All Forum Posts by: Michael Baradell

@Bill Gulley in Louisiana we have Bond for Deed. Can this be used as you guys describe a sub 2 can be used? Do you see any potential pitfalls with purchasing BFD, rehabbing and then reselling? 

@Brian Gibbons can you elaborate on the logistics of the strategy you are describing? Sub to then a Wrap for ownership? How would this compare to aquiring the property via Bond for Deed and then renovating it?

@Brian Gibbons thanks. I love the idea of giving the seller options. That is exactly what I will do. 

In regards to Dodd Frank and the Safe act, as long as I don't give/receive any monthly credits, inflate the rent or sales price, or make a tenant buyer responsible for maintenance, I should be ok correct? If I do a strait forward lease option ofcourse. 

Also, I see you talk about First right of refusal often as well.. Could that apply hear? I am not familiar with that at all.

@Brian Gibbons I am very familiar with Bond for deed. Have done 5 of them and actually own one property via BFD right now. The downfalls to BFD as I see it is, as the buyer I will be responsible for any maintenance and any increases in insurance or taxes. LO gives me a little more freedom if I am understanding it correctly ( correct me if I'm wrong ). 

@Jesse T. This area has been stable for 20 to 30 years that I am aware of and has only grown and appreciated. It also has the best schools and is also an ideal commuter city for a major neighboring city. Obviously, any location can be negatively affected for whatever the reason, but I'm at least confident in it remaining stable. 

@Elizabeth Colegrove that is one major concern that I have. Do you feel I a Lease option is the best vehicle to use in this scenario? 

@Ryan Arth Thanks for the input fellas. The only way I would enter into an agreement as described is if the numbers made since. This is not the only strategy I would use so if I found a good deal but had to pursue other avenues, I could do so. My hopes with that strategy is to acquire as many properties in that specific area as possible so in the event it does appreciate, I'm in a strong position. I would obviously try to structure the deals so that the worst case would hopefully only be me losing my option fee to the seller in the event the deal goes south. I posted this question to hopefully be made aware of any unforeseen pitfalls that I am not aware of.

Hey BP,

I'm in search of guidance/advice on how to best accomplish my REI goal. I'm looking to purchase/control around 10 properties in the next two years in a specific market. The market that I am looking at is a very strong rental market right now and is showing signs of growth in the next few years ( large corporations coming to town amount other positive factors ). My goal is to take control of a property ( I'm thinking Lease option ) and then put a renter in the property and hold for a couple of years in hopes of appreciation. Now, I understand banking on appreciation is never a good business model, but I will plan to set up the lease options to where I cash flow each month as well. At the end of my LO period, I would then like to:

1. Purchase the property out right at the agreed upon price a few years prior ( hopefully with significant equity due to appreciation).

2. Let the LO expire if it does not make since to continue.

3. Extend lease option if it makes since

4. Sell property ( out right ) to another buyer and make the spread of appreciation over the years.

My questions:

1. Is this a viable plan?

2. What obstacles/issues do you see with any of the 4 exit strategies?

All advice/criticism is welcomed. 

@Michael Faulk appreciate the feedback!! I have built a pretty good relationship with a local bank in my area and I'm able to use them to fund my previous flips. I am interested in Hard money for those properties that require quicker closes or can not be financed for what ever the reason may be. How I see it, it's always good to have more options. 

Has anyone purchased properties with Hard money in Louisiana? 

Hey BP!!

I am in search of a website or company that has access to home owners phone numbers. If I simply have the address of the home and the name of the home owner, how do I go about getting their phone number? 

Also, is there a way to get all addresses and home owners names in a particular area/neighborhood for free? I know you can get some of this info through companies like list source, but I was curious if there was a way for me to get the info myself. 

Thanks in advance!!