All Forum Posts by: Joe Villeneuve

Quote from @Andrew Lax:

Quote from @Joe Villeneuve:

What's the rent. taxes and insurance?

What makes this a "less than desirable" property?

Do you still owe anything on the property?

1. Nets around 25k a year...
2. Not renovated in one of my inferior pockets - but still good area
3. I have no debt on my properties  

1 - Nets around 25k/year tells me nothing and doesn't answer my questions.

2 - What's an "inferior pocket"?
3 - Having no debt opens the door for some real interesting creative seller financing.  What you described as an option isn't a good option (I said that nicer than what I wanted to say).

First, dump the idea of Hard Money.  You're not a hard money lender (unless you are actually/legally one, then if you are I appologize).  Even if you were, why would someone take these terms?  What happens to the deal for the buyer after 3 years and the interest and the loans to you have to be paid?  The answer is a property that loses money big time, and they won't be able to get out of it.

What's the rent. taxes and insurance?

What makes this a "less than desirable" property?

Do you still owe anything on the property?

Quote from @Ismael Ayala Jr.:

I have heard of keeping the 2 documents seperated, thank you for confirming that for me. I spoke to a local lawyer who mentioned keeping all documents together instead of seperated, as being sufficient enough to cover all legal issues. That advice was different from what I usually heard in the investment circle on Facebook, YouTube. So I don't think that'll be a good partnership moving forward it seems. The more I look into lease option, the more of a specific, niche market it appears to be, especially with the nuances of the legal ramifications if done incorrectly. Thank you Joe, I appreciate you taking the time to respond. 

Lease Options can be a great wat to invest.  There are just a few "rules" you have to follow, but it can open the door to many deals that otherwise wouldn't exist.  If you are still interested in it, send me a direct message and I'll give you the basics.

Quote from @Ismael Ayala Jr.:

We're looking to convert our current home into a rental with the option to purchase.

Would anyone happen to have any thoughts, tips, recommendations on structuring a lease option? I've heard of a seller acknowledgement form, having a limited power of attorney, nonrefundable deposit, etc. I even heard of a landlord being sued and losing and having to back pay all the rent payments. 

I figured I'd speak to a real estate lawyer recommended by a investor friendly title company.  I have one in mind, but before I go and speak to them, any info from knowledgeable professionals/landlords is welcomed. Thx.

In the meantime, I'll scour posts for any info about this topic on BiggerPockets.

Rule number 1:  The lease contract and the Option contract, or two separate contracts, and should NEVE be connected in any way. 
Rule number 2:  The Option Consideration is NOT a deposit on the purchase, it's the cost of the Option Contract, and it should NOT be given as a credit toward the purchase of the property.  If the option is not exercised the option consideration is NOT returned to the tenant.  The tenant got what they paid for,...the option contract.

"Gurus, course sellers, and"  other experienced investors.  See above

I do mentorships as well.  

Your first mistake, is you're analyzing one deal per day.  That's a waste of time.  You should be analyzing markets.  That way you are analyzing every property within that market, so when a property comes up for sale, your analysis of that property is already done.  

When you have a single property offered to you, you are still analyzing the market that property is in.  Never just analyze properties, analyze markets.  When you buy a property, you are not simply buying a property, you are analyzing a piece of a market.  The value of any and every property, is a result of the numbers that come from the market that property is in.

I do this fort a living. I started my career as an Architect specializing in exactly what you are looking for. I got into REI from there, but I still do both. The biggest keys are:

1 - The design should have the least amount of waste.  You pay for the scrap pile.  This means designing with the size/length of all materials in mind.

2 - Don't make design decisions based on what you want, or what you would live in.  Make them based on what your tenants need (not want) which would also allow for them to customize (furniture use) to their tastes.

I wrote a book on this a number of years ago that touches on a lot of these things, but it was focused on my specialty, "Energy Efficient, cost effective homes".  It was based on what I spoke on to groups of homeowners looking to be the general contractor of their own home.

PM me if you have any questions.

I can do it.  I designed software that I use for this that can be used in any market, anywhere.

Creative RE Investing is all about knowing how money works, and understanding Geometry and Algebra.  All are my favorite subjects.