All Forum Posts by: Lokesh W.

OK. Assigning a subject-to deal to another buyer. Isn't Phil Grove also teaching the same thing???

Hmm... I wonder what this short sale system is about ....

Yes, this is exactly the reason why I did not want to buy this system. I did not even attend the webinar....

Hi,

Has anyone purchased this course from Jeff Watson and Brian Meara's short sale strategy? This is supposed to be a new strategy - some flip free strategy. It says it is not lease option. They were selling it for $97 but now it is closed.

Any feedback on this course? What is this course about? Does it have anything to do with selling the property back to the owner at reduced price??

Thanks

Thanks. I hope to attend this event next time..

Thanks for the comments...

I have done wholesales and short sales before. This will be my first lease option deal. Irrespective of what the seller says about his bottom line of 205K, I want to get out and make an offer that makes sense to me.

THis seller has lived there since 1999 (purchased at 148K) and has never had job loss (no income loss). He said he has been paying mortgage on time and has a good rate of interest. I know that he owes much less than 205K to the bank

I think this will be a deal at 190K (which includes my assignment fee) for 2 years. The city assessment in 2011 is at 193K and in 2012 at 179K (pretty sharp decrease) while comparables are 175K - 190K.

I can talk to the owner about the low city assessment that prospective tenant/ buyers will look at...

2-Year option with the right to extend up to 1 year.
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Max Purchase Price: around $190K (including my option assignment fee)
Downpayment: 10K (seller gets $5 and I get $5K)
Monthly rent: $1700 ($500 credited towards down payment/ mortgage)

If my offer is accepted, then I will speak with my attorney about allowable rent credit or seller concessions and also review my paperwork.

I will sit on this for a few days and see if I change my mind and then make the offer...

Michael Siekerka, Monica Breckenridge, Bill Gulley, Rob Gillespie, Ann Bellamy, John Jackson

Thanks for all the replies. This house will sell for 185K - 190K if I were to get a bank mortgage closing in 90 days. One of the houses in that area sold for 165K in Feb 2012. In Wisconsin, houses sell for less when there is heavy snow. I can see that the house that sold for 165K must have had an offer in Oct - Dec 2011 timeframe.

The seller listed this at 217K and said the lowest he can accept is 205K for the 2-year option. I will be asking for 190K. The max I am willing to offer 195K (i.e. the seller gets 195K) for a 2-year option. My buyer will pay around $200K (since this will include my coop lease option fee of 4K - 6K). If my tenant/ buyer can get enough money credited towards the down/ payment, then this can still be a deal i.e. at the end of 2-year period, my tenant/buyer can still get a bank mortgage.

The seller wants some kind of down payment too (ie. he wants some money for his pocket). Since I am planning assign my interest in this property for a fee, I will have to add his down payment (I am thinking of offering him 6K) and my assignment fee (4k - 6K) and find a buyer who can pay a total down payment of around 10K - 12K.

If the seller insists 205K, then I will request a 3 or 4 year lease. I think by 3 - 4 year, the tenant buyer can accumulate enough credit towards down payment to get a mortgage on the property.

The market rent is around $1200 - $1300. I can ask the tenant buyer to pay $1800 rent and have $600 credited towards the down payment/ mortgage.

2-Year option
-----------------

Max Purchase Price: around $200K (including my option assignment fee)
Downpayment: 10-12K (seller gets $6 and I get $4 - $6K)
Monthly rent: $1800 ($600 credited towards down payment/ mortgage)

3 or 4 year option
--------------------

Max Purchase Price: around 210K (including my option assignment fee)
Downpayment: 10-12K (seller gets $6 and I get $4 - $6K)
Monthly rent: $1800 ($600 credited towards down payment/ mortgage)

If the seller does not agree to this, then I will walk away from this deal. Maybe followup after a few months if the property is still in the market.

Any suggestions are greatly appreciated.

I am trying to do cooperative lease option on a property. The owner is asking for sale price that is at least $20K above the market price. I can make it up by applying 50% of the rent money towards the sale price (down payment).

Is there any limit to the amount that will applied towards sale price on a monthly basis in a cooperative lease option purchase? Can we apply 50% of the rent or more towards the mortgage/ down payment?

The other thing I can do is increase the lease term from 2 years to 3 years to make for the higher price...

Any suggestions are greatly appreciated.

Kent R.,

Thanks! That helps...

@Kent R.

Are you saying that Adam's method takes longer to implement than Michael's??

Yes, I will update once I have read through Adam's course.

@John Jackson,

I have noticed that too in my calls to "For Rent". It looks like owner is very eager to rent it out as soon he/ she finds a qualified renter....

At Wendy Patton's bootcamp, we called some "For Rent" ads from craigslist and found that owners were receptive to lease options but later, they did not return the phone call and also the "for rent" was removed from the craigslist...

Thanks for the tips on getting lease option leads...

I already purchased Adam Kings's course and I am reading through it.

While calling up FSBO and "for rent" are good sources, I like to have leads from others - realtors, property managers, other investors (who are unable to make deal from their lead) - this worked OK for me in short sales but lately short sales are becoming more and more difficult and longer... so I am trying to do cooperative lease options. Leads from others work better because I have a fulltime job and hence little time during the day. Hopefully, I can build lead streams from other sources.

I attended Wendy Patton's boot camp (which also had Joe McCall speak) and was very impressed with her experience. Their courses are expensive; I think I maybe able to do lease options without such expensive courses. I just purchased lease option book from Wendy Patton (I read this by borrowing from the public library but I need to look at this more closely). The other book I purchased is from Thomas Lucier (I learned a lot from his pre-foreclosure investing book so hopefully his lease options book as good as his other books).

I heard very good things about the Michael Carbonare and his forum at naked investor. I think I will buy Michael Carbonare's course sometime later... Currently, I have enough reading material that I could have information overload!!! In addition to the reading material, I HAVE OUR BP FORUM :-)

The cities where I am working now have majority of single families listed for rent either property managers or realtors. I have gone through all the ads in Craigslist and this is what I found. Eventually, I have to work with realtors or property managers to get leads from "For Rent". I haven't called FSBO ads yet.

Any suggestions on lead sources will be greatly appreciated!