All Forum Posts by: Brian Gibbons

If I’m experiencing a hardship beyond my control, how can I save my home from foreclosure?

You can take steps to avoid foreclosure on your home. If you experience a hardship and are worried about making your house payments, understand your options. Do not ignore the situation or avoid your lender. The website www.virginiaforeclosureprevention.com* offers tips and advice on saving your home from foreclosure. The site also includes links to brochures which deal specifically with this issue.

@Brent T Galbreath

Brent where are you, what zip code?

I coach Sandwich LO, Lease Option Assignments, Master Leases, Master Lease Options on Apartments, sub2, land contracts, land trusts, private money, jv partnering and more.

No money down means not your money but you need money to do business activites, like marketing, day to day business expenses, etc.  

You need to start a LLC, get an attorney for Seller Side and Buyer side contracts, pay liability insurance in case you get sued like an agent get E and O, etc.

Read my blog and my posts as I am pretty good at coaching lease options.  

Go after sellers that want to sell, propose a lease purchase advantage.

Go after buyers that want to own, propose a Rent to Own Advantage.

````````````````````

The Many Benefits Of Lease Purchasing

Lease Purchasing affords wonderful benefits and opportunities to sellers, buyers, investors and those who would like to operate a home-based business. Lease Purchasing allows you to control property without ownership which has benefits for all.

What Is A Lease Purchase?

A Lease Purchase is a process that combines a basic rental lease with an agreement to purchase, or with an option to purchase the property. The Buyer (or Lease-Purchaser) pays to the seller a monthly payment that usually approximates a rental amount or a typical mortgage payment on the home. A percentage of that payment is typically applied towards the purchase price. At the end of the term, the buyer has the right to purchase the property for the price and terms to which both parties have previously agreed.

Put another way, a lease purchase is essentially a rental agreement combined with a purchase contract with pre-negotiated terms. The buyer leases the property for a specific period of time and then purchases the property before the end of the lease agreement. Sales price, length of rental, rent credits, escrow instructions, etc., are all contained in the agreement.

A lease purchase is a wonderful way to control property without the headaches of banks, mortgages, taxes or immediate loan qualifying. Lease Purchasing gives you the right to buy the property, but not the obligation to buy.

Following are just some of the benefits of Lease Purchasing.

Benefits For Buyers

• Low down payment.
• Qualification restrictions are not as great as in conventional financing.
• Past credit problems are not usually a road block.
• The option consideration can be fully credited to the purchase price.
• Your rent money is working for you.
• Purchase price is usually locked-in ahead of time.
• Gives you sufficient time to check out all the features and faults of the house.
• Time to check out the neighborhood.
• Puts you in legal control of a property for a specified period of time.
• Time to shop for and obtain the best financing.
• Major maintenance and repairs are the responsibility of the owner; you take care of nothing but minor maintenance.
• Profits, in case appreciation occurs and you decide to sell in the future.

Benefits For Sellers

• Usually top sales price for the property.
• Better quality tenants.
• Higher rent than usual for the market area.
• Non-refundable option consideration.
• All minor maintenance is delegated to the tenant/buyer.
• Seller remains on the deed.
• Seller retains the tax shelter.
• No fees to pay.

Benefits For Investors

• Maximum leverage.
• Minimum cash outlay.
• Minimum risk.
• No maintenance.
• Wonderful cash flow.
• Excellent profit potential.

Benefits For The Business Owner

• Little start-up capital needed.
• Little or no credit needed.
• Wonderful cash flow can be generated immediately.
• Excellent and realistic first year income can be achieved.
• Business can be started simply, no major equipment to buy.
• Business can be operated full time, part time or in your spare time.

Best of all, the business can be operated from your own home office.

@Shiloh Lundahl

I have coached at reiskills since 1998 and most people want some "push button" system.  There is a lot of crap all over the internet.  

-Studying legal conventions where you do business is a key to this business.  New York is not PA, and AZ is not CA.  

-Buy the agent books for your state.  Learn the local realtor contract.

-See a title company.  Learn conveyancing.  

-Get a CPA that owns commercial real estate as personal investments and LOVEs REI.

-Go to every meet up and every real estate investor association meeting you can.  

- Get a business card - I BUY, SELL and LEASE HOUSES.  No Problem too big.

Why do some students do well and some not so much? I can only guess.  Fear and doing nothing avoids true commitment to learning and doing.  Without DOING you are guaranteed to fail.  

I did well because my boss when I was 25 just wanted me to see Home Sellers, and give them a presentation on how we can buy their house fast.  FACE TO FACE.  And I was on a $500 a week salary.  I saw 2 - 3 home sellers 5 or 6 days a week.  The kitchen table was my office.  That was 1000's of sellers.  DIRECT EXPERIENCE. I saw divorces, mean people, dishonest people, crazy people, hell, serving in the Marines was easier than dealing with some of these Home Sellers!

I did this for 2 and a half years.  And I learned about contract law, the courts, evictions, taxation on profits, negotiation and NLP (neuro linguistic programming), creative financing, seller financing, jv partnering, private lending, using self directed IRAs (it was pretty new in the 80s), managing my time, following up with "let me think it over" sellers, dealing with other sales objections, so many different skills.  But they are all really important to this business.

Sales and Marketing is easy, planning and implementing is hard.  Walking away from a deal that smells bad is really hard.  In this business there are alot of tire kickers, bullshi* artists, people that are totally insincere (bad actors).

I love it though.  My coaching success is over 90% with my students, I keep their life simple: learn how to present and close a motivated seller before you do anything, before marketing.  You do that, then get a good attorney, get your business entity, do some free and cheap marketing to sellers, stay on terms deals (lease option, sub2, land contracts) and rent to own exit.  You will make money, especially in this fearful corona virus market.

Wholesaling is not a good start.  Closing a seller on a lease option and selling the paperwork to a tenant buyer for 3 - 5% is WAY easier.

"Buy when people are fearful.  Strike now.  Implement now."

Talking to motivated sellers is one of the most important skills you could ever learn in real estate whether its wholesaling sub2 lease options whatever

To avoid a double close at a title company on a flip or a sandwich lease option, research a "reverse assignment" where you use a buyout agreement and put your profit on a 2nd or 3rd lien.  Property closes and you get paid.

@Noah Howells

I have been using Land Trusts and Property Trusts since the mid 80s.

The benefits of a land trust 

https://www.dropbox.com/s/91f4...

@David M. Hagley, Jr.

Have the owner "carry paper" is owner financing.

Is this NOO or OO? NOO Non owner occupied is investor purchase then rent out. OO is Dodd Frank and RMLO.

Please describe the details.

Yup and its federal, can u say orange jump suit fed prison? lol

Go to investorcarrot for a seo website to get the best lead generating website

@Trevor Mauch runs the show there

There is no conveying title on a lease w  option, just a lease and a landlord tenant relationship.  Nothing recorded against the title.  

A CFD better be recorded against the title to protect the rights of the buyer. A memorandum of contract is enough.