Sunday, May 4, 2014

Sevens Sites to Post Free Ads

Craig's List (duh)
Adpost.com
Salespider.com
ugoadvertise.com
massivelink.com
walmart.oodle.com
Domesticsale.com

Quick Claim Deed

http://www.sbcounty.gov/arc/_pdf/quitclaim_deed.pdf

How To Buy Subject 2 Real Estate

http://www.sbcounty.gov/arc/_pdf/quitclaim_deed.pdf -->




You  have a very motivated seller who is desperate to get out.  I think I can take subject to with no payment to seller whatsoever.  I think there is about 20K in equity in the place.  My question is... if I take subject to, Seller transfers title to me, but that will violate the due on sale clause right?  How do you get around this?  Do you not record the deed?  Do you let the mortgagee know what you are up to?

Where's the wizard?  He'll explain how to use a land trust to do this and not violate the DOSC.  Also, you do need to make sure the mortgage is current and there are no other liens on the property.  You also didn't say what your exit strategy is?  What are you going to do with it?  $20k may not be enough equity with rehab costs, transaction costs, and holding costs.
Wouldn’t you violate the due on sale clause upon the initial transfer of the Property into the land trust?  Also, the place is currently leased with a -100 / month cash flow... so I am not too worried about carrying costs.  I just need to figure out how to get around the DOSC.  It does not need to be rehabbed.
https://www.biggerpockets.com/users/wealthcreation7
I believe in Texas, if you take title in a trust, the bank won't know who the beneficiary is. I would record the deed.

100/mo cash flow?  No wonder your seller is eager to get out.  That probably doesn't even include maintenance costs and a vacancy allowance.  Are taxes and insurance included in that -100/mo?

There are definitely other people here that can explain a land trust better than me.  I'm sure one of them will show up. 


100/mo cash flow?  No wonder your seller is eager to get out.  That probably doesn't even include maintenance costs and a vacancy allowance.  Are taxes and insurance included in that -100/mo?

There are definitely other people here that can explain a land trust better than me.  I'm sure one of them will show up. 


I will definitely find out what the -100 includes.  I was thinking it may be worth it to carry for a few months and try to flip.  Maybe I will go for an option instead.


Whoa!  Stop!  Misinformation is flying around this topic.  Let's start from the beginning.  Laws are right -- if the seller transfers title to her, it's a DOSC violation.  Joe gave her good advice.  But, she is then wrong when she asks if placing it into a land trust is a violation.  Land trusts are exempt from the DOSC if the owner remains a beneficiary and the trust itself does not refer to a transfer of occupancy (which they do not).

NEVER accept a negative cash flow.  You don't have to once your property is in a land trust.  Now you can bargain with your tenant and get much higher rents by exchanging the right to write-off mtg into and prop taxes, and sharing future appreciation.  Land trusts aren't simple, but they are effective.  Think outside the box and good luck.

One more thing, no matter how you take title, ALWAYS record the deed to protect your interests.


You do not get around the DOSC

You record the deed. Preferably in a corporate or LLC business structure. You can use a land Trust. I know of at least one JCL student that does use land Trusts in Texas, even though Cash doesn’t seem to need them him self. But in Texas, there is a structure that seems to be set up especially for this. Seems to have a lot to do with Texas favorable asset protection rules.

But about the DOSC. I want you to go to the Register of deeds office and notice how many Bank Loan examiners there are from each bank that has a loan on a house in that county are waiting for someone to try and record the deed to a property that they have security to. They stand there all day long just waiting for some poor unsuspecting investor to come along and just try to pull a fast one over them. NOT!

Now why would they look at the register of deeds to check on a property? To see if someone who is late did sell or, even to see if they took out a second lien like a HELOC. I have had a mortgage on my house before that had a DOSC type clause if I took out a HELOC, or other loan. I took it out anyways. They are not going to investigate every property they have. To much costly manpower, even with them online in many counties. But they might if the payment becomes severely late.

Now, what if they do call the loan due? Call Steve and he will put it into a trust for you real fast or at least set you up with John. Just in jest Steve, that would probably be too late of course.

But seriously. Any purchase you make has to be prudent and have an exit strategy. Is there enough equity in the house to refinance? Is your credit good enough to assume the mortgage? All things considered I doubt banks will call due a loan that is not late, but if they do, chances are they are going to want to have you or your entity become liable for the loan, or maybe even your buyer, as you and they now have an equitable interest. The longer you have possession the better your or your buyer's chances to do this. It is not the end of the world.

Make sure your buyer has awareness of the underlying mortgage and the existence of the DOSC, and its implications.

The worst that can happen?

You give the deed back to the seller, so he can try to rent it out. You make some money, you paid the mortgage for a few months and gave your seller some breathing room that they needed, your buyer needs a new house to buy and if you are out there doing this all of the time, you probably have a house or will soon have a house for them to move into.

This is not fraud. Fraud assumes a lie to a directly proposed question. You are not, nor are your seller, nor anyone else, required telling the bank up front that they are doing a SUB2 purchase. In any case it is only a right of the bank to call it do, not a legal obligation on there part. No federal mandate that requires a Bank to call the loan Due (YET, just wait until the do goobers in D.C. try to fix things that aren't broken)


Assuming you cover your bases, don't buy with negative equity or sell with negative cash flow you should come out okay. Unless of course you are in the insane parts of the country when it comes to appreciation rates, but even then always buy right.

Wise Information to Seller Finance

Streetwise Seller Financing - ICOR

LEASE TO PURCHASE OPTION AGREEMENT


LEASE TO PURCHASE OPTION AGREEMENT
This agreement dated the _______ day of ________________, _________, is by and between ___________________________________________________________ (herein after referred to as “Seller/Landlord”) and ___________________________________________________________ (herein after referred to as “Buyer/Tenant).
For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Seller/Landlord hereby grants to Buyer/Tenant an exclusive option to purchase the real property described as follows:
______________________________________________________________________
______________________________________________________________________
(herein after referred to as the “Property”) strictly according to the terms and conditions contained herein (herein after referred to as the “Option to Purchase Agreement”), which real property is the subject of that certain Residential Lease Agreement by and between Seller/Landlord and Buyer/Tenant, of even date herewith (herein after the “Lease Agreement”).
1. TERM OF OPTION. This option to purchase shall commence on the _______ day of ________________, _________ and shall expire at 12 o'clock midnight on the _______ day of ________________, _________.
2. EXCLUSIVITY OF OPTION. This option to purchase is exclusive and non-assignable. Any attempted assignment, delegation, transfer or conveyance of this option to purchase without the Seller/Landlord’s express written permission is void.
3. NOTICE REQUIRED TO EXERCISE OPTION. Buyer/Tenant may only exercise this option to purchase by delivering written notice of intent to purchase to Seller/Landlord. Such notice must specify a closing date to occur prior to the original Termination Date set forth in the Lease Agreement or the option expiration date set forth in paragraph 1 herein above, whichever is later in time.
4. OPTION CONSIDERATION. Buyer/Tenant shall remit option consideration in the sum of $____________ to Seller/Landlord upon execution of this Option to Purchase Agreement, which amount is non-refundable. In the event Buyer/Tenant timely exercises this option, is not in default of the Lease Agreement and actually closes the conveyance of the Property, the option consideration shall be credited to the purchase price at closing. If Buyer/Tenant fail to exercise this option, defaults in the Lease Agreement or fails to close the conveyance, the option fee shall not be refunded.
5. PURCHASE PRICE. The total purchase price for the Property pursuant to this Option to Purchase Agreement is $________________. If Buyer/Tenant timely exercises this option, is not in default of the Lease Agreement and actually closes the conveyance of the Property, the Buyer/Tenant shall be credited, at closing, the sum of $_______ from each monthly lease payment if every monthly lease payment was timely remitted to Seller/Landlord pursuant to the Lease Agreement. No credit shall be given at closing if any monthly lease payment was received by the Seller/Landlord after the due date established in the Lease Agreement.
6. CLOSING AND SETTLEMENT. Closing and settlement shall be at a title company designated by the Seller/Landlord. All closing costs and any points, fees and/or charges imposed by the Buyer/Tenant’s lender shall be the sole responsibility of the Buyer/Lender. Seller/Landlord shall only be responsible for its pro-rated share of the ad valorem taxes due as of the date of closing. IT IS THE BUYER/TENANT’S SOLE RESPONSIBILITY TO ARRANGE FINANCING FOR THE TRANSACTIONS. SELLER/LANDLORD HAS MADE NO REPRESENTATIONS TO BUYER/TENANT REGARDING THE AVAILABILITY OF FINANCING OF BUYER/TENANT’S ABILITY TO QUALIFY FOR FINANCING.
7. REMEDIES UPON DEFAULT. (a) In the event of any such default by Buyer/Tenant of this Option to Purchase Agreement or the Lease Agreement, then in addition to any other remedies available to Seller/Landlord at law or in equity, Seller/Landlord shall have the option to terminate this Option to Purchase Agreement and all rights hereunder by giving written notice of termination. Tenant/Buyer is not entitled to any refund of rent or option consideration whatsoever. (b) All of the terms and conditions of the Lease Agreement must be complied with in order for this option to be enforceable. In the event this Option to Purchase Agreement conflicts with any part of the corresponding Lease Agreement, the terms and conditions of this Option to Purchase Agreement shall be superior and prevail.
8. COMMISSIONS. There will be no real estate commissions paid as a result of this transaction.
9. MODIFICATION. Any modification of any portion of this Option to Purchase Agreement must be made in writing signed by both parties.
10. REFERENCES IN WORDING. Plural references made to the parties involved in this Option to Purchase Agreement may also be singular, and single references may be plural. These references may also apply to Landlord/Seller and Buyer/Tenant heirs, executors, administrators, successors as the case may be.
11. TIME OF PERFORMANCE. Time is of the essence in this Option to Purchase Agreement.
12. ENTIRE AGREEMENT. As written, this Option to Purchase Agreement constitutes the final, entire agreement between the Buyer/Tenant and Seller/Landlord. They have made no further promises of any kind to one another, nor have they reached any other understandings, either written or oral.
13. FINANCING DISCLAIMER. The parties to this Option to Purchase Agreement acknowledge that speculation of availability of financing or assumption of existing loans towards the purchase of this property is impossible to predict. Therefore the parties agree that these items shall not be a condition of performance of this Option to Purchase Agreement, and the parties agree they have not relied upon any representation or warranties by either parties.
14. ACKNOWLEDGMENT. The undersigned Buyer/Tenant hereby acknowledge that they have read this Option to Purchase Agreement, understand it, agree to it and have been given an executed copy. This Option to Purchase Agreement is not to be recorded in the property records unless express permission is granted by the Seller/Landlord. Buyer/Tenant were advised, and had opportunity to, seek advice of legal, tax, technical expertise professionals of their own selection and any other counsel of their choosing concerning this contract prior to signing.
15. CHOICE OF LAW AND VENUE. This Option to Purchase Agreement shall be construed according to the laws of the State of __________________ and is executed in __________________ County, __________________. All parties agree that the venue for any dispute regarding this Option to Purchase Agreement shall be __________________ County, __________________.
As to Seller/Landlord this ______ day of ________________________, 20_____.
SELLER/LANDLORD:
Sign: ______________________ Print: ________________Date: ______________
As to Buyer/Tenant, this ______ day of ________________________, 20_____.
BUYER/TENANT:
Sign: ______________________ Print: ___________________Date: ______________
BUYER/TENANT:
Sign: ____________________Print: ___________________Date: ______________



What is a Lease Option?

-->
What is a Lease Option?

A renter signs a lease with an option to purchase a property for a specific price within a certain time frame, that is called a lease option. In most lease-option situations, a portion of the rent is applied to a future down payment.

Lease options are most popular among buyers:
  • Who don't have enough funds for a down payment and closing cost.
  • Who need to move quickly with time on their side to buy at a later date.
  • Who need extra time to wrap up personal affairs or fix credit.
  • Who are tired of paying rent to landlords for nothing in return.
  • Who likes to be in control of the option contract and either buy or not buy.

How do Lease Options work?

A lease option is an arrangement with you and a seller to exercise the option to buy a home after you have rented it for a specific period. A portion of your rent and the option fee would be applied toward the purchase if the option is exercised. This is referred to as rent credit, which most institutional lenders will accept as part of the down payment if rental payments exceed the market rent and if a valid lease-purchase agreement is in effect, a copy of which must be attached to the loan application.

A lease option is not the same as a regular purchase contract, which is a bilateral agreement. A bilateral contract legally binds both parties to the agreement, whereas an option only binds the seller. The renter is not bound to buy; it is his option do so (or not to do so).


What are the benefits of a Lease Option?

If you are a tenant/buyer, you are probably aware of the advantages of owning a home tax shelter, appreciation, security, etc. If you seek to lease purchase a home, you typically cannot purchase a home through conventional means, are not ready to commit yet, are very smart, or a combination of the above.

The lease purchase contract provides you with many features and benefits, but perhaps the most powerful one is the rate at which you accumulate equity. Compare any lender's loan amortization schedule to that of a lease purchase contract and you'll quickly see that the lease purchase contract wins hands-down. Moreover, the buying power of a lease purchase contract can quickly and easily land you a home that you never thought you could afford. Here are some of the tenant/buyer's features and benefits:

 
  • Faster Equity Growth
    Equity can accumulate much faster than with conventional financing.
  • Rent Money is Working Towards the Purchase of the Home
    Each month that you pay rent, a portion of that payment will be credited towards your down payment or off of the sales price.
  • Option Consideration Is Credited Towards the Purchase of the Home
    When you execute (sign) a lease purchase contract, you must pay the landlord/seller an option deposit. This money is your vested interest in the home and will be fully credited (100%) to either your down payment or off the sales price.
  • Minimum Cash Out of Pocket
    When you purchase a home conventionally, you must pay closing costs, prepaids and a down payment. With a lease purchase contract, you pay only first month's rent and an option deposit. This will save you between 25% and 85%.
  • Frequently No Down Payment at Closing
    Since you have given the landlord/seller an option deposit, and you have been receiving monthly rent credits, there will frequently be very little additional money needed to come up with for a down payment at closing.
  • Closing Costs Are Delayed
    Your closing costs will be delayed (not avoided) until you and your landlord/seller actually close on the home.
  • Sales Price Is Locked In
    The sales price will be stated in the lease purchase agreement.
  • Profits from Appreciation
    Since the sales price is locked in before closing, any increase in property value will mean that your equity is increasing in the home.
  • Buying Power
    Your buying power is drastically increased. You can get into a lease purchase home for as little as first month's rent and a $1 option deposit. Compare that to a lender who requires 5-20% down plus closing costs and prepaids.
  • Credit Problems Will Not Hold You Back
    Qualification restrictions are not as strict as conventional financing. You will be approved at the sole discretion of the landlord/seller.
  • Control of the Home
    You will be put in legal control of the home for a specified period without having to actually own it.
  • No Taxes, Less Liability
    Since you do not own the home yet, you will not have to pay property taxes and your liability exposure will be drastically reduced.
  • Maximum Leverage
    You are spending very little money to control a very expensive and potentially very profitable investment.
  • Time
    Before you actually buy the home, you will have time to repair your credit, find the best financing available, investigate the home and research the neighborhood.
  • Quick Move In Time
    Move in time is typically less than one week compared to conventional move in times of one to three months from the time the offer was made.
  • No Lengthy Escrows or Mortgage Approvals
    The decision to lease purchase to you will be made at the sole discretion of a landlord/seller rather than by a lender who can take up to a month (or longer) to render a decision.
  • Minimal Maintenance
    Large maintenance problems or any maintenance problems that exceed a certain amount of money are delegated to the landlord/seller.
  • Privacy
    Since you are leasing, there will be no public record of where you live.
  • Peace of Mind
    As long as you live up to your end of the bargain, you will have full control of the home and can maintain it or improve it as you wish (major improvements will require the permission of the landlord/seller).

Sunday, April 6, 2014

We buy , triplexes, 4 plexes, small and large apartments

Please email me so I can tell you how we can buy your property quickly, with no hassles and most importantly, at a fair price. We purchase the property directly from you, so there are no real estate commissions or extra fees coming out of your pocket. Furthermore, I always make cash offers, so you never have to worry about delays resulting from a buyer trying to qualify for a mortgage and wasting your valuable time. Email me your full name phone number and the property address so we can contact you right away(rthompsonpropertiesinc@mail.com)

First fully animated real estate investing lesson.

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Thursday, January 9, 2014

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The largest Real Estate Private Equity
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P.P.S. Make sure to let us know what you think by leaving comments! 
https://www.biggerpockets.com/users/wealthcreation7