Fear Has Taken Over !! - Posted by May - IL

Posted by Pete Julian on July 28, 2001 at 24:17:51:


This sounds like great deal to get started with! If the house is in “move in” condition, you should easily be able to collect at least $2k down plus the first month’s rent from a lease option tenent buyer - unless of course you are in a totally distressed market. You may be able to “sell” the house at slightly higher than market value - maybe $73k, since you would be selling on terms - so you can have a nice payday when the L/O matures. Although, I almost always pay cash for the houses I buy, I do purchase about 15 or so “subject to” houses annually - if you just keep those payments coming the due on sales clause should be an issue. Filling in the blanks on a contract is not brain surgery - I am sure that if you look in the archives on this website, you can find the necessary info to prepare the contract, etc. If I can be of any assistance, free to call me during business hours toll free @ 888-844-8599 and I will be glad to help.

Pete Julian

Fear Has Taken Over !! - Posted by May - IL

Posted by May - IL on July 27, 2001 at 23:36:56:

Hello all,

I’ve been reading this site for quite some time. This is my first post.

Its crazy to say, but I’ve let a good deal slip by because of fear. This was a 2 bedroom, 1 bath house. Good neighborhood. The mortgage balance is $60,000 in a $70,000 market. Interior of the house is in good condition.

The sellers were very eager to let me take over the payments. Mortgage payment was less than market rent. And they wanted to be done with this house by August 1st. To be quite honest, I never thought that I would find a deal this quickly. I went into this (talking to the seller, visting the property, throwing out ideas about terms) never even dreaming that this would work, so I was confident. Until they said, “O.K.”

O.K., what do you mean “O.K.”!!! I just stopped at their house on a Saturday afternoon and said “Well, I guess I could just take over your payments for a awhile”. And they said O.K.

THEN, fear set in.

I thought, “Now, what do I do? What paperwork do I fill out? What about the DOS; the lender calls it due? I don’t even have an attorney yet?” These people want out by Aug. 1st.

I don’t know if I can even save this deal right now. I haven’t talked with them in 3 days so I don’t even know if the house is still for sale. All this because of FEAR. Can anyone help?



Congratulations… - Posted by JT - IN (St. Barths, FWI)

Posted by JT - IN (St. Barths, FWI) on July 28, 2001 at 11:10:49:

On having the COURAGE to make your 1st post !!! And admit some of your shortcomings; you are well on your way, now !!!

You may be able to salvage this first deal, and maybe nmot. Do act quickly, as Jim(FL) has stated. Remember, if this deal doesn’t work, there are others, and if it does, good going. The main point here, is that you are started on your way, and you definitely see that this stuff works, but you must be prepared, when God forbid, someone says YES !!!

I fyou get things done here, great, but if not, do not spend one minute going over what you should have done, (crying over spilled milk), just go back and structure the deal, as if you were doing things at the time the deal was available, and od what you should have done originally, before this Seller said YES. In other words, GET ORGANIZED, with all your forms and paprework, because if you ask the question again, another Seller is going to say YES !!!

Again, congratulations…

JT - IN (from St. Barth, FWI)

Re: Fear Has Taken Over !! - Posted by Jim FL

Posted by Jim FL on July 28, 2001 at 24:42:37:

Well, first things first. Call the sellers NOW, right away. (not really NOW, it is late there, but tomorrow.)
Tell them you had some “personal Emergency” come up and apologize for the delay in getting back to them.
Then ask if the home is still available?
If it is, GREAT, set an appointment with them to see the home, and present your offer in writing.

If they are not still willing to sell, then so be it, things happen.

Okay, now, your “Handle” (May IL) tells me what state you are in, and that is good.
So, where in Illinois are you?
See, I just moved from there a few weeks ago, and still have some homes there as well.
Since I left, I may be able to direct you to some resources available to you, depending of course where you are.
And, since I knew my market quite well, and have done numerous deals there, I may even be able to help you put it together.
E-mail me here and/or off the board with your location, and if you are game, I’d be happy to help you in doing this deal.
I was in the Aurora area in Illinois, so hopefully you are near there.
This will help tremendously.
And if not, I’ll still do my best to assist you.
Drop me a line and we shall see what can be done here.

Frankly, if you are in my old stomping grounds, we can probably get this thing DONE in days, and make some money pretty quick.

Take care,
Jim FL (used to be Jim IL)