All Forum Posts by: Brian Gibbons

This is pure gold to the WORD PATTERNS in Rent to Own, objection handlers 101.

When you know FHA guidelines well, you can BRAG to sellers your knowledge, IMPRESS them that you are on the ball.

http://www.fha.com/fha_loan_requirements.cfm

Learn those guidelines, and hook up with a licensed mortgage broker in your state.

And use a FICO Coach like Blair Warner at www.UpGradeMyCredit.com to help increase the Tenant Buyer's FICO Score.

Best Wishes,

Brian

@John Jackson Rocks!

Hi @Alexaundra McCormick

I'll do my best to answer these.

But first of all it is all in the approach.

They want to know can they just cancel the lease if they find the tenant/buyer unsuitable for they're property?

When a sign a lease you are making a commitment You are not dating, you are married, unless some issue comes up, like not paying rent.

If I have a seller that does not want to lease out for a while and have the tenant buy it down the road, I say NEXT re: Lease Option.

But that does not mean I can not offer a sub2 or a contract for deed.

What happens if they mess up the place and leave? and how can they be sure that the buyers will be good fits for them to lease option they're home.

Tenant Buyers must have "skin in the game" to move in, like 3% or $5000, whichever is greater, as a non refundable option payment. With that kind of "stick" why would they risk losing their money?

See this video, as I compare Selling with an Agent vs Renting vs Selling On Lease Option.

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

@Account Closed

Consider your credit rating that the bank loan is giving you, and if you have a private mortgage from your mom, you may not get the FICO points.

To apply for a mortgage on your own credit is something to consider also.

I would strongly agree with @JScott that flipping - Wholesaling is not easy in many areas of the country.

If you look at every motivated seller and ask yourself,

what is the best strategy for this seller?

Pretty houses with no work in good school districts can do a lease option assignment or a sub2 or a contract for deed (MN).

No equity deals are usually sub2, lease option assignments or short sales.

Wholesale flipping with knowing exactly what the cash buyer wants works. Get J Scotts book on wholesaling. It will save you lots of time and heartache.

See http://www.amazon.com/The-Book-Flipping-Houses-BiggerPockets/dp/0988973707

Hope that helps,

Brian

Yea! @Darrin Carey said it wonderfully well.

If you are broke and have no deals to brag about....

• Bird Dog
• Straight option flip
• Wholesale - "and or assigns" Purchase and Sale Agreement
• Lease Option Assignment
• CFD Purchase and rent
• Wrap Around Mortgage Mortgage and rent
• Offer Private 1st Mortgage on free and clear houses
• Market for Tenant Buyers and find them a rent a own home

Talk to Rehabbers and find out what they want.

Buy $25 @JScott s book

See http://www.amazon.com/The-Book-Flipping-Houses-BiggerPockets/dp/0988973707

Read these posts

http://search.yahoo.com/search;_ylt=A0oGdUIwuitSpFkABwNXNyoA;_ylc=X1MyNzY2Njc5X3IyYmNrYW9qMHZwcDhpMGtjNyUyNmIlM0Q0JTI2ZCUzRExFTk94cVJwWUVLZU5FQVZRcUQxeXNkcFQyR2RfdXJ2V05ETE13LS0lMjZzJTNEZzUlMjZpJTNEZDFnSEc2aEMyMUh3enZyMGd0ejJjc3JjcHZpZE8zY25Ta29HZEVlc1RCX09VU0JSaHd0VVlwb013RklydWpBQUMwbTBmcmNoci1ncmVlbnRyZWVfZ2NmcjJzYi10b3BncHJpZElNSlBaeGw0UTI2OXJDb1FMU2NaNEFuX3JzbHQxMG5fc3VnZzBvcmlnaW5zZWFyY2gueWFob28uY29tcG9zMHBxc3RycHFzdHJscXN0cmwyN3F1ZXJ5QnJpYW4gR2liYm9ucyBiaWdnZXJwb2NrZXRzdF9zdG1wMTM3ODU5NzUzMzUyNXZ0ZXN0aWRWSVAyNjQ-?p=Brian+Gibbons+biggerpockets&fr2=sb-top&fr=chr-greentree_gc&type=386496

http://search.yahoo.com/search;_ylt=A0oGdWuhuitS5loAy9pXNyoA;_ylc=X1MyNzY2Njc5X3IyYmNrYW9qMHZwcDhpMGtjNyUyNmIlM0Q0JTI2ZCUzRExFTk94cVJwWUVLZU5FQVZRcUQxeXNkcFQyR2RfdXJ2V05ETE13LS0lMjZzJTNEZzUlMjZpJTNEZDFnSEc2aEMyMUh3enZyMGd0ejJjc3JjcHZpZFFEOElXa29HZEVlc1RCX09VU0JSaHhEYllwb013RklydXFFQUNqMUhmcmNoci1ncmVlbnRyZWVfZ2NmcjJzYi10b3BncHJpZEp6b2RNQTVsVEhDeTRfS2RBdjlQeEFuX3JzbHQxMG5fc3VnZzBvcmlnaW5zZWFyY2gueWFob28uY29tcG9zMHBxc3RycHFzdHJscXN0cmwyNnF1ZXJ5Sm9obiBKYWNrc29uIGJpZ2dlcnBvY2tldHN0X3N0bXAxMzc4NTk3NTU5NTc2dnRlc3RpZFZJUDI2NA--?p=John+Jackson+biggerpockets&fr2=sb-top&fr=chr-greentree_gc&type=386496

http://www.biggerpockets.com/search?utf8=%E2%9C%93&term=bill+gulley

http://www.biggerpockets.com/search?utf8=%E2%9C%93&term=michael+carbonare

That should keep you going.

Best Wishes,

Brian

Well @Nate Green focusing on Lease Options is good, but Being a Transaction Engineer is better.

Making a seller "fit" a strategy is not the way to do REI. Having all the strategies that are possible and legal in your state at your disposal is a better plan.

You are in NY which makes it not easy to do business with all the lawyers and law suits.

I had an office in Westchester NY and had a great lawyer do all my RE conveyancing. I did alot of lease options, cfds, wraps, private mortgages on free and clear houses, along with rehabs and wholesale flips. This attorney mentored me as to local convention. I learned alot. I was 31 at the time. I am 55 now.

If you are new to doing deals in NY, it may pay to get a realtor sales license and find a local attorney to close your deals with.

In certain states where Land Trusts are common, you can have the seller place the property in the trust to protect from lawsuits and have privacy of the ownership.

Your REIA in NY is the place to network for JV Partners. Just deliver on your end when partnering.

Here is schematic to think about.

-Pretty house, No equity? - sub2, lease option assignment, short sale

-Pretty house, equity, current payments? - cfd, wrap around mortgage, sub2, lease option sandwich, lease option assignment, wholesale flip.

-Pretty house, equity, behind on payments? - private money to get current, cfd, wrap around mortgage, sub2, lease option sandwich, lease option assignment, wholesale flip.

-Ugly house, equity, current payments? - wholesale flip, rehab deal.

@John Jackson @Bill Walston @Michael Carbonare @Bill Gulley

and more all have posts here to assist you.

Bottom line, just don't be a 1 trick pony. Be a Transaction Engineer.

@Tiffany Youngren I send my clients to Blair for Rent to Own and Owner Financing. I trust him.

I have not used him personally for my credit.

Best to you.

Brian

I would do a meetup com site for finders, people dont get what a bird dog means.

We pay 1099. Work your own hours.

Build a wordpress site.

Here is mine:

www.birddogcash.com

"where the payments reach the full appraisal price"...not quite clear on what you mean.

Lease Option Assignments are great for low equity, or no equity homes, or SLIGHTLY under water, like 5%.

Here is a video on how I talk to sellers with little or no equity.

Hope you like it.

Brian

PS I use these forms

http://www.biggerpockets.com/files/user/REISkills/file/seller-property-research-form to fill out on the phone and in person on first appointment.

http://www.biggerpockets.com/files/user/REISkills/file/seller-questions-to-ask-the-seller training - do not show seller this - questions to ask sellers

http://www.biggerpockets.com/files/user/REISkills/file/seller-how-much-does-it-cost-to-sell-my-house - this is a training piece for the costs to sell

http://www.biggerpockets.com/files/user/REISkills/file/seller-concessions-fha This is a bankrate article about fha loans and seller concessions.

The Tenant Buyer/Vendee side of Lease Options or Owner Financing is ANNOYING!

Many "looky lous", wasting your time.

It is imperative that you:

Have a presentation to filter out the looky lou's...see mine at [LINK REMOVED]

Take a fee, I like $35 single - $50 married, $50 for VIP list, credit the fees toward the option fee, all non refundable.

For GREAT tenant buyers (income, debt, credit problem fixable like problem was 3 - 5 years ago) I would go see them and repeat the presentation.

The Tenant Buyer side of the business will not be very successful without a Credit Improvement Specialist.

I use Blair Warner at www.UpGradeMyCredit.com

A book I use about improving FICO scores is Hidden Credit Repair Secrets http://www.amazon.com/Hidden-Credit-Repair-Secrets-Edition/dp/145632134X

I hope that helps.

Brian