wholesaling lease option course/guidance

11 Replies

Hello happy friday everybody

I've watching this guy joe mccall webinars about wholesaling lease optionshe past 3 or 4 days. Seems interesting, another strategy if traditional wholesaling doesn't work for the seller. Long story short this guy says that contracts are different from normal wholesale deals. He also speaks on notary title companies, and all you do is have peoplel sign online (which seems amazing). well, as I look for his course its nowhere to be found. If not joe mccall course can anyone recommend anything else that will teach me this strategy? And I need those contracts too? And definitely need to know where to find the notary title company, im sure I can google that part though.  Thanks for any guidance

@Avery Davis  Most title companies will alone you to use a notary. I just did one last week, where the seller never came to closing. I will be happy to show you the ropes of wholesaling, although it isn't as easy as the Gurus say, and your goal of 30 a year is attainable but at a full time (like having a job) level. Wholesaling you may only have a few hours in a successful deal, but its the ones you don't get that consume your time. I average 5-10 properties before I get one that works, and don't wholesale much anymore, but I did use it to rebuild my capital. 

Hi @Jeremy Tillotson . I'm finding this interesting. I haven't tried wholesaling yet, but am starting to read up a little on it. My partner wants to jump in and "just do it" but I am the cautious, over study type and would like to hear others' experiences on how they started out doing so. I wouldn't mind using it as a means to build capital to pursue more buy and hold or buy and rehab deals of my own.

Thanks

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@Greg F.  perfect? I can think and quote of 100's of problems with these. They dont qualify for a loan for a reason and that reason may mean they might dip on you. Know someone who almost went to jail over one of these, Just saying be careful and make sure you are protecting the seller, because gray area of law and you being the middle person making money while homeowner ends up foreclosed on could be predatory. Just saying.

@Jeremy Tillotson

We all can find 100´s of problems in REI niches. Perfect tenant is a phrase. Meaning that the owner is responsible for the structure of the property. (roof, water heater, the big stuff) the end buyer or tenant buyer is responsible for the day to day up keep of the property. (sink leaking, toilet seat broke, the small stuff.) Me being the ´´perfect tenant´´ I am not responsible for these things. The owner gave me or whoever the right to sub-lease their property. With the OPTION to buy at a set end time. Normally within 5 years. Why 5 years because if a contract is longer than 5 years. The owner might be liable for capital gain tax.

Now the tenant buyer goes through the background checks, reference checks, etc. and is very aware of the loss that they take if they back out. They lose their non-refundable option fee and all rent credit toward the purchase price.  Most people are not willing to throw away thousands of dollars for nothing. They are not renting the property they want to own the property.  So in most cases they will take better care of the property.

Yes just like all niches you have problems. If you are a holder then you might have a tenant trash your place for 10k, if you are a flipper then you might find 20k in unexpected rehab. So on and so on.  Contracts Contracts is the key. Not just any contract but the right contracts.

You can always set up an escrow on the property.

@Greg F.  I understand all the ideas behind this concept. But if someone was upside down on the mortgage (primary reason, and about only reason one would do this) and then something major goes out then do they have the money to fix it. And it someone trashes my place its my problem not the poor homeowner who you just swindled for 5k (or that's how the jury will see it), further intent drives capital gains tax, while there are time lines as well. ever notice the GURUS dont usually do theses, because they take your money and run too, its kinda right up there alley. If one of these goes bad it could be deemed as a predatory action, contract or not do you have enough money to fight a jealous prosecution? 

Originally posted by @Avery Davis :

Hello happy friday everybody

I've watching this guy joe mccall webinars about wholesaling lease optionshe past 3 or 4 days. Seems interesting, another strategy if traditional wholesaling doesn't work for the seller. Long story short this guy says that contracts are different from normal wholesale deals. He also speaks on notary title companies, and all you do is have peoplel sign online (which seems amazing). well, as I look for his course its nowhere to be found. If not joe mccall course can anyone recommend anything else that will teach me this strategy? And I need those contracts too? And definitely need to know where to find the notary title company, im sure I can google that part though.  Thanks for any guidance

I can probably answer your questions if you explain what Joe was talking about or what he advocates. I'm not going to go hunt up webinars to try and figure it out. Or, are you simply trying to drive clicks to Joe's site?

Title companies are listed in the phone book and online, all have notaries.  :)

Originally posted by @Avery Davis :

@Bill G.  I'm a new guy to this so sorry if it sounds like I'm hyping the guy but no way possible that I'm trying to get any clicks to Joe. I basically just said I didn't get all the details I needed from him nor can I find his course. I sure hope that no one became excited about me not being informed.

 All I want to know is  has anybody wholesaled an lease option? When you wholesale lease options what contract/contracts do I use? or what can I add to my current wholesale contract to make this work? Joe briefly talked about finding people that are renting but getting tired of tenants that don't want wholesale offers. Also said let owners know if people are renting-to-own better chance of the house being taking care of and less stress from tenant . Then I believe he said if the owner agreed and allowed me to find a buyer, get the property under contract with an option. The buyer has to have a down payment  that covers the fee of my services and also say how much they have to pay total for the house(which is more than like the actual value of the house if not close to it rather than a *.70% formula for regular wholesale deals. Then assign this to the owner. I would be out from the middle and take my cover fee now its just the buyer and the tenant.  I don't want to stay in the middle like a sandwich lease option but rather get in and then immediately get out once I find a tenant for the seller I just need to know what should the contract actually say. Once again I'm new so I was told with my wholesale contract have certain clauses to protect myself so what is it that I need to protect myself with option contracts. Just need help with the wording. Hope that made sense. I did come across the notary title companies online  the day after I posted lol.  

Thanks for the help guys

@Bill G. undefined

Well, thought I recognized Joe's name, I guess he's a guru, don't know his materials, but I do know that anyone that pumps rent-to-own deals are not going be on my list of reputable investors. They are bad arrangements, usually predatory and as a business operation will have issues with Dodd-Frank.

As to "wholesaling contracts" seems you're mentioning owner occupied buyers. Understand you being new, 1. acting as an agent without a license can get you nailed regardless what the hypeheads say about an imaginary equitable interest load of stuff and 2. If the tenant buyer is getting credits toward a sale price then it is a financing transaction, another regulatory matter.

Yes, you're brand new here, you might read the forums some more. You will not find a real estate education on any guru site, such is not on BP either, I've said this stuff a thousand times on here I'm sure, learn the basics of real estate before you start listening to BS webinars and strategies, there are too many scam artists out there. Good luck :)

Joe is a good friend of mine...I taught him the essentials in 2009 and he is crushing it....one of those..the teacher has become the student things....

Wholesaling lease options is a term Joe coined (OK...I wish I would have come up with that!  grrrr...), but it's the same thing as assigning a lease option. 

Wholesaling a house is one thing, assigning a lease option is another, as far as contracts. 

@Avery Davis  

 Follow one path until successful period.  Just because someone on BP has 44 post or 17k post does not make them any better than you or I.  Follow you own path, find what niche you want to master. Master it find out how to make it easier on you. I have found out that some people in this world can find anything wrong.  I call them Debby Downers. They are negative people stay away from them.  You only know your own directions. Lesson to the podcast, webinars, books, online material what ever it takes to reach your goals. I do not know all the answers nor will I ever know all the answers. I know people and see BS very well.  It just amazes me when some people jump on a topic about people in the business that have never done business with someone let alone ever met them.  My advise is this make your own choices, do your own research.  Hear what others have to say but be very careful on who it comes from.  There is always to sides to every coin.