Quick Advice Needed
Hello All,
I've just made an L/O offer on a property I think I will be able to make a positive cash flow on. Nice little property. It's a 2BD, 2BA townhome in a nice area.
My Cash Flow will be 80 to 120 depending on my maintenance costs.
The seller is an investor who has fixed up the property. He wants me to fill out a Credit App to varrify that I'm not an idiot, or someone with bad credit, and able to make the payments.
Since this is my first potential deal, I am nervous about giving him all my information. Does anyone see any problems doing this? I have good credit, so that isn't the problem.
Please advise.
Cheers,
Nick
NICK:
Relax My man!
Make him comfortable...think of it like this if the tables were turned wouldn't you want:
Some degree of surety that he's going to keep his word and pay on your mortgage, taxes Insurance and maintain your property while you hold the risk to both your credit and Title?
[addsig]
Derrick,
Thanks, I know, I'm all up tight. I suppose that once I've made a few deals, and actually start seeing the fruits of those, I won't be able to sign the papers for another good deal fast enough.
First one is always a hard one though, I imagine.
What was your first deal?
Nick,
Are you gonna sublease the prop. out? If you are, what steps are you going through. I am a newbie also been reading for awhile and decided since we have 0 to put down l/o would be the best way to go, but I am researching to get all of the steps before doing it.
Thanks in advance,
Wa
WA,
>>Are you gonna sublease the prop. out?
Yup.
>>If you are, what steps are you going through.
Just trying to find someone who will agree to my terms. When I find that someone, I'll figure the rest out. I've been sitting on my *** long enough. I'm making my offer contingent on getting a renter, and have analysed it financially, and it Cash Flow's, so other than that, I don't care right now. I'll figure it out when I get there.
I've got some idea's of how I'm going to find a renter, but I'll cross that bridge when I get to it.
I've listened to a couple LO courses my in-laws purchased, so I know I have a source of information, but it kinda comes down to this. At the very least, get out there, look at some property, and start talking to people. You will learn more than reading some book, or attending some course.
Courses and books are good, but only if you DO SOMETHING with the information. Get out there, look at property, talk to sellers agents, lenders, and make some offers.
Just some thoughts.
Cheers,
Nick
If you decide ot purchase before having a tenant, or if you line one up and they bail, may I suggest this technique:
1. Place an ad in the newspaper, similar to this:
Discount Rent
3br/2ba house for rent. Open house on
Sunday xx, 2003 1-4pm
(tweak ad as needed)
Once I find my first property, I will use this approach. Why use this method? People will be attracted to an opportunity of discount rent. Basically they only get the discount rent if they pay on time. Else they pay the full retail rate. You won't have your phone ringing all the time with lots of questions. (Unless of course you like that). People will come to the open house and you can take applications there.
My two pyreal.
Ho...
I have been sitting on my @#! long enough also. I just need to get out there. Here is a good web pg lease2purchase.com They are helpful there also. Good luck
wa
Hey, you mentioned about the cash flow depending on the maintence for a L/O, right? huh, did i miss something... You let the seller know that you will take care of 98%or maintence or up 200 bucks a month, if it exceeds you supply the reciept to the seller and he takes care of it, then turn around and let the seller take pride in almost owning there own home, have em take care of maintence of up to 200 dollars and tell him to supply the reciept if it exceeds... Get it. You pay and do nothing, It is all put on the t/b and seller. of course this needs to be in your contracts. L/O is the way to go though, good job on reading and getting informed, go get em... but make sure you have a million dollar contract. All in your favor and no risk to you.