Posted by phil fernandez on July 31, 2001 at 11:41:59:
If you have to do the eviction because the seller doesn’t want to deal with it then you would have to get compensated for taking on this task. The best compensation that I know of is a discount in the selling price of the home.
Remember the eviction is really his problem. Do you want the seller’s problem.
HELP! HELP! 4 Houses one seller! - Posted by Shante
Posted by Shante on July 31, 2001 at 10:52:27:
I got a call from a guy who has 4 houses he wants to sell. His mother is sick and he just doesnt want to deal with realestate. I have been studying Lease Purchases so I know enought to put a contract on the homes. The issue is one house has a tenent that is not paying on time. The owner has been keeping everything current. He states he doesnt want anything to do with evicting this guy. The other issue is that the other 3 houses need a little work. He says they only need carpet cleaned and paint. I HAVE NOT SEEN THESE HOUSES YET! I want to be prepaired when I go to see him. If these houses only need a little work and he wants out, I would like to own them. I dont have much knoledge about contact for deed. I dont know what to do?? I want to have info when I go to see him. I think if I can give him a real solution to his problem he will let me do what ever I need to do to get these properties. I dont want to use my credit not that it would even be good enought to buy 4 properties. Please any input I can get would help. Main concern should I L/P a house that needs work. If so how should I structure it??
Re: HELP! HELP! 4 Houses one seller! - Posted by Mark-NC
Posted by Mark-NC on July 31, 2001 at 15:11:34:
Shante,
First you have to decide if you want to deal with the hassles and repairs that go along with this deal.
Then you have to decide if the area they are in is worth trying to lease option them. It may be strictly a rental area. If that is the case I would be more inclined to get the best price I could and wholesale the whole package to someone who buys rental properties.
I just did one almost exactly like this, fact is I am closing on it next week. We got a reasonable cash offer accepted on the 4 of them. The only difference we had was, we required the seller to evict the one troubled tennant before we closed. I ended up wholesaling the whole pakage to a cash buyer that buys and holds for rentals.
If you decide to go this route you can walk away with cash with no tenant hassles or repairs to worry about.
Good luck what ever you decide!
Mark
good way to check motivation - Posted by Matt B
Posted by Matt B on July 31, 2001 at 11:21:39:
Here’s the script that I use to find out if a seller is open to a lease option. I go through before I even get off the phone to see if they are open to the idea. If they aren’t, I won’t waste my time going out to see the place.
?Well, I may be able to offer you a lease option. Basically what we do is take over the house payments and make them directly to the bank for you. We also guarantee in writing that our company pays for all maintenance, repairs, taxes, insurance, basically every expense related to the house during the term of our agreement. Then what we do is put a tenant/buyer in the house. This is someone that our company has put through an intensive screening process to ensure that they are able to buy the house sometime in the near future. We work with this tenant/buyer to help them get qualified for a mortgage and cash you and us out in the near future. It?s in our best interest to deal only with quality tenant/buyers because we make our money by actually selling the house, not by charging you any fees. Does that sound like something that might interest you??
Re: HELP! HELP! 4 Houses one seller! - Posted by Matt B
Posted by Matt B on July 31, 2001 at 11:04:03:
As I discussed with you before, I have done lease options on houses that only needed carpet or paint, but either the seller or my buyer had to do the work. I would have to see the properties first though. When a seller says “carpet and paint”, that may not be the whole story. You need to actually see what needs to be done before making a decision here.
If the houses are in good locations and are desirable properties, I wouldn’t mind lease optioning them if they need some carpet and paint. I can always find a buyer to do it. If, however, they are in marginal to poor areas, I would have to have the seller do the work first because they are going to be tougher to sell any way.
When you say that you want to own these places, are you saying that you want to buy them and rent them out? If so, you are absolutely going to have to do work to them to rent them out. On the other hand, they could be good lease option candidates if the seller is open to taking payments. Have you discussed any of that with him? What has the seller said about what they are asking or if they are flexible enough to do a creative deal? This could be just a waste of time if you haven’t discussed any of this with them already. They may simply be expecting an all cash buyer to pay them full retail for the places. In that case, I don’t see a deal.
Let us know what details you have, if any, about the seller. That is the important part. It has to be a motivated seller willing to consider some type of creative deal.
Re: HELP! HELP! 4 Houses one seller! - Posted by Shante
Posted by Shante on July 31, 2001 at 15:44:48:
Mark,this is great advise. How would I go about doing this? I am a newbie. I know the final decision will only happen after I see these properties,but I want to know what my options are and how to put it all togeather before I go to see him. Please keep in mind this is all new to me
Re: HELP! HELP! 4 Houses one seller! - Posted by Shante
Posted by Shante on July 31, 2001 at 11:26:43:
Yes I basically told him, I do Lease Options. I told him that I would not be able to give him all cash. I pretty much explained to him how the whole thing would work and he was fine with that. My concern was that “IF” the only thing these properties need is carpet and paint who would do it. You have answered that question. Thanks ! What about this tenent that is living there I guess the seller needs to evict him first then get back to me about that property.
Re: HELP! HELP! 4 Houses one seller! - Posted by Kim
Posted by Kim on July 31, 2001 at 19:09:37:
Thank you Mark,
I’m working on a multiple with 11 props. and you have given me a good bit of the information I need to feel more confident.
It is folks like you who give so generously that makes this site so awesome.
Re: HELP! HELP! 4 Houses one seller! - Posted by Mark-NC
Posted by Mark-NC on July 31, 2001 at 16:33:26:
Shante,
If you are newbie and a little unsure of yourself what you need to do is arm yourself with many questions when you see this seller. This will make it look like you are in control and appear more confident and knowledgable.
Find out why he is selling? How long has he owned them? Would he consider financing them? If you could provide all cash would he discount them as a package deal? What are the rents? Just keep the questions rolling untill you have enough amunition to see where this guy is coming from to see if it is a deal at all.
Once you have gathered all the information tell him that you would like to check out the information you have and you will get back to him within 24 hours with an offer.
If the numbers look good, start locating buyers and find out if they would be interested in a package deal.
If you continue to wholesale this is where it helps to have lists of buyers on hand for your deals.
I usually like to stir some interest up in a property before I even put a contract on it. Also I have a very good list of wholesale buyers and usually almost everything I find is sold as soon as I put a contract on it.
Basicly if everything starts to fall together put a contract on it and sell your contract.
I know this is kind of the readers digest version of how to do it but it is a relitivley simple process once you have everything in place.
If you need help with it contact me via e mail I would gladly walk you through it. Also you may be able to look around this site to check out any information on wholesaling to fill in the blanks.
Mark