All Forum Posts by: Kent R.

You might check the local REIA... CFRI (Central Florida Realty Investors) is offering a course this Saturday for Tax Deeds & Liens.

The course is only offered once a year and is taught by Sandra Edmonds. I haven't personally taken the course, but have heard Sandra speak and she knows the information inside and out.

Orlando, Florida's inventory is down to just over 3-1/2 months. Confirming what Steve K mentioned, there are now less than 9,000 houses available on MLS (I believe it was just over 22,000 a year ago.)

Prices have stabilized and REOs are now receiving multiple offers.

Also, DOM is mid-90's.

Sharon Vornholt & Michael G., do you mail out the same letter or variations and how many months will you mail?

It doesn't take any longer to implement Adam King's method. The contract that he uses has more "options" available to complete the deal and is longer than Michael Carbonare's contract.

Also, Adam sometimes employs the method of assigning the option back to the Seller to complete the deal. Michael uses the traditional method of assigning the lease/option to the Tenant/Buyer.

Hope that helps.

You are right Lokesh, you don't need an expensive course to do the lease options. As John mentioned, Michael Carbonare has a great course that is easy to read and simple to follow. I also have Adam King's Cooperative Lease Purchase that is a little more involved as far as the method, but again, easy to follow.

Either one is money well spent, plus you get all the contracts necessary to complete a deal (that's another reason why I also purchased Michael's course, since he is based in Florida.)

Enjoy the reading and update up with what you think after you've read through the material.

I appreciate the responses Ann and Dion. Your detailed answers have given me a better understanding of the process and answered my questions. Thanks again!

Thanks Dion. I am just trying to get an idea of the paperwork that is involved with a hard money loan.

Yes, you are correct... only the mortgage is recorded, but the note is submitted along with mortgage, so it shows up attached to the recorded mortgage.

I guess what I am trying to accomplish is determine how the agreement regarding points between the Borrower and the Hard Money Lender is documented.

How does the Lender advise the title company that 5 points (for example) should be charged to the Borrower? And does the borrower have to pay the points at closing or at the end of the 6 month or 1 year balloon note?

In Florida, I know that both a mortgage and note are recorded by the Lender with the Clerk of the Court, but where/how are the points (origination fee) addressed? The notes that I've seen in court records only have the interest rate and term of the loan with no mention of the points.

Rob & Will,
I understand that you don't want the property tied up for a long time and the deal falling through due to a "weasel cause".

But what if the buyer truly wants the property and has concerns about, say the electrical system, which they aren't well versed in. Would you be willing to write the contract with an inspection period of 3 days?

As a buyer, it doesn't make sense for me to spend $300 on an inspection and have you the wholesaler write a contract with someone else before I can submit my contract.

What is happening in our market, is wholesalers aren't allowing inspections, want a non-refundable deposit, and in Bienes case, a large one (this is assuming that it is a lower cost property).

Is there a solution that creates a win/win for both parties?

I don't think you are being a "nervous nellie".

There is no reason why a wholesaler shouldn't accept a refundable deposit based on a satisfactory inspection, especially since you know THEY purchased the property with a refundable deposit and inspection period.

Of course, if the deal is really that smoking hot, then another investor will pick it up without asking for an inspection.