All Forum Posts by: Michael Baradell

@Account Closed thanks for the response! I understand each state may have different rules and regs on this subject, but my question is, assuming the specific state allows either first, last and security or first and 2x security( no last months rent ) which would be better and why? If I am asking for first and 1 month security to a qualified tenant, and someone applies and meets all criteria except for one, which is the better way to go; Charge them last months rent or extra security ( if allowed of course ). 

Hey BP!!

I am curious on your thoughts. If you have a tenant applicant who is qualified in all aspects except they have bad credit due to medical, would you require first months rent AND 2X securit deposit or First, Last and one month security deposit? Which is better? Why? 

Hey BP!!

I was approached to help assist someone in selling their mobile home. I have no experience with mobile homes so I had a few questions.

Info: 

-The home will be sold by itself. ( owner does not own the land )

- Purchased new less than 5 years ago. ( still in good condition )

Questions:

1. What is the most effective way to sell a mobile home that is not being sold with the land also?

2. How do you value the home? ( MLS comps will include land ).

Any insight on this topic is much appreciated.!!

@Matt Skinner Wow!! Good luck on that for sure. So you used a LO to purchase this property as your primary residence? 

@Wayne Brooks that is what I was thinking as well. How do you suggest dating the purchase agreement so that it will remain valid for the duration of the lease term?

Hey guys,

I have gotten mixed reviews on this, so I would like to see BP's thoughts on it. On a lease option, I will have my lease and a separate contract that will give the TB the option to purchase and also disclose the non refundable option fee. Should the details of the purchase go on this form as well or should I have a purchase agreement as well? If I have three separate contracts, how do you go about dating the purchase agreement? 

Also, I truly want the TB to actuall purchase the property in the end and would like to set them up to succeed. Can I put in one of those contracts that the TB must work with a mortgage broker or some kind of financial financial advisor to help guide them on a monthly basis to achieving the required credit score to qualify? 

@Amy L.  Welcome to BP and LA!! Mandeville is my neck of the woods as well!! Although I technically live in Covington. I'm a Realtor and an active investor as well so if you have any questions about the area, feel free to contact me anytime.

What type of investing are you looking to do?

@Mike Lowery  I have sold a few properties via owner financing and bond for deed but never Lease option. I have been considering selling my most recent investment property through a lease option. This is what I would say based off of my recent research.

First, I am always hesitant to work with friends and family, but to each his own. The reason I say that first is because I think you are giving them too good of a deal. I would charge a minimum of 3% option fee ( non refundable ) and not give them as much rent credit each month if any. ( Rent credits could get you into a bad situation also, research Dodd Frank).

I would also close with some type of escrow company that will handle all payments throughout the term. This will make the transaction comfortable for both parties. 

I'm still learning about Lease options, but so far, they seem like a great way to buy/sell real estate. 

Good luck!!

@Bill Gulley Thanks for the short, concise answer!! :) I appreciate the time you put into your explanation. Although, I am not very familiar with the rules and regulations that you were speaking of, I thankfully had enough common sense to know that the investors who do request the tenant be responsible for repairs, were wrong. With rules and regs changing so frequently, I didn't know if there was something I was missing. 

BTW, I didn't hear that from any of the Guru's, it was actually from a BP member who is very active on the forums. Hopefully they are simply misinformed and are not intentionally passing around bad info!!

Also, I am planning on speaking to my attorney this upcoming week to have her draw up a solid lease agreement as well as the option agreement. 1.) Being a licensed agent, do you think it's best for me to use the standard forms and contracts from my RE board on personal investments/deals, or should I use a more detailed contract? 2.) Are there any sites you would recommend when searching for specific rules, regs, and laws that would be state specific? Most of the info I have access to through my RE board is generalized and doesn't help answer most investor specific questions. 

Thanks again for your help!!

Hey BP,

I have been researching Lease Options and have been getting mixed reviews on who is responsible for maintenance on the property. Prior to doing research on lease options, I would have said that the Owner/Seller of the property would be responsible for any major issues ( anything over $100 ). After reading up and watching some videos, I have heard several people say that the TB is responsible for maintenance and repairs. How is this possible? Legal?