newbie

[Bernadette C.]

Hi Everyone,
Great place to learn from many that have been active investors. Finally a great space to share info.
Thank you for a great Forum for all things Real Estate.

Bernie

[Calixto Urdiales]

Hello there Bernie-

Welcome to the club and feel free to browse our site as much as you want and I am sure you find them to be informative. Now why not tell us a little bit about yourslef as far as what you do and how you found biggerpockets? What type of investments interest you the most and what you plan to do to learn more about them? How long have you been investing if you all ready invest in REI and if not when you plan to start? thanks for your time and have a wonderful day Bernie and please enjoy your welcome wagon....

Here are some Forums you might like-

Rental Property Questions:
http://forums.biggerpockets.com/viewforum.php?f=52

Rehab Forum:
http://forums.biggerpockets.com/viewforum.php?f=67

Wholesaling Forum:
http://forums.biggerpockets.com/viewforum.php?f=93

[Richard Warren]

Hi Bernie, welcome to BP! Where are you from and what kind of real estate investing are you looking to do?

8)

[Joshua Dorkin]

Hey Bernie! Nice to have you here. I look forward to hearing more about you.

[Bernadette C.]

Hi Everyone,
Thanks so much for the warm welcome. I live in Chico California but originally lived in the Bay Area. We have been investing in SFH since 1998. We have been very conservtive in out investing over the years. Our properties are in Vegas, Az, and Tn. We bought new properties and held for at least 10 years. Reading some of the blogs has already been very informative for us and we hope to have some new insights on what to do for future investments. Unfortunately because of several factors we are trying to sell one of our properties in Vegas. Because of the market however the agent is suggestion a lease option in order to have rent and protection for the property not being trashed. Never having done this is a little scary. I am told that most of the options are never executed. The house has been on the market for 2 months so far. We are up against many builders sell offs. Any suggestions?

Bernie

[N/A N/A]

welcome Bernie

[Bernadette C.]

Thanks for the welcome and all the feed back.
Bernie

[Calixto Urdiales]

Originally posted by "Bernie":

Hi Everyone,
Thanks so much for the warm welcome. I live in Chico California but originally lived in the Bay Area. We have been investing in SFH since 1998. We have been very conservtive in out investing over the years. Our properties are in Vegas, Az, and Tn. We bought new properties and held for at least 10 years. Reading some of the blogs has already been very informative for us and we hope to have some new insights on what to do for future investments. Unfortunately because of several factors we are trying to sell one of our properties in Vegas. Because of the market however the agent is suggestion a lease option in order to have rent and protection for the property not being trashed. Never having done this is a little scary. I am told that most of the options are never executed. The house has been on the market for 2 months so far. We are up against many builders sell offs. Any suggestions?

Bernie

Now when you say we who do you refer to? Do you have a business parnter that ventures in on all your deals with you or possibly you husband helps out! If so do you think you could invite your business partner to biggerpockets so that they may learn as well?

[Account Closed]

Originally posted by "bernie":

Hi Everyone,
Thanks so much for the warm welcome. I live in Chico California but originally lived in the Bay Area. We have been investing in SFH since 1998. We have been very conservative in out investing over the years. Our properties are in Vegas, Az, and Tn. We bought new properties and held for at least 10 years. Reading some of the blogs has already been very informative for us and we hope to have some new insights on what to do for future investments. Unfortunately because of several factors we are trying to sell one of our properties in Vegas. Because of the market however the agent is suggestion a lease option in order to have rent and protection for the property not being trashed. Never having done this is a little scary. I am told that most of the options are never executed. The house has been on the market for 2 months so far. We are up against many builders sell offs. Any suggestions?

Bernie

Bernie,

:welcome: to BP.

Lease/options are pretty old in that the details are rather well defined. You can find a section of BP that focuses on them. Wendy Patten has a book on the topic. It is a great book if you want to really understand the business logic.

You could continue to hold in Vegas as the long term trends for the city are good. If you really want to sell drop the price so that it is one of the lowest price properties in its class. Pull the comps, see what the price range is and target the bottom. All properties will sell if the price is low enough.

John Corey

[Dick Green]

Hi Bernie!

Welcome to the forum.

I agree empty properties are a real economic drain. If you decide to lease/lease option.......one thing that has recently worked well for me is a graduated upfront fee based off tenant's credit profile or lack thereof and the amount they are wanting to pay for monthly rent.

For example, a 1st and last month rent of $3,600 combined equals a $1,800 a month regular rent payment. $5,000 upfront non-refundable equals $1,500 per month rent payment, $7,400 upfront rents and $1,300 monthly rent, $11,000 upfront rent and $1,000 monthly rent. I even offer (no credit check) $18,000 upfront rent fee and no rental payments for 1 full year.

You get the jist.....juggle with the numbers until they make sense for you peticuliar case.

Explain upfront fee is non-refundable and used to offset deficit in monthly payment. You'll be supprised how many individuals want more control of their monthly payments. I had two properties which had been vacant for 3 or 4 months. As soon as I implemented flexible monthly payment options, both rented the same month. I suggest only considering individuals who have desire and ablility to purchase after 6 months to a year.

[Calixto Urdiales]

Originally posted by "dcg123":

For example, a 1st and last month rent of $3,600 combined equals a $1,800 a month regular rent payment. $5,000 upfront non-refundable equals $1,500 per month rent payment, $7,400 upfront rents and $1,300 monthly rent, $11,000 upfront rent and $1,000 monthly rent. I even offer (no credit check) $18,000 upfront rent fee and no rental payments for 1 full year.

This is good stuff dcg123 I will take this into account if I ever get into that area of REI!

[Dick Green]

Thanx.

You have to make sure to clearly designate the monies as upfront rents which will be used to offset the monthly rental payments. Amazingly some individuals really appreciate the option of allowing you the landlord to hold their money for them. For instance individuals who are transit and have been allocated lump sums to relocate for a short period. Or foreign nationals who are short term residents.

[Calixto Urdiales]

Originally posted by "dcg123":

Thanx.

You have to make sure to clearly designate the monies as upfront rents which will be used to offset the monthly rental payments. Amazingly some individuals really appreciate the option of allowing you the landlord to hold their money for them. For instance individuals who are transit and have been allocated lump sums to relocate for a short period. Or foreign nationals who are short term residents.

Yes that makes perfect sense infact I will try it out with one of my seasoned investor who has rentals and see how it works with him. He also has a lot of union friends that get large lumps of cash and I think it will work out perfect as you posted previously!