All Forum Posts by: Bria Johnson

@Chris Alfano I’m always looking to meet new folks! Let’s set something up.

@Melicia Schauble

I think it’s all about presentation. If you’re dealing with an off market property then I think getting in by saying “I can meet your price, but I’ll give you some today and the rest over time. How much can you take today”

I wholesale lease options and I know that I won’t take a tenant-buyer who doesn’t have any money down because that’s the one way I know they have skin the game.

With agents I suggest targeting long DOM properties where property owner may be interested in a lease option.

@Cheyenne Davis

Agents Long DOM

Expired listings

Quote from @Cheyenne Davis:

Hopefully I'm posting this in the correct area...

I've been quietly reading in the background here on Biggerpockets and learning a lot. I'm going to "jump into the game" and start trying to

locate motivated sellers in my area. My strategy is to buy houses creatively, either with lease options or subject to (depending on the situation).

What I plan on doing is skiptracing a couple of different types of prospects to start with. I'm thinking about hiring someone to cold call leads and skiptracing prospective sellers who have either had their houses listed for 60+ with low equity or pre-foreclosures, probably with low equity as well.

My question is, to all of you experienced investors, is do you think this is the best way for me to target and generate seller leads for lease option purchases and sub to?

Would I be better off to skip the cold caller entirely and just set up texts to the prospects? I'm good on the phone, but I just don't want to spend all my time cold calling people.

I'm coming out of a rough divorce and starting over on a limited budget, so I'm trying to do this in the smartest way possible, but I'm a little scared to "dive in". I just don't want to waste my limited budget in the wrong way. I've considered direct mail to the same lists too, but it seems more expensive and I'm guessing I'd get a lower response rate.

Any advice and suggestions are appreciated, even if you think I'm using the wrong marketing platform or lists entirely.

Hello! My advice is - the marketing strategy that works the best is the one you are most consistent with! If you have limited funds, then You will probably have to spend "time" as far as resources go. 

The only advice I have about text messages is to know the laws surrounding "cold" texting. I know a few people who have been hit with huge fines because of texting people w/o their permission. I know so heavy hitter investors who still text, but they can afford the hefty fines the the risk is worth the reward. I am not an attorney, so consult with an attorney. 

All in all- whatever makes sense for you financially, legally and time-wise - just stay consistent. One of my biggest lessons is learning consistency over intensity. All marketing strategies work if they are applied and executed consistently. Please keep us updated on your journey. I am a lease-option LOVER, so I always enjoy hearing from other lease-option investors. 

@Sean Dezoysa

I think I need more info here. What is a ADU?

Is this a duplex?

@Spencer Mollman

Hello!

Are you planning on doing a sandwich-lease option or an assignment lease option? Based on your answer I will have suggestions for both .

However either way what you want to make sure you look for no matter which type of lease option you are doing is the following

1. Make sure the tenant -buyer(TB) has skin in the game. So at LEAST 3.5%-5% down

2. You want to make sure that you screen the tenant-buyer not as a renter but as a "buyer". Meaning - having a mortgage broker look over their situation so you know EXACTLY what they need to do qualify by the end of the L/O term.

3. Your paperwork needs to be rock solid (making sure no equitable interest is transferred, the seller can NOT sell the property from up under the TB, the down payment that the TB puts down will be counted as their down payment AND making sure that if the tenant buyers doesn’t buy it is explicit that they do not get that 3.5%-5% back)

My biggest suggestion is to make sure the tenant-buyer is NOT a typical renter. I see this happen a lot where people try to put a renter in a rent to own situation.

Good luck! And please keep us posted on your deal

Quote from @James Kim:

Hi,

I was just curious whether rent rates for a duplex are lower than for single family homes if all else was equal. If the duplex had a back yard and covered garage just like a sfh, except you're sharing one wall with the other duplex, would you, as landlord, generally expect rent to be lower than for a sfh?

If so, then how much lower is typical?thanks!

 Hey James! Rental comps may help with this. In my area - I know some duplexes that have rents close to SFR - and that is because the only thing the tenants share is that one shared wall. There are no shared entrances/ basements/ driveways and the back patio/lawn appears separate too (like townhouse style).

If the tenants have to share anything of what I mentioned above, the rent will be lower to reflect that. 

 I always believe in pricing rent as high as you think you can get. The number of leads/applications will let you know if is too high.

I hope this helps.

Hi,

The intentions journal by Brandon Turner is sold out :(. I have used this specific journal for the past 2 years, and now have to find a suitable replacement. Does anyone have a good 90-day journal substitute they have used? If so, please share pro/cons comparison to the intentions journal. Thanks

Quote from @Account Closed:

Quote from @Bria Johnson:

Quote from @Account Closed:

Hi all, I would love to get some input on a cottage I am trying to purchase. This needs to be a win win for both me and the home owner. 

I am working with a homeowner in NC who is willing to let me Lease a run down cottage on his property with the option to purchase the entire property including the main house in the future, when he is ready to move out. The town zoning will not allow us to separate out the cottage from the main home.

The owner is 75 years old an his health is not great. The Cottage needs a lot of work. The property is in a great location and has fallen in disrepair as his health has declined.

Here are the things that make this tricky; 

        The owner does not want to name a sale price for the property since prices are currently going up.

.       There is no set date for the end of the lease.

         He wants to keep control of the property and knows he will probably eventually need the money from the sale                to cover assisted living.

         Since I will be putting money into the Cottage I would want that money to be deducted from the sale price of                   the home.

Does this sound doable? Can language be written into a regular lease option agreement to address these things? Should I have an attorney draw this up?

Any suggestions would be greatly appreciated.

Thank you for the input.

Alex

 It seems like the seller wants a long-term tenant and not a true rent-to-own agreement. 

It is not a deal I would enter as there seems to be too much risk. Although there are risks in all deals, having too many unknowns in a common agreement (ie: option price, date you can exercise the option), does not seem worth it. I would def run this by an attorney if you want to attempt a solution to this. 

I wonder if this could be a sub2 deal (I am unfamiliar with the particulars of sub 2 deals, but just want to throughout another option). 

IMO- the homeowner does not seem serious to enter into any agreement. 

We are looking at a lease option, not a rent to own. Sub2 does not work since there is no loan on the house.

As you said, makes me wonder if he is serious.

thank you for your input. 

 What do you mean by lease option if not interchangeable with rent to own? Forgive me if this seems like a silly question (and a little embarrassing since lease-option has been my primary strategy since I've started real estate ) but In my market, we use them interchangeably and this is my first time hearing someone refer to them as two different things. Looking to learn something new. 

Quote from @Account Closed:

Hi all, I would love to get some input on a cottage I am trying to purchase. This needs to be a win win for both me and the home owner. 

I am working with a homeowner in NC who is willing to let me Lease a run down cottage on his property with the option to purchase the entire property including the main house in the future, when he is ready to move out. The town zoning will not allow us to separate out the cottage from the main home.

The owner is 75 years old an his health is not great. The Cottage needs a lot of work. The property is in a great location and has fallen in disrepair as his health has declined.

Here are the things that make this tricky; 

        The owner does not want to name a sale price for the property since prices are currently going up.

.       There is no set date for the end of the lease.

         He wants to keep control of the property and knows he will probably eventually need the money from the sale                to cover assisted living.

         Since I will be putting money into the Cottage I would want that money to be deducted from the sale price of                   the home.

Does this sound doable? Can language be written into a regular lease option agreement to address these things? Should I have an attorney draw this up?

Any suggestions would be greatly appreciated.

Thank you for the input.

Alex

 It seems like the seller wants a long-term tenant and not a true rent-to-own agreement. 

It is not a deal I would enter as there seems to be too much risk. Although there are risks in all deals, having too many unknowns in a common agreement (ie: option price, date you can exercise the option), does not seem worth it. I would def run this by an attorney if you want to attempt a solution to this. 

I wonder if this could be a sub2 deal (I am unfamiliar with the particulars of sub 2 deals, but just want to throughout another option). 

IMO- the homeowner does not seem serious to enter into any agreement.