All Forum Posts by: Casey Carroll

For wraps in your own state, you may want to consult with a real estate attorney if you plan on doing more than 3 per year (thanks to Dodd Frank). The lease option method will still work perfectly though. With a lease option, you can get anywhere between $3k to $10k up front (nonrefundable), which she should set aside as "rainy day money" for the unlikely chance that the buyers back out (because if they back out at any point before the end of the agreement, you will be able to collect all missing rent for the remainder of the term). Send me a PM and I can email you the contract I use for my deals. It's a good one, which protects the seller 1,000%.

Oh and for the length, 24 months is ideal... any less, and you're setting your buyer up for failure.

You want to buy and hold in IL but live in Central Oregon (I'm assuming Bend/Redmond?)

I'd recommend you start local first. Long distance buy and hold deals can turn very ugly very quickly, and you wouldn't want to be one of those motivated absentee owners that people market so aggressively to.

Also, you may want to look into creative financing strategies to buy and hold... if you can master that, you will never need a bank to finance a home ever again.

Thanks Donald. This niche is relatively untapped. I see competitors pop up here and there, but they rarely take their business seriously. They come and go (and this is just in the 1.5 years I've been focusing on this niche). If you treat this business as a hobby, you won't see results. Treat it as a real business, and you'll thrive. Coming from someone that lost his butt on two rehabs and made a small fortune on my last rehab, I like businesses that don't make me lose money if a deal goes south.

@Donald Baptiste, it primarily is the difference between an exclusive, and non-exclusive lease option. I use non-exclusive lease options in my business because I only work with FSBO, and the chances of them finding a cash or conventional buyer quicker than I can find a lease option buyer, are almost 0%. Joe Crump, and Joe McCall both teach this form. The soft option tends to only be 1 page long, and doesn't require you to put any consideration down up front. The hard lease option is a long form option which grants you the right to assign your option (also in a hard lease option, you can do a sandwich lease option if you ensure that the seller gives you permission to sublease the property, but I don't recommend ever doing a sandwich lease option... they can get very messy very quickly.) The hard option can and usually require you to either open escrow, or bring it to a real estate attorney. If you are super concerned, you can record your option on the deed as a "memorandum of option," but then you can bring the due on sale clause into the picture (even though the odds of a lender calling the loan due are extremely low with a memorandum of option recorded). I recommend using hard options if you find a landlord. Which form you use (hard or soft) depends on the types of sellers you're working with. FSBO = soft (or hard, but you can get away by just using soft options). Rental ads = hard, because the seller will always find a renter quicker than you can find a lease option buyer. People who teach the "hard" option, are Wendy Patton, and Josh Cantwell (middle man income).

Okay, and how much does he owe on the mortgage still and what is the current FMV on the home?

Look man, if you could fully answer my question with a full response, I can help you. Is there $5k equity, or a $5k tax lien? Please elaborate using a long response.

By foreclosure, do you mean preforeclosure, or was recently sold at auction? If just a NOD, then they are motivated. If recently sold at auction, check the tax records and see the owner on record.

Back to my question, with all liens combined, how much equity is in the home. And how high is the tax lien?

400 per month will work. Target the same list 3-5 times. Absentee owners can be any of the following (high equity) rehabber deal, (high equity) landlord, (low to mid equity) subject to, or (any equity) lease option.

For the subject to niche, there is another group if they have little equity, you can assign the subject-to deal to another buyer and offer "seller financing." Phill grove talks about this niche extensively in his AMPS program.

Do you have to have agent credentials to get access to redx?