dealmaker
Moderator

"Okay let's Huddle.." , Sun 17 Sep 15:02

Lease/Option - Why are you offering L/O and not Contract for Deed (land contract) or subject to?

I agree w/ Lynn after your Up-front layout of cash & repairing the place you would have forked out the full FMV of the property.

I would probably only offered the mortgage balance and take over their payments. I would explain to them that the repairs are expensive. There's not much if any profit for you with your offer.

The $120 difference in Rent Inc. and Mortg. Paymt is nothing to consider as income with a house that needs this type of repairs.

You didn't mentioned anything about the seller. Motivated? What's their deal??

Be caution and not to "giving" with your first deal. New investors tend to give the "farm away" in the beginning.

Have you actually made this offer??

You can estimate $1.30 per square foot for replacing the carpet. MINIMUM.

Doors Only - not prehung - $30 each. They'll still need to be stained or painted and installed.

Paint - Several hundred dollars.

$500 for a good cleaning inside and out.

*** Also, NEVER agree to a MULTI-Year Lease/Option. You can agree to 12 months with a OPTION (your option) to renew for 3 years. OR even a 6 months lease with an option to renew for 6 more terms. This allows you an OUT, in other words, you're only OBLIGATED for that first term. It is YOUR option to renew NOT the sellers. It's a uni-lateral agreement that only needs your approval or dis-approval.

Your call.. but there's a LOT better deals out there!

Dealmaker

Mark(Vegas)

"Re(1):Okay let's Huddle.." , Mon 18 Sep 00:21

Mark(Vegas)

"Re(1):Okay let's Huddle.." , Mon 18 Sep 00:13

lynnhahn

"Use your tools and resources" , Mon 18 Sep 09:45

Mark,

You are not using all of your tools and resources. You paid for Bronchick's courses and for his one-on-one consulting, use it. Everything you would ever need to know about buying "subject-to" or by contract for deed is included in your tapes and manuals, PLUS you can personally call Bill Bronchick with your specific questions. A few postings on this site, or on Creonline can not replace this valuable recourse that you already have setting on your desk.

These forums are best used for "specific questions" and creative ideas. We can't possibly teach you everything you need to know, we can only support your other teachings. Read the material in Cash Cow and call Bronchich or call me and I will help you.

You still did not address the concern of paying up front $$$ to this guy. This is not a "subject to" only question. Is paying him up front $$$$ the only way to close this deal?

Happy Investing!
Lynn

p.s. TO EVERYONE
This forum is a smaller, more intimate forum than others that you may participate in. We tend to be tougher on you than what you may be used to, but we don't believe in "candy coating" anything, or blowing smoke. We also care about our friends on this board. Most of you have either Matt's personal number or mine (much different than other forums). Don't be afraid to call, but be prepared to get beat up if you haven't done your homework or followed previous advice from the group.

Those who say it can't be done are usually interrupted by others doing it!

dealmaker
Moderator

"Cash Cow" , Mon 18 Sep 08:23

Mark(Vegas):

Didn't you get Bronchick's Cash Cow Course?? Listen to those tapes and read the manual.

Land Contract (a.k.a. Contract for Deed, Bond for Title, Installment Land Contract)

&

Learning how to "get the deed" (buying 'Subject-to')

are fully covered in that course.

Dealmaker

lynnhahn

"Re(1):THIS MAY BE MY FIRST ONE" , Sun 17 Sep 14:36:

Mark,

It doesn't sound real bad, except that it seems like it needs a lot of work. How much is it going to cost you to get it into sellable condition? Sometimes we sell "handy man" specials, but this one sounds like that it may beyond a handy man special.

The BIG QUESTION is "Why did you offer the three months option consideration? I would think that the work that you are going to do on the property would be adequate consideration. . He has been renting to people who are not guaranteeing maintenance etc. for less than what he is asking from you.


If you are going to pay option consideration, and also do repairs, how are you going to get into the property without using your own $$$$?

Lynn

* Another note to remember is that you typically do not get as much of a down payment if you sell it as a handy man special. So if you want the tenant/buyer to do the work, plan on getting a smaller down payment.

Those who say it can't be done are usually interrupted by others doing it!

[this message was edited by lynnhahn on Sun 17 Sep 14:39]