Lease Purchasing Latest Topics

SANDWICH LEASE CLOSING ATTORNEY???

Thu, 01 Feb 2018 16:25:37 +0000

Good afternoon.

I have 2 questions that I desperately need help with:

1. Are there ANY closing attorneys in NC that will close a sandwich lease??? I have searched high and low; no luck at all!

2. Is it necessary to disclose to the seller exactly how much profit you are making from the sell of their home? Or just that you will be making a profit?

3. Is there a way around getting a "note" from the seller that he will give me the difference of what he's selling for and what I secured a buyer for? (example: seller wants $50,000. I found a buyer paying $65,000. I get a promissory note that the seller will give me $15,000 after the deal is closed)

Help!

New Naked Investor ebook

Thu, 29 Jun 2017 17:26:38 +0000

Hi Michael,

Any idea when the new ebook will be available?

Thanks!

Florida laws with lease option

Thu, 24 Aug 2017 01:11:58 +0000

Really want to do this right. Does anyone know the actual facts behind whether if it's legal to do Lease Option without the need for a license here in Florida?

I'm basically at a point where I can't even afford anything and actually find it important to get things up a notch by at least making one deal to help my family. Get us out of the situation we're in at the moment. But I don't want to be put in a deeper rabbit hole by going for lease options without proper due diligence, since it looks like it has a much larger market than wholesaling [because it can touch homes that don't necessarily have to be distressed] and due to the fact that there's more wholesalers than sellers here in Florida.

I definitely can't afford an attorney or a mentor to make the ride easier. Pretty much on my last leg. So I'm in a pickle until I make this one deal to actually afford the attorney for the next issue lol. But if there's any helpful answers for me before I jump the gun, please let me know...

Closing wholesale assignments

Sat, 12 Aug 2017 18:51:31 +0000

I do wholesale assignments virtually and am moving into new markets. I've been using a service, an escrow company owned by an attorney, to handle the paperwork. But they're a little pricey and their work can be a bit sloppy. So here's my question: Since I'm just doing assignments (have LO agreements with seller, finding tenant buyer and assignment my seller agreement to the tenant buyer and I'm out), does the "closing" have to be done by a title company or attorney? Could an escrow company do it? Even better, could a licensed real estate agent do it?

Still popping?

Thu, 27 Jul 2017 14:41:53 +0000

Hello! I'm wondering if LO in today's market still a thriving business to start? I'm new to REI and located in Central Florida.

Option fee and HUD1

Fri, 07 Apr 2017 14:22:47 +0000

Hi all,

First post!

I have a question on filling out the hud1 (when the option is exercised).

Where does the option/assignment fee (paid to me) go on the hud1? Since the full purchase price is on the HUD1 and the option fee is applied to the purchase price, it looks as though the seller will be paying income taxes on the option fee which he never received!

Anyone care to share a HUD1?

Thanks

First Subject To Deal

Tue, 21 Feb 2017 04:47:32 +0000

Can someoneplease point me in the right direction? I have found a person willing to let their house go on a Subject to deal but I want to keep the home for me. I live in Virginia and I have never done this type of transaction. I have no idea what paperwork I need or how to get it done there is so much info on this site, I just don't even know where to start? Help

Due date coming

Tue, 22 Mar 2016 06:29:06 +0000

I have a lease option that iv had now for almost 60 days that first payment is due on 4/1/16. Iv gotten lots of attention but still no real takers, I m stressing now with the payment due and not sure how to play this one out. Talked to seller today who is out of state and hes stating he can not extend me another month to get it filled and is expecting payment. I am looking for suggestions to keep this one going amd work for everyone?

Learning, Burning and stressing this one....

Desperate for advice. I 'bought' a house on a lease option agr

Sat, 24 Sep 2016 13:22:55 +0000

Needing any advice I can get. I got into my house on a lease-option to buy deal 6 yrs ago. Option price was originally $69.9k, which was 'zillow' value at the time. Ive paid the option price down to $60k. Today it 'zillows' at $96.6k. I've talked with the owner and he's got no prob with me marketing the house, says all he wants is his option balance. He says if I find a qualified buyer he'd be happy to talk with them to help explain the situation. I'm trying to sell myself, no agents. I figure I'd be happy to sell the place at $75k (minimum) as is. Seems like a bargain and I still might be able to make a buck. I haven't gotten details from the current home owner concerning how all of this would go. As I understand it this would be a 'double close.' So I guess my question in a nut shell is, how do I get paid? I'd like to educate myself as much as possible before going much further into this. If I find a qualified buyer financed by a bank, is the fact that this would be an unusual 'double close ' going to scare the bank away? ANY ADVICE GREATLY APPRECIATED.

Realtor in the way of a Great Deal

Mon, 03 Jun 2013 13:28:43 +0000

What do you do when a Realtor is in the way of a great deal.

The Strategy is a C/A but the homeowner has a Realtor trying to rent out the unit.

The homeowner doesn't want to get rid of the realtor.

But the homeowner is very interested in my C/A strategy.

What should I do?

Valuation of market rent & purch price of rural property?

Sat, 16 Jul 2016 02:28:02 +0000

I am preparing a lease purchase proposal for an unusual home in a rural area. It is a smallish house (2BR/2BA) with a hangar and workshop building on a private airstrip in the boondocks. All the lots around the airstrip extend to the centerline of the runway, so it is communally owned with access protected by the HOA rules. The home is FSBO, and they have no appraisal, inspection, or anything. They built the home 10 years ago (paid cash, so no mortgage on the property), and recently decided they would rather live in their second home in the mountains permanently.

I have three main problems:

1. The asking price is $300k (no appraisal, mind you). This is twice what the tax assessor valued the house at last year. There are other properties currently for sale at the airport, some vacant lots, some with a hangar only, and one with a mobile home. Nothing is over $150k. There are no recent sales within 40 miles, other than tiny lots with mobile home selling under $30k and giant farm estates over $500k.

2. There are no rentals within 40 miles. Not even on Craigslist. Not even apartments, rooms for rent, etc. This is farm country bordering wilderness. How am I supposed to determine market rent rate? Zillow suggests $1100/mo.

3. The property is deeded as a Life Estate (the owner is elderly and it's set up to pass to his son). I don't know anything about life estates, but from what I recently read, they seem simple enough. Will this have any bearing on the situation?

I may have the opportunity to sandwich this for 2 years and actually net money by leasing the home and hangar separately.

Thanks in advance!

Applying option consideration to down payment

Thu, 19 May 2016 19:35:14 +0000

Hello All! Just rereading some of the forums. This place is great and where I learned to do L/O's 5 years ago.

I have been getting option consideration of $5-8k through these years, sometimes splitting it with the seller. I'd like to take bigger considerations of $8-12k and while I've never had it applied to the down payment, I think some of you are structuring it that way.

How is your mortgage broker structuring it? How is it showing on the settlement sheet?

Thank you!

Sharyn

Seller in BK

Thu, 19 May 2016 19:37:32 +0000

I've come across a situation I have not had before and I wanted to get some input here....I have a seller considering Chapt 7 or 13 BK. I have a TB in his property, how is this going to affect the transaction?

Thank you!

Non exclusive Option

Tue, 10 Mar 2009 18:53:49 +0000

I have a deal working where the homeowner has another person working a lease-option coop deal with her. She wants to work with me, but wants us to compete to find a T/B. Not saying I am even going to get involved in this, but if I did, could I have her sign a non-exclusive option to give me the ability to market the property? Does anyone have a contract like this? Does a non-exclusive option require monetary consideration?

Multiple properties

Sat, 16 Apr 2016 16:53:35 +0000

Hello again,

I have a seller who is motivated and come to find out is married to a good friend of mine. So he is motivated to do business with me. Scenario here is he has multiple property's. Sfh, duplex, lake front property and vacant lots. My goal is to work a deal for all the properties as he is unloading all. There is no financing on any of the property he owns all free and clear. He is wanting $100k for a possible owner carry and is hesitant to deal with a realtor. So all things point to a good sign that we can do business. Qeuestion, is this possible to do multiple properties? If so what would you suggest so i can be schooled on such a scenario? I am not sure where i would start and needing advise so i can lock something up.

Learning and burning.....

Non-exclusive agreement with seller. Exclusive agreement with agent?

Tue, 09 Feb 2016 06:09:06 +0000

Hey Michael and the gang! How are you all doing?

First time I'm posting here. Maybe you guys can help.

I'm a bit confused.

I heard a real estate trainer say that when working with a listing or leasing agent to help you find a tenant/buyer (for a home that you have under a NON-exclusive lease option agreement with the seller), you have to sign an EXCLUSIVE agreement with the agent.

I really don't understand that. I mean doesn't that put me, the investor, in a very risky position?

Example, what if the seller finds a buyer first? That would cancel the non-exclusive agreement I have with them, but I would still be on the hook with the agent right? since I have an exclusive agreement with them. Would I owe the agent money at that point?

Or is this simply a matter of entering into a non-exclusive agreement with the agent?

Lastly, is an agreement even needed with the agent? I don't need them to list the property. I just need them to put some signs up and some ads online, show the homes and handle the paperwork.

Anyways, any clarification on this would be greatly appreciated.

Option Expiration

Sat, 06 Feb 2016 01:45:12 +0000

I had a question regarding the expiration of the option to purchase in the agreement. In the paragraph "Exercise of Option" it states that the option needs to be exercised 60 days prior to the expiration of the agreement. I’ve never had a time where I had to enforce this provision. Just curious what the reasoning is for this?

Lease Option Assignment Help......(Option Consideration)

Tue, 10 Nov 2015 18:14:50 +0000

So Im trying to get my head around this. Lets say I have a LO deal I want to assign. (a cooperative assignment LO)

The Seller only wants 1 month rent as a security deposit.

The TB has 10k as option consideration.

Wouldnt the seller bark at seeing a 10k option consideration that they get no piece of??

Is there a way not to show the 10k option consideration to the seller?

I know its best to disclose fully but I just see that being a problem.

How do you guys deal with this? Thanks

Condos/Townhomes With LO

Thu, 13 Aug 2015 20:10:49 +0000

I am curious if anyone does LO's with condo's / townhouse? I am starting some marketing and didn't want to waste time and money going after this market if tenant/buyers are primariiy interested in SFR. I was trying to zig while everyone else zags but at the same time want to go where the results are.

Real Estate Attorney Said Its Illegal

Thu, 07 May 2015 21:11:25 +0000

Well, i contacted some real estate attorneys here in St.Louis to see if i will be dealing within the law and was told that this strategy is illegal here is Missouri, because i will be acting as a real estate broker and i would need a RE License. She asked if i was giving the Option Consideration fee to the seller and i said No, that what i get. Said i was selling the property, i told her im a principal in the deal since i have a contract with the seller. Said theres no benefit to the seller if i cant find a tenant buyer cause i can walk away. She hesitated alot during the convo..lol, said i got scammed and i should just get a RE License..LMAO..said she couldnt work with me on this as well and hung up. I have 3 more consultation with 3 other attorneys, cause i wanted 3 different opinions and wanna make sure i dont get into any legal troubles. Have been doing some maketing for this, and have been getting some replies, mostly from people saying the property has sold, some saying that it sounds interesting, but they rather do it on there own and some saying, there trying move and need the quick money all up front. That marketing campaign was just a small test for my market, but i know if i do it on bigger scale, i will eventually get a YES. Anybody have thoughts on this?

Cooperative Question

Wed, 08 Jul 2015 15:30:14 +0000

I am just starting and thinking of going the Cooperative Assignment route so I can get in and out and make my money.

I have a couple of questions that I am sure I will be asked:

1. If the tenant/buyer is responsible for maintenance what exactly does that mean ? You can have a clogged toilet( they pay for) or how about a leaking roof or the AC goes out? Should the lease state the tenant/buyer is responsible for the first X amount of money. If so, what should that be $500 -more/less?

2. Insurance/Taxes. I know the owner is responsible for paying this. In the lease can it have

$___ for rent + $___ taxes/insurance for a total due of $____. or does the owner just pay this out of his own funds. I am in Florida if this matters.

3. I was told that you can not legally have a portion of the rent applied to the purchase price?

Lawyer wants to see paperwork ??

Tue, 29 Sep 2015 19:12:19 +0000

So I have a guy who sounded like he was on board. Said to call him this week to get paperwork signed. I call and he says that he'd like to have his lawyer review the paperwork and asked if I could email it to him.

How would you guys approach this?

1) say sure and send it over?

2) ask him for a time to review it with him and his lawyer?

3) something else?

I was just going to send it over but I just know alot of times a lawyer is a deal killer.

Trying for 1st Deal

Mon, 21 Sep 2015 12:44:26 +0000

Background:

One of my property management owners had expressed interest in a LO in the past . He bought a home in 2104 for $120K and today it is assessed for $150K. Comps are selling for $150-$165K.

We had been renting the home for $1400. Since the lease is over I put a tester ad to see if anyone was interested in a LO for $1600 and over the weekend I got a call from a interested TB with

$55K income, 580 credit score plus $5K option fee.

She has a home that is too small and will need to rent her home when she finds a place so another opportunity possibility.

I have 2 managed homes with this out of state owner and I want to make sure I am treating him fairly as he is a client. His other home the current tenant has expressed definite interest in a LO for the home she is living in in the spring when her lease is up.

I know a sandwich I can make more but as this is my first deal , a client I am more comfortable taking the option fee and turning it over to the owner. I can possibly make something managing the property-making sure the rent is collected.

I am just trying to figure out how I price it -Is the price $165,000 to the TB in the paperwork and I take my fee from that.

So in 3 years she owes $160K. Or is the actual home price $165k and to get the $165K she gives me a option fee of $5K. We have not discussed rent credit at this point.

I was going to go up on the house price and rent price a % each year.

-------

I guess another way I could do this deal is to split the difference with the owner of $200 each month.This is from the $1400 traditional rent and the $1600 Lo rent. Or give the tenant $200 a month rent credit to get the deal. Don't want to be greedy but want to make my first deal and have to make it

desirable for all parties.

HOA Tenant Approvals

Thu, 10 Sep 2015 23:37:03 +0000

Hello Everyone and Michael. I first purchased your manual about 7 or 8 years ago, however, after years of studying real estate investing (bought my first course in 1991) and thinking I needed to know everything before I began, I fell prey to a bad case of "Paralysis of Analysis". I mean really bad. Somewhere along the line my fear got the best of me and I just gave up. I have been investing in stocks and options for some years and have done pretty well, and about a week ago I was complaining to my wife about one of my option trades in the stock market and wife said to me, "Why in the don't you just start investing in real estate?" It was like a spiritual experience, so here I am again, LOL. Michael after some years and a couple of moves your course and contracts are long gone somewhere, so I'll be purchasing it again tomorrow. Anyway, just wanted to share that. Glad to be here. This question is mainly for Michael, but any input is appreciated. I'm from the Midwest, but I've lived in west palm beach florida for about 5 years now. There are a lot of gated communities and pain in the ass HOA's where I live. How do you put a deal together where the HOA has to approve the tenant/buyer? Or do you just pass? By the way, I just started making calls today with no script and no contracts. After about an hour on the phone I have two pretty motivated sellers and the numbers look good on both. Now I just need contracts and tenant/buyers,but I'm working on that. Thanks

SLO and tenant never moved in

Mon, 31 Aug 2015 21:46:48 +0000

I got this SLO that i got a tenant/buyer for three months ago. They paid option monies and three months rents, but never moved in for whatever reason. Now they give me the house back and say they can not afford it. I have a two year agreement with them. So do i go after them to complete the lease term or do i market for a new t/b? I'v already started marketing. My real question is based on my agreement with the seller i can back out of the deal with 30 day notice and one months rents per line # 21. I'd consider giving it back because the rents the market will bear have gone down in the 6 months that i'v had the house and now no room for me to make money and value had dropped as well. So to give back to seller ill give it in writing that i plan to give back the house. unless i can fill it before then of course and all are happy. can i rescind the 30 day notice once i'v given it? Yeah the numbers have changed a lot form 6 months ago. My goal is to get seller to participate in the payment as to keep it marketable.

Another quandry....