All Forum Posts by: Paul B.

No need to apologize! We all use different nomenclature for the same things. When I moved to Georgia, it took me a few days to figure out that a "buggy" was actually a shopping cart.

I think I'd just explain a lease-option in two parts. First there's the lease, which I'm sure anyone will understand. Second, there's the option, which I'd just explain as a post-dated sales contract, with the only difference being that you're not obligated to close on it.

If part of your lease goes toward the sales price, that should be easy enough to explain, too.

Perhaps you should consider writing up a one- or two-page document that simply discusses this transaction so that the person can digest it at their own pace.

Do you feel that you're losing deals because people just can't get comfortable with the transaction?

It's been a couple years since I used these direct-mail pieces. I recall that the pre-foreclosure mailing yielded a TON of calls, but usually from people who had a 2nd mortgage, too. They were all upside down. At the time, I was interested only in straight deals with equity.

The postcards to landlords worked pretty well. I got a decent amount of inquiries and enough deals to make that successful. The trick there is the list. (Actually, the list is 51% responsible for ANY direct-response effort...)

My primary source of deals in the past has been Google AdWords, though. I'd do PPC ads and drive the traffic to my site, and the leads would come in. My average cost to secure one deal was about $2,000 using that method. My guess is these days it would be cheaper since I presume there is less competition.

Do you want to undo the deal?

If not, why do you care? You're no longer on the note, right?

Seriously, though, there seems to be an issue that you and your wife need to discuss. Spouses don't just go refinancing the house on their own.

If you're really intent on running this down, you should call the lender and see what they say.

I wish you well.

If you can find properties where the numbers work, I don't see why you can't make a few bucks doing that to build your cash up.

Having said that, I have yet to see a birddog who really, truly understands what makes a good deal. Their numbers are always off, without fail. Their "FMV" is WAY too high, their repair estimates are WAY too low, and the margin in the deal is never as good as they think it is.

Plus, if you find a really good deal, you might do better to work with a hard-money lender to get it done for yourself as opposed to just making a small amount of money for passing the deal on to someone else.

Summary version: If you're going to become a locator, be a very good one with defensible numbers behind every deal.

What are the taxes going to be when it's investor owned? She's already supposed to pay $5,000 a year in taxes, so you'll pay at least $6,000 -- my guess.

I don't know where this 3/2/1 is located, but right out of the chute you need a monhly rent WAY over $1,000 a month to make this work.

My gut tells me there's not enough fat in this deal to make it break-even on cash flow. What are the numbers?

I don't follow. Are these people simply trying to renegotiate a deal because they are under water?

Either they are past due or they aren't. Can you be more specific as to these people's situation?

If there's a short sale, they can't buy the house back at a discount from what they owed. Maybe they could rent it.

What "vendors" do you have to explain this to?

I almost forgot...what do you mean about a Web site or other source for your letters? Why can't you just print them from your desk? Or are you sending a LOT of letters?

Have you ever looked into buying a customized handwriting font for your computer? You can actually get a font that uses YOUR handwriting. It's pretty cool!

Then you can write very authentic looking "handwritten" letters VERY quickly...

You might consider postcards instead of letters. You should at least test them side by side.

Here are some of my marketing materials that I've used:
http://paulpayscash.com/marketing/

Good luck!

I've bought only one house this way. I've never sweat so much in my life. It's a very unsettling feeling to drop a certified check off to the lawyer's office for $10,000 the day before an auction. Sure, you have the deed already, and sure, you've gotten the all-clear from your title company, but it's nerve-wracking.

And you can bet that my stomach was one huge knot when I went to the house a couple days later and saw that the locks had been changed by an asset manager!

This was an error; the house was just on the schedule to be serviced. But it still made me VERY nervous.

I don't think you will be able to cure the default by just paying the lender what's owed. At that point, the attorney has the file, and they have the reinstatement amount. The lender doesn't want to be bothered.

In this market, I would be shocked to see a lender call a performing loan simply as a result of the due on sale clause being triggered. However, it's always possible. That's why my suggestion is that you do subject-to deals only when you're planning on flipping the house quickly or refinancing it.