Hi,
I’m looking to get my 1st RTO home and get it sold to a RTO buyer. I have a few basic questions…
Who pays who?..Will the buyer cut me a check for rent and bills, then I cut the seller a check for rent and bills, and the seller cuts the bank a check? Seems like a hassle is there any easier way?
When the utilitiy bills come monthlly…
WHAT address does it go to?
WHOSE name are they in? Mine, Sellers, my buyers?
Thanks guys,
MJ
Mj, I’m a newbie here too but I suggest do a search for Lease Options, this is a great technique. You can buy a house with a L/O and turn around sell it the next day with a L/O.
As far as utilities, thats between you and the tenant. Buying using L/O you take control of the property so all utilities and maintenance and taxes and fees are your responsibility, now when turn around and sell you can have new tenant buyer take over responsibilty.
New tenant would pay you lease payment and you would pay seller, as if you lived in house.
MJ, HAve you considered selling it for cash instead of renting it? Honestly, if this is your first deal, woulnt it be more fun to cash out NOW? Many potential tenant buyers think their credit situation wont allow them to buy the house, however, if you have a good mortgage broker on your side, you can run their lease applications through himher and see what the odds are. Chances are that you will have a viable candidate for a conventional purchase.
good luck,
lance
realvestors
Marc, you might want to brush up on these techniques before plunging in like you appear to be doing. You’re at a point where you know just enough to be dangerous to yourself. I tell you this not to criticize, but from personal experience. If the need to ask such basic questions is there, I believe you’ll benefit from some reading and guidance first.
Try to get a contract for deed at least (even shorter term) or something similar. That will give you a huge advantage.
When I was a noob, I did a few LOs like this and they werent much fun to say the least AND closing (payday for all the trouble) can be a real hassle. Much of the info you read on these sandwich LO deals leave out the DARK SIDE. It sounds so easy. hahaha. Seriously, if you want some help on this one, dont hesitate to call or email me. Im speaking from my experiences and the experiences of other investor friends. But every deal is different, so dont take this a doom and gloom post.
Lance Waddle
Realvestors