Trying To Put Together A Win-win Situation
Hello everyone.
Since I am new I am turning to experts.
Here is the run down..
His mother died leaving the undeveloped 4.20 acres in Washington to her estate to be divided equally amongst the 4 sons.
The property currently has an uninhabitable trailer on it. It has electricity, and road to it and sewage drain field.
One son just moved back up from Calif. He contacted me to see how I can buy out his brothers and build him a home. He can not build on it until he buys them out and has no cash or credit but really wants a new home. While the home is being built I plan to put him to work on getting his general contractor license and getting him gainfully employed so after 6 months he and his wife are in a position to buy the house.
I have great credit and have a couple investors in my back pocket but don’t want to use them unless I need to. He chose a manufactured home company that does not carry loans. They only have preferred lenders. Well I have access to construction loans as well and if I get a construction loan, I figure there will be too many hands in the cookie jar.
I guess what I am asking is there a “proper” way of structuring this so it is a win win?
Did I give enough information? What’s next, or what information do I need to get to make sure I do not make too many mistakes?
Sounds to me like this guy should sell the land and take his share and buy something else with a substantial down payment where his bad credit is less relavent. It sounds too complicated and risky.
FSBO Script
Hi, I’m looking for _____ … Hi ______ … my name is _______ with I Buy Houses, Ugly Ones Too! TM
I noticed that your home was available for sale!
1. I was wondering… did you decide to sell yourself to save as much money as possible? (You Did) Terrific! / Really!
2. When would you like this house Sold? (ASAP) That’s exciting!
3. Do you already have… your next house picked out? You do! (Ouch)
4. Now you have the house offered at _________ and it hasn’t sold yet, right? (No) Really!
5. And your planning on lowering the price a bit to get the house sold, aren’t you? (You are) terrific!
6. I buy houses… just like yours… all of the time, and I have found that if the seller is willing… we can come up with a solution that works best for both of us, is that okay with you? (Yes) outstanding
7. Sometimes the only way we can buy the houses we look at is to take over the debt and pay you your equity, That means the loan will stay in your name until its sold, assumed or paid off.
Sometimes even buy the house under a lease option… Is that a problem?  Yes  No
8. So if we can pay you your equity, guarantee and make your payments and be responsible for all repairs you will sell the home to us, right?  Yes  No
9. What time today would be better for me to come out and buy your house ___________ or ______________? (___) Terrific
10. Before I come out… there are just a few more questions… I need to ask about your house, is that okay? (It is) outstanding
11. Is the home  Vacant or  Occupied? Occupant Name?
12. _____ Bedrooms ______ Baths
13. How many Square Feet? ________________
14. Size of the Garage? ____________________
15. How did you happen to own the home?
16. What Kind of repairs does it need?
 Carpet  Paint  Roof  Cabinets  Electrical  Plumbing  Plaster  Sheet Rock  Cooler  Heater  Air Conditioner Window  Landscaping  Clean-up  ______
17. What do you think the repair cost will be?____________
18. What are you asking for the house? __________________
19. Is that  Fixed–Up or  ‘As Is’
20. How did you come up with that Price?
21. How soon would you like to be sold? ____Days _________Date
22. Is there a Mortgage on the house?  Yes  No
23. What is/are the balance? 1st ________ 2nd ________3rd________
24. Are you in Foreclosure?  Yes  No  Notice of Default or  Trustee Sale...Sale Date _______ Arrearage Amount __________
One last thing…. When I come out… it is important…that all of the decision makers be there…. so I can come to an agreement to buy your house… Will all of the decision makers be there for the appointment? (If all of them are not there don’t go)
Well, ____________ I look forward in meeting you at __________…
The  are actually boxes but this program doesnt copy and paste that well.
_________________
Michael Quarles
"Marketing is the key to Successful Investing"
[ Edited by IBuyHousesInc on Date 12/05/2005 ][ Edited by IBuyHousesInc on Date 12/05/2005 ]
Havent purchased using the lease option yet.. My buying equity requirements dont seem to work with the lease option mentality...
And no I dont walk away from deals requiring cash...
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Thanks, Michael, for sharing your info & expertise!
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