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belliott71

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About belliott71

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  • Birthday 11/22/1971

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    Wilmington, NC
  1. Is it possible to approach an owner (fsbo) for a CA that already has a tenant in place? Or do you have to go the consulting route. Thank you, Brad
  2. Has anyone here ever had any success with VA loans and CA's or should they be avoided? I know they are pretty strict and I try to avoid emailing people if I find out they have a VA loan. If anyone has had any luck with doing a CA with owners that have a VA loan I would like to hear from you. Thanks, Brad
  3. Michael, The homeowner never took a cut in price. I told them I would net them 236,000. They knew everything up front that rent credits plus option price were going to be tacked on to the price. I never left the sales price open on the option. I am the one that took a hit because I lowered my option fee from 8000 to 6000. Here is what it looked like on paper. The owners knew they were going to net 236000 so our option looked like this. The rent they wanted was between 1550 and 1700. Contract between seller and myself Option price was written up 259500 Rent credits TBD Option money $100 I advertised this house at 259500 at $1650 per month rent rent credits originally 50% (I was prepared to go up to 75% because it would have netted 236650) option money $8000 This original deal with 50% rent credits would have netted the owners 241600 which would have been a bonus for the seller. They did a crappy job on the interior paint job, so if the tenant/buyers balked I was prepared to up the rent credits to 75% if they wanted to fix. Like I said before I got a lot of response but no takers. Well, actually I had one guy give me 500 earnest money to hold but later changed his mind. After a week I lowered the price on the house and lowered the starting rent credits to 25% with a maximum of 50% (instead of 75%) This would have still netted the owners 236000 like I had originally told them. The third week I changed it to 244900 $6000 option money and no rent credits. The buyer I have now asked for rent credits so I gave him $300 per month and the seller is netting $235300. The sellers are happy because they dont have to put it on the market and let it set for 3 months with a mortgage of $1500. Now my deal nets them close to what I had told them ($700 difference) but it is different than what the option says. Like I said, they knew the net price and they knew I was going to add rent credits and option fee on top of what they needed to net. We just need to meet before the assignment and change the figures on the option to match the selling price that I agreed with the buyer. The sellers are cool with changing the numbers around on the option. I guess I could put a range on the option price minimum 244900 to maximum 259500 and put 0 to 100% rent credit. This way I wont have to bother because it is in the range. Is this legal and would this work? Thanks for the replies. Brad
  4. Michael, The seller and I came to an agreement that they needed $236000 from sale. So I bumped the price on the option to 259500 to allow for option money and up to 75% rent credits. On the option contract I put TBD for the rent credit. When I advertised the house at 259500, I just had a bunch of tire kickers. I then kept lowering the price which in turn lowered the maximum rent credits I could allow. So in the end I had to lower the house to 244900 with 6000 option money and 300 a month rent credit. This would net my sellers close to 236000, but the sales price figures I have with the buyer doesn't match my option that I have with the sellers. I realize this is the same way to get to the net price of 236000, but for some reason here in Tennessee 244900 with 300 rent credit looked more attractive than 259500 with 75% rent credit. So the sellers and I are going to meet in advanced to clean up the option contract. If there is a different way to this I would like to know. Thanks, Brad E
  5. Monday I am completing my first CA. I just need a little advice. The sellers had a home that they needed to net 236,000. They were motivated so I pitched the SLO for 3 years. They didnt want 3 years so I pitched the CA and they took that deal. Now on the original option agreement (with seller and myself) I inflated the price to include 75% rent credits and 7000 option money. So the option price that the sellers and myself came out to be 259,500 with rent credits filled in as TBD and I gave him some option money($100). 18 days later I made a deal with the buyer for 6000 option money and 300 dollars per month rent credit. The price that we agreed on was 244900 minus rent credit and option money. Now here is my question. Do I need to get with the sellers before we sign the assignment and change the figures on our (seller and myself) option agreement so that it matches the deal that I have agreed with the buyer? Hopefully Michael, Adam or any other CA guru will chime in on this one. Thanks for the info. Brad
  6. Thanks everyone for all the excellent information. Adam, this one has the potential to work out as a SLO. Here is some info The owner has a 2 yr old 3/2.5 townhome and is moving out of town. He has a 1st and 2nd (one or both are adjustable) Asking 137000 comps in area are around 145000. He is willing to do a 2yr L/O, I could possibly talk him into 3. I could probably get the option price at 137000 because he didn't mention future price. He wants 1000 per month rent The easy way for me since I'm new would be a CA, but it has potential to be a SLO if I am up to it. Thanks again for all the help. Brad E
  7. I spoke with another seller who has a townhouse and he is moving out of state. He is willing to do a long term lease option and is selling below the comps in the area. It seems like every seller I have talked to is "has a real estate friend", but is not listed. It seems the agent friend has advised them on how to structure the deal. This seller I talked to wants $3000 option money and is selling for 137000 (other homes are selling for around 145000). I have no problem telling them I plan on finding another tenant, but I need some advice on how to counter the sellers option money. What advice does anyone have on coming back to the seller as to how to get in without putting any option money down. Thanks for all the input, Brad E
  8. If this seller is an investor she is probably a newbie too. I first spoke with her on the phone and she gave me the details about the 10,000, the rent credits, and how I would forfeit them both if I did not buy. She told me about the price being determined 60 days prior to the end of the lease. I then emailed her saying that the deal was not feasible unless I locked in an option price. Here is her emailed response. "Actually we are not offering an option, we are offering a rent-to-own, that is why the price isn't set up front to protect us in the event you decided not to purchase. I understand where you're coming from though and if you are interested in a rent-to-own, let me know." I responded that it looked like an option to me because if I choose not to buy I loose the 10 grand. Her response "Our house is no longer available. Thank you for your interest." Oh well I gained good experience by making another phone call
  9. That is one of the things I plan on telling her is that I want to lock in a price because otherwise she just has herself a lease for 2 years with a 10,000 non-refundable deposit. She is willing to do a payment plan so what I could do is see if she would take 420 dollars for 24 months. She is offering 200 dollars rent credit so that would work to my advantage if I could get someone in there without offering them rent credit. Her rent is $1450 per month so if I charge 1850 for rent, then the tenant is basically paying my option money. Now if I can get her to use my contracts and lock in a price with the above scenario, I think it could work. Brad
  10. Hey everyone, Just talked with a seller who will lease option her house for 2 years and I feel it is a good opportunity for a SLO. However, she wants 10000 option money but is willing to have it paid over a period of time. She is willing give $200 rent credit on rent that is $1450 per month. On a lease without option she wanted 1250 rent. She also said the option price would be determined at the end of the term (60 days prior) and it would be market rate. I thought on an option to purchase there needed to be an option price filled in. She has her own contracts, but I need to look at them and tell her that I would prefer to use mine. It is in a hot area in one of the fastest growing counties in the nation. The main sticking point for me is the option price. Anyone have suggestions as to how you would approach this deal. Thanks Brad
  11. Michael, Thanks for your help. I think I stumbled upon a post where you helped someone else out with the same questions I had, and now it is clear as to which forms to use. Thanks Brad E
  12. Hello everyone, I've been reading this forum for a while and I've bought the manual. I just had a couple of questions about the option forms to use. Do I use the hybrid lease and the standard option to purchase that is right after the regular lease for tenants? How long should the option between myself and the seller be? And lastly what about the option to purchase between the tenant I find and the seller (when is that one drawn up and should the length match the length of lease)? Thanks for all the good info on this board. Brad E.
  13. Brian, I just wanted to add that verizon does not have a sim card, so the cingular card will not work on a verizon phone. T-mobile and cingular are the two major companies that have sim cards in the US. When you see a phone that is advertised as "unlocked" it will be used mainly for these two companies. There are other companies in other countries that use Sim cards also. Brad
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