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<Steve>

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Hey Mike-

 

I offer monthly credits. I do not have the tenant/buyer be responsible for repairs due to landlord/tenant law, but I will have the tenant/buyer be responsible for maintenance (mowing the lawn, furnace filters, plunging the toilet). Appliances, window treatments and special fixtures are not landlord provided, so I don’t repair them typically. Curious what the clause is in the landlord/tenant law you found?

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Steve, I'll find that clause and post it later. But basically it says that you can require the tenant to be responsible for some of the repairs or maintenance but not in exchange for the right to rent the house. They have to be getting something other than just the right to lease. (like maybe an option?) I'm not sure about that. I asked an attorney and he was a little vague on it also.

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Steve, There's a clause in the tenant/landlord statutes that states as follows: "Notwithstanding the provisions of this subsection, the landlord and tenant are not prohibited from making a subsequent written contract wherein the tenant agrees to perform specified work on the premises, provided that said contract is supported by adequate consideration other than the letting of the premises and is not made with the purpose or effect of evading the landlord's obligations under this Article."

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Looked it up in the NCRE Manual, lol, and it states:

 

"As a separate agreement a tenant can contractually agree to make repairs to the premises"

The tenant must be paid for making the repairs, and the tenant is obligated to make repairs as agreed.

 

"It is valid and is legitimate...allows a very limited and rarely used "fix-up" exception.

 

It sounds more like rehab type work. The payment as consideration, can be a rent discount (credit) or maybe it could be consideration for the option. But cannot be made to evade the landlord's obligations for major repairs.

 

Now I'm not a lawyer either so it is always best to consider obtaining the legal assistance of a licensed attorney.

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Perfect legalese. Written so that it can be interpreted in a variety of ways, thus assuring lawyers thousands in fees for generations to come.

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So here is the latest:

 

Let me first say much of this is brought on by me getting licensed, so don’t be discouraged as a Naked Investor.

 

After going back and forth with the RE commission attorney. As a broker now, I have to play ball with the powers that be and I will need to comply or…I may not live to fight another day. And I will leave it at that for now.

 

The good news I can still do Lease Purchase deals as a broker. I will not be doing lease options, but doing a lease purchase. For me the new definition of a lease-purchase will be a lease agreement with a sale contract attached to it. In these agreements, the property being leased by the tenant/buyer will have to be purchased by the end of the lease agreement or they will be in breach. Unlike the lease-option, the sale of the property is scheduled to occur by a written sales contract, instead of being available as an option to purchase it if the tenant/buyer so chooses. So the tenant/buyer is locked into buying; however, there is financing, appraisal and other possible contingencies involved in the sale contract for the tenant/buyer to not complete the purchase.

 

Basically the paper work will be a little different and my position in the deal different, but my methodology, marketing and “The Street Smarts” the same.

 

I am currently researching and working on updating my business model. I will have to close down my investment company for now. The simple fix is to come to an agreement with the commission so I can stay in the game. It comes down to picking your battles. If there is one thing better than winning the war, and that’s not having to fight it to begin with. I’m trying to find a happy medium and put this ordeal behind me.

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As a licensed Agent you are, unfortunately, under the jurisdiction of the RE Commission. So yeah, some restrictions are to be expected. But I have always argued that a lease purchase doesn't truly exist. I mean, how can you force someone to follow through and buy your house, regardless of what we signed a year earlier? I lost my income, I got a divorce, I was hospitalized, etc. Life situations change. What recourse does a homeowner have? Sure, you can sue for breach, but that isn't going to enable me to obtain financing and purchase a house I can no longer afford. In the meantime, the seller has thousands in legal bills and an unenforceable judgment. The whole exercise is silly, Steve, but necessary in the eyes of the powers-that-be on the commission. Good luck with it all. I know you'll work through this BS and come out on the other side smelling like a rose. . .or one of those famous TarHeel barbecues I hear so much about. :D

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You're absolutely right MC and thank you for the support over the years. I've got 18 months and I can license my investment firm and re-open it. I won't hold my breath, but by then maybe the country will shift back into a more pro-business mode and I will be in a better position.

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. . .I won't hold my breath, but by then maybe the country will shift back into a more pro-business mode and I will be in a better position.

Heh. Hillary has already said she plans on raising taxes and Wall Street/Corporate America are the problem. <_<

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The media will destroy him, BIGHOP. Right now he isn't being taken seriously by the press. But should he do well in the debates and his poll numbers get serious, we can expect the usual BS to be put out. Headlines about his personal life, stories from disgruntled employees, etc. Anything that can be put in the headlines to make the low information crowd take note.

Hillary, on the other hand, will need to have a smoking gun in her hand and a warm body at her feet before the press will even begin to question her.

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