tenants...bla, bla, bla. He wants to review the agreement, because he is curious about this type of transaction...he hadn't heard of it before. No surprise. I think a lot will depend upon his asking price, of course. I do have a Realtor friend that is able to run comps for me. I am studying to get my license, so I can do my own leg work as I get going. Just curious what steps to take after I find a buyer with the right attitude and sale price...do I get have them sign an Option Agreement with me. Then, when I find the tenant-buyer what documents/forms do I use to assign the Option to him/her? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted February 25, 2011 First, ask him to get back to you with some vital info: what is the balance on his mortgage(s), what is his PITI, and what is his asking price? In the meantime, run the comps yourself and then compare your numbers with his to see if you two are even close. If there is a big discrepancy between his view of the value and the reality of the market, there's no need to go any further. Also, if he is upside down, a lease purchase isn't going to fit his needs.Regarding the paperwork, don't stress out over that now. You are far removed from worrying about what the t/b needs to sign. Not trying to be smug, Jackie. But I see new investors often trying to know everything from day one. It doesn't work that way. Take it a step at a time and you'll find this much easier to grasp. Share this post Link to post Share on other sites
JacquelineBurch 0 Report post Posted February 25, 2011 Yep, that would be me! I want to know everything....YESTERDAY Thanks for the insight. Hopefully, you will see me back on here saying that the seller's price is right in line with the comps I looked up! Share this post Link to post Share on other sites
MichaelC 160 Report post Posted February 25, 2011 One more thing. . .don't be surprised when a homeowner's idea of their property's value is way over market. That's often the case. All you can do when that happens is present the facts and then they have a decision to make. Let them fight the market themselves. Then, after two months of trying they come to realize you were right all along and you receive an email or a call asking for your help. Share this post Link to post Share on other sites
sarge006 1 Report post Posted November 30, 2012 Someone once said " Jump off the cliff and build your wings on the way down"!! Many of us, including me (because I'm a newbie myself and haven't done a deal yet), Have a tendency to make sure our wings are PERFECT before we jump-- but guess what, they never will be perfect----JUMP!!! 1 Share this post Link to post Share on other sites
DanielSun 7 Report post Posted November 30, 2012 dude this thread was from Febuary, Jacqueline probably never jumped. Share this post Link to post Share on other sites
