All Forum Posts by: Casey Carroll

As a wholesaler who strictly deals in the form of assignments, legally you do not sell real estate. I may flip "homes" via lease options, but when you collect an assignment fee, you are actually legally flipping the contract. You sell expensive pieces of paper which contractually bind the home in one way, shape, or form... not the home itself.

Hahahaha... I love these posts!

You can also add to it and say, "I'm not a realtor, nor a broker, and I don't represent anyone but myself in any of my transactions."

... and then tell them to pound sand ;)

@Brian Gibbons he really shouldn't comment. Just because I'm a new poster, doesn't mean I'm a new investor... and that's a very important thing to consider.

Case in point... Brian, since you are an esteemed member of this forum with a lot of respect, was he wrong about Lease Options not being under the "rent to own" niche, or was I? (and I already know how you're going to answer this, because you understand my business, since you do it, and teach it, yourself).

What is your exit strategy?

I'm willing to admit I don't know anything about lease options in Texas... not a clue, and I don't pretend to know either.

Lease Options aren't rent to own? Joe McCall, Joe Crump, Wendy Patton, Josh Cantwell, Realtor.com (http://www.realtor.com/advice/rent-to-own-homes/), Forbes (http://www.forbes.com/2010/03/19/rent-to-own-personal-fianance-real-estate.html), MSN (http://realestate.msn.com/article.aspx?cp-documentid=17761848)... must ALL be wrong then.

Gee, I should stop listening to everyone else, including realtor.com, Forbes, and MSN then, and start listening to you.

You are right about the Texas part, however. That is the only state I won't claim to know how to run a lease option business in. From my understanding, it must be a lease option that converts into a land sales contract if longer than a 6 month term. So we will agree on that point.

Bankruptcies will never be removed, or short sales, or foreclosures via lexington law. And the time frame for qualifying for a loan again is entirely dependent on the chapter of bankruptcy (7 or 13), or type of loan product. As I stated in the post above, lexington law will only remove repairable items, such as accounts in collections, but those account must be paid first to be able to challenge the debt... I don't claim to be a guru, nor am I a scammer, but I back up the FACT that if you have an account that is in collections, that has been paid, you WILL be able to remove that negative item from your credit report, after about 5-6 months of challenging those negative tradelines using formal debt validation requests... heck, you can even do them yourself if you want to. I don't care. The point is, if it fits the mold above (collection account, NOT FORECLOSURE, SHORT SALE, BANKRUPTCY, REPO, JUDGEMENT, ETC), I'm confident you can get it removed. And I'm not 99% sure... I'm 100%. Am I wrong?

Bill, Rent to Own is a lease option... you even said yourself in another thread you mentioned this in, that an assignment of lease option isn't a financing arrangement (land sales contracts, deed installments/installment sales, mortgage wraps, promissory notes DO fall under that category). And you keep mentioning rent to own as some sort of financing arrangement, but if you even look under the biggerpockets forum categories, under "Real Estate Strategies", you will see a section titled "Rent to Own a.k.a. Lease Purchase, Lease Options." Either I'm right (and so is biggerpockets), or you're right (and myself and biggerpockets are both wrong).

So which is it, @Bill Gulley?

In closing, I'm not "blasting into the forums with contrary statements of others that have expertise in this area," if anything, you're doing the same thing to the Rent to Own aka Lease Option aka Lease Purchase niche. As such, as soon as I decide to start a mentoring program I'd be happy to extend the invite to you, because you clearly don't understand the Rent to Own niche as much as you think you do.

Hi all,

Who's using NLP right now, and how are you using it? I'm intrigued about this, but I don't exactly know where to begin using NLP.

Right, let me explain the qualification process. I was talking from a 50,000 foot view, but I'd be happy to be granular, because I certainly don't want anyone to perceive what I do as predatory (again, @Bill Gulley, you can address me directly rather than passive aggressively).

For any potential buyers you come across, make sure that you screen them through a company called www.landlordstation.com (they are owned by transunion, so they are extremely reputable). You will get employment verification, TU credit score, any accounts they are delinquent on or in collections, and criminal history. If they look like they won't have the ability to actually qualify for financing based on what you see, don't move forward with them. The point in this business is to help people (sellers, and buyers), not to take advantage of people.

If they have repairable credit (small amount of accounts in collections with small amounts), you can also help them rebuild their credit using www.lexingtonlaw.com (in fact, you can actually gain an affiliate relationship with them if you choose), but the only way this works is for your clients to pay off anything in collections, and pay any judgements they have as well (because anyone with a judgement won't be able to actually get a loan down along the line). With $0 balances on collection accounts, lexington law can actually challenge those tradelines with the bureaus, and almost 99% of the time, they can get them removed from their credit report (I know this, because I've personally used them myself).

There are some lending programs out there that go as low as 580 with a credit score, but most need a 620. It would be helpful to call a local mortgage broker and seek their advice, and help your client out by introducing the two. The second component of financing is the debt to income ratio, which the credit score also effects. On the safe side, try to keep the expected monthly mortgage and all other combined monthly debt obligations to below 1/3 of their monthly take home pay).

At the end of the day, if you put all of these components in place, you will find a strong buyer. HOWEVER, if they decide to back out after everything you do, you can't stop that... and you need to make sure your lease option buyers know full well that their option consideration is non-refundable up front.

Does that clear things up, @Bill Gulley?

NP, anytime.