All Forum Posts by: Thomas Dionne

I have bought my 1st property for 50k, put around 4k into it and appraised is for 94k (did appraisal on my own because i just had to know)I have like 4 people (out of 300 calls) already wanting to rent to own it that are on the VERGE of a loan.

Im super good at finding deals on labor and did some work myself. My main rehab guy is family friend and gave me a sweet deal on stuff. I have been told save receipts so you can show lender in future but i just dont have a big number even though we fixed a roof problem, paint, carpet, new countertops, lighting, garage door, etc.

People have warned me this would be a problem and I just wonder what others do. I asked a real estate mentor who I really respect and he said he tells them "NO, its proprietary, this is about what houses are selling for in the area not what I make, if u dont want the business i can take it elsewhere" if they ask for receipts and it has almost never killed a deal.

This blew me away, does anyone else do this? Is there a better way when you get good deals on rehab or do work yourself?

J Scott..

Yea i am willing to get my license its just that my leads come from 50 states and getting all of those licenses obviously wont work. I have lots of buyers in my DB, I just want to be able to say to sellers "let me see if someone on my list wants to rent your property." I can see now if I have a qualified buyer and marry the two up I cant get paid unless licensed, which makes sense.

I know i can get people to list property on my new rent to own website but just want to be able to make money AFTER the seller gets what they want. Any other model of getting listings by charging money up front to list kills it.

I think what was said is that in some states I can expose my buyers to a non-mls listed property and collect a fee if a deal gets done from someone but im not totally sure. It would require me to change up my business a little bit to pursue all this so it needs to be legit.

thanks

i need a "tom" lobby.

Thanks a bunch for the insight. Any idea if there is any place to see which states allow some of those scenarios to occur?

"This is going to be state dependent. In my state, an unlicensed seller can pay a referral fee (on the HUD-1) to an unlicensed person. But, it's still illegal for the unlicensed person to market for a buyer for a particular property without being licensed."

Also I was wondering... if a third party internet site which had no license was allowing properties to be listed, by individual sellers how would that be legit?

man so many questions..

Im not talking about listed properties and i dont know if that matters. Im talking about someone who doesn't have a Realtor and doesn't have a property listed for sale. if anyone cares to answer the following scenarios (Im just looking for opinions, not rock solid legal advice)

1.
Are you saying that 2 private citizens can not come to an agreement in which 1 pays the other for FINDING a buyer? This would mean the owner of a property is not free to pay whoever he wanted to help him?

Or
2.
Are you saying that 2 private citizens can not come to an agreement in which 1 pays the other for PROVIDING (someone attained before approaching seller) a buyer?

ALSO (WHEN RENTING)
3.
Are you saying that 2 private citizens can not come to an agreement in which 1 pays the other for FINDING a RENTER?

Or
4.
Are you saying that 2 private citizens can not come to an agreement in which 1 pays the other for PROVIDING (someone attained before approaching seller) a RENTER?

thanks for any help

I hope its ok to post this on this thread at this time but id love the opinions of the people on here if something I am thinking about doing is legal.

Im not a real estate agent. I have a seller that has their home listed for sale by owner and they are having a hard time selling. I ask them "if i could find you a rent to own buyer to pay 3.5% down and x per month would you take it if their credit was ___ and they had a job for ____ years, etc, would you take it"

If they say yes and agree to sign a contract I have a lawyer modify/draw up and then I then find a renter/possible owner that agrees to their terms, signs a rental agreement and an option agreement, Is there anyway I can be paid for this?

The people I see doing it now take 2.5 to 3% from the buyer as compensation. Is this a definite no-no or a grey area or what? I've asked 4 people and gotten 4 answers.

There is no Realtor involved and no one shows the house. Once the seller agrees to give it a shot the house is listed on an internet site and pushed to our buyers list.

Is there a way to NOT get the fee or a way TO get the fee?

Either by the renter, or the buyer, or the seller?
Thanks for any help.

I have been looking for a good contract for rent to own. I have read it should be 2 contracts, one for the rent and one for the option to buy... I have seen the standard contract this forum offers but didn't see anything about lease option.

I know I should hire an attorney and probably will before its all over but I have messed up relying on an attorney too much in past as a know all legal god. Id much rather start with a contract that has evolved over the course of being used by a real estate investor that has learned from actually being on the front line. So i had these questions:

1. does anyone have one they believe in i could see as example
2. any place reputable to get an initial document that i could then tweak?
3. any advice on what should be in there?

Any help is appreciated.

mike, thats awesome... its in my wifes name who has 730 credit score and we bought it out right... the tax value is 111k and houses are selling for 65-75k if by bank and 90k if by owner

i paid 50k on it and want to use that money somehow to get another house or 2.

my wife has low income and i felt like we had to bid cash to get it. I think the low income is going to screw me but income for 2011 should look better for her. did u go with a big bank? Was the heloc with the same place as mortgage?

@jeff Because my existing business is such that I can generate lots and lots of leads for potentials. I already have a sales force that sells people that are rent to own leads our service of showing people what they need to do to get a loan.

I feel pretty good I can find someone who has solid income and job history to pay 2-3% down and a good monthly payment. I am assuming this would be easier than going after someone who just wants to rent, plus there is the upside of actually selling the house, getting some money back and then doing it a few more times until i can attract some real money. I hear more conservative people say there are problems with LO and I am wondering if the problem is simply that its tuff to get them qualified and if you dont the person will be upset. If thats the only problem I think an abundance of leads, which allows you to pick right person, would help significantly.

I dont know what other problems there would be that wouldn't be solved with honest, direct straight shooting with the buyer/renter.

@dave.. yes what is it that you do?

I was wondering what restricts people who say want to buy 2-3 homes buy only have 75k.

If I bought one home for 50k cash and moved into it, fixed it up etc, how long (if ever) would it be before I could take a heloc on it in an average circumstance to buy another home? Seems like there would be some restrictions.

You probably wouldn't get more in credit than you paid for but at least some of that money could be put back to use.

I don't have the ability to buy the home i bought without cash so i had to do it, was wondering if people ever did this instead.

Im just wondering of a strategy to make my finds go further and buy multiple homes.

thanks

After bidding on 5 or so properties I finally got a 3 bd 2 bth 1380 sq ft home in Jacksonville fl 32244 (chimney lakes in case anyone is around here) for 50k

It needs new roof and ac unit and paint and flooring but in pretty good shape.

I have been wanting to steer my business of "manufacturing home buyers" into a situation in which I have a vested interest in the home. So i saved up this cash and pulled the trigger.

I haven't even handed over binder yet and I already have a few people from my database who want more info... im fairly positive I can create enough leads to get a "rent to own" person with a decent shot at moving in with soon after having it fixed up. Ive gotten pretty good at creating a lot of leads in any area I want for cheap, i think that's my advantage. I know it wont be easy and I will get surprised and I was wondering what someone who has done this before would think and do different, or what they would look out for. Some concerns are
1. if i get someone qualified in 6-12 months missing something that would cause it not have a loan go through
2. picking a renter that couldn't get a loan because of some lien or something that i could look for now that I don't know to look for.
3. if i get lucky and sell it not taking advantage of some tax break
4. that the house wont appraise for 80 or so dollars a square foot even when fixed up and even if i have someone willing to pay that.

All in all the money in a money market is paying 50 bucks a month and the other houses on street are 1100 and 1200/mth so I figured even though I don't have much experience with rehab and reselling i cant screw up too bad. Any input would be appreciated.