All Forum Posts by: Larry N.

Great information on this thread!

Questions:

(1.) So one would get the 'pretty steep non refundable deposit' from the buyer at time of signing the assignment agreement?

If so, wouldn't the buyer want to go see the property first, before signing the assignment agreement, and possibly dealing behind your back with the seller at the property?

(2.) It was mentioned earlier to have the buyer pay you in 'your pocket' the non refundable deposit, directly to you instead of putting it in escrow. It seems like this would be difficult to do, since must people will not give money to a stranger instead of going through a title company and escrow.

(3.) So in addition, we should also have non circumvent clauses in both the seller contract and the buyer assignment agreement and file the memorandum of notice of contract at the court house?

Thanks!

I think I will look into the " equity partner or JV" strategy versus the "money lender" strategy to get my foot in the door.

I just found out there are several experienced cash investors in the area that will partner with you and split the profits, if you find and bring a smoking deal to the table for a joint venture.

I see lots of "private lenders & hard money lenders" advertising online on the internet that say they fund rehab deals up to 65% ARV. Do you recommend these type lenders?

Someone mentioned to me instead of getting a private lender or hard money lender, that I could get a "money partner" to JV and fund the deal and split the profits at the end of the deal. Any thoughts on this?

Yes, that would be great to approach people like family, friends, doctor etc. but unfortunately I don't have any contacts with people with money or that want to get involved in investments.

I was thinking maybe contacting some real estate brokers or RE Investment Clubs to see if they have any Cash investor buyers that may be interested in partnering on some real estate deals. Any thoughts? Thanks!

Ten years?? Sounds like a very long time to find a private lender to fund your deals.

Our REI Club advised us, in this market today, there are many people with tons of money looking to invest in real estate. You just have to connect with them.

Hi,

If one is starting out in the rehab business with no cash, credit or experience, has does one get the funding to do the deals?

I've heard that one can do the business with no cash, credit or experience.

How can one get a 'real' private lenders to fund the deal or where can one get partners to partner or JV with the investor to do the deal and split the profits?

Thanks,
Larry

Hi, I was wondering is there a way for someone with no money or credit to do a profitable deal with a property listed by an agent that has been approved for a short sale? Are these type deals for someone that has money? I hear the gurus talking doing foreclosures with No money or credit. Thanks!

@Tarek Wazzan Hi Tarek, Congratulations on doing your first sandwich lease option! I'm also working to do lease options. I thought the L/O strategy would be more simple to start off with instead of flipping REOs or HUD houses.

How did you find sellers that were willing to do a L/O with you? Did you run into problems with sellers wanting to see your credit report or you sub-letting to a third party? If so, how did you handle this?
Thanks!!

Yes!! This is what I've been looking for !!

@Jay Von Mohr

Thanks for your response.

Let me get this straight:

1. First you get an Option to Lease Option Agreement signed with the Seller to get control and market the property

2. Once you find a qualified T/B, you exercise the Option to Lease Option Agreement by signing a Lease Agreement & Option to Purchase Agreement with the Seller

3. Then you assign your Lease Agreement & Option to Purchase Agreement (signed by you and the Seller) to the new T/B and then collect your assignment fee.

Yes this would be good to give the new T/B and Seller a blank identical set of docs, so the Seller and new T/B can have docs with THEIR names signed on it, instead of my name, after I'm out of the picture. Plus they will have the Assignment docs to show my assignment of rights and release of liability.

Thanks,
Larry

Jay Von Mohr mentioned:

Locking up option to lease option (which includes the option to purchase & the lease agreement) with the owner; find qualified T/B; and assign your position to them.

a. Does this mean to assign the actual option to lease option agreement 'equitable rights' to the T/B and then the T/B and owner sign the option to purchase & the lease agreement?

OR

b. Does it mean to exercise the option and sign the option to purchase & lease agreement with the owner and then assign the lease option (option to purchase & lease agreement) to the T/B?

Thanks,
Larry