All Forum Posts by: Jeff Warner

First off I want to say that I agree, as Investors we can find a way around pretty much anything the Govt. throws at us.

My question is; "Why not FIGHT them with everything you have and get everyone you know involved to oppose all of this nonsense."?

IF this thing passes, then we'll have to find creative ways around it. Until then, we can spread the word and try to influence them to vote NO. There is strength in numbers and all these guys care about is getting re-elected. If the people overwhelmingly oppose something, there is a good chance they will vote NO, and probably revise the bill.

It costs $0.00 to voice your opinion. Lets not roll over yet.

Jeff

First off, congratulations. If it doesn't have equity I wouldn't bother. If it has equity you may be able to negotiate a Lease Option or some sort of seller financing but from the sound of it I would think a Wholesale flip would be out. Are they current with their payments? If you have the address you can check the County Assessor's website in most states and find out what they paid, as long as they don't have a 2nd on it you'll be able to figure out if they have equity.

Jeff

Are you advertising what you want for the Option fee or do you tell them when they call? I don't know what a regular SFH sells for in that market (I just know the COMPS you said about other townhomes) but if you can buy lots of homes for under $100k I would think that people that can't qualify for a traditional mortgage may not have the 3.5% for the down.

In my market, a home like that would sell for $200k on a Lease Option and the down would be closer to 2%.

If I were you, I would consider a smaller down to get more available buyers. That doesn't mean your getting lower quality people, you'll still be able to pre-qualify them and pick the best one.

Most people don't walk in and negotiate a down payment in that situation, especially because they're choices are limited. Buyers with bad credit may be a little timid to negotiate, even if they only need to ask for a $500 difference. I would think that $2500 down would be more realistic, based on the sale price. Just my opinion.

Jeff

Forgot to ask, is your home priced WAY above the comps in the area or just slightly above? When offering terms, it's not important to try and price yourself low but you do need to be realistic. I think 10% above FMV should be fine for a 1-2 year Lease Option.

Jeff

What is your asking price? Do you know what that same home would rent for? Is your monthly rental price in line with what the actual mortgage would be? I wouldn't pay $650 mo to advertise your home in TIME magazine, the sources your using should generate plenty of quality leads, I think the problem is elsewhere.

Is the home nice and clean? Is it in a nice area or a war-zone?

What do you mean by "flexible" non refundable deposit? Do you have equity in the property? As far as not doing a rent to own on a townhome, I don't see an issue unless you had HOA fee's and or a HOA that did not allow a rental. People out here sell condo's and townhomes on Lease Options all the time.

Post your numbers and terms up here, I would be happy to help and I'm sure plenty of others would as well.

Jeff

Are you going to be looking for an "Option Fee" deposit? I would highly recommend it. You could put:

RENT TO OWN
Low Down, $895 mo.
Bad Credit OK.
555-1212

I would try craigslist and maybe the local paper. Also, put a sign in the front yard. 12-18 month's is a pretty common term for a Lease with Option. Also, if I was you I would make sure you can actually get your tenant / buyer qualified for a mortgage in the lease period, if a mortgage broker tells you they can't get qualified in that time you may want to find another buyer. That is if you want to sell fast, maybe you want to carry for longer? Either way, you can ask a higher price for the home with terms like that. Option fee should be 2-3% and non-refundable if your tenant does not buy.

Jeff

Will,

I assume your talking about Hard $. In your experience, do Hard $ lenders give short term loans like that? The guys in my area want minimum 1 year and 5 pts up front, 14% interest.

I like your thinking on the transaction, it would definitely simplify the process.

Jeff

I don't think this would KILL business, it would kill 2 deals I have in the works IF it were passed into law today. That's not to say I can't get them done long before it's a problem and to me, that has nothing to do with it anyway. There will always be a way to get around what the politicians do as long as you can be creative and have a good team to make sure what your doing is still legal.

To me, that's not the point here. The point is our socialist govt. is trying to take away options that we are free to use at the moment. IMO, if you let this pass because you think it won't have any effect or because you know you'll find a way around it (and I know we will), who is to say how far the LOONEY LEFT will go? To me, I will make phone calls, send letters and emails and spread the word to everyone I know, not because it WILL kill our business but because I want to let them know that I know what they are doing and I'm NOT OK with it.

Jeff

I just sent an email to both of the senators for Oregon. I'm also printing my complaint letters and sending them by mail. It can't hurt our cause for everyone affected or concerned about this issue to do the same. This took me 5-10 minutes. I'm sure anyone concerned can spare the time to do the same thing.

I think i'll call their offices tomorrow as well. Just my thoughts on the situation.

Jeff

Well said Rich, I could not agree more. I have 2 deals in the works right now that this law would kill. I've heard mention of getting licensed to be a mortgage broker as a way to get around this, personally I don't want to be a mortgage broker, I want to be a Real Estate Investor. Just my opinion.

Even if this did not affect me and my business I would still oppose it for the simple fact that I do not like big govt. to step in and try and take more control then they already have.

Jeff