All Forum Posts by: Brian Gibbons

 1. Marketing for Sellers - Expireds, Cancelled Listings, Long DOM Listings, Go see the seller, give a letter about lease to own vs selling for cash.  

2. Negotiating with Sellers 

3. See attorney about drafting lease and option from Letter of Intent.  Have seller sign lease and option and notary witnesses signatures.

4. Record the option

5. Market for Tenant Buyers

5a) Start a Wordpress Blog about Lease 2 Own, what is in it for the Renter or Credit Challenged FHA Buyer; go to ipage.com , get a domain like PrescottRentToOwnHomes.com if you lived in Prescott AZ

5b) Get a Tenant Buyer site at OnCarrot.com

See

https://oncarrot.com/rent-to-own-website-templates...

5c) Get a BIG Sign on the front yard

Rent To Own Home

Rent $1100 

24 months or less

666-xxx-xxxx 24 hours rec message

5d) walk door to door 50 houses next to house in neighborhoods.  

6.  Tenant Buyer Presentation and Paperwork

Show the tenant buyer prospects the property. Get them to sign a Earnest Money Agreement and a Option Release Fee half of 3% of FMV.

ex) 3000 Option Release Fee, get a check made to Title Company for $1500, write Option Release Fee in memo.  Deliver to Title Co.  

DO NOT MAKE CHECK OUT TO YOU OR YOUR COMPANY.

7. Final Items

I would cancel the original lease and option once the total option release fee has been collected and cashed.

A new lease and option is then created with the seller and the tenant buyer, and signed and notarized.

Keys and contract papers are delivered to the tenant buyers and sellers.

You collect your option release fee and go onto the next deal.

Good luck!

Cash or Terms

For Cash - never more than 80% of FMV in great shape.

It costs 10% to sell with an agent, and you need to buy 10% equity, so dont over pay.

Terms on free and clear houses, perfect shape, I will give 100% of value on my private terms (installment sale).

@John Jackson I trained in 2002, he is the authority in Texas Lease Options.

Creative Financing 101

No Banks No Credit

1. Lease Option and assign - easiest - You lease Option from Seller and assign for 3% to 5%.  Be fair, charge market rent, market sales price, no rent credits.

2. Sub2 - Get the Deed - must deal with the due on sale clause - not impossible.  You get the deed, seller agrees to keep the loan in their name for a short time, good for fix and flips, not long term.

3. Wrap Around Mortgage - must deal with the due on sale clause - not impossible. You wrap a new loan around the existing financing, aka "all inclusive trust deed", seller agrees to keep the loan in their name for a short time, good for fix and flips, not long term.

4. Land Contract - popular in many states.  Depends on Local Customs.

5. Free and Clear Houses - Buy on Private First Mortgages - Create good private terms, like a Moratorium on payments, Subordination, and Substitution of Collateral.

6. Sandwich Lease Options - You lease options from seller, sub lease, sub option - you must pay seller even if Tenant Buyer you are sub leasing and sub optioning to.

7. Joint Venture with Seller on minor rehabs, free and clear house - You get private money for minor rehab, give note for equity, no payments to seller for 4 months, buy it, fix it, resell it, pay off private loan and seller's private note

8. Joint Venture with Doctors and Business People - many ways, I like LLC creation and JV Agreement, I find and supervise a local rehab, get funding with private individual, or hard money, buy it, own it, fix it, resell it, split net profit after all expenses, large numbers does not need 50 50% split, can be 25 75 split if deal is strong enough.

9. Wholesaling and Co-Wholesaling - You find a deal with a lot of equity and a lot of work in a reasonably good area.  You can co wholesale by partnering with other wholesalers, either just find the house and seller, or just find the Cash Buyer.

This is just residential, commercial is wide open.

Dodd Frank applies to financing owner occupants.  See

http://www.biggerpockets.com/blogs/3/blog_posts/39...

the CFPB has the final say on owner financing.

Creative Financing is useful for not just credit impaired investors; there are restrictions even with good credit on US Govt backed loans such as FHA 203B

http://portal.hud.gov/hudportal/HUD?src=/program_o...

Marketing for Creative Deals

Forget the MLS except for Expired Listings and Cancelled Listings. I like LONG Days On the Market (DOM) , "about to" expired listings. Knocking on doors is the fastest way to a good creative deal.

Getting Licensed or Having a Licensed Agent in your C Corp or S Corp or LLC

Having a good excuse or reason for Bad Credit might be enough of an explanation to getting approved for a Realtor's Agent Sales License.

Good luck to anyone with bad credit.

It is a temporary problem.

Start building you Good Credit NOW!

See

http://www.myfico.com/CreditEducation/ImproveYourS...

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There are posters here that are awesome in Creative Financing @Bill Gulley

@Bill Gulley

@K. Marie Poe

@Curt Smith

@John Fedro

@Josh Caldwell

@Steve Vaughan

Talk to

@Terry Lewis

Www.sellerfinanceconsultants.com

@Shanequa J.

@Wayne Brooks

For a creative deal you need to know the existing financing exactly, payment, who has note a fixed-rate or ARM, why seller is selling, etc

Tools to use: subject to, lease option, wrap mortgage, etc.

@Rick H.

I have made more money from 5 nos than the first yes :)

Btw I follow up with hand written post cards

Better than email or phone

Sellers save them :) 

Hi Jackie

@Jackie Campbell

I do a lot of these

I lease option from seller

Then have the buyer pay a option release fee to release my option

Cleaner than a direct assignment fee

I will always be grasshopper

You Sensei

Congrats @Bill Gulley