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Hi all; Two quick questions: 1. Dealing with a realtor here in Ohio who is adament that Ohio law forbids contract assignments, etc. and says it is illegal. I don't buy that but just wanted to hear from any fellow Ohio investors and/or show some data/law to prove her wrong. 2. Anyone experience a slow down or difficulty finding deals and placing tenants in the winter? Kind of a silly question but I am still new at this; thanks!! Eric

Doug and Rex; Thank you for the input. Most sellers I contact either have little or no equity and/or don't want to lease for less than what they pay every month. How do you guys get sellers to take less on a monthly payment so you can cash flow? I mention their costs will be lower with me doing all the work, etc. but that often doesn't cut it in their heads. Thanks again! Eric

Hi there; I am in negotiations with a seller with some equity. Could be a SLO (my first as I have mainly been doing CA's). Not sure if there is enough there to make it worth it. Seller owes roughly 135-140K and wants 162K. Monthly payment is $1300/month. Comps 165-175K. Not a big rental area in terms of getting rent comps, I could get 1300 or so but it may be difficult to get enough more to cash flow (1400 or more). I could be wrong but don't have much data to go on. With rent credits (he will give me $200/month), I would ask 179K or so, which could net me 20K or so on the back end. I know everyone has their minimum profit requirement and this one is ok, likely less than ideal but still positive. I will either continue with negotiation or just do a CA. I just wanted to get everyone's thoughts as I have never done a SLO before. Thanks! Eric

Rex Thanks for the advice. I already have him signed with a CA. Do I re do the paperwork as an option? My CA fee was 3 K how can I structure it to get something close to that, just assign my option? Thanks!

Hi all; Just a quick question. I have a seller signed for a CA. If a buyer wants to do a straight purchase how do you collect your fee and do the paperwork? Thanks for any clarification! Eric

Hi all; Just trying to work some deals and I wanted to garner advice from the masters out there! I have a potential seller who needs to move out of state quickly (in a month). He bought well and has decent equity (over 20-30K). Would prefer an outright sale but is ok with the LO if it will net him more $, although he is not crazy about managing his property as he will no longer live in the state. His monthly payment is high as he did a 15 year note. House worth 160-175 or so (after checking comps); he is asking 169 but is willing to be a little flexible as long as it is fair. Montly payment is around $1300. In that area, I might have difficulty asking for much more than that, making solid cash flow tough. He only owes 115K or so on it. Options: 1. sub 2 the deal and then LO it out as there is good equity 2. do a SLO but ask a lower price. Possibly ask him to option to me for 150 and then I can turn around and LO it for 170 or so 3. CA, simple and that's what I have been doing; he just might not go for the management aspect. Any advice? Thank you so much. Eric

Hi all; I am working on some new CA deals and wanted to inquire about some contract details. When first signing the seller, what dates for the start of the lease do you put in, ie how much ahead of the visit do you start? What happens if that date comes and you have no buyer? Do you change the date? Is there a better way to protect your position or to state that no payments will be made to the seller until you find an end buyer? Thanks! Eric

Hi all; I have been plugging away contacting sellers to do CA's. Several have had posts saying their loans are assumable (some condos some SFH's), that I could keep any equity and funds in escrow, etc. If the lender is ok (sounds like it as they mentioned closing costs, etc through the lender), is this doable? I of course would want to assign the deal like a CA or do a LO. This is similar to a sub2 of course. I need to verify numbers to see if it is worth it (run comps, see if there is indeed any equity) and go from there. With the lender involved is there credit checks and other hoops to jump through that could hurt my credit score, etc.? If anyone has experience with these type of deals, please let me know; I am happy to share in the deal if necessary! Thank you. Eric

Hi there; On a similar note, for protection sake, is it necessary or advisable to use entities, or some type of insurance for simple CA's? Thank you!! Eric

Dave; Thank you for the follow up and for the advice. If I am just doing CA's, what business insurance is best? Thanks again! Eric

Hi all; Hope everyone is having a great summer! Quick question(s): how does everyone structure their deals and deal with taxes. When doing CA's, assignments and flips are considered income/dealing/etc, and I assume get hit with the double tax (SS and income). What is the best way to deal with that? I am setting up an LLC as I want to add rentals to my business, and that is the best structure for those, but I am trying to figure how to deal with the above issue. Also, how risky are CA's in general? In other words, is it truly necessary to do CA's in an entity or just do them in your own name and do the long term investing in the entity? One last question, related to above. How are you able to use your business' $ if it is in an entity? If you need cash, just do some CA's in your name or is there a way to do them in the entity and utilize/loan yourself funds, etc.? Sorry for all the questions; I appreciate any advice! Thanks!! Eric

Hi all; Just wanted to see if anyone has had MC's contracts reviewed by an Ohio attorney. Our venerable moderator mentioned that his forms from the manual have been used here in Ohio without any changes or problems. He advised legal review to be 100% safe. I did look into this but before I lay out some cash (they are expensive, those lawyers!) I figured I would ask around to see if anyone has had this done. Thanks all! Happy investing! Eric

Hi all; I received a f/u from one of my email ads from a seller with a high end home willing to do a LO type deal. I haven't shot him my follow up email that explains what I do yet (he probably assumes I want to lease to own myself). His house is in the 450-500K range. I am sure the tenant/buyer market is slimmer in that range, and it will be harder to get a good rent to cover his costs in this market. But who knows till ya try right? Just wanted to see if anyone else has had experience with these type of deals. Thanks!! Eric

Thanks 007! I appreciate the support!! Good luck with you as well! Eric

Jason; Thanks! Pretty straight forward. Nice couple who tried selling and couldn't in this market. Had a new house to move into and were getting desperate. Learned some things on the first one but overall went pretty smooth. Netted $2500 on the CA for a house worth roughly 115K. The only two things I didn't get done in time before finishing were to form my LLC (I know that one isn't that big a deal at first) and to have the forms (from the Naked Investor manual of course) reviewed by a local attorney. Hopefully no issues will arise. How are things with you? Where are you at? Take care. Eric

Thanks for the advice gentlemen! Eric

Hi all; I have an owner under contract to do a CA. The issue that just came up is the tenant doesn't like the owner and her lease is up Sept. 1. She doesn't want anyone inside to see the house until she moves out; she threatened to call the lawyer, etc. etc. I discussed with the owner, and she (owner) doesn't think there is anything with her lease contract that states anything about showings while the tenant is still in there (she has a regular lease, not a CA or LO). What are the rules/laws (here in Ohio by the way) about this? Do we just have to wait until she moves out or can we legally make the tenant allow us to show the house? Thanks for any advice! Eric

Hi all; I have a very basic question as I am new to this. When setting up and using an LLC for real estate, how does one use the funds in the LLC? I know you can put more money into the LLC or its' separate bank account, but what if you need to tap any $ for your own usage (non-business related)? How do you do this the right way? I appreciate any advice; thank you!! Eric

MC; Thanks; I will have a drink with you tonight! Youngblood, thanks to you too! Good luck on your upcoming first deal as well (I'm sure it will go soon). Take care all and Happy (late) Fourth! Happy Birthday America!!!!! Eric

Hi all; Jonathan Rexford, MC, or anyone else with some experience: I need some assistance to help out a homeowner in need. I would obviously give most of any profits to you; I would love to simply learn from the jedi masters out there! A seller contacted me who needs help and is desperate. She is here in Columbus, OH. House listed for 150K, comps closer to 130 or maybe more (haven't done a detailed analysis yet) and she owes 138. The house was occupied to a lady who took it on a land contract but has moved out and hasn't paid the owner (the seller) for over 4-5 months. The house is in danger of being foreclosed on b/c of that. She owes roughly 7-8K. Payment is $1400/month. I suspect she needs to speak with the bank to negotiate a short sale but I have no experience with this. A sub 2 is a possibility but she is quite behind and there is no equity. Perhaps having her pay part of the payment for a while would be a possibility. I would be happy to turn this over and watch the deal unfold to learn how to deal with this. I would like to help her out. If anyone wants to take this on please let me know ASAP. Thanks! Eric

Hi all; I am happy to report the completion of my first deal! I did a CA here in Ohio with the assistance of our excellent moderator, Mr. Carbonare. I want to thank him for all his help and support throughout the process. I am actively looking for more deals to keep rolling. His message at the beginning was what motivated me; ie: just get out there and do a deal. I had the classic paralysis of analysis by reading and learning but not doing. Now I am doing both, with the emphasis on doing! I definitely recommend that to anyone new to the Naked Investor. Thanks again MC. Looking forward to continued learning here on the forums. Eric

Hi Jonahtan; I have enjoyed all of your posts. I am still new and doing some CA's right now but am leary of the sub 2's. How do you go about loan mods? Also, do you know of a source to obtain good contracts for doing the sub 2's? I am familiar with how they work and how to negotiate them but want to be careful from a numbers and legal point of view. Thanks for all the advice! Eric

Good Mornig, mate. As you already probably know, with FRBO, most likely they will not have a clue as to how much their house is worth since they're not selling it, so the admin's advice comes into place in this case. The only FRBO that will know how much their house is worth (or have had them appraised), are the houses that could not sell and are now FRBO. And since you're now expanding to other states, if you find prospects in my area, I can help you any which way I can (Alameda county, Stanislaus County and San Joaquin County only) Have fun! BEV! Hi all; How are you all doing the contracts with out of town, out of state deals? Do you do everything by phone and fax? Any seller/buyers have problems with this? How do you market and show the property, etc.? Thanks and sorry for the silly questions but I am still learning the ropes! Eric

Yeh, I tend to have a hard head and never take no for an answer. So, I refuse to give up. What were you doing to get leads?... Hi Kyle; Where are you in OH? I am in Columbus and am also trying to break into this. I understand your frustrations and I thank all those who gave their advice on this. PM me, we can compare notes! Eric

Hi guys; I have a question for those of you doing 2-3 or more per month. How do you do it physically? I mean, it is quite labor intensive (or I am doing it wrong) just to do one. You have to meet with the seller, go out and post signs, etc., show the property, meet with potential buyers, meet again to sign all the paperwork several times, and that is in addition to the computer work you do to market, etc. The latter is easy, but all the running around makes it seem onerous compared to wholesaling, which a lot of people do all online and with fax, etc. I am new at this, MC is helping me out on my first few deals (thanks again big guy!). I finally found one seller to sign up but I am still working on finding a buyer. Seems everyone is not so crazy about the terms of the L/O deal in light of the favorable first time home buyers plans, etc. Just guessing on this; I know I need to keep working on the marketing to get it sold. I am especially curious as to know how you guys do this, not only locally but also in other states? How do you do this? Sorry for the long query; any help would be appreciated! Thanks! Eric