thank you for the explanation of the profit centers at the end, because that is exactly what I couldn't understand about applying the entire dp from the tenant-buyer towards the purchase price
Chris if I take over a home with seller financing and the home has a HELOC loan attached will the lender or bank call that loan due once I put the deed in my company's name
Mike, look into 'land trusts', for the properties you acquire. That's ideal way to take title to the deed for investors. Even for the average Joe for that matter. Land trusts provide annonymity and a host of other things. Look more into it...
Sorry, I don't know anything about PropStream. REIPro is 20 years of in-the-trenches and packaged in a way to give you everything you need to find, work and close deals. You can get a free trial so you can compare.
Love your videos Chris! My question is how do you sign your contract with the seller and not have to pay your down payment upfront? Is that just something you put in your contract that you pay them when you find a new buyer or how do you go about that? Thanks in advance
Thanks for question. Yes, we do put a clause in the agreement that allows us to pay them on the commencement date of the lease part, not the day I sign with them. This gives me time to find the buyer and use their money. Hope this helps!
Chris,..still loving the REIpro software...and looking for to October's update.. Question..Will you be adding Tax-Liens and Bankruptcy Sellers to the search for REI pro? in addition, do you think you will have an option to print out the expenses( my expenses) as a buyer so i can show the seller what it will cost me during the holding period? etc..
What happens if you can't find a buyer and already have let's say a 3 year contract with the seller? Is there an exit strategy? Would I have to be making payments of my own to the seller until I find a buyer? Thanks.
Daniel Zamudio you have a few exit strategies available if you can’t find the right tentant buyer. # 1 you set the payments to start 60-120 days after closing to cover your ass. #2 because you have 60 -120 days after closing (you’ll be doing a double close once you have a tenant buyer) meaning you have time. #3 if you don’t close the option is null and void after the time frame. Typically the contract has a closing date set. If you don’t meet that closing date then it’s null you don’t owe anything. #4 can you list it with a realtor? Yes if you’ve closed. #5 move into the property until you can find a buyer. #6 start building buyers list well before you get a property. Having a list to market your properties 2 is a different ball game. Finding the properties for the buyers not the other way around.
Thank you for this John Anderson. I’d like to ask, have you successfully closed on a lease option and what the plans were for the new buyers when they buy the property? I find it nerve racking because I worry that the new buyers who aren’t qualified to go through the typical bank loans will be able to get a loan and meet the deadline w2e have with the seller. Thanks.
Andrew Anthony absolutely! You must screen your tenants. Typically I’ll screen them, then once we close I’m requiring them to do credit repair with someone I refer them to as well as do regular check ups on the quarter to see where they are in the prequalifying process. Of course you shouldn’t worry because if they don’t do the work you get another tenant buyer lined up and another non refundable option deposit.
John Anderson thanks for the swift reply! I’m already working with a mortgage lender to pre-qualify my buyers and work with them to be able to get them in. I have a few friends that are realtors that can send non qualifying buyers to me to work with! Really appreciate your time for answering my concerns. Wish you all the success brother! 💯
Andrew Anthony there you go! You got it. Inbound leads and you won’t be worried as much. Someone doesn’t get prequalified then keep moving. As long as they pay rent and you have 2-3 years to get someone in then you’re golden. The longer you have the get a buyout the better you have at making more money. #letsgo #makingmoney Likewise!
Hi Chris, great video ! with how many home owners do you estimate I would need to speak in order to get one lease option deal closed ? Same thing regarding buyers ? Considering marketing was done and I have people to call etc.. Thanks !
Hi Amir, thanks for the positive comment! This is very hard to determine because everything is based on the sellers SITUATION. What will help you increase your yeses is when you make multiple offers on the same property. Cash, Lease Option and a Seller Finance. Buyers are the easiest part of the equation and if you start marketing, (general ad) you'll get more than you can handle because normal investors don't focus on this type of buyer.
FANTASTIC JOB CHRIS YOU ARE THE BEST1111 I swear I wish all the "naysayers" and the "Oh Lease option scam" would just listen to you. You should be an authority spokesman for "second chance homeownership" or the "alternative mortgage finance" sound good?
Few more question: What if the tenant stops paying me the monthly rent, so I would also stop paying the seller the rent and loose the option to continue the deal correct ? Who is in charge of getting the tenant out from the property if he doesnt want to go out - myself or the owner ? does this appear on the contract forms that you have on REIPRO ? If there are damages in the property that were done by tenant, can the owner sue me or only the tenant ?
Everything is stated in the contract you can find in REIPro. If you are staying in the middle, then it's your responsibility to evict, make payments and find a new buyer... unless you walk away which I wouldn't do. Hope this helps!
Your explanations are always great ! thank you. I hope to start lease options in few weeks and I want to try to REIPRO. looks like a great software. Thanks again :-)
So the main differences between a lease option deal and a seller finance deal is you may end up not buying the house in a lease option, but you always end up buying the house in a seller finance. And the term of a lease option is always going to be shorter than a seller finance. Is that right?
Hi there, I just put up a post on our Facebook page describing the differences between these 2 strategies. You can check it out by going to: facebook.com/reiprosoftware
First, we have a disclosure in our contract which you can find in REIPro (Contract to Purchase) which discloses that you can show it. You can then either schedule a time with own (if they still live in the home) or try and get a key from the owner to show it. Either way, we must show the home.
Hey Chris I live in Atlanta... when is the next event? Or if possible, can I compensate you for a 1 on 1 lesson on the REI-Pro and how to master the Lease Option strategy?
We will be posting our event schedule in January of 2019 and I'm sure Atlanta will on it. We're not currently offering coaching at this time but will be opening up spots very soon! Please stay tuned.
Also keep in mind you want it attractive to buyers. They're not going the traditional route often time because they don't have a huge down payment but you can still help them and profit as well
Hi Chris, thanks for this training I now am ready to make multiple lease option offers. I'm a user of myreipro software and noticed in the Lease Option Agreement there's a section for a Security Deposit; would this be coming from me or the tenant/buyer? Please explain.
@@ChrisGoff you're a seasoned vet but I'll still pick your brain: do you personally close these deals yourself 'in house', with a broker, or with an attorney? What is the difference between the three in your opinion
@@Scott-got-caught Lease Option deals are first closed at the kitchen table and when the new buyer buys, either at the title company or attorneys office.
Chris, this is an awesome video. I've had a couple of sellers ask about doing land contracts. Is it possible to wholesale a land contract? If so, what is the basic structure?
You can wholesale just about anything but I don't mess with land contracts anymore because it's a one-sided seller finance agreement that only protects the seller.
Chris, I keep running into sellers who can’t wrap their head around selling their house on terms. They lose the deed and don’t get cashed out. Often they are looking to buy another house. Also realtors don’t seem to like that either. When I do find a seller interested they end up just preferring to get cashed out and hold out for someone to do the deal conventionally. Even though that may mean coming down on their asking price. What tactics do you have to help the seller comprehend and be willing to put themselves in that financial situation of no home but they hold the contract. Thank you sir!
I think most sellers prefer to be cashed out but make sure you are working with motivated sellers and here's a tip: Offer them a Cash Offer, Lease Option Offer and a Seller Finance offer all at the same time. By the time they see how low you cash offer is, the other offers look much better.
Make multiple offers including a cash offer all at the same time. This will make your lease option offer look really good plus you will increase your acceptance ratio of yeses. Most sellers want to be cashed out but that may not be the offer they choose based on their situation.
Hi Chris, my name is Sava Vukovic, I'm a big fan of your presentation and I just have one question. Can I as the Buyer&Seller use my own trust instead of an LLC to receive funds in a deal like this?
I really appreciate your videos. I'm new, but I have been binge watching videos and doing a ton of research on my own. I am excited to make my first deal. I have just signed up for a free trial with you and I'm excited! Thank you so much!!
@@ChrisGoff I got one!!!! My first deal! Owner Financing. At first she was a hard NO, but after a little more talk, she agreed to let me purchase it lease to own, AND I already have 3 buyers lined up... lease with option!!!! THANK YOU!!!!
Jhamel Jones there is no calling out or anything like that. You have a contract with the seller and of course you should be upfront with the seller from the beginning.
Few questions 1.) Is it possible to shed some light on the closing stage of lease options 2.) Do end buyers need to have some form of insurance (rental insurance maybe) while leasing 3.) Do you have some form of strategy in vetting buyers.
I have a potential buyer. They are moving from out of state and can't get pre-approved because they don't have a job in this state. They don't want to make a down payment because they're getting a VA loan and don't have to make a down payment. How can I make something like this work to help them get a home and of course make a profit?
Find a different buyer would be the easiest because if they don't have enough to give you money down, they probably don't have enough to put down with the bank.
Great training. Where I'm getting lost is how you're going from 226k to 220k to 215k. Is there a formula to get those numbers or just whatever you choose?
The BEST statement of the entire video is at: 15:00-15:15
Play this over & over, get your mind around this simple statement. This is GOLDEN!!!
THANK YOU!
thank you for the explanation of the profit centers at the end, because that is exactly what I couldn't understand about applying the entire dp from the tenant-buyer towards the purchase price
Chris if I take over a home with seller financing and the home has a HELOC loan attached will the lender or bank call that loan due once I put the deed in my company's name
There's always a chance even without the HELOC but it is very uncommon as long as payments are made.
Mike, look into 'land trusts', for the properties you acquire. That's ideal way to take title to the deed for investors. Even for the average Joe for that matter. Land trusts provide annonymity and a host of other things. Look more into it...
Thanks, Chris.
How does ReiPro compare to PropStream?
Sorry, I don't know anything about PropStream. REIPro is 20 years of in-the-trenches and packaged in a way to give you everything you need to find, work and close deals. You can get a free trial so you can compare.
@William Scott you sound like me...very analytical. You'll make a great investor in this industry 👏🏻
Thank you Brother.
Love your videos Chris! My question is how do you sign your contract with the seller and not have to pay your down payment upfront? Is that just something you put in your contract that you pay them when you find a new buyer or how do you go about that? Thanks in advance
Thanks for question. Yes, we do put a clause in the agreement that allows us to pay them on the commencement date of the lease part, not the day I sign with them. This gives me time to find the buyer and use their money. Hope this helps!
@@ChrisGoff yes sir it sure does! Thank you again.
Chris,..still loving the REIpro software...and looking for to October's update..
Question..Will you be adding Tax-Liens and Bankruptcy Sellers to the search for REI pro?
in addition, do you think you will have an option to print out the expenses( my expenses) as a buyer so i can show the seller what it will cost me during the holding period? etc..
Great questions! I would love to see the answers!
What do you use to calculate all 4 offers? Do you throw owner financing as an offer as well?
I use REIPro to calculate all offers which include a cash offer, lease option offer and a seller finance offer.
What happens if you can't find a buyer and already have let's say a 3 year contract with the seller? Is there an exit strategy? Would I have to be making payments of my own to the seller until I find a buyer? Thanks.
Daniel Zamudio you have a few exit strategies available if you can’t find the right tentant buyer.
# 1 you set the payments to start 60-120 days after closing to cover your ass.
#2 because you have 60 -120 days after closing (you’ll be doing a double close once you have a tenant buyer) meaning you have time.
#3 if you don’t close the option is null and void after the time frame. Typically the contract has a closing date set. If you don’t meet that closing date then it’s null you don’t owe anything.
#4 can you list it with a realtor? Yes if you’ve closed.
#5 move into the property until you can find a buyer.
#6 start building buyers list well before you get a property. Having a list to market your properties 2 is a different ball game. Finding the properties for the buyers not the other way around.
Thank you for this John Anderson. I’d like to ask, have you successfully closed on a lease option and what the plans were for the new buyers when they buy the property? I find it nerve racking because I worry that the new buyers who aren’t qualified to go through the typical bank loans will be able to get a loan and meet the deadline w2e have with the seller. Thanks.
Andrew Anthony absolutely! You must screen your tenants. Typically I’ll screen them, then once we close I’m requiring them to do credit repair with someone I refer them to as well as do regular check ups on the quarter to see where they are in the prequalifying process.
Of course you shouldn’t worry because if they don’t do the work you get another tenant buyer lined up and another non refundable option deposit.
John Anderson thanks for the swift reply! I’m already working with a mortgage lender to pre-qualify my buyers and work with them to be able to get them in. I have a few friends that are realtors that can send non qualifying buyers to me to work with! Really appreciate your time for answering my concerns.
Wish you all the success brother! 💯
Andrew Anthony there you go! You got it. Inbound leads and you won’t be worried as much. Someone doesn’t get prequalified then keep moving. As long as they pay rent and you have 2-3 years to get someone in then you’re golden. The longer you have the get a buyout the better you have at making more money. #letsgo #makingmoney
Likewise!
Can you elaborate a little bit on closing costs, and they affect the deal?
Hi Chris, great video ! with how many home owners do you estimate I would need to speak in order to get one lease option deal closed ? Same thing regarding buyers ? Considering marketing was done and I have people to call etc.. Thanks !
Hi Amir, thanks for the positive comment! This is very hard to determine because everything is based on the sellers SITUATION. What will help you increase your yeses is when you make multiple offers on the same property. Cash, Lease Option and a Seller Finance. Buyers are the easiest part of the equation and if you start marketing, (general ad) you'll get more than you can handle because normal investors don't focus on this type of buyer.
Thanks Chris for your reply !
FANTASTIC JOB CHRIS YOU ARE THE BEST1111 I swear I wish all the "naysayers" and the "Oh Lease option scam" would just listen to you. You should be an authority spokesman for "second chance homeownership" or the "alternative mortgage finance" sound good?
Hey Shawn, really appreciate your comments!
Few more question: What if the tenant stops paying me the monthly rent, so I would also stop paying the seller the rent and loose the option to continue the deal correct ? Who is in charge of getting the tenant out from the property if he doesnt want to go out - myself or the owner ? does this appear on the contract forms that you have on REIPRO ? If there are damages in the property that were done by tenant, can the owner sue me or only the tenant ?
Everything is stated in the contract you can find in REIPro. If you are staying in the middle, then it's your responsibility to evict, make payments and find a new buyer... unless you walk away which I wouldn't do. Hope this helps!
Your explanations are always great ! thank you. I hope to start lease options in few weeks and I want to try to REIPRO. looks like a great software. Thanks again :-)
Hello Chris, can you offer these deals with on-market properties?
Absolutely!
So the main differences between a lease option deal and a seller finance deal is you may end up not buying the house in a lease option, but you always end up buying the house in a seller finance. And the term of a lease option is always going to be shorter than a seller finance. Is that right?
Hi there, I just put up a post on our Facebook page describing the differences between these 2 strategies. You can check it out by going to: facebook.com/reiprosoftware
Hi Chris, how do you let a potential buyer see the property prior to buying it?
First, we have a disclosure in our contract which you can find in REIPro (Contract to Purchase) which discloses that you can show it. You can then either schedule a time with own (if they still live in the home) or try and get a key from the owner to show it. Either way, we must show the home.
Can your system formulate these offers on a downloadable form so that we can send them to the seller? Or would I have to put it together myself?
Yes, you either print or email them from the system.
Hey Chris I live in Atlanta... when is the next event? Or if possible, can I compensate you for a 1 on 1 lesson on the REI-Pro and how to master the Lease Option strategy?
We will be posting our event schedule in January of 2019 and I'm sure Atlanta will on it. We're not currently offering coaching at this time but will be opening up spots very soon! Please stay tuned.
How do you determine that down payment for your area?
Please and thank you
Also keep in mind you want it attractive to buyers. They're not going the traditional route often time because they don't have a huge down payment but you can still help them and profit as well
Thank you.
You're welcome!
Is REIPro available to use in the UK
Hi Chris, thanks for this training I now am ready to make multiple lease option offers. I'm a user of myreipro software and noticed in the Lease Option Agreement there's a section for a Security Deposit; would this be coming from me or the tenant/buyer? Please explain.
Thank you for being a REIPro subscriber and the tenant would be paying this along with a non-refundable down payment. Hope this helps.
@@ChrisGoff you're a seasoned vet but I'll still pick your brain: do you personally close these deals yourself 'in house', with a broker, or with an attorney? What is the difference between the three in your opinion
@@Scott-got-caught Lease Option deals are first closed at the kitchen table and when the new buyer buys, either at the title company or attorneys office.
How is the buyers down payment calculated?
I usually use a 3-5% general rule but as much as possible within means.
Chris, this is an awesome video. I've had a couple of sellers ask about doing land contracts. Is it possible to wholesale a land contract? If so, what is the basic structure?
You can wholesale just about anything but I don't mess with land contracts anymore because it's a one-sided seller finance agreement that only protects the seller.
Chris, I keep running into sellers who can’t wrap their head around selling their house on terms. They lose the deed and don’t get cashed out. Often they are looking to buy another house. Also realtors don’t seem to like that either. When I do find a seller interested they end up just preferring to get cashed out and hold out for someone to do the deal conventionally. Even though that may mean coming down on their asking price. What tactics do you have to help the seller comprehend and be willing to put themselves in that financial situation of no home but they hold the contract. Thank you sir!
I think most sellers prefer to be cashed out but make sure you are working with motivated sellers and here's a tip: Offer them a Cash Offer, Lease Option Offer and a Seller Finance offer all at the same time. By the time they see how low you cash offer is, the other offers look much better.
Make multiple offers including a cash offer all at the same time. This will make your lease option offer look really good plus you will increase your acceptance ratio of yeses. Most sellers want to be cashed out but that may not be the offer they choose based on their situation.
Hi Chris, my name is Sava Vukovic, I'm a big fan of your presentation and I just have one question. Can I as the Buyer&Seller use my own trust instead of an LLC to receive funds in a deal like this?
Thanks a lot! I would run all deals like this through an LLC personally but a great question to ask a CPA.
I really appreciate your videos.
I'm new, but I have been binge watching videos and doing a ton of research on my own.
I am excited to make my first deal. I have just signed up for a free trial with you and I'm excited!
Thank you so much!!
Jessie, thank you so much and welcome to the family!
@@ChrisGoff I'm so excited! Tomorrow I will have my first face to face meeting with a potential sub-to deal!!
@@HjCrawford How did it go?
@@HjCrawford How did it go?
@@ChrisGoff I got one!!!!
My first deal! Owner Financing. At first she was a hard NO, but after a little more talk, she agreed to let me purchase it lease to own, AND I already have 3 buyers lined up... lease with option!!!!
THANK YOU!!!!
Might I ask how much your net and gross profit is per month?
Get video but i have a question. Is this legal to do in Texas?
eric cooper It's my understanding that Texas makes it difficult for LO's.
How much is the REIpro software?
We have several payment options so please visit: www.myreipro.com/pricing
How do you prevent the buyer from going straight to the seller and cutting you out altogether?
Jhamel Jones there is no calling out or anything like that. You have a contract with the seller and of course you should be upfront with the seller from the beginning.
Few questions
1.) Is it possible to shed some light on the closing stage of lease options
2.) Do end buyers need to have some form of insurance (rental insurance maybe) while leasing
3.) Do you have some form of strategy in vetting buyers.
Most of this is going to be in our REIPro software program. www.myreipro.com
Now you're diving deep! I like your thinking, shows youre understanding the concepts and building upon what you already know. Keep learning 👍🏻
I have a potential buyer. They are moving from out of state and can't get pre-approved because they don't have a job in this state. They don't want to make a down payment because they're getting a VA loan and don't have to make a down payment. How can I make something like this work to help them get a home and of course make a profit?
Find a different buyer would be the easiest because if they don't have enough to give you money down, they probably don't have enough to put down with the bank.
Just let them know what you can offer. You may not always be the best fit and that's ok. Keep shopping for another buyer
Great training. Where I'm getting lost is how you're going from 226k to 220k to 215k. Is there a formula to get those numbers or just whatever you choose?
He's using examples.
I’m trying to reverse engineer this deal. I want to purchase a home and do a lease purchase option with someone after I purchase it.
No problem, go for it. Once you buy it, you can do almost any exit strategy.