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About Gene

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  1. **Update** The Mortgage Broker seems to have found a lender who states that they can do a refinance with the L/O. The lender has seen the option agreement and has stated that it is acceptable as written. Of course, nothing is for sure until the loan has been officially approved. I will provide an update when the loan closes. Thanks for all the feedback, Gene
  2. I completed a cooperative assignment deal last summer that is now having a few issues concerning the T/B purchasing the property. Hopefully someone here has had a similar experience. If anyone knows of a national or Illinois based lender that I might be able to recommend to the T/B’s mortgage broker, please let me know. First let me say that I am fully aware that I have no legal obligation to stay involved with this deal. I prefer to be involved because I believe it is the right thing to do and I want the forthcoming knowledge. The mortgage broker, who is also an investor and has some L/O experience, is coming across some objections from his lenders. He is trying to either close this deal as a refinance or do a new purchase and use the upfront option consideration as a down payment. First, the lenders are having a problem with doing a refinance because the agreement does not give the T/B equitable interest and therefore is not similar enough to a land contract for them to consider it such. Second, the lenders have an issue with using the option consideration as a down payment because the option consideration checks were made out to me and not the seller. They also are not thrilled that the consideration was paid a year prior and the consideration was paid in bimonthly installments over a 3 month period. All help is welcomed and appreciated, Gene
  3. Bev: As for cheese, there is nothing better than baked brie and a good French bread. Gouda is another favorite. A wine connoisseur I am not. However, I have never been shy about giving my opinion. I don't pay much attention to the wine freaks who say you have to drink a specific wine with a certain type of food. I drink what tastes good. If you like a red but don’t want something heavy like a merlot, try a Beaujolais. However, Michael will surely tell you to choose a Chianti. A good white is Fume Blanc or Sauvignon Blanc. You may want to try a Johannesburg Riesling; my mom raves over a good one. The best thing to do is forget everything I just wrote. Go to a good wine store or better yet Costco if you have a membership. There should be a wine guy or girl that will answer all your questions and knows a whole lot more than most people. There is actually a name for these people, but I can't for the life of me remember what. Too much scotch on a Friday night I guess. Gene p.s. Bev, stay wit the wheat germ.
  4. Was it really worth it? Don't you have to, like pay taxes and stuff. Man, who needs the hassle. Congratulations, you deserve this. I bet your Air force buds are jealous now.
  5. Sold: I was not disagreeing with Kim; I just do it somewhat different. Don’t let the paperwork structure your deal. Make the paperwork fit what needs to get done. I do however, use Michael’s paperwork. Let me explain why I do it this way. In my first deal the owner insisted on getting some sort of security deposit. The amount was $500.00. After talking with Michael we decided that it would be best to just give this to the owner as an option consideration and be done with it. I don't think any owner would object to this. It might even get you a reference down the line. Now, when it came to the paperwork, the $500 is in the option agreement as follows. 3. OPTION CONSIDERATION: Tenant/Optionee will pay Seller/Optionor as nonrefundable option consideration $500.00_______________ for the above property and it will apply in full to the purchase price if the option is exercised. This option consideration is due on or before ___July 30, 2004_______. If the option to purchase is not exercised, for any reason, there will be no refund of any option consideration. You will notice that the option consideration is a deduction to the purchase price. Now look at the assignment agreement: _________Gene__ (hereinafter, “Assignor”), the Buyer/Tenant under an Option To Purchase Agreement dated July 14th, 2004 (hereinafter, “Agreement”), by and between Assignor and _Motivated Seller_, (hereinafter, “Seller”), hereby assigns all right, title and interest in said agreement to ____Tammy Tennant Buyer_______________, (hereinafter, “Assignee”) and ___Manuel tenant buyer__________, (hereinafter, “Assignee”), for the sum and consideration of $2,500.00_______________ to be received by Assignor. Any assignment fee paid shall be considered option consideration and will be credited in full towards the purchase price of the subject property as specified in the attached Option to Purchase Agreement. This option consideration will be in addition to the option consideration outlined in paragraph 3 (Option Consideration) of the attached Option to Purchase Agreement. The property address is: You will notice that the option consideration in this agreement is also a deduction to the purchase price. $3000.00 is what the T/B agreed to give as an option consideration. If I would have put that amount in one assignment agreement, then the deduction from the purchase price would equal $3500. That is $500 more than the seller is expecting and would result in his net being reduced by that same amount. So I used the above assignment and one additional shown below. __________Gene_ (hereinafter, “Assignor”), the Buyer/Tenant under a Residential Lease Agreement dated July 14th, 2004 (hereinafter, “Agreement”), by and between Assignor and _Motivated Seller_, (hereinafter, “Seller”), hereby assigns all right, title and interest in said agreement to __Tammie Tennant Buyer___________, (hereinafter, “Assignee”) and ___Manuel Tenant Buyer________, (hereinafter, “Assignee”), for the nonrefundable sum and consideration of $500.00____________ to be received by Assignor. This gets me the other $500 that I now pay the seller to satisfy his option consideration outlined in the option to purchase agreement. I felt that it was much easier to explain what was going on to all parties concerned. I also hope that when the purchase happens this will be easy for the person who writes the agreement to purchase. I know there is more than one way to skin a cat. I believe that this is a good way to get the seller his money and not confuse what is and is not an option consideration. Gene
  6. Caveman: I personally use two and I spell out which agreement is being assigned. My reasoning is that I want to keep the lease and the option separate. I also think that it adds some clarity to the transaction. Is this overkill? Probably, but it works for me. Gene
  7. Hey all: I got busted removing the picture from my original post. The guy that runs this place is pretty quick. I was looking quite ruff in that one and couldn't bare to have you all puke. I just added another that won't break your monitors. Gene
  8. I bet that picture exceeds the 50k limit (135.26 KB to be exact). The benefits of ownership! Congrats Michael, Just think about how many people you have helped in 2 years with this web site. You have my personal thanks. You are to be commended. Gene
  9. Has anyone seen the latest issue of Fortune Magazine? It is actually a special issue dated December 27, 2004 (Investors Guide 2005). Well, there is a nice article on real estate investing called, "How Real People Get Rich". Within the article is a sub article called "The Rent-to-Own Strategists". It basically describes exactly what we do. Michael, You better get the printing press humming. A whole new group of naked newbie’s will be knocking on your door. Gene
  10. Godfather: I am a simple man and do not require much. If you could only add a few more hours to the day, I would be a very happy man. I understand that if you grant me this one request that I will be in your debt for ever. Gene
  11. I thought I would share a little something special from my life. Two weeks ago, my wife and I had our third child. Third time was a charm...finally got a boy. His name is Jack Conner Doerr. We now have three under the age of four. Out numbered and outgunned.
  12. Michael: Thanks for the kind words. As for the Cubs, I think your Boston friends proved that next year might just be this year. Go Cubs Go! bdsh99: If you want to talk, PM me with your questions and/or phone number. I love to meet R/E contacts in my area. If you have not already done so, you should attend our local investor meeting sometime. The fact that there are a lot of people in the Chicagoland area doing REI only confirms the fact that this stuff does work. You just have to find what works for you. Gene
  13. JCannon: 1) Owners name (all if there is more than one) Also you may not have thought of this yet; how does a POA sign the agreements? Not sure if this is state dependant. I just have the POA sign their own name as a specimen signature is on the POA document. Get a copy of the POA document. 2) If one year then 2/1/05 to 1/31/06. (I assume the seller has already agreed to this term.) These dates will probably change when you find a T/B and you may just sign new contracts at that time. 3) I would put in the number and leave the names blank. You want to be sure you have an understanding with the owner on how many people he will allow to reside in the home. 4) Read that line again, unless MC's agreements have changed, there is no need or blank to fill in. 5) Everyone gets an original. You can sign two or three now. Since you will probably sign new agreements when a T/B is found I would just do two. 1) Your equation for the "Full purchase price" is correct. As for the option consideration, you are also correct. If you get a little less the owner gets a little more. I don't think he will mind. However, keep in mind that the seller already has a figure in his head that was agreed upon. If you need to give a concession to the T/B this may be an option. 2) Based on previous posts, I think some do this different than me. You can put $0, $1, $10. Some feel that there needs to be something here to make the agreement legal as this is what you would give the owner when you first sign the agreement. This is not the same option consideration that you will get from the T/B. The T/B's option consideration is addressed in the assignment of agreement form and is in addition to what ever you put here. Good Luck! Gene
  14. Adam: Fun! Fun! Fun! That brings back memories. I think I ended up in just about every ditch in Genesee County. At least you can drive in your part of the world. My in-laws came over from St. Joseph tonight. It took them like 6 hours. Gene
  15. I am thankful... Wait, it's snowing like crazy in the Chicago suburbs and it is going to take forever to get home tonight. Oh well, I am thankful for this helpful board, its creator and all the unique personalities that frequent here. I am really thankful for something else... but that news will have to wait! Gene
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