Jump to content
The forums have been archived and are now read only. Years of great info saved for your reading pleasure. Thank you! Visit us on Facebook: https://www.facebook.com/NakedInvestor/ ×
The Naked Investor Forums
JvM

Lease Option Consulting & Dodd-Frank...

Recommended Posts

I'm thinking about starting to target fsbo sellers for L.O. consulting.

 

Is anyone doing that currently & have you added any disclaimers or disclosures about Dodd-Frank with the sellers you consult (even though the new law doesn't technically apply till if/when the buyer buys, are you going into it with them?)

 

Just wondering what the liability is as a consultant with this new untested law.

 

Also, do you offer any kind of guarantee for sellers? It seems like you'd need something like that, but I don't see how to guarantee it if they are the ones who have to do the work.

 

Any other marketing ideas are welcome too.

 

Thanks,

 

JvM

Share this post


Link to post
Share on other sites

Hi, Jay. For me, consultations are an afterthought, offered only when the homeowner has minimal motivation but still some interest in the concept of a lease purchase. They need some missing pieces and a solid agreement to protect themselves in the deal. Since Dodd-Frank kicked in I have not done a consultation and so haven't given any thought to how this new law might affect this. Off the top of my head I am thinking the Consultation Agreement I use will suffice. I'm sure I'll look into it further when necessary.

As for a guarantee, no, I don't offer one. I offer to share my knowledge, my agreement if they want to use it, and make myself available for their emails and calls.

  • Like 1

Share this post


Link to post
Share on other sites

I'll add...

 

Dodd Frank "Investor to Investor" does not apply, only to OO. So you can be creative with a landlord, just dont live in it.

 

Dodd Frank has an exception that a Homeowner can seller finance their residence 1 time every 12 months. See http://www.realtor.org/topics/seller-financing

 

I have Dodd Frank resources here... http://bundlr.com/b/dodd-frank-safe-act-respa-tila

 

Lastly, have every Tenant Buyer go through a RMLO, which safeguards the seller if the "ATR" or Ability to Repay rule is challenged.

 

Dodd Frank and the SAFE Act has tightened credit, especially the 43% Debt to Earnings. This is your opportunity to assist home sellers to sell on terms and not pay commissions or closing costs with an agent.

Share this post


Link to post
Share on other sites

Hello, Brian! Good to see you here in the low-rent district. B)

Thanks for sharing the info. Dodd-Frank has many folks scared and confused.

Share this post


Link to post
Share on other sites

×
×
  • Create New...