Posted by Mesha on March 01, 2000 at 20:25:05:
Thanks for your response…are you still using some of the methods used during coaching. How many other homes have you purchased. Can you say that you have (X)amount in net income?
Carlton Sheets, kind of nervous - Posted by Christine Cameron
Posted by Christine Cameron on February 09, 2000 at 14:17:10:
My husband and I have just recently finished this course, and I am honestly very nervous about the whole idea. Is a large single home a good start or should we begin with something smaller?? This home has just dropped on us, owner financed and a very motivated seller. I would welcome any advice.
Re: Carlton Sheets, kind of nervous - Posted by Steve
Posted by Steve on February 11, 2000 at 03:19:49:
Christene,
I read your post and Im assuming that when you say owner financing by this you mean by way of lease option. If not the make sure you convince the seller to sell it to you in this manner. Numbers of course are Important in every deal you do but, the lease option gives you the best overall return of any method in my humble opinion,
Lets look at the benefits for you. Assuming your goimg to lease option the house to another Tenant/buyer as soon as you get the contract signed. You give the owner a small earnest deposit but you collect a larger down from the new T/B. Second whatever your rent is, you charge a higher rent and third you will set the new selling price higher than the one you agreed to. For example, Lets say your down was 100 dollars Lets say the down you got from the T/B was 3,000 You just made an instant 2,900 up front money. Now lets say, your rent is 500 per month, You get the new T/B to pay a monthly rent of 750. Thats an extra 250 in monthly income. Thirdly, Lets say you locked in a selling price of 80,000 on a 100,000 house.Now you sell to the T/B for 105,000. Backend of profit of 25,000. Now lets ad up your total 2,900 in option money, 3,000 in extra rent and 25,000 when the house is sold for a total of 30,900. Not too bad profit for one year of work and 100 investment, and you never even had to take title to the property.Numbers I agree are important but you can actually give the seller his asking price and still make money with lease options. I think you get the general idea of how they work now.
Ok, before you get to exited you need to make sure of a few things. Try to get the lease option for two or three years, reason being, youll only give the T/b a one year lease option. If he fails to buy just option it of again and recieve a new down and higher rental rate. Get the picture, youll make even more if he doesnt buy. Always get the right to assign the property, this gives you the right to sell it to someone else, but never give the right to assign to your T/B. What I try to do Is get a lease option for two to three years (Hoping to sell in one)with the option to renew for another three. So, I have 5 chances to sell to a T/B, If they all fall through then by this time Ive collected 5 deposits and 5 years of rental income. The best part is now the house has appreciated to the point that If I need a quick sale I can just sell at a discount and would still have made a hefty profit.
I hope that you have a clearer picture of how this way of buying works. I also hope that Ive been of some help to you. Im not a lawyer, just a guy but you should talk to a good real estate lawayer before you do any deals when strarting out. I wish you the best and good luck.
Regards,
Steve
let the numbers tell you… - Posted by Rus Sims
Posted by Rus Sims on February 09, 2000 at 16:33:44:
Sheets has a great cash flow analysis work sheet that will tell you if this large home is a good investment. If the home is huge, it will rent for more but will generally take longer to rent. Perhaps you can give us some numbers…
Re: Carlton Sheets, kind of nervous - Posted by Eddie FL
Posted by Eddie FL on February 09, 2000 at 16:19:21:
Christine,
You need to look at the numbers very well and make sure it is worth your time and effort and that there is a profit to be made. If not, then go find another deal.
You need to give some details on the property and the numbers. Everybody gets nervouse with their first deal. Put some details on the Newsgroup and people will be able to help you better. Also, try putting it in Newsgroup I, there are alot of pros there that can help determine if it is worth it.
Eddie
Re: Carlton Sheets/coaching program - Posted by Mesha
Posted by Mesha on February 09, 2000 at 18:20:33:
I’m going through Carlton Sheets course now too, and I would like to know if anyone has use the coaching system that is offer? It’s a one on one coach. If so I would like your comments, and did you find it helpful? I’m in the process of making my first purchase also and I’m nervous and would like to know just what the first move toward success.
Re: Carlton Sheets/coaching program - Posted by bernadette
Posted by bernadette on March 01, 2000 at 11:40:02:
Hi,
Yes,I’ve used the coaching program a yr and a half ago.It helped some.You get more insight.It’s an expense but if you needed try it.I did buy my first home with persitence.so it will be your choice but good luck