Posted by JohnBoy on September 21, 2000 at 23:39:21:
Kevin,
I just realized I answered how would approach this deal in your other post farther down the board. Someone else asked for detail on this in response to my answer to you. You can read that response in the thread of your original post below.
OK smarty pants, figure this one out - Posted by KevinTX
Posted by KevinTX on September 21, 2000 at 04:25:07:
Now I really need some advice. I have little cash, but I have read alot of posts here in the last week and I now know I can lease option a property I have my eyes on. The seller wants about 80% market value to pay off the mortgage. If youve read my previous posts you know all the details. So Im want to take the advice of a couple of guys who responded to my 1st post and approach her with regards to a lease option. The terms would be for 24 months, with lease being the amount of her mortgage plus $50/month, thus giving her $1200 for her equity. Agree to purchase for around the current balance of the mortgage. These are figues I just came up with so if they dont jive please let me know. Im really want to hear what others have to say, perhaps making the deal more profitable to me. But none of this is my real problem. So if you guys think your soooo smart try and figure this out…
How am I going to convince my wife that this is a smart thing to do? I tried to explain it to her but I dont get a favorable response. I know somebody out there went through this same sort of thing when they first started. So tell me, what did you do to get your wife as motivated as you? If I cant convince her soon this deal wont happen.
Thanks for noticing me
KevinTX
Re: OK smarty pants, figure this one out - Posted by Michael
Posted by Michael on September 26, 2000 at 11:16:50:
My first deal was a foreclosure flip, ther was no way that this house had less than $35,000 in equity, My partners wife was extremely negative, even made the comment “Only realtors can make money in real estate” We made painted and refloored the house, listed the house with a realtor, had an offer on the third day and walked away from closing 17 days later with a check for $23,562.08. If you’re sure it’s a deal do it, and show her how stupid and closed minded she can be.
Re: OK smarty pants, figure this one out - Posted by dewCO
Posted by dewCO on September 21, 2000 at 16:53:35:
Don’t recall any of your prior posts, but this post doesn’t say whether you are moving in or releasing it. Will it make money? Does it make SENSE? Perhaps that’s why she can’t agree to do it. It needs to make sense in some way, and be explained so she can understand it—on whatever level she is on. Or is it that you don’t actually know all the details and therefore can’t explain it well enough to her.
Not sure how to take the “Smarty pants” and if you’re “Sooo smart figure this out” stuff!
Are you guys Married? - Posted by CurtNY
Posted by CurtNY on September 21, 2000 at 09:14:51:
JohnBoy & Randall,
Do you guys have wives? From you posts it doesn’t seem so. I know although I don’t get permission from my wife I do talk to her about everything I do. I’ve only been investing for a few years so I still consider myself a newbie, but my wife and I are partners in life, not just household chores. I would never make a financial move that if goes bad could severly hurt us (of course I do everything in my power to make sure I only invest in good deals) without discussing it with her first. If she doesn’t like the idea it doesn’t mean I won’t still go ahead with the offer but I will listen to her opinion, which is usually very helpful - lets me see the other side of things. KevinTX, I agree with Kevin, just talk to you wife like an equal, go over both your concerns, and show her you are doing everything to see to it this deals works. Good Luck.
CurtNY
Re: OK smarty pants, figure this one out - Posted by Kevin
Posted by Kevin on September 21, 2000 at 08:22:51:
Hi Kevin,
As far as your deal goes I cant help you there because
I’m in the middle of my first deal now and I’m working through a local invester to make it happen.
As far as the wife goes I to had the same trouble and upon reading your post I asked my wife what helped her over her fears and she said when I myself told her that
I too had the same fears she knew that this is not something that I was taking lightly and I was well aware of the riskes involved and that I was doing everthing I could to manage the risk, {reading books, talking to investers on line, even taking an local
invester out to dinner to learn more about this REI
thing which has turned into my first deal}so she knew
that this is was not a get rich quick scheme but a plan
to better our future in the long run.
I also asked her to be a part of my business and to help me out and together we can make it work.
So now were on the same page with each other, she is
just as much apart of this as I am and I like the support that she now offers.
Hope this helps,
Best Wishes,
Kevin.
Re: OK smarty pants, figure this one out - Posted by JohnBoy
Posted by JohnBoy on September 21, 2000 at 07:36:09:
What does convincing your wife have to do with any of this? Is it her property?
What are your intentions with the property? Are you going to L/O it to someone else? If that is your plan, 24 months is not enough time on your end. You should get a minimum of 3 years or more.
You ask if your figures jive or not. How would I know without any information about the property?
What would this house rent for in the area?
What is FMV of the house?
Does it need any repairs?
If so, how much and what would they cost?
What do you plan to do with the property?
You said you would pay $50 a month over the mortgage amount each month as rent to the seller. I assume based on your post that the payments are $1150 including PITI?
How does your wife fit into whether you can do this deal or not?
How old is the house?
How old is the mortgage?
What is the interest rate on the mortgage?
Is there just one mortgage on the property?
Are the payments current?
Does the seller NEED any cash from it now?
If so, how much?
Give some details so something can be figured out. Just telling us you will pay $1200 per month on a 24 month L/O tells us nothing.
Re: OK smarty pants, figure this one out - Posted by Randall_OH
Posted by Randall_OH on September 21, 2000 at 07:03:26:
Why do you need your wife’s permission? If its a great deal, just go ahead and do it. Grow some cahonees and get started. Sorry to be so blunt, but that’s how this middle-aged, chauvanistic, seasoned investor sees it.
Re: Are you guys Married? - Posted by Randall_OH
Posted by Randall_OH on September 21, 2000 at 13:41:47:
Yes, I’m married and my wife couldn’t find any of the houses we’ve purchased unless I gave her the addresses and a city map to find them. All of the deals that I’m involved with are put into an LLC or Sub-S Corp with my business partner. We have lines of credit, permanent financing, etc for our business and my wife is signed on NONE of it. So even if I go down in flames, she will not be harmed financially. She sleeps well at night knowing that she is not responsible for any of the debts incurred as a result of my real estate investment business.
Re: Are you guys Married? - Posted by JohnBoy
Posted by JohnBoy on September 21, 2000 at 12:53:11:
I don’t know how you came up with that impression, especially after reading your post. Randall simply asked why he needed his wife’s permission. I asked why he needed to “convince” his wife? You stated in your own post that you don’t get permission from your own wife. What did our questions have to do with whether he talks to his wife or not?
You even said if she your wife doesn’t like the idea it doesn’t mean you won’t still go ahead with the offer, but you will listen to her opinion.
I’m assuming that since he is asking how he can “convince” his wife about this, that he has already listened to her opinion. Sounds like he feels the need to “convince” her before doing anything. Trying to “convince” someone that is already in a mindset against something may take a long time to accomplish and result in never doing anything because you were unable to first “convince” them. So my simple question was, why do you need to “convince” her if she’s obviously already against it?
The only way I think you can convince someone at this point is to stop talking about and just go DO IT! Stop trying to “convince” her and just SHOW HER! After you SHOW her that might “convince” her. Otherwise you may find yourself growing old waiting to convince someone by just talking about.
But to answer your question if I have a wife? Yes, I do. We married at a young age with all the odds stacked against us. Neither one of us had a decent job to speak of, we didn’t have to get married, but we wanted too. We dated for 6 months, she just turned 17 and I was 18 when we got married. That was over 22 years ago and we’re still married. On top of that we have always worked together full time side by side since we first dated. Talk about being around someone all the time! We’ve been together 24/7 ever since!
Do I know anything about my wife or us being partners in life together and not just household chores??? Beats me! 
Re: OK smarty pants, figure this one out - Posted by KevinTX
Posted by KevinTX on September 21, 2000 at 22:00:39:
Sorry JohnBoy, I guess I though you were a mind reader. I will answer your questions in order…
What would this house rent for in the area?
1400-1500 now, new elementary being built less than 100 yards away at the end of the street. Rent values should increase when complete.
What is FMV of the house?
A smaller house in the neighborhood sold for 133,000, so Im estimating 140,000
Does it need any repairs?
Not to my knowledge, house was built in March,2000 and is still under builders warranty.
If so, how much and what would they cost?
What do you plan to do with the property?
Sublease, the sell outright after option, unless you have other suggestions.
You said you would pay $50 a month over the mortgage amount each month as rent to the seller. I assume based on your post that the payments are $1150 including PITI?
$1173
How does your wife fit into whether you can do this deal or not?
She is a legal assistant, anything that involves a lawyer is significantly discounted, he is her boss and a good friend.
How old is the house?
3/00
How old is the mortgage?
3/00
What is the interest rate on the mortgage?
Unknown, FHA loan, based on purchase date I assume around 8%
Is there just one mortgage on the property?
yes
Are the payments current?
yes
Does the seller NEED any cash from it now?
If so, how much?
Unknown, lets assume they do, they are divorcing and it can be expensive
Thanks for taking time to read
Kevin
Re: Are you guys Married? - Posted by CurtNY
Posted by CurtNY on September 21, 2000 at 13:11:52:
Sorry JohnBoy,
I misunderstood where you were coming from. It originally seemed like you where telling him to ignore his wife, that it shouldn’t matter what she thinks its his business. Thanks for clearing it up. Only investing a few years now I remember first trying to get my wife on board, it took a while and she is still a little skeptical (at least until she spends the extra money) but has always been supportive of my dreams. I’ll have to buy you a beer at the convention in 2001.
CurtNY