All Forum Posts by: Jim Burkett

Same problem!  C'mon guys - tighten up!

Local couple is wanting to sell a property an hour drive away. They have a "rent to own" contract on the property and have been making payments for several yrs. a STATE LINE is involved, so I can’t use my normal title company. The only attorney in Magnolia, MS has never heard of wholesaling and balking. I have 2 questions:

1. 1.Does anyone have a contact near Magnolia, Mississippi that understands wholesaling that I can close through?
2. 2. Is it possible for me to have them assign me their “rent to own” contract?
   1. There is no language in the contract forbidding assignment.
   2. If we involve the original owner, the original owner will not be happy about me getting in the middle of this for profit. The original owner will profit most if the couple defaults and walks away so the original owner can sell the property AGAIN – I’m working to avoid that.
   3. How can I structure a deal that leaves the original owners clueless until I hand them their payoff money that my Motivated Sellers owe them?

@Hud Floyd I am currently a FF/EMT in a small rural combination department. I work “paid” on my days off from my offshore oil production job. I still make all the calls as a volunteer on the days I’m not on shift. My son and I began a wholesale company in December and are loving the journey and excited about the future.

Louisianasafechoice.com

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Thanks Courtney - I'm going to message you.

Thanks Nathan.   I understand completely and agree.  My inexperience and excitement at trying to "get the ball rolling" have me evaluating everything in inventory in Southeastern Louisiana and not finding any particularly great deals.  The result is I'm losing sight of the basics in the overwhelming number of evaluations, wholesaler phone calls, texts, emails, etc...

Thanks for setting me back on point!

Seeking guidance.  The opportunity is this:

Turn key rental property with ARV 145K. 4 bed/2bath 1575 sq ft, 5613 sq ft lot with 3 car driveway. current mortgage is 103,556.44. Monthly note is 988 and covers mortgage, property tax, home owners ins and flood insurance. Same tenant has been renting for 8 years. Monthly rent is 1250 leaving 262 cash flow.

The sellers want 25K in a bond for deed deal.  So basically, Owner is selling the deed (ownership) of the property but the owner will remain on the note.  Loan servicing company is in place to make all payments and mange the deal.  If the mortgage payments cease, everyone will be foreclosed on and/or the original deed goes back to the original owner.  the loan servicing company will receive all payments and disperse all payments to the proper entities. The tenant cannot be evicted due to change of ownership unless for our reasons such as missed payments, destroying home, etc...  Tenant will be responsible for all minor repairs to the property.

Thoughts?  Questions I should be asking?

I own some acreage across the road from my home and would like to put 2 mobile homes on it (2 are allowed by Parish/County). The land is paid for and has a water well on it. The plan is to borrow money from a HML to put in the needed infrastructure such as culvert at the road, septic, water lines, power poles, & gravel drive. Once that is completed, I'll have two used mobile homes moved onto the property and begin renting them. I don't want to screw this up and end up in worse shape than we're already in, so I need advice.

I gathered rental amounts from every local source I could find within a 60 mile radius and converted each of them to a square foot price. I averaged all of them (about 50 locations) and the average rental price in this area is .80 cents per square foot of space. I've priced my rents at .70 cents per square foot (16x80 trailers = 1280SF each) in an effort to be below the average - to ensure occupany. I've plugged in 10% interest because I know my credit is too poor to get a bank loan and my hope is that a HML will look at "the deal" rather than my credit and I expect to pay higher interest rate, but I have no idea what HML may expect.

Not sure what additional information might be needed to make a good decision, so I'll do my best to answer any questions.  Thank you all, in advance, for your guidance.