I Saw This on YouTube so it Has to Work lol

13 Replies

I've spent the past couple nights stuffing envelopes and watching REI videos on YouTube. I'll bet I've watched 50+ videos, and I know I'm up to 800 letters.

I was going to send out 1000 "I Buy Houses blah blah" letters, but...

I started watching YouTube guru lease option videos, and then I watched a couple "use master lease options for apartment building investing" videos.

A couple guys on Youtube said anyone one can do it, so it has to be true. Right?

I'm a licensed agent in Florida, have rehabbed my share of houses, and have assigned at least 100+ contracts over the years, but have never tried to control a property with a lease option. 

I started wondering if I'm missing out.

I'm sending 100 "I'll pay your price if you take my terms" type letters to "pretty" SFR expired listings, and 100 to expired multi family listings.

Has anyone had any luck (good or bad) with LOs?

 

@Jeff Morelock

I coach the 3 strategies below.

"Terms deals" in Florida if you're licensed I think is an awesome plan, along with 2 other strategies.

1. Terms: sub2, land contract, wrap, and lease option - lease purchase acquisitions.

2. JV with seller on a minor rehab

3. Classic wholesaling 70% LTV - repairs - wholesaling fee

Use all 3 in Florida.

@John Thedford

I haven't considered lease options. Maybe I am missing the boat! Keep us informed of your progress. To my knowledge, lease options if structured properly are bona fide legal and you won't run into problems with DBPR, etc. I don't know the legalities of selling a lease option and how regulators would view that. Please let us know what particular videos/author you are watching so we may check it out. Sub2, land contract, lease with option are all viable ways to purchase or control and then convert to ownership. @Brian Gibbons is the expert on structuring deals...and while I am talking about him...it is time for you to offer some youtube videos...:)

Originally posted by @John Thedford :

I haven't considered lease options. Maybe I am missing the boat! Keep us informed of your progress. To my knowledge, lease options if structured properly are bona fide legal and you won't run into problems with DBPR, etc. I don't know the legalities of selling a lease option and how regulators would view that. Please let us know what particular videos/author you are watching so we may check it out. Sub2, land contract, lease with option are all viable ways to purchase or control and then convert to ownership. @Brian Gibbons is the expert on structuring deals...and while I am talking about him...it is time for you to offer some youtube videos...:)

My preferred way of selling a lease option, or any owner finance deal for that matter, is to create a single asset entity, either an LLC or a land trust. I add my buyer to the LLC or trust at 49% and have him sign the Doc. Immediately after closing I have them buy me out for the agreed amount.

This is the simplest way to sell a owner finance property legally without triggering any issues.

Originally posted by @David Dey :
Originally posted by @John Thedford:

I haven't considered lease options. Maybe I am missing the boat! Keep us informed of your progress. To my knowledge, lease options if structured properly are bona fide legal and you won't run into problems with DBPR, etc. I don't know the legalities of selling a lease option and how regulators would view that. Please let us know what particular videos/author you are watching so we may check it out. Sub2, land contract, lease with option are all viable ways to purchase or control and then convert to ownership. @Brian Gibbons is the expert on structuring deals...and while I am talking about him...it is time for you to offer some youtube videos...:)

My preferred way of selling a lease option, or any owner finance deal for that matter, is to create a single asset entity, either an LLC or a land trust. I add my buyer to the LLC or trust at 49% and have him sign the Doc. Immediately after closing I have them buy me out for the agreed amount.

This is the simplest way to sell a owner finance property legally without triggering any issues.

That sounds interesting.

My local Realtor board I belong to has lease option addendum and riders that go along with our standard ASIS contract, and I'm going to have a client who is an attorney and owns a title company help me with these, but I will ask him about it. 

I've noticed that there are a several LO deals advertised in my local MLS, so I don't think there's any worry about "triggering" anything.

I think I'm going to wholesale the any SFR deals I can put together, but and going to stay in the middle of any multi family deals I can put together. (Of course I may have wasted 200 first class stamps lol)

I still have to talk to that attorney just in case.

Thanks for the LLC tip

Originally posted by @Brian Gibbons :

@Jeff Morelock

I coach the 3 strategies below.

"Terms deals" in Florida if you're licensed I think is an awesome plan, along with 2 other strategies.

1. Terms: sub2, land contract, wrap, and lease option - lease purchase acquisitions.

2. JV with seller on a minor rehab

3. Classic wholesaling 70% LTV - repairs - wholesaling fee

Use all 3 in Florida.

@John Thedford

 Thanks for the reply and for your vids on youtube. 

Originally posted by @David Dey
Originally posted by :

I haven't considered lease options. Maybe I am missing the boat! Keep us informed of your progress. To my knowledge, lease options if structured properly are bona fide legal and you won't run into problems with DBPR, etc. I don't know the legalities of selling a lease option and how regulators would view that. Please let us know what particular videos/author you are watching so we may check it out. Sub2, land contract, lease with option are all viable ways to purchase or control and then convert to ownership. is the expert on structuring deals...and while I am talking about him...it is time for you to offer some youtube videos...:)

My preferred way of selling a lease option, or any owner finance deal for that matter, is to create a single asset entity, either an LLC or a land trust. I add my buyer to the LLC or trust at 49% and have him sign the Doc. Immediately after closing I have them buy me out for the agreed amount.

Nice tip DD!  You really are a transaction engineer!

Resources for FLA

http://www.amazon.com/Form-Limited-Liability-Compa...

http://www.amazon.com/Land-Trusts-Florida-Mark-War...

Originally posted by @Brian Gibbons :
Originally posted by @David Dey
Originally posted by :

I haven't considered lease options. Maybe I am missing the boat! Keep us informed of your progress. To my knowledge, lease options if structured properly are bona fide legal and you won't run into problems with DBPR, etc. I don't know the legalities of selling a lease option and how regulators would view that. Please let us know what particular videos/author you are watching so we may check it out. Sub2, land contract, lease with option are all viable ways to purchase or control and then convert to ownership. is the expert on structuring deals...and while I am talking about him...it is time for you to offer some youtube videos...:)

My preferred way of selling a lease option, or any owner finance deal for that matter, is to create a single asset entity, either an LLC or a land trust. I add my buyer to the LLC or trust at 49% and have him sign the Doc. Immediately after closing I have them buy me out for the agreed amount.

Nice tip DD!  You really are a transaction engineer!

Resources for FLA

http://www.amazon.com/Form-Limited-Liability-Compa...

http://www.amazon.com/Land-Trusts-Florida-Mark-War...

 Brian,

From you that is very high praise!!  Thank you very much!!

Originally posted by @David Dey :  My preferred way of selling a lease option, or any owner finance deal for that matter, is to create a single asset entity, either an LLC or a land trust.  I add my buyer to the LLC or trust at 49% and have him sign the Doc.  Immediately after closing I have them buy me out for the agreed amount.

Can you please break down the final part of your process? of having the buyer buy you out immediately after closing. Isn't owner financing a process of you taking payments long term from the buyer? Have never seen one of these transactions and I'm interested in making one such purchase so I'm reading about it but best to learn from those who do it successfully.

Thanks

Got my first nibble today. I'm supposed to call the seller back tomorrow, but this is what I have so far...

Triplex - Lets call it a class C. 

Was listed for $190k but it expired.

NOI is $1925 per month - seller does the management

There a 2/1 and two 1/1 - each 1/1 has a garage that could be converted to living space

All units rented

Seller has a mortgage and is current (he had to hang up before I got the numbers)

He agreed to seller financing for 15 years @ 5.5 % (I think he'll go lower on the rate) with 10% down.