I have the seller sign a Letter of intent to Lease and To OptionThe letter of Intent covers...Address, Rental Term, Renal Payment per month, Security Deposit, Possession Date, Option Sales Price (could new appraisal), Option Money (usually 3% or $5K min), Representations, Warranties, Covenants, and Indemnification, Legal Effect, Notice of Intent to Assign, Option Period (45 - 60 days)I have them sign the letter of intent (LOI), it goes to my attorney, and the attorney prepares the paperwork.There is an option release disclosure document that discusses that the buyer will be responsible for the following fee’s to be paid out of escrow at closing, which are for the release of the recorded notice of option, the assignment of negotiated purchase price, and the negotiated rent.2.

I've had some tenants that were borderline and they agreed to give me first month, last month and security deposit since they really didn't qualify and sometimes these are my best tenants.

Are you giving the family mamber a mortgage on the property as security for the loan you are receiving?

The house looks great.I would recommend you change the ad though:"$800/Month, (first & last month to move in)"When they give you notice they won't pay the last month and you have no security deposit.

He also receives higher than average market rents by NOT taking a security deposit, thereby opening up his market to several renters who have the income, but not the savings.Will his methods work in other areas?

I've begun researching companies that handle checkbook LLC IRAs and I received some info from the Security Trust Company stating they will charge a 2k set up fee which includes setting up the LLC and handle all other costs for an annual fee of .98.

Mike,If you are going to be doing a lot of wholesaling of commercial properties, you might want to look at a software package called ProAPOD.

With 11 months rent (and I am guessing $1,500 in expenses) his ROI for the 11 months it rented was 15% (these #'s are just esimtates, I have exact #'s on my Property Management software that I could pull if you like).

I'm a great researcher so I tend to find things others haven't heard about, so I'll try to jump in if I see that one of my tools or a website or software I know of will help!

Thanks everyone you all make great points.I believe she is milking the situation.A point I would need to clarify with social security is if in fact they would mail the check to the landlord since we are listed for back rent on the papers she submitted or the check would come to her??