All Forum Posts by: Jason S.

I get this question, as do many of you I am certain, if I will complete the short sale and do a leaseback/option to the seller.

Of course, I always say, "that's not something we can do". But once again I am doubting myself so I thought I would field the question to the group.

Is there any legal model that you know of where we can do this in California?

Please spare me the advice on whether I want to do it or not from a investor point of view - I want to know from a transactional / legal point of view.

Can it be legally done or is there some deviation from a straight "leaseback/option"? I am not interested in anything that "pushes legality" if it is not completely straight and open and legal I will not do it.

The California Civil Code states:
[i]
(e) Whenever any equity purchaser purports to hold title as a result of any transaction in which the equity seller grants the residence in foreclosure by any instrument which purports to be an absolute conveyance and reserves or is given by the equity purchaser an option to repurchase such residence, the equity purchaser shall not cause any encumbrance or encumbrances to be placed on such property or grant any interest in such property to any other person without the written consent of the equity seller. Nothing in this subdivision shall preclude the application of paragraph (3) of subdivision (b).
[/i] (paragraph 3 subdivision b is not relevant to this inquiry)

So it appears that they are leaving it open. Yet we always say that a seller can not in any way benefit from a short sale - yet a leaseback option the seller does benefit.

Please advise. (and if you all come back and tell me you do it all of the time and that it is perfectly legal - it's OK to snicker at my ignorance)

I love how they put up these "calculators" without any reference to their algorithm.

Listen to what your investors tell you. Do not tell them what they should buy.

It sounds basic but I have wholesalers insisting that something is a deal - even when I know it is not.

Bring a deal - listen to feedback, learn, adapt, bring a better deal next time. If I do not buy a deal but someone else does - do not come back to me and tell me how I "missed out". If the deal is right for me it may be wrong for another person and vice versa. If you "pitch your deal" too hard then how can I know that I can trust you and that you are telling me just the facts and not "selling me" the deal.

Hard sell, not listening, being arrogant, trying to make yourself to look like you know what you do not, these are all things that lose credibility.

Most of all - I need to trust your word and I need to know that your property evaluation is true.

Jeff,

It's in the times of discouragement that you determine, like Lisa, if this is right for you. Real Estate is not a fly by night simple pursuit. You cannot learn it in a night, week, or even a year - you can though, focus on one thing in a short period of time, as Eddie said, and expand from there.

For example - you want to re-hab? Well, as you said, it takes "skin" in the game. So then - how do you get some cash?

1. Save it from your current income.
2. Make it from wholesaling.
3. Partner with someone - but it needs to be someone that has all of the experience you lack - or both of you will get into a bad deal.

The problem is, in SoCal, wholesaling is not so simple. BigFlip2008 seems to be making it happen but it is not too common to find a success story from others.

You have to find someone willing to work with you. They tell you what to do, and then you do it. Maybe they are a foreclosure buyer and you have to track sales for them - you do everything and they just take the deal and do it. Maybe they are a short sale buyer - you do everything, and they work the deal. Maybe you tell the Realtor that if they will help you - you will deliver post cards for them - I don't know - be creative. Let me tell you, if you want to save me postage, then I will give you a cut of any deals created - no problem. I am certain the same goes for Realtor's in your area - you need to add value to the "mentor".

These are 2 major areas that are active in this market and are viable.

But be prepared to do a lot of work and make nothing for awhile - maybe you will luck out and make a grand or two in the next couple months - but maybe you will not make anything for 3 or more months.... you never know. But one thing is for certain if you have a focused plan, that you can confirm with experienced people here on BP that it is a good plan, and take action toward the goal every day - you should make something happen.

Remember.

According to the Rule. If you replace 1 window in a pre-1978 home you must comply.

The great part is, at least according to the NAR video, I could not find it in the language of the rule. "Any Citizen has standing" to sue. Gotta love that!

I recently starting reading the wealth of information on the BP blogs - there is a lot of great stuff right here.... on the outside I enjoy my daily email from :

doctorhousingbubble.com

Unclear as to how this applies to flipping a property.

It specifies that the fee applies to those getting "paid" - if the flipper does his own renovation then the property is not a rental unit nor is the work being done by a contractor. I wonder how this will be applied?

To add a twist - what if the flipper is also a contractor? I guess it depends on if he is paying himself (one entity to another) or not?

Any thoughts?

Private Money is fairly straightforward to obtain - if you are a beginner this is what you will need:

Have a deal where you are borrowing max of 65% of value with 10% minimum of your own money into the deal (you also need enough in reserves to make the monthly payment as well as complete the re-hab). There are a few, with an emphasis on few, lenders that will lend future value (Jeff, I know one that will lend in CA but other states I do not know). the future value loan will still be at 65% of future value with 10% of your own money into the transaction and then you need enough to do 1/2 the re-hab then you get a draw then do the next 1/2 of the re-hab and get the last draw.

It's all simple - and there is no "secret" or "search" that needs to be made. If you are looking for 100% financing and you have never done a deal then, well, it pretty much does not exist unless your purchase is at 50% LTV - even then it's not too easy for the beginner.

If you do not have 10% of your own funds then wholesale or whatever you need to do to make the money first. this wholesaling will give you the track record and experience to more easily obtain financing once you have saved some money.

I know this post may be redundant - but there is no "secret recipe" - these days everyone wants you to have "skin in the game".

Of course.

I would recommend having it installed and delivered - nothing like breaking it on the way to the job.

$250 for delivery and install. You can do this cheaper - but really, you want it installed clean and correct. I have never really shopped for a cheaper installer.
$100 for cut out.

That's what I have been paying.

I know those that get delivery/install/cut out cheaper - but I have been satisfied with the above - especially because the Granite shop guarantees the delivery.

So how about $475

$125 for decent standard size 8' pre-cut counter top - bullnose and 6" splash.

Some colors a little less others a little more but $125 on average.