All Forum Posts by: Jacob Anderson

Hello @Jake Isaac,

I have bought several properties in Cedar and have been using Steve Nelson @ Stratum in Cedar. He is a Broker/Realtor/Investor. Most Agents are not investors and in my experience don't give good advice.

Have fun.

Welcome to the Cedar Area investing @Tony Solano it is hard to find the good deals. You just have to keep at it like @Justin Morgan has said. The first one is the hardest then you can be like @Alison Kovac and get more.

Good luck.

Ok, thanks guys

@Brandon Turner thanks for that link, that is good stuff, much better than my "created one".

@Tony Marcelle we paid $20,000 for the lease option, which brings the purchase price of $250,000 down to 230,000. There are 2 small homes & 2 properties included in the purchase. We signed the lease with option and the purchase of the properties at the same time because we knew we were not going to back out of the purchase. The deal was just too good.

Normally you just sign a lease (with a clause that you can sublet) on a property with the option to purchase. Usually the option $ to purchase is non-refundable. They don't want you to back out of the purchase. If you do they have made money to offset the time and cost it will take to find a new buyer, but you do have the option to back out. The owner also is getting the money you agreed to pay each month to lease their property which usually covers their mortgage and some. You will want to be able to rent it for more than amount or have a quick turn around that gives you equity in the property or cash out in a sale. 

I should say that I did a deal that I had to pay some out of pocket for the lease each month. I did this for 6 months because the owner was financing the deal for 8 months, so I could show that maturity of six months making the payments that would be higher than the bank loan would be. I then was able to get a conventional loan easily and I got the rental house that would give a positive cash flow each month that I could not get with my small income, from the banks stand-of-view.

We were both happy, a win-win deal.

Hello @Matt Hazlett,

I've said this many times on B.P., If both parties are happy then the deal is good. We are currently doing the exact same thing you just described at a 50/50 and it works well.

Hello @Tony Marcelle,

We are currently doing a lease option. There is no one set way that I'm aware of, there is just what both parties agree to.

We signed a contract to lease the property from the owner for a 6 month period so he can find a property to do a 1031 exchange. We had to pay up front for the lease option. The monthly lease cost will stay the same through the six months lease and up to 2 years after when it converts to seller financing. That monthly cost will be interest only and will not pay down the original loan. The monthly cost is low and we double it in rents we collect, so we have a good profit now. We will refinance with a conventional loan when it is low enough interest and the cost are better. Mean while we are using the profits to build a 6 months reserve in the bank and to fix it up so that it will appraise higher when the time comes to refinance. 

If both parties are happy then the deal is good.

Hello @Grissel Garcia,

In Utah you can serve them her a

Eviction notice. 

Jacob

Hello @Nick Maugeri,

In my experience, yes a bank will Refinance to pay off the Hard Money Lender if the Home Appraises high enough, and meet their other criteria. 

Jacob

Hello @KC Hunt or

@Justin Morganundefined do you know any Real Estate Investor groups in the Cedar City area?

Jacob