All Forum Posts by: Michael Carbonare

Good morning, Ben.  I've been using various lease option strategies for 30 years.  Finding a qualified tenant/buyer is a function of marketing and terms.  Not enough eyeballs on your property?  Your marketing is inadequate.
Getting views but no bites?  The market is always right and it's telling you your terms aren't in tune with the local market.  Do either of these apply?

@Kenny Stevenson  Carleton Sheets!  You're goin' old school.  I bought the Carleton Sheets course after seeing his infomercial.  Took me many times of watching it to finally order the course.  I still have it somewhere in one of my deep, dark closets. LOL  Can't say I used it specifically to do any deals, but the info piqued my interest enough to eventually begin investing in real estate.  That was 30 years ago and counting.

I would offer it as a long term lease option, 24 months minimum, 36 is even better.
1) Option money, $15K ballpark, see what the offers bring in
2)  Rent, $2450.  The market is always right and will quickly tell you if you're on target
3) Option to purchase price at current appraisal, $388K

I didn't have the cash to buy a primary residence so started with cooperative assignments.  Sort of like a fix and flip but without the drudgery of fixing.  This enabled me to raise cash from the assignment fees.  From there I was able to pursue other strategies, including purchasing my primary residence.

Paralysis of Analysis, a virus worse than Covid, infects just about every n00b who is trying to get started in real estate.  It's the I want to know everything before I do anything syndrome.  I suffered through this for 3 years before recognizing I had a problem.  That was 30 years ago.  If I was starting out today I imagine it would be much worse, the result of (mis)information that is so prevalent and readily available on social media.  Before you know, 3 months of "studying" becomes 1 year, which becomes 3 years, and on and on.  
Don't be like Mike.  Best advice I can offer:  settle on ONE strategy, just one.  A strategy that fits your current financial situation and your financial mindset and goals.  Then, block out all the noise and BS that is Facebook, Instagram, YouTube, and god help us, TikTok.  This will clear your mind and slow down the process which, ironically, will speed up your progress.  Best wishes!

Good morning, Jennifer.  Are you the seller, the buyer/investor, or the Agent in this deal?

Try a long term lease option.  Minimal cash upfront, negotiate a monthly rent, lock in a price today that will benefit from any appreciate that might occur during the term of the lease.

I’m often asked by new investor hopefuls how to get started in real estate when cash is light. Here’s a recent real world example. . .
This deal was put together by my former student, current friend, and now successful real estate investor.
Source: expired listing
Location: investor, Florida; property, Illinois
Type: long term lease option via a sandwich lease
Terms between investor and homeowner:
a) 48 months
b) option to purchase price $135K
c) rent, $1200
d) cash out of pocket, $0.
Multiple exit strategy possibilities:
a) Traditional rental at current market rate of $1500. At any time during the 48 month lease the property can be purchased. All appreciation is the investor’s. If investor doesn’t want to purchase the property, it’s an option to purchase, not an obligation to purchase. He can utilize it for the cash flow until his lease expires.
b) Assign entire deal to another investor for a negotiated amount. Cash out, move on to the next deal. (Similar to a deal I wrote about here).
c) Most common approach is to sublet the property as a lease option to a tenant/buyer with fatter terms on the other side. For example, a 12 month lease at $1500/mo. Tenant/Buyer is required to put down nonrefundable option money. In this price range and conservatively, $5000. The option to purchase price will be set at $155K. If the option to purchase isn’t exercised, he can sublet the deal again to another tenant/buyer, possibly with increased rent and purchase price, depending upon the local real estate market. 

Jerrell, do yourself a favor and don't become a landlord in New York.

Who can forget Bernie Madoff and Scott Rothstein?  Two of Palm Beach and Broward County's stellar businessmen.