All Forum Posts by: Brian Gibbons

@bill 

@Bill Gulley

Said that well. Regarding the forms, creative is talked all over the place, not just in the creative forum.

The first thing you should do is findand are a RMLO to do seller financed deals for the buyer that's owner-occupied due to Dodd Frank and the ability to repay rule.

The second thing you should do is to find a seasoned contract attorney that works with commercial and residential, but understands notes, contract for deed, land contracts, installment sales contracts, subject to existing financing, land trusts, property trusts, Master leases, master lease options lease with option, lease purchase,pure options, wraparound mortgages, joint venture agreements, private lender agreements, and more.

Third, I would consider getting a real estate license if you're not licensed which allows you to network with other agents and solve problems especially with low equity deals

Search Amazon for "Finance any property anytime"by James Misko, Who was a broker for 40 years, and has some great examples of creative financing, over 45 cases

@Kevin Hamblin

Loved that post.

BP folks either hate sub 2, lease options and wraps or love them.

Bp Readers remember there are many opinions here.  Some are pro, some are anti creative solutions.

No @Account Closed just a long term lease w option to a legal citizen but someone that pays cash for everything and no credit

@Jeff Rabinowitz

@Sergio Garcia

Yes an RMLO can look at the total income to debt ratio and credit (usually little) and make the call, as per Dodd Frank and the Ability to Repay Rule.

 What I am talking about is a lease that has long term renewals, but 1 year at a time.

If you live in an area that has non-English-speaking tenants

If you live in an area that has non-English-speaking tenants, especially Hispanics like where I live in California, and I can only imagine Arizona or New Mexico or Texas or New Orleans (I know Cajuns) in many parts of New York City,

People that have English as 2nd language are very careful about their housing, they're more motivated than the average tenant to pay you on time. They don't like legal problems and they usually keep up the property better.

They can deal with business (rent payment) matters better, because they are cash basis are cautious about bank loans because they are on cash basis so much.

How can you be creative and help an immigrant be a homeowner?

And you make money as a landlord?

A long-term lease option might be the trick. Give someone a lease for 12 months with extensions, and keep extending the lease. You can give them a 12 month option and keep renewing the option. You can say to them:

I know you love the house and you want to own it.

If you make payments on this property for long period time I will help you get the deed.

There will be slight rent increases over time, but this way you can be a homeowner and get the deed.

Now if you are a honest person and want to help people, this might be a good idea to get long-term rentals and even be a long-distance landlord.

The tenants can pay you cash deposits into a bank every month, you give them bank deposit slips.

Every 6 months to 12 months combined look at the property if you're out of the area, and on the anniversary date let them know how many more years they got to go to the deed.

I know everybody wants to get a free and clear property and buy-and-hold, but you get a good cash flow out of the property, after expenses, you might want to consider this is a way to help immigrants. And not have any turnover.

I love Ray Alcorn as a trainer.

Also Anthony Chara for apartments.

Dont know Peter Harris.

See

http://www.reiclub.com/authors/ray%20alcorn.html

I would ask about the note that exists, does one?

Consider negotiating a "wrap around mortgage purchase" if there is a note.  

$100K property w $2000 coming in sounds nice.

Maintenance?

Avoid banks if you can.

Need to know existing financing.

Here is a form w info sheet - q's to ask sellers

```````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````

PROPERTY INFORMATION WORKSHEET

Address __________________________________________Date _________

Location / Cross Street _______________________________Map Pg# _____

Seller _______________________Ph# ____________Alt. Ph# ___________

Listing Agent _________________Ph# ____________Alt. Ph# ___________

CONDITION

__Occupied / __Vacant_____ Bed/_____ BathConstruction _____________

A/C ___________Elect. Amps ________Garage _____Year Built _______

Roof ____________________________________________________________

Exterior __________________________________________________________

Interior __________________________________________________________

Kitchen __________________________________________________________

Baths ___________________________________________________________

Plumbing ________________________________________________________

Appliances _______________________________________________________

Neighborhood ____________________________________________________

Other Work Needed ________________________________________________

________________________________________________________________

FINANCIALS

1st Lien Bal. $_________ 2nd lien Bal. $_________In Foreclosure: __Yes/__No

Asking Price $_________My Offer $_________Resell Approx. $__________

Terms: __ Subject To, __ Agr. For Deed, __ Seller Fin., __ Lease Option, __ All Cash

Additional Notes __________________________________________________

________________________________________________________________

________________________________________________________________

CONTACT RECORD

NameDateNote

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

Now that you've negotiated a" what if statement" you want to pull out a letter of intent.

This basically talks about some very simple terms, for either owner financing, sub 2 or lease option assignments or sandwiches.

The letter of intent should basically say the following, for a lease option assignment.

`````````````````````````````````````````````````````````````````````````````

(NOTE - THIS IS NOT A LEGAL DOCUMENT - TAKE TO YOUR ATTORNEY)

Letter Of Intent to Lease with Option

Subject property is at this address: ___________________________________________________________

Owners of Record are: _____________________________________________________________________

Legal Description is: _______________________________________________________________________

Purchaser: (name of your LLC) _______________________________________________________________

The above Owners of Record wish to enter into a Lease with an Option with the Purchasers.

It is understood that the Owners of Record and the Purchasers understand the following:

1. The Purchasers are licensed in the state of ____ to act as a real estate agent, but in this transaction is acting as a principal buyer and not "agent for".
Please be advised that purchaser is a real estate investor that intends to enter into the agreements contemplated for the purpose of investing in real estate as a going business concern and to make a profit.

2. The Owners of Record and the Purchasers agree to enter into a Lease and an Option To Purchase. This lease and option will have the following Terms and Conditions in items 3 - 12.

3. The Rental Term for property's Rental Agreement shall be for 12 months with possible qty. (2) 12 month extensions.
The rental amount per month paid in arrears is $________________ per month, starting on __________ (date).
These terms may be changed with both Owners of Record and Purchasers written consent.

4. The sales price shall be EITHER based on
a) the AVERAGE comparable values that have sold in the last 3 months with attached Comparable Marketing Analysis or
b) $____________________.
These terms may be changed with both Owners of Record and Purchasers written consent.


5. It is understood that the sales price cannot be higher than appraisal, as to assist the purchaser qualifying for a new mortgage.
If the appraisal is less than the sales price, at the time of exercising their option, the owners of record and the purchaser both agree that the sales price will be based on the new appraisal.

6. The option fee will be $_______________, and at the time the option is exercised, the option fee will be applied toward the purchase price.

7. This letter of intent will act as escrow instructions for both the owners of record and the purchaser.

8. It understood that this letter of intent is a "meeting of the minds" of general terms, and conditions, of the lease an option that will be signed with notary witness.

9. It also understood that this letter of intent is not binding, but serves to communicate intention of the purchaser and owners of record.

10. Time limit: either party, the purchaser or the owners of record, can cancel this letter of intent by simply not entering into a lease option by this date and time:
Date:______________ Time:________________
After this date and time, this letter of intent is void.

11. Purchasers are allowed to assign their Lease and Option to a third-party without the consent of Owners of Record.
Owners of Record realize and understand that the Purchasers will assign for a fee and to create a profit for Purchasers.
Owners of Record realize that there is no fee paid from Owners of Record to Purchasers for entering into this letter of intent.

12. Existing In-Force Listing Agreement
___ There is ___ There is not
an existing in-effect listing agreement with a real estate agent.
It is understood that if there is an existing in-effect listing agreement with an agent, that agreement may be in effect and a commission may need to be paid when the property is sold.

```````````````````````````````````````````````````````````````````

Signatures

Owner 1 x _________________________________ Printed Name _____________________________ Date ________________

Owner 2 x _________________________________ Printed Name _____________________________ Date ________________

``````````````````````````````````````````````````````````````````

Purchaser 1 x _________________________________ Printed Name _____________________________ Date ________________

Member LLC Name _______________________________

Purchaser 2 x _________________________________ Printed Name _____________________________ Date ________________

Member LLC Name _______________________________

Spell out please what is happening 

House for sale, who owns it, mortgage balance if any

Buyer or seller is the client?

You are an agent?

http://www.biggerpockets.com/forums/12/topics/180137-starting-out---get-a-quick-start-this-spring-doing-terms-deals?page=1#p1218747

You can look up quick flips or you can look at buying and selling on terms which is the above link

Many educators and gurus teach the buy/fix/ and flip

It's my opinion to just focus on expired listings and help so I'm selling terms and make some money if you're low on cash