All Forum Posts by: Brian Gibbons

@Germain Mopa 

Read this article that discusses liablity for YOU as a seller - owner allowing someone to occupy your property and not owning it.

You need a good lawyer.

http://www.illinois-attorney.com/pre-and-post-clos...

"...................................PRECLOSING POSSESSION

When a buyer is taking possession of property prior to a closing, the seller’s attorney will have three main concerns.

First, the purchaser will be asked to accept the property in the condition it was delivered in as of the possession date. Because possession of the property is out of the seller’s control, the seller does not want to be liable for acts done by the purchaser to damage the property. In addition, during the purchaser’s pre-possession, the purchaser may discover some “defect” or unacceptable condition, such as an item needing repair or even that the local traffic is too noisy, that was not raised during the inspection period and attempt to back out of the deal. Some purchasers might rather forfeit their earnest money than proceed with a closing after discovering an unacceptable condition.

Second, the purchaser will generally be asked to pay some amount of daily rental for use, occupancy and expenses. This amount is usually one thirtieth of the seller’s monthly mortgage and assesment payments. Normally, utilities,services and proratable items, including real estate taxes, are prorated as of the possession date.

Finally, the purchaser will be required to provide some financial protection to the seller in the form of insurance on the property. The purchaser will be required to provide the seller with a copy of a paid and in force insurance policy covering the value of the property and listing the seller as an “additional insured” on the policy.".............

Start w your Reia

Then local banks for a RMLO

I use lease and right of first refusal instead of land contract to sell

No Dodd frank applicable

@Miguel G.

bumb

@Curt Smith

@John Fedro

Imputed Interest 101

https://apps.irs.gov/app/picklist/list/federalRate...

https://www.law.cornell.edu/uscode/text/26/7872

https://turbotax.intuit.com/tax-tools/tax-tips/Gen...

Here are my current FREE Creative Real Estate Investing videos.

FREE!

• Video – 1031 Tax Tips – Bill Exeter
• Video – Agents and Brokers – Providing an Excellent Service
• Video – Apartments – Master Lease Option
• Video – Basics – Buying Strategies
• Video – Basics – Get Your Free Ebook!
• Video – Basics – Learn How To Be a Real Estate Investor
• Video – Buyer – Right of First Refusal
• Video – Contracts – Contracts We Use as Real Estate Investors
• Video – Contracts and Forms for Real Estate Investors
• Video – Courses – Courses for Real Estate Investors
• Video – Courses – Look What You Get
• Video – Courses – Quick Start Courses
• Video – Creative Financing – Introduction
• Video – Deal Categories – Contract For Deed
• Video – Deal Categories – Contract For Deed or Land Contract
• Video – Deal Categories – Free and Clear Houses
• Video – Deal Categories – Low Equity
• Video – Deal Categories – Middle Equity Pretty Houses
• Video – Deal Categories – Sub2 How Does it Work?
• Video – Inspiration – From The Masters
• Video – Inspiration – Tony Robbins 1
• Video – Joint Venture Partner Class
• Video – Joint Ventures with Home Sellers
• Video – Land Trusts – The Basics – Toby Mathis
• Video – Lease Option Tenant Buyer Sales Presentation
• Video – Lease Options
• Video – Lease Options – Sandwich Lease Options
• Video – Lease Options – Tenant Buyer Agreement – Earnest Money Agreement
• Video – Lease Options – Tenant Buyer Contracts
• Video – Lease Purchase – Equity Split with Seller
• Video – Lease Purchase Training
• Video – Marketing – JV Partners
• Video – Marketing – Lease Option Tenant Buyer Ads
• Video – Marketing – Lease Option Tenant Buyers
• Video – Marketing – Private Lenders
• Video – Marketing to Home Sellers – Expired Listings
• Video – My Conditional Guarantee
• Video – Negotiating – Avoid These 7 Pitfalls
• Video – Negotiation – At the Door With the Seller
• Video – Negotiation – Learning from Lt. Columbo how to Sell
• Video – Negotiation – Lease Purchase FAQs
• Video – Negotiation – Step 1 With The Seller
• Video – Negotiation – Step 2 With The Seller
• Video – Negotiation – Step 3 With The Seller
• Video – Negotiation – Step 4 With The Seller
• Video – Negotiation – Step 5 With The Seller
• Video – Option – Flex Option
• Video – Private Lending Class
• Video – Rehabs – Introduction
• Video – Sales Presentation – How to Build a Sales Book for Terms Deals
• Video – Sales Presentation – Meeting with the Home Seller
• Video – Sales Presentation – Net Sheet
• Video – Sales Presentation for Home Seller
• Video – Sub2 – Get the Deed
• Video – Sub2 – How Does It Work?
• Video – Tenant Buyer
• Video – Texas Lease Options
• Video – Wholesaling Option Contracts
• Video – Wrap Around Mortgage

If you want 1 on 1 Coaching, let me know.

Best Wishes,

Brian

With 8K and a real estate license, you could be TERMS investor.

1. go after expireds, cancelleds, FSBOS, tired landlords and other wholesalers

2. Look for pretty houses, low equity

3. Offer to help them solve their problem by selling on lease w option to buy.

4. Make 3% on a fee to release your option with the seller.

See this long post I made a while ago, quite a few votes...

https://www.biggerpockets.com/forums/12/topics/180...

@Jason Eyerly

Jack Shea is also a master of 1031.

http://1031taxfreesale.net/

Thanks for the info @David Dey !

Hi 

@Jared Vidales

Always do a sub2, with or without a note, with or without a property trust, as first choice when BUYING.  Yes you get the deed and the seller keeps his-her financing in place.

Look at a ROFR and a lease as an alternative. when thinking of a lease w option.

When selling, never do a sub2 sale and give up the deed.

@Samir Abrahani

Below is a California Irrevocable Option To Purchase, with or without an agent.

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

STANDARD OPTION TO PURCHASE

Irrevocable Right-to-Buy

DATE: _____________, 20______, at _____________________________________________________, California.

Items left blank or unchecked are not applicable.

1. OPTION MONEY:

Optionor herewith receives from Optionee option money in the amount of $_______________, evidenced by:

cash, check, or _________________, given in consideration for this option to purchase real property.

2. REAL PROPERTY UNDER OPTION:

Address ____________________________________________________________________________________

Legal description/Assessor’s parcel number _______________________________________________________

3. ADDITIONAL CONSIDERATION:

As further consideration for this option, Optionee is to obtain at his expense and deliver to Optionor prior to

expiration of this option the following checked items regarding the property:

• Property survey report by licensed California surveyors
• Architectural plans and specifications
• Zoning ordinance request
• On-site engineering plans
• Application for a parcel map or waiver
• Off-site improvement plans
• Soil engineer’s report
• Land use study
• Application for a conditional use permit

4. OPTION PERIOD:

Optionor hereby grants to Optionee the irrevocable option to purchase the Optionor’s right, title and interest in

the property on the terms stated, for a period commencing with the acceptance of this option and expiring

_____________, 20______, or on termination of the optionee's leasehold interest in the property.

5. EXERCISE OF OPTION:

Optionee may exercise this option during the option period by:

5.1 Signing escrow instructions identical in provisions to those attached as Exhibit A and delivering

the instructions to escrow.

5.2 Depositing cash in escrow of $_______________; and

5.3 Delivering an escrow-certified copy of the signed escrow instructions to Optionor within the option period,

in person or by both certified and regular mail.

6. ESCROW CONTRACT:

In the event this option is exercised, the transaction shall be escrowed with ______________________________.

6.1 Escrow shall close within ______ days after exercise.

7. DELIVERY OF TITLE:

On Optionee's exercise of this option, Optionor shall timely place all documents and instruments into escrow

required of the Optionor as necessary for escrow to close as scheduled.

8. BROKERAGE FEE:

Optionor agrees to pay a brokerage fee of $_____________, or ______% of the selling price, IF:

8.1 This option is exercised;

8.2 Within one year after expiration of option period and any extension or renewal, Optionor enters into

an agreement to option, sell, lease or exchange with Optionee, or their assigns or successors; or

8.3 Optionor wrongfully prevents the exercise of this option;

8.4 Payable to Broker(s) _____________________________________________________________________

9. SALE TERMS:

Price of $_______________ payable as follows:

9.1 All cash.

9.2 Cash down payment in the amount of $_______________.

9.3 Take title subject to, or Assume, an existing first trust deed note held by ________________________,

with an unpaid principal balance of $_______________, payable $_______________ monthly, including

interest not exceeding _____%, ARM, type _________________________, plus a monthly tax/insurance

impound payment of $______________. _____________________________________________________

a. At closing, loan balance differences per beneficiary statement(s) to be adjusted into:

cash, carryback note, or sales price.

b. The impound account to be transferred: charged, or without charge, to Optionee.

9.4 Take title subject to, or Assume, an existing second trust deed note held by _______________________,

with an unpaid principal balance of $_______________, payable $_______________ monthly,

including interest not exceeding ______%, ARM, type _____________________________,

due _____________, 20______.

9.5 A note for the balance of the purchase price in the amount of $_______________ to be executed by

Optionee in favor of Optionor and secured by a trust deed on the property junior to the above referenced

financing, payable $_______________ monthly, or more, beginning one month after closing, including

interest at ______% per annum from closing, due ____________ years after closing.

a. This note and trust deed to contain provisions to be provided by Optionor for:

due-on-sale, prepayment penalty, late charges, _________________________________

b. The attached Carryback Disclosure Statement is an addendum to this agreement (mandatory on

four-or-less residential units).

c. Optionee to provide a Request for Notice of Default and Notice of Delinquency to senior

encumbrancers.

10. GENERAL PROVISIONS:

10.1 See attached addendum for additional provisions.

10.2 Attached as addenda are the following checked disclosures mandated on four-or-less residential units:

a. Condition of Property Disclosure — Transfer Disclosure Statement (TDS)

b. Natural Hazard Disclosure Statement

c. Disclosure of sexual predator database

d. Hazard Disclosure Booklet, and related Optionor disclosures, containing Environmental Hazards,

Lead-based Paint and Earthquake Safety.

e. Documentation on any Homeowners’ Association (HOA) involved.

f. Notice of Supplemental Property Tax Bill.

10.3 Possession of the property to be delivered on:

___ close of escrow, or see attached Occupancy Agreement.

10.4 Both parties reserve their rights to assign, and agree to cooperate in effecting an Internal Revenue Code

§1031 exchange prior to close of escrow, on either party’s written notice.

11. EXPIRATION OF OPTION:

This offer to sell shall be deemed expired if not accepted by exercise during the option period.

This option contract shall automatically terminate by expiration on _____________, 20______.

I hereby grant this option and agree to the terms

stated above.

Date: _____________, 20______

Optionor: ______________________________________

Signature: _____________________________________

Signature: _____________________________________

Address: ____________________________________________

____________________________________________

Phone: _________________ Fax: _________________

Email: ____________________________________________

OPTIONOR’S BROKER: _________________________

Broker's DRE Identification #: ____________________

Agent's Name: ________________________________

Agent's DRE Identification #: ____________________

Signature: _____________________________________

Address: ____________________________________________

_____________________________________________

Phone: _________________ Fax: ________________

Email: ____________________________________________

I hereby accept this option and agree to the terms

stated above.

Date: _____________, 20______

Optionee: _____________________________________

Signature: _____________________________________

Signature: _____________________________________

Address: ____________________________________________

____________________________________________

Phone: _________________ Fax: _________________

Email: ____________________________________________

OPTIONEE’S BROKER: _________________________

Broker's DRE Identification #: ____________________

Agent's Name: ________________________________

Agent's DRE Identification #: ____________________

Signature: ___________________________________________

Is the agent of: ____ Optionor exclusively. ___ Both Optionor and Optionee.

Address: ____________________________________________

_____________________________________________

Phone: __________________ Fax: ________________

Email: ____________________________________________

@David Dey

VOTE!  VOTE!  VOTE!  Loved your post! Where have you been? :)  Awesome!

There are 2 terrific "cousins" to your SLO and sub2. 

1. Contract for option to purchase + a Residential Lease; selling to renters.  Renters do not get the option to purchase until they finish the lease, this is almost a "right of first refusal".  

"Perform on the lease and you get a chance to buy."

2. Contract For Beneficial Interest

The contract for the beneficial interest is like a contract for deed but the difference is that the buyer is purchasing the beneficial interest in the land trust from the beneficiary rather than the land itself from the trustee.

The advantages that in a land trust of beneficial interest is personal property to the buyer does not get any vested or equitable rights in the real property.

This only works in states that recognize the land trust. However, since the law of most states is not completely settled as to the status of land trust, use of the agreement may work just because the buyers attorney does not want to litigate new law over the small sums involved. The agreement is clear on its face and if clearly explained to the buyer, it should be enforced according to its terms.

This contract is for buyers with a minimal down payment and a higher probability of default. As with the contract for option to purchase, this agreement is designed to contract for the beneficial interest of a land trust, and not to deliver equitable title to the buyer

In the buyers of the beneficial interest have a separate lease of the real estate, which is signed by the trustee rather than the beneficiary, it should be possible to evict them using a normal landlord-tenant procedure.

Stating in the lease that the relationship between the parties is governed by state landlord-tenant law should prevail over any arguments to the contrary.

Buyers under this contract receive the beneficial interest of the land trust holding the property upon completion of all the terms. At this time, they can replace the trustee was someone of their choice or direct the trustee to deed the property to them.

This contract survives the closing and provides for successor trustee and successor beneficiaries in the event of a loss of either.

The buyers better protected than many agreements for deed where no deed is held in escrow.

The property held in the land trust is protected from judgments, liens, partition, forced sale, and other problems of the property held in the owner's name.

In many areas of the country the practice is to sell the property on unrecorded agreements for the. The contract for the beneficial interest provides much better protection for the buyer.

Investors use this contract for low down buyers for pension plan and Roth IRA properties that have a higher failure rate. Upon default, without the cost and delay foreclosure, the properties are recovered and resold at minimum of expense and delay.