need help with ....

Hello, Big Shem-

I did confuse you with Keith- I was so concerned about your offer that I didn’t pay attention. I think you are smarter and more experienced than you are letting on; sort of like Columbo!!

Great negotiating and best of luck!

Deb

Shem…

“It’s not nice to fool Mother Nature…” - lol

I was worried about you for a minute, there! $328K on a $443K house is do-able. How much work is needed? HOw long will you have to hold?

Keith

Sorry Keith, Deb
I didn’t meen to scare ya… Keith there really isn’t any fix up. just some nail hole fixes. this couple just want to move to florida asap…

Deb *I’m pretty smart but not that smart everything i’ve learned actually i’ve learned on here and alot of trial and error…lol but i think the key is to stick with it don’t get mad get better … Thanks BigShem I’ll have another Dilema as soon as i get back i have to step out for a few… i’ll be on here tonight… Stay tuned, and happy investing

Does any one have a good sample of a contract to buy and assignment to sell availble so that I can get an idea of what I should include in mine.

thanks

Hello, trwill,

Do you have a lawyer that you are working with? A realtor may also be willing to share a sample. I would also guess that you might find one online and then take it to a lawyer for him to check over. I am reluctant to send you the one I use because I don’t want any problems coming back to bite me! Do some web research and question-asking to find what you need that works for you.

Best of luck!

Deb

I’m going agree with Deb on the lawer…

Alright have another client i got his house down using the formula you all gave me… he went for it so bad that he through a 1955 chevy in with the deal… okay keith stop drooling…lol anyway i was thing of fixing this house up and flip it , but now i’m thinking of maybe doing a rent to own with say 50,000 down. but i’m not quite sure on how to do this any help would be helpful… and would i be able to pocket the 50,000 grand and have the tenant pay the mortgage… whats yer in put on this???

Hey, shem-

I think you need a lawyer, too. There is really not enough information here to be able to help you out safely. What you are attempting is called a Lease with option to buy, at least that’s what I think you are describing.

It depends on where your tenant/buyer gets his financing from and how much your rehab work is costing you. If you have paid all your bills and you have $50,000 left over, than have a great vacation or fun paying off other debt.

There just really are times when you must get legal help or you could lose all your personal belongings if you screw up. This business can make you a lot of money but if you get careless or are not educated well enough it can also cost you big time.

Best of luck

deb

Okay Deb
the house i’m thinking of wholesaleing… after pondering a bit the cost to fix this house up real nice would be around 3500.00 or less i was thinking of holding the property and help some one to do a rent to own, now i never did this type of thing before i wanted to know has anyone every done a rent to own deal… i’m not the one who needs the rent to own … if some one gave me say 50,000 down would i be able to pocket the down payment while the tenant pays the mortgage and say a couple of hundred extra in the rent… i hope i’m thinking this right can anyone tell me or am i missing something

Hey, Shem-

I, as always, have several questions.

  1. How much are you selling the house for?
  2. $50,000 is a large down-payment unless it is a $500,000 home. 10%-20% down is what most banks require.
  3. What you are actually looking to do is called Retailing because you are going to own the home while you rehab it; is that correct? Have you figured in all the expenses that you will incur- the Buy, Sell, and Hold costs? That house will cost you money as you work on it. Have you estimated what that will be?
  4. Have you located any buyers that have expressed an interest in this area or particular home?
  5. Have you done any website searches on “Lease to Own or Lease with Option to buy” as your search terms? Some of those sites are very valuable.
  6. Have you contacted a lawyer to go over all details?
  7. What does it mean when you say “ponder a bit?” Have you taken notes, done real calculations, and inspected the house yourself thoroughly?

I hate to sound like a broken record but as a retailer, you are stepping up the complication level and that means you need legal advice.

I can’t be more specific than the above questions because each case is unique.

I do wish you the best!

Deb

Okay Deb ,here we go…

Alright 1st. - i want to control this property i don’t want to own it just yet … i worked outa deal with the home owner… so now i control it with the option to buy it in full in 24 months yes i said 24 months usually 12 but, anyway i have my reasons…by the way if you need numbers the house is fmv at 234,000.00 … i got control of it at 149900.00 okay with a deposit of actually 500.00 on it…
now second — i’ve been in this house and i looked it up and down real hard and pondered that ,(oh by the way ponder meens too look over real good and if i was to live here what would it take to make it livable mind you i’m very picky but simple…) thats ponder here in sticks of south jersey… so figured it out already and i can do mostly all the work that has to be done… which when i figured it out (ponder) lol… it came to a little under 800.00
not bad huh… allright with me so far. now i know i can get 234,000 for this house but i want to move it quickly so i’m going to lower the price abit to make it atracttive enough for a buyer or investor… who ever purchases it from me i in return will do a lease to own yes i know its 10 to 20 percent down to me cause now i’m going to be the bank… yes i have a lawer involved so just relax there is a default clause in there… now if i choose to keep it say 234000 my profit would be around 85,000 butkeep in mind this is what i’m doing. control 149000 so far out of pocket has been 1400.00 = 150400.00 now i find a client or tenantrember i want to make this attractive so i cut my profit in half wich comes to 42500.00 +149000=191500.00… okay now say i find the buyer with say 20%down that comes to 38300.00 down i now have a deposit i go to my finacial ins… and take a loan out the only charge me 3% down…wich comes in around 4500.00 so now i pay the owner of the property i now own the tenants move in and pay me1600 mthly i pay the loan which i believe comes in at 732 and some change plus e taxes and allth other stuff before you ask i’ll only make 340 amonth of this yes everything is factored in …So now my profit for this is 38300-4500-1800=ruffly 32000.00 for only spending 1800.00… and i didn’t count in the 15 year pay off the profit for that would be if i keep it to term 61200.00 … i don’t know if i missed anything Deb… but if somehere has any more input or if i missed something let me know… Thanks BigShem