All Forum Posts by: Jeff Fairchild

From what I've read, a lot of people are putting $10 down on purchase contracts. If I call landlords though to buy via a lease option, they will of course be wanting 1st month's rent, last month's, a security deposit, and an option fee. What is the best way to pay the least amount out of pocket when buying from a tired landlord?

But I'm not talking about how to negotiate a deal, I mean after you've already negotiated it and you're writing up the contract and finishing up.

Nick, I can't tell whether you want it to hit page 4 or not, you sure gave it a shot. Wouldn't it be funny if I hit it after you tried so hard.

Also, I think you hit the nail on the head with me. I have gone into question asking overdrive right now because I finally got started doing some work. As we all know that's when you really learn what you don't know, that you need to know to get a deal done. I just wish I would have had an investor sit down with me a long time ago and given me all of the contracts to use and explained them all in detail. That hour of his time would have probably saved me about 4 months of procrastination. Maybe I'll do that w/ newbies when I get up to speed :P

If I could make a course and find out how to give it away free and find some way of making back end profit from their deals I would make a killing.

Hmm, this post wasn't really related to wholesaling sub2s.....so....

Wholesaling sub2 deals rocks big time! Do you agree? lol

That's pretty funny. I guess I'll have to try that haha

So if the option money is to be used as a down pymt if the person decides to buy why is it not required to be passed on to the buyer?

So I guess the answer to my question is.....it's such a great deal for the buyer of your deal that you are telling them "yes, there was a $7k option fee that I accepted, and no I'm not going to give that money to you even though ordinarily when a landlord sells another landlord a house with a renter he does hand over the security deposit and last months rent (unless I'm wrong about that). And the reason that I'm not going to give you that 7k is simply because I could find any other investor in the world who would be willing to take this deal because you're going to make so much money from it."

Is that the actual answer?

Do you bring the legal description with you before going to their house to fill in the top part of the contract? I'm assuming that you aren't starting to fill it out and then say Mr. Seller do you know the legal description?

I've heard it is somewhat common for the buyer to have a promissory note as earnest money. So I have to fill out a separate form for that right?

How do you usually negotiate fixtures? What phrases do you use to ask them which fixtures will stay? Do you write each one that will stay or do you write all will be included except...?

I have here a 3 page "seller disclosure of property condition." Do you have sellers fill this out when you are writing up the contract? It seems like it would take quite a while.

If the buyer and seller agree to delete a sentence from the contract, can you draw a line through it and initial it?

Anything else you can think of that we should know about writing up contracts?

I'm still wondering if this is true. Won't it be easier to sell your deal to an investor if the seller is paying all of the closing costs?

Mike,

You say "I attached an exerpt of a contract." Where did you attach this? I don't see anything.

Is it standard to use a standard contract and have an "existing loan" clause or is it more common to have a whole separate contract for doing subject to's?

Is there anything different that we need to know when filling out contracts for subject to's?

Yadda yadda yadda, the only thing that matters, is that stocks are priced like they are for a reason. They are worth the amount that their share price is. Value investors think that they can somehow find a deal when the price dips. Well the price went and is staying down for a reason. When it comes back up, the ones who will profit are the insiders. By the time you hear about it the price will already have gone up.

A house though is worth one amount, yet you can find a motivated seller for 50% off its value. You can't do that in the stock market.

Why stress out over a lack of control with stocks when you can learn what you're doing in real estate and build your profit into each deal. If you protect yourself and don't take unnecessary risks, even if a deal goes sour and you have bought it low enough, you break even instead of losing a bunch of money.