All Forum Posts by: William MacBride

Wow how bout that, right to my left there. didn't even notice it. Yeah I'll check that stuff out, Thanks a lot.

I heard that Joe Crump guy say that his favorite method of buying properties at or close to market value is to buy and then sell them "on terms." This somehow allows you to profit even though you put close to market value into the property. and you don't risk much money somehow. He just mentioned this though, and didn't go into much detail. Does anybody know what he's talking about?

Will

I'm trying to zero in on the following:

1. Just a kind of list and brief explanation of the main types of real estate flips you can do without involving much or any of your own money. If somebody would like to just list these with explanations it'd be great. Or if they could tell me where the best web source of bried, to the point, list-like info on that would be.

2. The above necessarily implies I'm going to have to know about and have all the documents to effect the transaction. Is there somewhere (online or elsewhere) I can find a brief list of documents necessary in various types of transactions?

3. I'm wondering if certain documents have to be drawn up by an attorney or can they be just home made? What's the key governing principle about what documents you can use in real estate transactions and does a lawyer have to be involved in some or all cases? Does any "written agreement" that both people sign (purchase agreement, flex option agreement, lease option agreement, note-in-mortgage agreement, etc. etc. etc.) stand up in court? I need a generalized clarification of this.

4. And finally what do you RECOMMEND as a good first deal type for somebody who wants to get into the game without much money to plunk down. i.e. just to get get some cash flow and familiarity going?

Thanks a lot,
Will MacBride

Ha it was new to me. Then again the whole real estate field is. :D

Hi
I recently heard of a surprsingly simple seeming idea from a real estate guru named Joe Crump. He says you can simply sign a "purchase agreement" with a buyer giving you principle interest in the property, find a rel estate agent, have them list the property on the MLS for more than what your purchase price, and sell, keeping the profit.
Any comments on such a plan?

Will

I came across this from a few months back. Could you explain further what you mean by: "record a mortgage or deed of trust against the property based on the performance of the option agreement." I'm new to this.

Thanks everyone. Interesting stuff. I've got a better idea of the process now. This Joe Crump dude is straight forward and seems to have some good, to the point ideas. Anyway I'm really using him just to get familiar with stuff. It's from a free cd my g.f. got. He's great until he goes into his sales pitch of come to my seminars and buy my coaching and cds and all that for 10 grand. No thanks, pal. I don't think I could even concentrate on just learning the stuff with somebody giving me emails and conference calls and faxes, and thousands of pages to read and etc. etc. etc.
But anyway, Jeff Takle, as far as it being a tough sell - what I joe crump recommends, and I thinks its a good way to focus, is to focus on building big buyer lits before even going into the deals. Also he recommends getting the callers to qualify how much money they'd have for a down payments before even talking to them on the phone. You have a voicemail message that explains the whole thing and then gets them to decide what level of down payment they could make, I guess rent included. That way, they know before you even talk to them what theyd be getting into. That allows you to sift through a bunch of buyers with not much time wasted. I tend to like that idea.
one thing I wanted to know is - what if they don't make their payments? Would it then be an eviction scenario or moreso a foreclsure scenario? Also I imagine you'd lose money and be stuck paying rent in that situation. Any suggestions on avoiding that kind of scenario?

ok so the "lease option fee" that you make is paid by the buyer, right? They pay you a fee to be able to take over the rent to buy contract?

Hi there,
I was just listening to an introductory recording (one of those "basic info to get you interested in coming to my seminar" type talks) by a real estate guru named Joe Crump.
One quick way he recommends to get cash flow going that interested me is the following method, but I need some clarification on a few points with it:
1.You call up the "apt for rent" ads in the paper.
2. ask the renter if he or she would like to sell rather than continuing to rent out the property.
3. If so use what he calls a "lease option memo." It gives the renter/seller a lot of outs and makes the deal very risk free. However, it also gives you the right to transfer the lease option to somebody else and collect a lease option fee. You're considered to have "principal interest" so you're not collecting a broker's fee, which would be illegal.
4. Get a whole bunch of buyers lined up by advertising in roughly this format: "rent to buy, anyone qualifies, call 123-4567"
5. sign over the lease option to interested end buyer and collect your fee.

He claims you can do this without ever meeting with anyone in person or even seeing the property.

Now a few questions:
A. Who pays the lease option fee? I'm really new to this - seems basic, but I need to know what he means by a "lease option fee." He means what, the seller pays you to find an end buyer? Or is it that you mark up the cost of the house to turn a profit and that's considered your fee?
B. What provisions exactly would be in this "lease option memo"? This is similar to the question I was asking about the "flex option agreement" I was asking in the other section. is this type of agreement 100% legal and what would you include in the agreement? I guess it's basically that if you don't come up with an end buyer after a period of time both of you can walk away, etc.
C. Would you be paying rents to the renter in the meantime while finding an end buyer?
D. Are there any variations on this technique anybody'd like to mention?
E. Any other relevant info anyone has about this kind of deal.

Thanks,
Will

Cool, thanks Jon.