John "Cash" Locke Training Manual
John,
I have read many posts here about your "Sub To, Thats What I Do" traing manual. It sounded like something I could really use. I know if a used version is purchased, it does not include your full support. I still thought that it definitly would not hurt to have a copy. I could still ask questions here at TCI, right?
Well any way, I found and purchased a training manual on e-bay. I just wanted to make sure I received the entire kit you originally sold. This kit is a binder with about 150 pages and 1-10 minute or so audio cd. Does this sound right?
Thanks in advance.
I bought the same thing from John and what you describe is what I got.
Thanks NewKid. Thats what I thought.
Just wanted to make sure.
Thanks loon,
Do all lenders allow this? Or will i have to begin searching for one thats more flexible than the others?
Good thinking. Sounds like a deal to me.
You could also sell on contract for deed instead of rent-to-own.
Make sure that $1900 a month is going to work for your market.
Good luck and let us know how it goes.
I agree sounds like that is a way to go... I would do a wrap instead of a lease option but thats just me...
Maybe you should find the buyer before you buy the property....
I have heard a lot about rent to own and maybe in position do a rent to own VERY similar. But how easy/HARD would it be to get a "buyer"? The rents out in cleveland range 1300 to 2000 on a three bedroom but I could not find middlebranch. What would a similar house or apartment rent for in middlebranch? I imagine it would make a world of difference. What is the rental occupancy rate?
How would you get a tenant? Paper? Seems like the person interested would be a bad credit person in the first place, and that is why they dont buy it with a bank loan in the first place. Sorry to add a question to you question. Nice post.
1,900/month rent sounds like alot for a 280K house. I dont know, But that is just me.
- DarvinM
1,900/month rent sounds like alot for a 280K house. I dont know, But that is just me.
- DarvinM
If you sell it on a CFD, or a wrap (as suggested), then it shouldn’t matter what rents in the area are like -- because it’s not a rental. And you can determine the payments just like you would on any loan.
For example… if you sold it at $290k with $15K down, that leaves a balance of $275k. If you did it at 8% interest, the payment would be around $2,018 principal and interest. Add property tax and insurance and it would probably be somewhere around $2,200-$2,300/mo (depending on tax rate, etc.). Which is not a bad deal for someone who can’t qualify at a bank.
Also, if you do it as a wrap or CFD, the buyer gets the tax write-off and is also responsible for all maintenance and repair. And they’re getting into a home with no qualifying and no closing costs.
My 2¢
I have been worried about the issue of the house cash flowing on a Rent 2own esp when rents are lower tahn outgoings.
Another investor told me he either uses the deposit to offset the monthly cash negative or he REQUIRES them to build up to a set % deposit .....
So if the house is worth $300k and he gets a 3% 9k deposit. He requires them to increase it to 5% $12k over the 2 year term. ie he needs to give an extra 3k over 24 months = $250 per month. He works out whatever he need s to make it either neutral or positive. The extra counts as a deposit fro them so eats into your backend but it sounds worth it if it prevents you from having to feed cash into the property!
It should make it easier for the buyer to get a decent loan with 5% not 3% and his history of payments.
I think a CFD sounds best tho...
John
They shouldnt attach to the house..theyre not liens..
thats the difference between judgements and liens
Depends on the state! In Kentucky once they have judgement they can go against your assets and have a sale forced. Usually they sue because the person did have assets, they saw that they may be able to have liquidated. Usually people load them down with mortgages and have no equity so the credit card company leaves them alone. A judgement puts them in better position to get paid after all secured debt, if a party were to liquidate thru bankruptcy. It is done thru the courts.
If there is enough money in the deal buy it and negotiate the reduction of debt with the card companies...
They’re famous for taking less than owed...
And yes in Ca they would be a lien against the person therefore the real property...
Make sure you get her power of attorney and authorization to speak on her behalf....
And the negotiation of credit card debt will adversely effect her credit but she may not mind...
[addsig]