All Forum Posts by: Brian Gibbons

We are implementing 2 plans at once in Cleveland area:

Lease Purchase Assignments

Purchase REOs and Preforeclosures with Private Loans - then selling on terms with land contracts or lease options.

Matt will fill you in on his thoughts. I will post our success on BP for others to learn.

Thanks, Shaun. "Sun Tzu and the Art of War" in Forclosures - Short Sales!

Any others on the board?

Brian

A Creative Real Estate Investor's Credo

This is mine:

I WILL:

- Walk through a house and be honest will the Seller - Yes or No, NO BS.
- If yes, I will always offer 2-3 creative offers (all cash w/ private money, sub2, lease option, land contract, seller carry equity, etc.)
- I will always SAY WHAT I MEAN and I will MEAN WHAT I SAY. I deliver my own offers.
- I will always speak at public gatherings about SELLER FINANCING and PRIVATE IRA LOANs as they are my 2 most important subjects to my livelihood. Lions Club, Toast Masters, etc.
- I will always treat the REI people I coach with respect they deserve.
- I will always give of my time to kids and athletics, my other life sustaining passion.

------------------------------

What is your CREDO or OATH?

I'd love to hear at least 20 of them.

Your CREDO defines you.

Who you are, and what you stand for.

C'mon, get them out there and be REAL!

Brian

Jon spelled choices out nicely.

One other concept that is not mentioned is a hybrid of a lease w option and a contract for deed.

And a lawyer came up with this. :)

Give the tenant:
A 36 month lease
A Contract for Option to purchase

The "contract for option" states and restates that an option will be delivered in the future, after the specific performance on the lease and that no right title or interest is passed at the execution of the contract.

This concept can be used with any lease, on any kind of property, of any value.

This avoids "equitable interest" claims from the tenant.

In a CFO or Contract for option to purchase, there is only a landlord and a tenant, not a "tenant buyer".

Brian

Nice post Rich.

Owning 1 property a yr for 20 years as long as PITI + maitenance is less rental income.

Getting rich thru rentals is not easy in every area of US (eg Calif) but can be done in many cities.

I love College Towns and good Hospitals.

Keep up the great posting!

Brian :D

Here is another resource...

Landlord, Tenant and Real Estate Law
1031 Exchange
Construction Law
Eminent Domain
Foreclosure
Landlord Tenant
Loan Modification
Mortgage Fraud
Real Estate Law
http://www.lawinfo.com/legal-topics.html

California

http://resources.lawinfo.com/en/Free-Legal-Forms/Real-Estate/California/index.html

My 2 cents:

A. Sub2 is legal.
B. Realtors hate them.
C. Lawyers hate them too.
D. Calif is SUIT HAPPY.
E. Calif Realtors can practice limited contract law (with E and O insurance).

Good luck!

And, pay for a good Sub2 education, because there are lots of details.

Docs you need:

* Addendum To The Purchase And Sale Agreement

* Quit Claim Deed To Trustee

* Authorization To Release Mortgage Information

* Limited Power Of Attorney Regarding Real Estate

* Insurance Letter

* Escrow Letter

* Letter To Mortgage Lien Holder

Hi, you are talking about Sandwich Land Contracts, where you buy (In Minnesota) on a Land Contract, and then sell on Land Contract.

I advise you get an attorney that has court experience re: Land Contracts.

I found this MN attorney's explination:
http://www.jphoffmanlaw.com/realestatelaw_faq.html
No affiliation, so be skeptical and careful.

Some states are really awful w/ Land Contracts, and some are terrific. I like GA, can foreclose easily and quickly.

For those who do not know Installment Sales, the IRS allows anyone to buy and sell residences.

What is allowable by Tax Law and by individual State Law is not always congruent. See Texas.

For IRS: See http://www.irs.gov/taxtopics/tc705.html

Brian Gibbons :lol:

'I have taught this with the title: Non-Exclusive Option to Purchase.

Another name is
"You can sell it or I can sell it."

Just like an option flip but allowing the owner rights to sell too.

Brian

Hi Dawn:

I find these 2 articles great for REALISTIC seller financing, for both Sellers and Buyers.

http://www.forbes.com/2009/07/29/mortgages-refinancing-interest-intelligent-investing-foreclosure_print.html
Heavy hitters in mortgage industry forcasting how hard it will be over the next 12 months to get a home loan.

http://cnnmoney.printthis.clickability.com/pt/cpt?action=cpt&title=Rent-to-own+your+home%3A+Pro+and+con+-+Jun.+4%2C+2009&expire=-1&urlID=404320156&fb=Y&url=http%3A%2F%2Fmoney.cnn.com%2F2009%2F06%2F02%2Freal_estate%2Frent_to_own%2Findex.htm&partnerID=2200
Pros and Cons of a Lease Option

IMHO, after helping hundreds of LO Tenants get financing for home loans, in the present and coming 24 months:
- 10% - 20% down will be normal, maybe more
- 28% income to service mortgage will be mandatory
- Low consumer debt will be mandatory

Offering long term lease options to get out of this crap home loan financing environment and building up large 10 - 20 percent down payments for the tenant buyer is generally is generally my best exit strategy, at least for now.

Brian Gibbons