All Forum Posts by: John Jackson

Quick side bar...not all HML's report to the bueareus....bureuas bureas....how the hell do you spell that stupid word?! BEUREUAS Bue...whatever....not all HML's report to the credit peeps....most small ones don't, so all you do is lose the house.

Mike is right, you'll have to look at grant programs, or USDA etc. They are all but gone, but the ones I HAVE seen still, require the property to fit within VERY specific guidelines...such as a specific part of the city, blah blah blah, and if it's going to be non-owner occupied, that may filter out some of those grants even further.

It's that first one that makes you realize you can do it...now...rinse, repeat.

I got to know him for years on NAked Investor...so sorry to hear that...I'll let the people there know it as well....

Marv is right, this is simply a sandwich lease option. The goal is to get a decent deal on the property and on the monthly payments with the seller, then you get it under a lease option contract, adn turn around and lease option it for a higher price and higher monthly payment. You get cash flow and money when the end buyer closes. There is more risk here than with the CA or cooperative assignment lease option, and I normally recommend that people do several CA's in one area before doing a sandwich LO so you can learn the area and the ropes.

Sharon is spot on....
After 9 years of this biz, I've filtered by areas, price range, last names....hey...if I can't pronounce their freakin names...how am I going to talk to them?..HA!
Seriously, I could get 20 houses net month in an area that is a 15 minutes drive from, but I don't want to deal with the sellers, the houses, the area, or the toothless people calling...
You have to define what I call your bread and butter area....

The only marketing I do for my lease options biz is direct mail, and I normally only do 3k on the high side or so using a brochure or postcards.
Michael's right, you don't want to get buried in calls and leads and you lose them due to being swamped.
I recommend starting off with about 500-100 like Michael said. get your flow down and how you are going to process the leads so it's a smooth operation first.

I was actually referred to this site this past weekend, and here is my first post!! Yeah!
First Michael, congrats on doing something very few investors do...RESEARCH!
You would be amazed at how doing your own research puts you far above most investors.
I've done LO's in TX for 9 years and after 2006 the rumor mill went rampant and part of it was due to attorney's that had land trust courses, and also due to people not reading the actual law.
You can do lease options in TX, but there are specific requirements, such as disclosing mortgage information etc.
One of the big causes for confusion was that the statutes applying to lease options was written into Title 2 Chapter 5 regarding Conveyances, which would be contract for deed. A number of the statutes in this chapter were due to the tornado in Ft. Worth on May 28th, 2000 and introduced by the then State Senator Mike Moncrief.
People can get confused thinking that the same statutes such as giving amortization notices etc. apply to a lease option, but they don't.