How To Get Money For Buyers

 Many people call into my company, REISkills.com

They want a 4 bedroom 2 bath, full basement, good schools for their kids, and peace of mind that the neighborhood is safe. 

These houses are $150K to $200K.

Many potential tenant buyers, that have incomes combined gross from $60,000 to $80,000, but have no savings for many reasons.

I have a deep experience with IRAs and Self Directed IRAs, so I came up with this solution:

The IRS and DOL allow Uncles and Aunts to lend money to their nephews and nieces from their IRAs, according to IRS Section 408, 408A and 4975. There must be a return on investment.

Unfortunately Moms, Dads, Grandfathers, and Grandmothers can not lend to their direct line, as this would be a "disqualified person".

After sitting down with my custodian, Equity Trust Company here in Berea, Ohio, (her name is Amanda Holbrook), we worked out a plan.

Modest Interest of 5% to the IRA borrower. 

48 months term 

Payment 109.38 per month for a $5000 loan

It is a simple process:

Step 1. A letter from the niece or nephew to aunt or uncle. 
- this letter states a loan request. 
- a picture - link of a walk-thru video of one of my homes 
- the letter explains the intention to enter into one of my Lease Option Ohio Financed Homes Agreements.

It basically says:

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Dear Aunt Betty - 
I have a wonderful opportunity to build a 10% down payment for a home loan with Ohio Financed Homes.

Here is a picture and a video link.

My income is $3145 a month, and I have $1123 a month in fixed expenses.

I can easily afford the $109.37 a month for 48 months to your IRA as repayment of the $5000 loan.

Attached are: 
Self Direction letter from Equity Trust 
Promissory note from me as borrower with repayment terms of 48 months at 5% interest included in the payment.

Please contact Amanda at the phone number provided.

If you are not comfortable with this I understand. This Rent to Own home will not be available after 15 March 2010, so I hope you will agree to lend me the money from your IRA. I promise to pay this back from automatic withdrawl from my Chase checking account.

Love,

You Niece Mary 
216-xxx-xxxx

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Step 2. Amanda answers any questions, and once the self-directed IRA is set up (about 2 weeks), she calls me and I set up a meeting with Mary (the borrower) and we close the paperwork.

In my humble opinion, I feel that people would rather gamble on a loved and trusted relative than deal with the Greed of Wall Street,

Giving a deserving "leg up" to a responsible nephew or niece is more fun than making Wall Street CEOs rich, isn't it? :)

I hope this solution in "creating" money for your "move in option consideration payments" on your lease option homes might just be the answer to:

I love the house but I am BROKE!

Brian has made money for his company in lease purchase consulting since 1986. He coaches select students for 1 year coaching agreements in every state except Texas. Brian Gibbons, coach of Lease Purchase - Rent to Own Consulting - http://REISkills.com.