All Forum Posts by: Brian Gibbons

ooooo I love that post @Bill Gulley 

1. Pay the option price in a lump sum it is not Dodd Frank (although I still use a RMLO on all Residential Lease Options (assignments or sandwiches).

2. Obey local residential landlord tenant laws in Residential Lease Options.  No repairs for tenants.

Here is a story for this comment:

All real estate is local, meaning how rules and regulations or laws are interpreted will be by what is usual, customary and accepted in that local jurisdiction, that judge in your courthouse will tell you what is to be followed. To understand that, talk to a local RE attorney who knows of that judge who can tell you how s/he is likely to react in your strategy, no one on the internet can tell you what is acceptable locally.

I was interviewing an attorney in NC for a REI Student of mine recently, and I wanted to know what the local attitude of lease with option was locally in the Raliegh area.

She said the local attitude was the judges hated lease options there, and the local laws were not conducive to evicting non paying lease w option tenants, and it was pro tenant, anti landlord - seller.  Their lease with option laws were similar to contract for deed purchases.  No eviction, needed to foreclose.

She recommended that sub2s purchases were better, with an exit to rent and give a ROFR instead of an option.

3. All real estate is LOCAL.

4. Expectations of future financing is as important as the ATR Rule with the cfpb.

Bill welcome to the 18000 club.  At the rate I am going, I will never get there til the year 2020.

@Dennis Brody 

Ok you are in S Carolina, ARV is 130K, owes 98K, needs 8000 to cure note,

Costs to sell are 13K with agents fees, closing costs, etc

130 - 98K - 8K - 13K = 11K

Seriously?

You might do a JV with the seller but this is very thin.

Seller gets nothing, you get a $10K fee for the JV

1. Pay $8000 to cure note, Buy sub2, make payments on note

2. List house $130K, closes in 60 days

3. Pay 98K loan bal + 8K back payments + $13K costs to sell + 2K to repair = 121K

4. You make balance, 130K - 121K 

net to you is less due to making PITI payments til resale happens.

CCIM designation is great education even if you do not pass the test, like a CFP in Financial Planning.

CCIM Courses

http://www.ccim.com/education/ward-center

$15 dollars a month at justhost.com with a free domain, install wordpress for free, see this awesome video on how to build a wordpress Seller's Site

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Seth writes for BP.  Awesome vid!

Well done @Seth Williams 

If you are going to rent it out, NOO, Dodd Frank does not apply.

If you are living in it as an Owner Occupant, OO, I would get a RMLO involved. See www.SellerFinanceConsultants.com They do paperwork on Dodd Frank compliance.

Here is a video

http://reiskills.wistia.com/medias/nwyvd7rjk9

It talks about Option 1 vs Option 2

@Christopher Morin 

A couple of things: 

Do not do a sub2 unless you want to own it and you could get financing for it later (new loan conventional or with partners)

In Florida, do not do lease option assignments unless you are licensed or have licensed agents in your LLC working with you. FL Real Estate Board looks at assigning lease options as brokering.

if you are in texas, and this is her residence, it comes into an exemption of Dodd Frank.

I would go to a title company and ask for owner financing documents.  

http://search.yahoo.com/search?p=title+company+tex...

@Anthony Chara

@Bill Walston 

Oh I agree $800 in California for a LLC formation is kind of crazy but I don't know anyway around it

I know you can go get a Wyoming LLC for 50 bucks but u live here

Maybe @Rick H. 

@kyle atans 

You are not smart to say you do not to open an entity. You need tax and legal for what you want to do.

First thought is you both open LLCs and open a LLC as owner with an operating agreement spelling out terms of duties and reprecusions of default.

But I'm not an attorney.

Just my 2 cents