1st Deal Complete!

19 Replies

Hey BP,

So I just completed my first ever deal. It was a Lease Option Assignment, and I couldn't have gotten through it without the support of this community. Thank you @John Jackson and @Brian Gibbons for showing me the way. You guys rock! And so do lease option assignments!

Hey Garrett,

I'm just starting, and my only goal is to complete my first deal so I can learn from experience. I'd like to hear more about your first deal. How did you find it? How did you put it together?

@John Jackson Haha Consider this a virtual IOU. But seriously, I'll have to buy you lunch when I get to TX later this year! Thank you!

Originally posted by @Garrett Jacks :
Hey BP,

So I just completed my first ever deal. It was a Lease Option Assignment, and I couldn't have gotten through it without the support of this community. Thank you @John Jackson and @Brian Gibbons for showing me the way. You guys rock! And so do lease option assignments!

Yea!!!

Now Garrett,

Write a post about:

How I found the lead

How I set the appt

How I closed the seller

What paperwork I used

How I found the Tenant Buyer

What paperwork I used

What were the numbers of the deal: lease, term, option fee, etc.

Post it here!

And get a video testimonial from the buyer and the seller.

Put that on your website.

Medium banner reiskills 997   copyBrian Gibbons, REISkills | [email protected] | 818‑400‑3046 | http://MyREISkills.com

Yew!

way to go!

Here is how it all went down:

The seller was a guy I work with. I knew he was moving out of his house in May, so I figured ii'd explain the financial benefits of selling with a lease option to him (no 6% agent commission, and positive monthly cash flow!). I then contacted my attorney and sent him my contracts via email. I used the following:

1. A lease (1 year term)

2. A purchase option: Stated the buyer could purchase at any point during the 1 year term, the agreed upon sales price of $215,000, and the non-refundable option consideration of $6500. It also included a seller concession of $3600 (justified by the sellers mortgage of $1200, and rent payments of $1500 over a 12 month period... And the paperwork said "seller concession"... Not rent credit. But essentially that's what it is.

3. An addendum to the lease and the option: Contained a Right to Cancel clause, the fact that my assignment fee was the non-refundable option consideration, and that I would be granting $1000 of my fee to the Seller upon assignment (I described it as a "thank you for allowing me to do the deal" to the seller)

Signed the paperwork. Posted an advertisement to Postlets.com. Within 24 hours the phone started ringing. He first callers were actually the eventual buyers. They were a family that had unfortunately been victim of a short sale about a year and a half ago, so they weren't in a particularly good position to obtain a loan at this time. However, they made more than 3X the rent amount in monthly income and their credit and background check was outstanding (used Smartmove by Transunion for this after showing them the house on Sunday morning where they filled out my Lease Application).

Next, I called and set up the closing with my attorney. I took the following paperwork to the attorney's office:

1. Lease with seller and buyers names

2. Purchase option with seller and buyer names

3. Addendum 2 to the lease and the option: stated that I could assign the deal to the Third party (the buyers names). Signed by the seller.

4. The Assignment agreement between me and the seller.

All in al it took 7 days to close the deal.

Awesome!

Originally posted by @Garrett Jacks :
Here is how it all went down:
The seller was a guy I work with. I knew he was moving out of his house in May, so I figured ii'd explain the financial benefits of selling with a lease option to him (no 6% agent commission, and positive monthly cash flow!). I then contacted my attorney and sent him my contracts via email. I used the following:

1. A lease (1 year term)

2. A purchase option: Stated the buyer could purchase at any point during the 1 year term, the agreed upon sales price of $215,000, and the non-refundable option consideration of $6500. It also included a seller concession of $3600 (justified by the sellers mortgage of $1200, and rent payments of $1500 over a 12 month period... And the paperwork said "seller concession"... Not rent credit. But essentially that's what it is.

3. An addendum to the lease and the option: Contained a Right to Cancel clause, the fact that my assignment fee was the non-refundable option consideration, and that I would be granting $1000 of my fee to the Seller upon assignment (I described it as a "thank you for allowing me to do the deal" to the seller)

Signed the paperwork. Posted an advertisement to Postlets.com. Within 24 hours the phone started ringing. He first callers were actually the eventual buyers. They were a family that had unfortunately been victim of a short sale about a year and a half ago, so they weren't in a particularly good position to obtain a loan at this time. However, they made more than 3X the rent amount in monthly income and their credit and background check was outstanding (used Smartmove by Transunion for this after showing them the house on Sunday morning where they filled out my Lease Application).

Next, I called and set up the closing with my attorney. I took the following paperwork to the attorney's office:

1. Lease with seller and buyers names

2. Purchase option with seller and buyer names

3. Addendum 2 to the lease and the option: stated that I could assign the deal to the Third party (the buyers names). Signed by the seller.

4. The Assignment agreement between me and the seller.

All in al it took 7 days to close the deal.

I am EXTREMELY happy you...

1. spelled this out for others to get the steps.

2. you went through an attorney.

@John Jackson any comments?

Medium banner reiskills 997   copyBrian Gibbons, REISkills | [email protected] | 818‑400‑3046 | http://MyREISkills.com

Congrats!

congrats that was awesome

Thanks for all of your inputs and support, everyone. I'm hoping to be able to share many more stories like this in the near future.

Hi Garret or should I say Sir. I am also in the military transitioning back into civilian life, but Marines not Navy. Though I do have a few Marine buddies who guard you guys. Anyways I get out in August and im trying to learn all I can why I'm still in, before I become a civilian again. I'd be very interested in sharing your your expierences, or if you know any military related programs that can help.

@Garrett Jacks !!! BAM!!!!!!!!!

You did it!!!

@Brian Gibbons will agree with me that lease options are simple.....however...execution is not....

Thank you for laying it out for everyone!!!

I just got back from Houston speaking to the RICH club and we are going to be going thru Lo's in detail in June....but the bottom line is action.

I'm so pumped to see you making it happen!!!

Garrett, well done! Now on to the next deal and many more.

@Garrett Jacks

Great job and well executed! Now you just need to turn on the lead generation faucet and keep the deals flowing.

BTW- what @Garrett Jacks said about the concession is important.

I love hearing stories of people doing this stuff...

Brings a tear to my eyes...

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