I’m glad you have a course and are studying it. When I first studied LeGrand’s stuff, I went through it about 5 times before I went out and actually signed up my first lease option. Even then, I screwed up a lot of stuff that was in the course, but I had forgot or not understood completely.
I am glad to see that you mentioned that you are starting to run an ad. It’s good that you are starting to take action. When you start getting the calls from sellers, feel free to ask all the questions that you need to in order to get closer to a deal.
Here’s something that might help you a little bit more in pitching the lease option. Check out http://www.creonline.com/mm-51.html if you haven’t seen it yet.
Should the Due On Sale Clause be a huge concern of mine when I begin doing Sandwich Lease/Options?
And what happens if the loan gets called due because of the option? What do I do, being that I have an agreement with the T/B? I mean I wouldn’t be able to throw them out and I can’t make them exercise their option. That kind of puts me in a bind.
Is this something that doesn’t happen that often, but should be studied just in case it does?
Jim,
No offense intended here, but after reading many of your posts, you seem to be suffering from paralysis of analysis.
The D.O.S. issue is one of minor concern in my opinion.
The best way to avoid dealing with it is to make the payments on time to the lender.
This is their main concern.
Lenders make money collecting payments, not foreclosing on homes, and then maintaining empty homes.
Who is going to tell the lender that the home is under a L/O agreement anyway?
Unless you or your seller do, this is not something I’d worry about.
As has been said here MANY times before, there are no mortgage police who patrol recorders offices seeking title transfers, and other agreements or memos that are recorded.
In fact, as you search out info on this D.O.S. issue, take a look at the numbers.
How many posts, articles and such do you see on various RE deals and techniques?
Now, how many posts, articles and such do you see about lenders calling loans due?
See my point?
I hope so.
So, quit over analyzing and go make a deal.
Thanks a lot for taking the time to answer my questions. I think that I am over analyzing things, too, but with every new thing I learn, there are so many more questions that come up. I just don’t want to get myself in a bind, especially on my first deal.
I have an ad in my local paper that will run for the first time this Sunday. I’m getting kind of scared about that. I’m just afraid that if someone calls and I don’t know what I’m talking about, then that could blow the deal and I’ll look like a fool. We’ll see how this ad does. Hopefully I’ll get a few calls and make at least one deal happen. That would be great, but if it doesn’t, I’ll keep working at it.
Thanks again for answering my questions. I really appreciate it!
One more thing, Jim. To help with your concern over being unsure as to what to say to the sellers calling on your ad, check out the article that Joe Kaiser wrote up at http://www.creonline.com/art-149.html.
Jim, I was talking to Jim IL the other day, and he and I both pretty much started at the same time in creative real estate. Interestingly enough, as we talked about some of the deals that we had done, we both found that the other could add some new twist that we had never thought of before! We have both been full time in this business and have both done several deals each.
Even as I study now, I am still learning. In fact, the more I learn, the more I realized how much MORE I need to learn. But guess what? I’ve been doing deals for quite some time now. Although I have stumbled and fallen on my face, I get right back up and keep doing deals. I have been yelled at, threatened, told that I was pulling a “scam”, (Although after I tried to determiine what kind of scam I was pulling with this person who was accusing me, they said that they “didn’t know what kind of scam” I was pulling!) sued (although not once have had a judgement against me. I do not and will not do anything illegal or anything that can be interpretted as fraud) and everything else. Hasn’t stopped me from doing deals and making money from them though.
Jim, I can absolutely guarantee you one thing when you get started in real estate. You WILL have setbacks. How you react to them is what counts. Educate yourself (By the way, you have bought a lease option course, haven’t you? It should have answered the majority of the questions you’ve been asking lately.) and use what you learn to GO OUT THERE AND WORK SOME DEALS!!!
Posted by Stacy (AZ) on January 26, 2001 at 11:48:04:
Jim, about analyzing…I don’t think it’s a bad idea to analyze and learn about these various techniques. Keep at it, you really need to understand what you are doing. I’ve been investing for about three years, and I still learn new things every day. It’s a never ending process.
The only time analyzing is bad, is if it paralyzes you. It doesn’t seem that you are paralyzed, since you are moving ahead with your ad. By the way, if you don’t know how to answer a question from a caller, tell them you’ll get back to them with an answer, and redirect the conversation. This will allow you to find the answer when there’s no pressure.
Anyway, I’ve always been one to analyze things, as well. It’s the only way I can feel comfortable using various techniques. I need to know where my risks are. Bottom line, don’t let it stop you from taking action.
I actually got Bill Bronchick’s course last week. I’ve only went through it once, so maybe it did answer some of the questions and I just missed them. I watched some of it again last night to see if it could clear up a question I had, but it didn’t really. I’m going to go through the whole thing again so that I can get a better understanding of it and see some of the things I missed.
Thanks a lot for taking the time to answer my question. I really appreciate it!!!