All Forum Posts by: Brian Gibbons

I would find tenant buyers myself. Use bandit signs, craigslist, postlets, create a website with the street address including state and zip code, do a video walk through, put the video on a word press site, etc.

Here is a check list:

Common Mistakes When Selling On Lease Option:

* Failing to properly pre-qualify the tenant/buyer. #1 is to underwrite with a licensed mortgage broker.

* Failing to do the proper disclosures to a sub-lease option tenant/buyer. Disclose risks. Have separate lease and separate option.

* Not getting enough of an option fee from your tenant/buyer. Get at least 3%.

* Not checking the tenant/buyer's credit to make sure they are not a poor-character and have the ability to pay. See 1st mistake.

* And not making sure that all your closing costs are covered properly. (Remember, closing costs are negotiable, and tenant buyer can pay all of them.)

* And get a lawyer and notary to protect your interests.

Brian

Hi @Matthew Morganstein

What discount would I have to get in order to compensate for the expected depreciation in property value over the next few years?

How do you know it will depreciate? Have talked to an expert in the area, like a broker w 30 years experience? Would you take a new appraisal price in the future?

What characteristics would the property have to have in order to make it a liable investment?

I look for great schools, low crime, 4 B 2 B+, 2 car garage, not the best house, not the worst on the street. That is MHO.

You want to look at market rent vs PITI. Why is this a good deal for the seller?

Is this a fixed rate mortgage or an ARM?

Give him $70,000 on a note, no interest, 70% of market rent ($700 per month).

Have him pay the commission.

$70000 div by 700 per month = 100 months, then its paid off.

In 8.3 yrs you have $650 x 2 coming in, no debt service.

Agent usually gets in your way. Knock on the door and see the seller yourself.

Free and Clear properties allow for creativity.

You can create a private mortgage with no interest but pay MORE for the property.

Hi @Carrie Collyer

You could sandwich, or lease option assignment.

If you care about the buyer getting the houser, you may want to tie the sale to a new appraisal.

The key to the seller talking the deal is that the seller can make more money your way (LO or SLO)

Who is paying the agent? You may want the listing to expire, avoid the commission, or have the seller pay the agent $500 to release the listing.

@John Jackson might want to jump in here.

Here is a presentation to sell to the seller.

http://www.biggerpockets.com/blogs/3/blog_posts/29012-how-i-talk-to-sellers-with-no-equity

Best of Luck!

Brian

Buy J Scott's Wholesaling book first if u are primarily wholesaling.

I teach Lease Option assignments nationally, and Calif is a really funny state, can be done tho. Buying on Installment sale and selling on RTent to own may be the best play in Calif. There is a contract called Contract For Sale in Calif that is like a Contract For Deed. An Alternative is a AITD or All Inclusive Trust Deed.

Give me a ring, happy to talk.

And it is pronounced Wuuuu Sta! lol

Paaaak the caaa in the Haaavard Yaaad!

Go Red Sox! Beat Detroit and National League!

Hi @Kelly Davis

I am in Sherman Oaks. From Boston, LA is nuts some times! lol

Feel free to say hi!

Brian

626 3128 0599

There are alternatives.

Sell on

- Installment Sale (CFD- Land Contract)

- Wrap Around Mortgage

- Priv Mortgage with Free and Clear House

- Contract For Option and Lease

- ROFR Right of First Refusal and lease

Brian