All Forum Posts by: Cecil Russell

Mr. Scott, if you don't mind my asking, what kind of investing do you do? I ask because in order to support myself I do "bird-dogging" on the side. Never hurts to make another connection.

Lee Russell

806-316-8642

No; Seller backed out due to my inexperience at negotiations. Basically, I scared him off and blew it.

That was close Mr. pohl but I've decided not to try this until I have more experience to draw from. Thanks for the suggestion. I'm just too green to put myself in a situation that I don't know what I am doing.

Mr. Bill G: Separate question: With the advent of Dodd-Frank, is the LLC route the "better" way to go in operating a "Lease with Option to Buy"? I'm considering going back to school to enhance my knowledge of real estate/finance and I'm wondering if the LLC route would legally by-pass Dodd-Frank for small business investors? I hope you can understand my question but as I really am inexperienced, I don't know enough yet to even know if the question makes sense.

Thank you, Mr. Bill G., while I won't be going the suggested route, your contribution has provided me with much needed education on how to maneuver in such a transaction. Your post also answered a big question I have developed concerning lease options . 

@Wayne Brooks; lol, running just as fast as my little fat feet will carry me.

Thank you, I've probably been saved from making a really bad mistake. I sure am glad I found this website.

Thanks Mr. C. I'm taking the bird-dog route with local investors. I decided to utilize the yellow letter platform in searching out prospective properties while investigating opportunities of my own. I know that I have a lot to learn, for instance, I have no idea what LBK means.

Thanks for all the responses. If I hadn't discovered Bigger Pockets-being new at real estate, I would probably have gone for this little scheme and really gotten into trouble.

Yes which is why I came here to inquire because I am so green I still bleed green sap. It was one of those if it sounds to good to be true, it probably is.

His idea, in order to get all cash, is for me to apply for a loan for 80,000 and he will co-sign on the loan. The loan then allows me to pay for the houses and gives me 5,000 as operating funds until I start collecting rents, and the sale price is 75,000 for both houses total. If he owner finances, the payments would by $595 x 2 per month as this is actually 2 houses and the sale amount is 94,000. The current rents on each house is $600 but both tenants have been renting for 3 and 4.5 respectively. So established renters.

If I buy all cash, I save 19,000 on the cost of the 2 houses together. A 15 year mortgage would make the payments considerably less than 1,290 a month. If I lease to own, the total price of both houses is 94,000 plus interest and a monthly payment of 1,290. I am looking for a steady income right now, so this "appears" to be a reasonable investment on its face.

According to the seller, after the transfer of the titles from him to me, I could then take the titles of the properties and ask the lender to exchange them for whatever collateral is used to secure the loan and ask the lender to remove him as co-signer. I've never heard of anything like this and I know there are some really creative ways to finance real estate, this one I've never heard of. So I thought I would go to the one place I know there is knowledge and experience to draw from.