All Forum Posts by: Cody Steck

I have been presented an opportunity to help lease out roughly 2,000 square feet of workshop space. It would most likely draw in a mechanic, smaller construction company, or something of the like. There will be parking and storage available. 

Would I be completely crazy for trying to attempt something like this? I am a residential agent and admittedly know little about the commercial side of things. Although I have no desire to move into the commercial space at this time, I would love the opportunity to learn more about this and feel like it would be a good starting point for a skill to add to my toolbox.

It is possible, but you will most likely not find something on the MLS with that criteria.

I have some contacts that can help you find a multi family depending on the area you are looking. Shoot me a PM and I can help get you introduced.

Nice job! 

Hey Cole, welcome to the site! Hopefully I will have a need for your insurance services in the near future!

Great thread! I love it!

A few questions for you though... Say that these sellers need to sell but don't have the ability to own two homes at once, how do you tell the sellers they won't be able to buy another home while they have a loan on their current property (the one with the lease option on it)? Do they have options? Will they just have to rent?

What do you tell the sellers will happen if the tenant buyer does not purchase the home at the end of the lease agreement? Doesn't that basically put the sellers back at square one?

When you use the negotiation tactic of "what if I can get you a monthly payment that is close or equal to your PITI?" What happens to the spread on the monthly rent? It sounds like this is specifically for a wraparound and not for a lease option assignment?

How do the sellers get past paying closing costs at the end of the lease option agreement when the tenant decides to buy? This is still a 1-2% outlay right?

Thanks!

I work on a team right now with a guy who is generating all of our leads online. He still closes deals of his own (referrals, family/friends etc) but is focusing most of his time on SEO/lead generation. Our numbers have been increasing and last month we generated almost 1800 leads. You can reasonably expect to close 2-3% of these leads which means there is a good amount of money being made there. Our problem right now is that we have a lot of new/part time agents so we are not closing as many deals as we should be.

You can do the math and figure out what kind of money is being made there. Although a large portion goes back into the marketing to generate the leads, there is still a lot of money being made. 

Duplexes in the Salt Lake valley are quite hard to find where they will still produce nicely. Especially in this hot market. I'd recommend getting in touch with wholesalers who might be able to point you in the way of an off market deal when one comes up.

Good luck!

Their money is secured against the property and the deal usually has enough of a margin in it that if the deal were to go completely south, they could most likely take over the project and at least break even on it... 

They are hiding next door... You never know who has money in the bank willing to lend out... Start attending your local REIA if you aren't already or reach out to local flippers who are doing these deals to get a referral

Hey Scott, welcome to the site and welcome to a fellow local. I'd like to invite you to attend the next Salt Lake Real Estate Investors Association meeting. It is on the 2nd Wednesday of each month. Do a search for it on google.

Search the website for answers and don't be afraid to ask questions!