All Forum Posts by: Guy M.

I am looking for a simple Missouri purchase agreement that makes sense. The contract I have on hand heavily favors the buyer. I need something BP wholesalers from the St. Louis area use regularly.

If I can get that in the next few hours, I would appreciate it! Name your price or give to charity... either way, I'll be grateful.

Thanks!

I found this specific statement interesting, since I am new to wholesaling.

So, how is it that so many investors advise that wholesalers find seller leads and put properties under contract first as opposed to finding buyers and building that list? I had a hard time with that about a month ago. I was building up a pool of buyers FIRST so that I knew I could at least find a buyer quickly like I would promise the seller. I just felt more confident knowing that I could deliver on my promise.

What's your take?   

@Bill G.

Good info.

Keep in mind that Alisha only has NINE posts. She may not be familiar with the forum yet. Most forums are Q&A. This is why a lot of people ask a lot of the same question... they expect people to answer questions. As time goes by, they'll learn. 

I guess I'm a little more patient in that regard; I don't get frustrated easily; then again, maybe it's because I was an AIT instructor for 6+ years.

Anyway,

There doesn't seem to be a lot of, if any, court cases to reference on this topic. I hate that rent credits may be seen as financing. This kind of ruins the entire point of rent-to-own. I think it's fantastic that tenants can work towards a dream. I wonder if credits can be put towards some type of credit help program. I'm just thinking outside of the box...

I'm curious to see how Dodd Frankentstein affects these types of investments and the ideas creative investors come up with to satisfy this Act.

There is screening criteria (which I mentioned only about half of them) that Dodd Frank requires to be met by loan originators. LO owners should follow these criteria just to be safe. Like I mentioned, I'd apply any "credit" to the option fee and not the purchase price.

Looking on Craigslist, it seems like those "lease option guys" missed the memo with the "No Credit Check" ads.

With this Dodd Frank / Safe Act talk around lease-options...

If you're going to offer rent credits, I'd say underwrite the potential tenants before they move in. I would run a credit check, look at debt-to-income ratios, current job status, etc. Be thorough or hire someone to do this for you. This way when the buyer drags you to court IF they fail to exercise the option, you can prove to the judge that you did, in fact, ensure the buyer was qualified. 

There's a solution.

So this Safe Act / Dodd Frank Act...

Does it include hard money lenders who charge high interest on their loans? Under these Acts a lender has to look at a borrower's debt-to-income ratio, income, credit, child support/alimony, employment status, monthly loan payment, payments on other loans, etc. ; in addition, hard money lenders normally create more than five loan transactions a year which places them in the cross-hairs of Dodd Frank, so how is hard money lending still "hard" money lending with these Acts floating around?

Also, financing means to convey title. I understand the "credits toward" may be seen as financing, but is it really? To error on the side of caution, I'd say avoid credits towards the purchase price and apply them to the option. The option itself is not a sale, so how can they be considered a form of financing when no sale took place?

Explain how you would do a lease option, Bill, so the OP can go about it the correct way. You seem to know these Acts very well. Break it down into laymen's terms....

Good points @J Scott 

Spending time calling buyers is not the way to go. Noted.

I've spent the last two days calling potential buyers. What's your main approach to getting leads? Yellow letter? 

I just started wholesaling literally about a week ago. The very first thing I did was build a buyers list. I called a bunch of landlords and investors listed on the county assessor website and tax sale lists. Most of them sent mme their emails so I can send them deals in the future. So far, I have a list of about 120 potential buyers, at least eight of the 20 or so that I called today responded with their emails.

In my opinion, after reading, listening, and taking notes... I think building a buyers list is the most essential and first step in the wholesale process. Some may argue this but I see the buyers list as a sort-of bank account full of funds ready to use if the deal is right. I'm going to call some more people on my list tomorrow AM. I'm already feeling pretty confident knowing that I have real buyers ready for when I do find those deals.

Sounds like fun to me!

@Andrew Cordle The original shower looked fantastic... said no one ever.

Great job, man! Looks awesome.