All Forum Posts by: Kevin Craig

I've had some experience with doing lease options in teh past. I put 5 properties under contract but could not collect an option fee. That proved difficult so I have another idea.

I want to get a 100,000 line of credit. Find a property valued at 200,000, selling at 150-170. Put 20k down, finance the rest hard money or with a mortgage broker.

Put a renter in it. Put back on the market immediatley and sell for 190. make 20-40 k profit. What do you guys think.. Will work, any unforseen problems.

Seriously thinking of looking for a line of credit. Thinking this is best when the market is in an upswing but what if I could get shortsales or foreclosures right now priced steeply below??

Thanks for all responses

Originally posted by Bryan Hancock:

I DO understand. I have done tons of these deals and I know all of the risks involved.

Could you spell out the risks, and the chances of them occuring?

Do you think that you are not going to get sued if the deal blows up? Even if all of this is disclosed and they sign off on it they can still sue you and the cost of defending the suit will likely be higher than the fee you collect.

k

I'm not saying this will happen, but you should be aware of it before you do anything.

What are the risks?

Again...Jon told you what contracts are needed. You also need a whole bunch of disclosures to protect yourself as much as possible. An attorney can help you with that.

See my last response to John about just using a purchase agreement to put the house under contract and assigning that to a buyer which would include the option fee and letting those two do seller financing. Would that be a better alternative without risks?

If you think there is no risk in what you are describing you are wrong.

Would like to know in detail still

Ok, excuse me. I mean "A lease contract with the option to purchase the property"



Could you tell me more about these?



Ok, so you're basically saying pick the property up with a regular purchase contract, right? Then just charge the buyer a fee and let them do a seller financing deal?



Again so you're saying just put in under a purchase contract and do a wholesale situation and let the seller and buyer work out the lease purchase deal?

Maybe you don't understand, when I charge the option fee, I'm getting out of the deal, as in I'm tearing up my contract.

There will be a new deal drawn between the seller and the tenant buyer. If there is a do on sale problem then that will be between the seller and the tenant buyer, not me.

There's no risk there for me. As far as loans being called I understand the risk is miniscule to be exact and why this is mentioned as a viable risk I do wonder.

Intentions are not to leave either the seller or buyer in a bad situation but in reality the risk doesn't fall on me.

I have an idea of how to make money off of upside down houses and I'd like to know you guy's opinion. My focus in on lease options without taking the property subject to. What I'll do is put the property under contract under lease purchase, then sell my interest to purchase for an option fee to a tenant buyer. This has me out of the deal clean. (For all of the people who are scared to do lease option deals)

Now here's the nitty gritty. An upside down property looks like this. loan 330 property worth 240. The owner wants out. My mentor sometimes does deals where the owner will make payments on the mortgage while the new tenant buyer pays the majority.

So say the 330 loan carries a 2100 mortgage. I have the owner carry 400 on the lease and the new tenant buyer step in to pay 1700. I then let them know that they would be purchasing the house in the future. Say 3 years later for the full 2100 mortgage(or possibly bumped up by 5 percent for 340).

I'm thinking this could give me the option to work upside down houses as long as the owner is motivated to get out and not foreclose and as long as the buyer is agressive also to get into a house.

Any ideas on this let me know. Thanks in advance. Looking forward to seeing some answers on this one.

think u guys are talking about subject to problems. If I have a contract to lease option a property I can sell my option to purchase the property as an "option fee" The fee is for my interst in the property being my interest to purchase the property.

It's legal, doesn't violate any laws. The qustion I did ask however is what documetns to use, not the "potential issues" with doing the deal.

Could someone tell me if I need 2 pieces of paper to do a lease option without taking the property subject to. I don't want to do a subject to, I want to lock the property up under lease option and then assign it to a tenant buyer. How woulld I do that? Do I need two seperate contracts?

Hi, I'm new on the forums here. I've made a couple of post here and there but I just thought I'd offically introduce myself here. i'm in the Bowie area of Maryland looking to do some lease purchases and wholesales.

I'm beginning my first mailing campaign this week to about 40 targeted people who have equity in their homes under a pre-foreclosure notice.

I'll post the results and would also like any assistance from those that could help. Feel free to talk, email or chat to connect with me as I am always open for different types of communication.

I wish much success to everyone here!

I have an agent that has a property approved for shortsale and one she says is "85 percent certain" Can I wholesale a shortsale or would I need to buy it cash. If so, I have a cash buyer, how would I go about getting an assignment fee without him bypassing me in the process?

Hey Douglas, if you're still around. Could you email me a copy of that letter? I'm sending you a request wtih my email info in it.