The Tool Every Investor in the Country Must Have – Pre-Paid Legal Part 2
As promised, here is the remaining information you NEED to know.
Here is something that most people don’t know. When you buy a house the purchase agreement you sign is in no way a standard document. Purchase agreements aren’t written out by each state and then required to be used in each transaction. It doesn’t work that way. Every real estate company has their own purchase agreement, any private transaction outside a real estate company will have a unique purchase agreement. Once you sign that purchase agreement you are bound to it. How would you like to be the buyer of a house where you have to pay the seller’s unpaid property taxes for the last five years because it was written into the purchase agreement?
Too many of us don’t want to spend the money to have an attorney review a contract. We just risk it instead. Pre-Paid Legal will review an UNLIMITED number of personal documents for you, up to 10 pages each. Plus they will review one business document once a year at no extra charge. Talk about peace of mind!
Those are some of the common uses we as investors have for Pre-Paid Legal. Those types of things are integral to our business and we would use them on a regular basis. Pre-Paid Legal offers a whole lot more benefits than that for our small monthly fee. I won’t go into them all but here are two critical ones. If you or your spouse is named as a defendant or respondent in a civil or criminal action you receive 75 hours of paid attorney time, and it increases by another 75 hours for each year you renew, up to a total of 335 hours of pre-trial and trial time. That’s enough for almost every trial except O.J. Simpson’s! God forbid that this should ever come to pass, but what a wonderful safeguard to have.
The other critical service Pre-Paid Legal offers that I wanted to mention is that if you are ever audited by the IRS, which seems to happen more to us investors than the average person, you receive 50 hours of paid attorney time. Facing the IRS without the support of an attorney just isn’t something you want to do.
As real estate investors, when we buy and sell houses, we often make use of Realtors™ and mortgage brokers on our transactions. Each time we do, they get paid for their work, usually a percentage of the cost, which amounts to thousands of dollars. If you could retain a Realtor™ and a mortgage broker for $25 a month to take care of you wouldn’t you jump at the chance? Here’s the thing, attorneys charge MORE than Realtors™ or mortgage brokers! I recommend Pre-Paid Legal to every investor I know because it’s such a great deal and I make use of it myself.
Eager to become a member? Sign up Today!
To sign up for Pre-Paid Legal or to find out more please visit: www.GotLegalPlans.com
OR
Call Michael Gott at (248) 227-3943
Excerpt taken from Pre-Paid Legal: The Tool Every Investor Must Have By Wendy Patton
Source
Wednesday, June 30, 2010
Tuesday, June 29, 2010
The Tool Every Investor in the Country Must Have – Pre-Paid Legal
The Tool Every Investor in the Country Must Have – Pre-Paid Legal
For a small monthly fee - with no contract required - we can get access to a battery of attorneys by using Pre-Paid Legal. How small is the monthly fee? Right around $25 bucks a month!
Ready to become a member? Register today for Pre Paid Legal Services!
How can you use this as an investor?
For starters, you can make unlimited phone calls to have your legal questions answered and receive legal advice. How useful is that? Think about how many different ways you can use that when you are buying or selling investment deals, or even for your personal life. For example, let’s say a tenant calls you and says their apartment was broken into and wants you to fix the front door. Tenants speak in code, and more often than not, when a tenant says their apartment was broken into it really means they locked their keys inside and didn’t want to pay the fee for you letting them back in so instead they kicked in their door and claimed someone broke in.
A quick call to Pre-Paid Legal and the attorney may advise you to have the tenant file a police report and have you insist on seeing the police report before the door can be repaired or have the door fixed at their expense if they fail to provide the police report. Tenants know that filing a false report is a crime so they’ll probably think twice about following through.
Pre-Paid Legal can also write letters on your behalf. When people or businesses receive a letter from an attorney on your behalf they know that you have an attorney at your disposal and will not be easily pushed around. This can be very useful when dealing with unscrupulous contractors, for example. I have had my share of great contractors but I’ve also had to deal with some who try to take shameless advantage. If you have a contractor who consistently doesn’t show up at the job site to get their work done this costs you a lot of money in delays. A quick letter from your attorney will probably be all of the prompting that contractor needs to start showing up and getting the job done.
Or what about if the contractor underbids the job and then tries to bill you extra for their mistake? Most people end up paying this, pretty much knowing they are being taken advantage of but not knowing what they can do about it. A letter to the contractor from your attorney will let that contractor know they aren’t going to be able to take advantage of you. If a contractor tries to bill you just an extra $600 for a job that would pay for your Pre-Paid Legal costs for 2 years!
More information on Pre-Paid Legal will be coming tomorrow.
To sign up for Pre-Paid Legal or to find out more please visit: http://www.gotlegalplans.com/
OR
Call Michael Gott at (248) 227-3943
Excerpt taken from Pre-Paid Legal: The Tool Every Investor Must Have By Wendy Patton
Source
For a small monthly fee - with no contract required - we can get access to a battery of attorneys by using Pre-Paid Legal. How small is the monthly fee? Right around $25 bucks a month!
Ready to become a member? Register today for Pre Paid Legal Services!
How can you use this as an investor?
For starters, you can make unlimited phone calls to have your legal questions answered and receive legal advice. How useful is that? Think about how many different ways you can use that when you are buying or selling investment deals, or even for your personal life. For example, let’s say a tenant calls you and says their apartment was broken into and wants you to fix the front door. Tenants speak in code, and more often than not, when a tenant says their apartment was broken into it really means they locked their keys inside and didn’t want to pay the fee for you letting them back in so instead they kicked in their door and claimed someone broke in.
A quick call to Pre-Paid Legal and the attorney may advise you to have the tenant file a police report and have you insist on seeing the police report before the door can be repaired or have the door fixed at their expense if they fail to provide the police report. Tenants know that filing a false report is a crime so they’ll probably think twice about following through.
Pre-Paid Legal can also write letters on your behalf. When people or businesses receive a letter from an attorney on your behalf they know that you have an attorney at your disposal and will not be easily pushed around. This can be very useful when dealing with unscrupulous contractors, for example. I have had my share of great contractors but I’ve also had to deal with some who try to take shameless advantage. If you have a contractor who consistently doesn’t show up at the job site to get their work done this costs you a lot of money in delays. A quick letter from your attorney will probably be all of the prompting that contractor needs to start showing up and getting the job done.
Or what about if the contractor underbids the job and then tries to bill you extra for their mistake? Most people end up paying this, pretty much knowing they are being taken advantage of but not knowing what they can do about it. A letter to the contractor from your attorney will let that contractor know they aren’t going to be able to take advantage of you. If a contractor tries to bill you just an extra $600 for a job that would pay for your Pre-Paid Legal costs for 2 years!
More information on Pre-Paid Legal will be coming tomorrow.
To sign up for Pre-Paid Legal or to find out more please visit: http://www.gotlegalplans.com/
OR
Call Michael Gott at (248) 227-3943
Excerpt taken from Pre-Paid Legal: The Tool Every Investor Must Have By Wendy Patton
Source
Monday, June 28, 2010
Lease Option or Lease Purchase in Oakland County, Michigan
Lease Option or Lease Purchase in Oakland County, Michigan
A doctor has a new home built for himself. His old home is worth $200,000 and he owes $125,000. He has $75,000 of equity. He is not behind on payments, and he did not need the $75,000 cash out to buy the new home. His old home is sitting vacant and the Realtor has not sold it yet. He qualified for both house payments at the bank and he can technically afford both, but who wants to make an extra house payment?
Although he is motivated to sell because he's paying out of pocket every month to own a vacant property, this type of seller is not going to simply give you the deed and let you take over the mortgage. No way is he going to give up all of his $75,000 in equity, and no way are you going to pay that much cash out of pocket.
When you lease option this house, he gets most of his equity back - although it won't happen until you sell the property. The deal might work like this: You option the property for $195,000, and make payments to the seller that equals his total mortgage payments. You sell the property on an 18-month lease option for $228,000 with payments to match. You get cash flow plus $33,000 in profit when your tenant-buyer buys the property; the seller gets his payments taken care of for a few years, and then gets the bulk of his equity out. And in the meantime, he doesn't have to worry about management, vandals, frozen pipes, and all the other things that owners of vacant houses have to deal with.
Touring a potential Lease Option home.
Additional resources on the topic of Lease Purchase and Lease Option.
Excerpt taken from Investing in Real Estate with Lease Options and "Subject-to" Deals, Chapter 4, Pages 59-60.
Original Location
A doctor has a new home built for himself. His old home is worth $200,000 and he owes $125,000. He has $75,000 of equity. He is not behind on payments, and he did not need the $75,000 cash out to buy the new home. His old home is sitting vacant and the Realtor has not sold it yet. He qualified for both house payments at the bank and he can technically afford both, but who wants to make an extra house payment?
Although he is motivated to sell because he's paying out of pocket every month to own a vacant property, this type of seller is not going to simply give you the deed and let you take over the mortgage. No way is he going to give up all of his $75,000 in equity, and no way are you going to pay that much cash out of pocket.
When you lease option this house, he gets most of his equity back - although it won't happen until you sell the property. The deal might work like this: You option the property for $195,000, and make payments to the seller that equals his total mortgage payments. You sell the property on an 18-month lease option for $228,000 with payments to match. You get cash flow plus $33,000 in profit when your tenant-buyer buys the property; the seller gets his payments taken care of for a few years, and then gets the bulk of his equity out. And in the meantime, he doesn't have to worry about management, vandals, frozen pipes, and all the other things that owners of vacant houses have to deal with.
Touring a potential Lease Option home.
Additional resources on the topic of Lease Purchase and Lease Option.
Excerpt taken from Investing in Real Estate with Lease Options and "Subject-to" Deals, Chapter 4, Pages 59-60.
Original Location
Friday, June 25, 2010
Script for Buyer When Calling a Listing Agent About a New Construction House
Script for Buyer When Calling a Listing Agent About a New Construction House
Call the contact person from the sign or advertisement and say:
“Hi Sally, my name is ___________ and I was calling about
the home you have listed at __________ (the address). Is it
still available?”
After they say, “Yes, it is,” I would say:
“Can you tell me more about the home? How much is it and
how large is it?”
Listen to see if it is something you would be interested in. If so,
follow up with:
“I wondered if the builder would be open to something creative.”
Leave it at that and say nothing more. Your goal is for them to launch into a long explanation of what the seller will or will not do. Other times they’ll say, “Like what?”
“Well, something like a rent-to-own or a lease option. I am a rent-
to-own buyer looking for a new home in this area. Would the builder
be open to something like this?”
Like before, you will probably get several possible responses:
1. “Yes, they have mentioned that to me.” If you get a positive
response, then ask: “Great! Do you know what kind of terms
they are looking for or are they looking for an offer?”
If they are looking for terms that work for you or they are looking for an offer, make an appointment to see the home if you haven’t aready. If you are working with a real estate agent, you should tell the salesperson on-site that you have an agent and tell her who it is. Call your agent to tell him you found something you are interested in. Even though the sales person on-site can show you the home and amenities, your agent can still help you with the transaction.
If the terms are not within your budget, ask the following:
“Do you hve any other new construction listings where
your builder might have said to you, ‘ Sally, if you don’t
sell that home soon, I might have to rent it,’ Sally, can
you think of any of your listings that might work for me?”
Sally may also respond to the rent-to-own question
like this:
2. “No, they need to sell now and wouldn’t be interested
in that.”
If this is the case, jump right to the question where you ask if she has
any other listings that might work. You will need to know your price
range and what you can afford; as she will probably ask you about this
(we covered this in Chapter 3).
3. “I’m not sure. I would have to check with them.”
If this is the response, encourage the agent to talk with her builder and to
call you as soon as she knows.
4. “What are you talking about?”
If she doesn’t know what rent-to-own is, you may have to give her a brief
explanation.
5. “Why do you need a rent-to-own?”
Your best answer is to simply tell her that a mortgage won’t work for you now,
but you do want to get into a home now. Ask her if this home or another listing
of hers might be a candidate for rent-to-own. Keep your answer brief and let her
ask you more questions if she has them.
Excerpt taken from Rent-To-Buy: Your Hands-on Guide to BUY Your Home When Mortgage Lending is Tight, Chapter 5, Pages 76-78.
To view this post in its original location, http://www.wendypatton.com/blog/script-for-buyer-when-calling-a-listing-agent-about-a-new-construction-house
Call the contact person from the sign or advertisement and say:
“Hi Sally, my name is ___________ and I was calling about
the home you have listed at __________ (the address). Is it
still available?”
After they say, “Yes, it is,” I would say:
“Can you tell me more about the home? How much is it and
how large is it?”
Listen to see if it is something you would be interested in. If so,
follow up with:
“I wondered if the builder would be open to something creative.”
Leave it at that and say nothing more. Your goal is for them to launch into a long explanation of what the seller will or will not do. Other times they’ll say, “Like what?”
“Well, something like a rent-to-own or a lease option. I am a rent-
to-own buyer looking for a new home in this area. Would the builder
be open to something like this?”
Like before, you will probably get several possible responses:
1. “Yes, they have mentioned that to me.” If you get a positive
response, then ask: “Great! Do you know what kind of terms
they are looking for or are they looking for an offer?”
If they are looking for terms that work for you or they are looking for an offer, make an appointment to see the home if you haven’t aready. If you are working with a real estate agent, you should tell the salesperson on-site that you have an agent and tell her who it is. Call your agent to tell him you found something you are interested in. Even though the sales person on-site can show you the home and amenities, your agent can still help you with the transaction.
If the terms are not within your budget, ask the following:
“Do you hve any other new construction listings where
your builder might have said to you, ‘ Sally, if you don’t
sell that home soon, I might have to rent it,’ Sally, can
you think of any of your listings that might work for me?”
Sally may also respond to the rent-to-own question
like this:
2. “No, they need to sell now and wouldn’t be interested
in that.”
If this is the case, jump right to the question where you ask if she has
any other listings that might work. You will need to know your price
range and what you can afford; as she will probably ask you about this
(we covered this in Chapter 3).
3. “I’m not sure. I would have to check with them.”
If this is the response, encourage the agent to talk with her builder and to
call you as soon as she knows.
4. “What are you talking about?”
If she doesn’t know what rent-to-own is, you may have to give her a brief
explanation.
5. “Why do you need a rent-to-own?”
Your best answer is to simply tell her that a mortgage won’t work for you now,
but you do want to get into a home now. Ask her if this home or another listing
of hers might be a candidate for rent-to-own. Keep your answer brief and let her
ask you more questions if she has them.
Excerpt taken from Rent-To-Buy: Your Hands-on Guide to BUY Your Home When Mortgage Lending is Tight, Chapter 5, Pages 76-78.
To view this post in its original location, http://www.wendypatton.com/blog/script-for-buyer-when-calling-a-listing-agent-about-a-new-construction-house
Thursday, June 24, 2010
Script for Calling a Realtor about Rent-to-Own and Lease Options, Part 2
Script for Calling a Realtor about Rent-to-Own and Lease Options, Part 2
As promised, the remainder of "Script for Calling a Realtor about Rent-to-Own and Lease Options".
Use this follow-up sentence on any of the
statements below where it applies. You always
want to dig to see what else they have that might
work for you.
Sally may also respond to the rent-to-own question like this:
“No, they need to sell now and wouldn’t be interested
in that.”
If this is the case, jump right to the question where you ask if she has any other listings that might work. You will need to know your price range and what you can afford; as she will probably ask you about this (we covered this in Chapter 3).
“I’m not sure; I would have to check with them.”
If this is the response, encourage the agent to talk with her clients. Remind her that you are looking for a rent-to-own home in that area and her commission would be paid in full when you buy the home.
“What are you talking about?”
Not every agent knows what rent-to-own is so you need to give them a brief explanation. Be prepared to tell them something like, “Well I would rent the home and buy it later.” Keep it simple.
“Why do you need a rent-to-own?”
Most likely it’s because you can’t get a mortgage right now or because you don’t want to get a mortgage right now. You best answer is to simply tell her that a mortgage won’t work for you now, but you do want to get into a home now and ask her if this home or another listing of heres might be a candidate for rent-to-own. Keep your answer brief, but do be honest. If you had a bankruptcy or a foreclosure, it will be important that they know that. Don’t spring that on them later. If you had perfect credit, you probably wouldn’t need a rent-to-own in the first place.
Excerpt taken from Rent-To-Buy: Your Hands-on Guide to BUY Your Home When Mortgage Lending is Tight, Chapter 5, Pages 68-71.
To view this post in its original location, http://www.wendypatton.com/blog/script-for-calling-a-realtor-about-rent-to-own-and-lease-options-part-2
As promised, the remainder of "Script for Calling a Realtor about Rent-to-Own and Lease Options".
Use this follow-up sentence on any of the
statements below where it applies. You always
want to dig to see what else they have that might
work for you.
Sally may also respond to the rent-to-own question like this:
“No, they need to sell now and wouldn’t be interested
in that.”
If this is the case, jump right to the question where you ask if she has any other listings that might work. You will need to know your price range and what you can afford; as she will probably ask you about this (we covered this in Chapter 3).
“I’m not sure; I would have to check with them.”
If this is the response, encourage the agent to talk with her clients. Remind her that you are looking for a rent-to-own home in that area and her commission would be paid in full when you buy the home.
“What are you talking about?”
Not every agent knows what rent-to-own is so you need to give them a brief explanation. Be prepared to tell them something like, “Well I would rent the home and buy it later.” Keep it simple.
“Why do you need a rent-to-own?”
Most likely it’s because you can’t get a mortgage right now or because you don’t want to get a mortgage right now. You best answer is to simply tell her that a mortgage won’t work for you now, but you do want to get into a home now and ask her if this home or another listing of heres might be a candidate for rent-to-own. Keep your answer brief, but do be honest. If you had a bankruptcy or a foreclosure, it will be important that they know that. Don’t spring that on them later. If you had perfect credit, you probably wouldn’t need a rent-to-own in the first place.
Excerpt taken from Rent-To-Buy: Your Hands-on Guide to BUY Your Home When Mortgage Lending is Tight, Chapter 5, Pages 68-71.
To view this post in its original location, http://www.wendypatton.com/blog/script-for-calling-a-realtor-about-rent-to-own-and-lease-options-part-2
Wednesday, June 23, 2010
Script for Calling a Realtor about Rent-to-Own and Lease Options
Script for Calling a Realtor about Rent-to-Own and Lease Options
Once you have the agent on the phone, here is what I usually say:
“Hi __________ (the agent’s name), my name is
___________ (your name) and I was calling about
the home you have listed at ___________ (the street address).
Is it still available?
After they say, “Yes it is,” I would say,
“Can you tell me more about the home? How much is it
and how large is it?”
Listen to see if it is something you would be interested in.
If so, follow up with:
“I noticed it has been listed for a while”…
(Assuming it has been listed for more than four
months).
Wait and see what they say without saying anything else. They might say, “Yes…” and I would go on to the next question, or they might start to talk more – which is what I am hoping they will do. I want them to start to talk and tell me more. Maybe they will tell me why it has been listed a long time or what the status is. You would be amazed at what others will tell you when you zip it and listen. My next question is:
“Well, I wondered if the sellers would be open to something creative.”
Again, I leave it at that and say nothing more. Sometimes they
will volunteer a long explanation of what the seller will or will
not do or sometimes they say, “Like what?”
“Well, something like a rent-to-own or a lease option. I am
a rent-to-own buyer looking for a home in this area. Would
your seller be open to something like that?”
Don’t say anything until they respond. You’ll get one of five responses.
“Yes, they have mentioned that to me.” If you get a positive
response, the next question to ask is, “Great, do you know
what kind of terms they are looking for or are they looking
for an offer?”
If they are looking for terms that work for you or they are looking for an offer, make an appointment with Sally agent to look at the home. Note: Sally will try to become your Realtor. This might not be bad if Sally is creative and willing to read this book along with you, but otherwise don’t sign anything to commit you to Sally except for this home. If Sally is really good, you might want her to be your agent. If the terms are not within your scope, then ask the following:
“Do you have any other listings where your
seller might have said to you, ‘Sally (remember
to use their real name J), if you don’t sell my
home soon I might have to rent it?’ Sally, can
you think of any of your listings like this that
might work for me?”
To be continued until tomorrow! Join me tomorrow as I go over possible Realtor answers.
Excerpt taken from Rent-To-Buy: Your Hands-on Guide to BUY Your Home When Mortgage Lending is Tight, Chapter 5, Pages 68-71.
To view this post in its original location, http://www.wendypatton.com/blog/script-for-calling-a-realtor-about-rent-to-own-and-lease-options
Tuesday, June 22, 2010
Understanding the Steps Behind Fear Destruction and How to Create Desired Action
Steps for fear destruction:
When you feel the emotion of fear enter your mind, simply pause.
>>>>
A pause in time will carry away the initial flood of emotion.
>>>>
After the flood is gone, calmly ask…what needs to be done?
>>>>
Put each of your individual concerns on paper.
>>>>
They are now out of your head, and an individual solution can be developed for each one.
Even after a fear has been identified, and a solution developed, fear still doesn’t “disappear entirely.” It also doesn’t need to disappear entirely.
Remember that fear is so powerful that it is usually impossible to get rid of it entirely. Let’s look at our example above, where we discussed the fear of the property “not renting right away.” Even after applying the solution, and having more than enough cash reserves in place, the fear will still linger. Why? Because fear is a very powerful emotion, and it usually “sticks around” even after the solution has been implemented.
This is OK. Here is one of the most powerful things you will ever learn about fear:
There is no need to get rid of fear entirely.
It would be nice, but it’s truly impossible—so don’t even worry about that. You don’t need to get rid of it entirely. All you need to do is this…
1. Identify it, understand it, implement a solution, and reduce it…
2. To the point where you can get yourself to take the action that you desire.
This is all that is necessary. You don’t need to “get rid of your fear.” You just need to manage it, so that you can effectively reduce it beneath the “fear action threshold.” Once you reduce your fear beneath the fear action threshold, you will take action.
Wendy & Justin’s Advice on Fear: Our goal is not to get rid of fear entirely, for that is impossible. Our goal is to simply reduce our fear to the point where we will take action.
Excerpt taken from Making Hard Cash in a Soft Real Estate Market, Chapter 3, Pages 22-23.
To view this post in its original location, http://www.wendypatton.com/blog/understanding-the-steps-behind-fear-destruction-and-how-to-create-desired-action
When you feel the emotion of fear enter your mind, simply pause.
>>>>
A pause in time will carry away the initial flood of emotion.
>>>>
After the flood is gone, calmly ask…what needs to be done?
>>>>
Put each of your individual concerns on paper.
>>>>
They are now out of your head, and an individual solution can be developed for each one.
Even after a fear has been identified, and a solution developed, fear still doesn’t “disappear entirely.” It also doesn’t need to disappear entirely.
Remember that fear is so powerful that it is usually impossible to get rid of it entirely. Let’s look at our example above, where we discussed the fear of the property “not renting right away.” Even after applying the solution, and having more than enough cash reserves in place, the fear will still linger. Why? Because fear is a very powerful emotion, and it usually “sticks around” even after the solution has been implemented.
This is OK. Here is one of the most powerful things you will ever learn about fear:
There is no need to get rid of fear entirely.
It would be nice, but it’s truly impossible—so don’t even worry about that. You don’t need to get rid of it entirely. All you need to do is this…
1. Identify it, understand it, implement a solution, and reduce it…
2. To the point where you can get yourself to take the action that you desire.
This is all that is necessary. You don’t need to “get rid of your fear.” You just need to manage it, so that you can effectively reduce it beneath the “fear action threshold.” Once you reduce your fear beneath the fear action threshold, you will take action.
Wendy & Justin’s Advice on Fear: Our goal is not to get rid of fear entirely, for that is impossible. Our goal is to simply reduce our fear to the point where we will take action.
Excerpt taken from Making Hard Cash in a Soft Real Estate Market, Chapter 3, Pages 22-23.
To view this post in its original location, http://www.wendypatton.com/blog/understanding-the-steps-behind-fear-destruction-and-how-to-create-desired-action
Monday, June 21, 2010
Successfully Financing Your Real Estate Investments: Buyer Financed Construction-to-Perm Loan
A construction-to-perm loan is your second new construction financing option. You are more likely to see this type of financing for single-family home developments. In this situation, the builder is selling you the lot and a home plan he will build for you. You, as the investor, are required to obtain financing to pay for the lot and construction. A construction-to-perm loan provides you with financing during the construction process and once the home is complete, the loan modifies into a permanent end loan.
The advantage to securing your own financing is you need substantially less money out of pocket, at least initially. In this case you are not giving the builder a deposit of 10 percent to 20 percent. Your actual out-of-pocket costs can be exceptionally low. Some lenders may allow you to finance your project by lending you a high percentage of the home’s projected appraised value when completed. This can substantially decrease an investor’s down payment costs.
As an investor with limited funds available, this can provide you with a substantial saving; however, when you obtain your own financing, there are additional risks. The first risk is interest payments. A typical construction loan will have an amount of interest charged by the lending institution to pay for construction costs. Some lending institutions may allow you to roll these interest costs into your overall loan. This will minimize your out-of-pocket exposure on the transaction. However, should the construction period run longer than expected, which happens very frequently, you might incur additional interest costs or lender penalties.
The next risk is additional building and materials costs. If the builder runs into additional costs, such as higher than expected site preparation costs, increased impact fees (taxes), or unexpected increases in building costs, you can be sure these costs will be passed on to you. So although securing your own financing will have lower intial costs, it might be offset by higher carrying costs during construction. Always keep reserved funds in place to allow for the unexpected.
The third risk is responsibility. When you secure the financing for the property, the ultimate responsibility for paying that loan is on your shoulders. The bank expects that loan to be paid no matter what happens. If you select an unscrupulous builder, who either fails to build, or takes far longer and incurs far more costs to build than originally projected, the bank will still hold you accountable for that loan.
Key Advantages to Construction-to-Perm Loan
• Less money out of pocket
• End loan is already in place
• Savings on closing costs
Excerpt taken from Making Hard Cash in a Soft Real Estate Market, Chapter 15, Pages 153-154.
To view this post in its original location, http://www.wendypatton.com/blog/successfully-financing-your-real-estate-investments-buyer-financed-construction-to-perm-loan
The advantage to securing your own financing is you need substantially less money out of pocket, at least initially. In this case you are not giving the builder a deposit of 10 percent to 20 percent. Your actual out-of-pocket costs can be exceptionally low. Some lenders may allow you to finance your project by lending you a high percentage of the home’s projected appraised value when completed. This can substantially decrease an investor’s down payment costs.
As an investor with limited funds available, this can provide you with a substantial saving; however, when you obtain your own financing, there are additional risks. The first risk is interest payments. A typical construction loan will have an amount of interest charged by the lending institution to pay for construction costs. Some lending institutions may allow you to roll these interest costs into your overall loan. This will minimize your out-of-pocket exposure on the transaction. However, should the construction period run longer than expected, which happens very frequently, you might incur additional interest costs or lender penalties.
The next risk is additional building and materials costs. If the builder runs into additional costs, such as higher than expected site preparation costs, increased impact fees (taxes), or unexpected increases in building costs, you can be sure these costs will be passed on to you. So although securing your own financing will have lower intial costs, it might be offset by higher carrying costs during construction. Always keep reserved funds in place to allow for the unexpected.
The third risk is responsibility. When you secure the financing for the property, the ultimate responsibility for paying that loan is on your shoulders. The bank expects that loan to be paid no matter what happens. If you select an unscrupulous builder, who either fails to build, or takes far longer and incurs far more costs to build than originally projected, the bank will still hold you accountable for that loan.
Key Advantages to Construction-to-Perm Loan
• Less money out of pocket
• End loan is already in place
• Savings on closing costs
Excerpt taken from Making Hard Cash in a Soft Real Estate Market, Chapter 15, Pages 153-154.
To view this post in its original location, http://www.wendypatton.com/blog/successfully-financing-your-real-estate-investments-buyer-financed-construction-to-perm-loan
Friday, June 18, 2010
Successfully Financing Your Real Estate Investments: Builder Financed
In most cases, this option in which the builder secures the loan, is the best choice. If you are investing in a large resort development or a condominium tower, it will always be this way. Usually you would provide your own construction financing only when doing a single-family build. But with the negotiating power of our group, we have been able to negotiate for the builder to hold the construction financing—even when building our investors’ homes!
One benefit of having the builder carry the financing during construction is that if there are delays, such as natural disasters or construction problems, it will usually cost the developer more money and not you. No mortgage is required for you during the build cycle.
Typically, you would see the first option, in which the builder secures the financing, in a condiminium project and a planned-unit-development (PUD). A PUD is a planned community with common open space, such as a set of townhomes with amenities such as a swimming pool, fitness center, and so on. The builder must pre-sell a predetermined percentage of the units to obtain financing. As an investor, you help to fulfill the developer’s pre-selling quota, allowing the project to begin. Because the builder is securing the financing on the project, you as the investor are not required to get a loan during construction. This can be a huge advantage. In fact, if you resell the property before construction is complete, you will never have to secure your own mortgage. You, of course, always want to be prepared to close on every single property that you secure. Selling before construction is complete can be one of your intended exit strategies, but it should never be the only one.
As an added advantage for the investor, when the builder secures financing, the investor foes not make any payments or pay any interest during the construction process. This reduces your carrying costs on the project. You are also less likely to be burdened y unexpected additional charges during the construction. These items will vary from builder to builder and contract to contract. Review your contracts carefully to make sure the builder won’t be passing on any additional costs to you.
Key Advantages to Builder Secured Financing
• Not using your own credit during construction
• No interest payments during construction
• Less likely to pay for unexpected charges
• If you sell before construction is complete, you never have to get a loan
Excerpt taken from Making Hard Cash in a Soft Real Estate Market, Chapter 15, Pages 152-153.
To view this post in its original location, http://www.wendypatton.com/blog/successfully-financing-your-real-estate-investments-builder-financed
One benefit of having the builder carry the financing during construction is that if there are delays, such as natural disasters or construction problems, it will usually cost the developer more money and not you. No mortgage is required for you during the build cycle.
Typically, you would see the first option, in which the builder secures the financing, in a condiminium project and a planned-unit-development (PUD). A PUD is a planned community with common open space, such as a set of townhomes with amenities such as a swimming pool, fitness center, and so on. The builder must pre-sell a predetermined percentage of the units to obtain financing. As an investor, you help to fulfill the developer’s pre-selling quota, allowing the project to begin. Because the builder is securing the financing on the project, you as the investor are not required to get a loan during construction. This can be a huge advantage. In fact, if you resell the property before construction is complete, you will never have to secure your own mortgage. You, of course, always want to be prepared to close on every single property that you secure. Selling before construction is complete can be one of your intended exit strategies, but it should never be the only one.
As an added advantage for the investor, when the builder secures financing, the investor foes not make any payments or pay any interest during the construction process. This reduces your carrying costs on the project. You are also less likely to be burdened y unexpected additional charges during the construction. These items will vary from builder to builder and contract to contract. Review your contracts carefully to make sure the builder won’t be passing on any additional costs to you.
Key Advantages to Builder Secured Financing
• Not using your own credit during construction
• No interest payments during construction
• Less likely to pay for unexpected charges
• If you sell before construction is complete, you never have to get a loan
Excerpt taken from Making Hard Cash in a Soft Real Estate Market, Chapter 15, Pages 152-153.
To view this post in its original location, http://www.wendypatton.com/blog/successfully-financing-your-real-estate-investments-builder-financed
Thursday, June 17, 2010
WEBINAR TONIGHT
Everyone, the Find Cash Buyers Now webinar is tonight at 8:00 PM (EASTERN).
Here are 5 Reasons why tonight's webinar is one you DO NOT want to miss:
1. Instant Buyers List: You will instantly have a list of the most qualified buyers in your area and nationwide. These are people that actually have money and don't have to use a bank to buy your real estate deals!
2. No Real Estate Commissions Paid Out: Think about it this way. Are you going to sell a home over the course of the next couple years? Yes, of course! If you use a Realtor to sell ONE home valued at $200,000 dollars it will cost you $12,000 dollars of your profit. However, if YOU sell the home to a "Cash Buyer" it won't cost you a dime. (Do the math if you sell more than one home!)
3. REO Flipping Now Possible: Flipping REO's is not easy. Period. The reason is because you have a short time period to control the property, find a buyer, and if your buyer needs to get a loan. Forget about it...headaches, deal falls apart, you go bald from stress. Not if you sell to a "Cash Buyer" who can close in 3 to 7 days.
4. Pre-Foreclosures/Short Sales & Title Seasoning: Big problem solved. If you work in this niche of real estate the toughest part of every transaction is getting the deal closed when you are selling the property to another buyer with a bank loan. With a "Cash Buyer" there is no seasoning requirements or hassles.
5. Deals Falling Apart: Over the past few years we have plenty of deals that fell apart at the last minute because the buyers financing got pulled at the last minute. Well, with a "Cash Buyer" you don't have this problem.
Register here because you know this webinar is going to make your life easier, Click here.
See you there,
Wendy
To view this post in its original location, http://www.wendypatton.com/blog/attention-webinar-tonight
Here are 5 Reasons why tonight's webinar is one you DO NOT want to miss:
1. Instant Buyers List: You will instantly have a list of the most qualified buyers in your area and nationwide. These are people that actually have money and don't have to use a bank to buy your real estate deals!
2. No Real Estate Commissions Paid Out: Think about it this way. Are you going to sell a home over the course of the next couple years? Yes, of course! If you use a Realtor to sell ONE home valued at $200,000 dollars it will cost you $12,000 dollars of your profit. However, if YOU sell the home to a "Cash Buyer" it won't cost you a dime. (Do the math if you sell more than one home!)
3. REO Flipping Now Possible: Flipping REO's is not easy. Period. The reason is because you have a short time period to control the property, find a buyer, and if your buyer needs to get a loan. Forget about it...headaches, deal falls apart, you go bald from stress. Not if you sell to a "Cash Buyer" who can close in 3 to 7 days.
4. Pre-Foreclosures/Short Sales & Title Seasoning: Big problem solved. If you work in this niche of real estate the toughest part of every transaction is getting the deal closed when you are selling the property to another buyer with a bank loan. With a "Cash Buyer" there is no seasoning requirements or hassles.
5. Deals Falling Apart: Over the past few years we have plenty of deals that fell apart at the last minute because the buyers financing got pulled at the last minute. Well, with a "Cash Buyer" you don't have this problem.
Register here because you know this webinar is going to make your life easier, Click here.
See you there,
Wendy
To view this post in its original location, http://www.wendypatton.com/blog/attention-webinar-tonight
Wednesday, June 16, 2010
Find Cash Buyers Today!
Do you want to know how to get access to a list of all Nationwide Cash Buyers in a couple clicks of your mouse? If so, the upcoming webinar on Thursday, June 17, 2010 at 8:00 PM (EASTERN) will show you how.
If you are involved in any niche of real estate (residential, commercial, wholesaling, rehabbing, lease options, short sales, or even a Real Estate agent) this webinar will be right up your alley.
Ready to get started? Register Today
See you there!
Wendy
P.S. I forgot to mention, when you register, you are also going to get 3 FREE TRAINING VIDEOS. Just register and you will be automatically sent there.
To view this post in its original location, http://activerain.com/blogsview/1697617/find-cash-buyers-now-webinar
If you are involved in any niche of real estate (residential, commercial, wholesaling, rehabbing, lease options, short sales, or even a Real Estate agent) this webinar will be right up your alley.
Ready to get started? Register Today
See you there!
Wendy
P.S. I forgot to mention, when you register, you are also going to get 3 FREE TRAINING VIDEOS. Just register and you will be automatically sent there.
To view this post in its original location, http://activerain.com/blogsview/1697617/find-cash-buyers-now-webinar
Tuesday, June 15, 2010
Points to Consider for the Rental Agreement Part 2
Additional Issues to Cover in Your Rental Contract
Occupancy - The contract needs to specify that the premises will be used as a residence with a specified number of adults and children. The premises will be used for no other purpose without written permission by the owner. Having any guest staying more than 14 days will be considered a reach of the agreement unless the resident tenant recieves written consent from the landlord. I also don’t allow them to use the premises for a home business without my permission. A lot of people have home-based businesses, and that’s not a concern except if they have customers coming in and out of the home, which creates a potential liability issue. So check with your tenant to see what kind of home-based business they will have.
Pets - I make sure that they sign an agreement with me about having pets on the premises. I need to know, for example, if they have pit bulls or any other potentially dangerous animals on the property. It doesn’t matter to me if they do have pets, and in fact almost all of my tenants have pets – I just need to know about it.
Entry and Inspection - This gives you the right to enter the property at reasonable times and with reasonable notice to inspect the premises. It’s not that you are inspecting their personal lives but that you want to make sure the home and property, which do not yet legally belong to the tenant, are maintained in accordance with the rental agreement. You also may want to show the home to prospective new tenants or buyers. If the tenant decides not to exercise, you want to have the right to affix “for sale” signs on the front lawn, but you shouldn’t even step onto the lawn without calling the tenant first. This is violating their rights to peaceful enjoyment.
Assignment and Subletting - I do not let my tenants sublet or rent any portion of the premises without my prior consent. The subletter’s name is not on the rental agreement.
Joint and Several Liability - Anyone who signs the contract is 100 percent responsible for all the points within the contract up to the total amount due. I had three men who signed the agreement and all three split later. I was only able to find one of them and I told him he was 100 percent responsible for one-third, but this inclusion of joint and several liability protects the landlord from having to find all the tenants. If one can be found, that one is 100 percent responsible.
Maintenance, Repairs, and Alterations - It is the tenant’s responsibility at all times to maintain the residence and property in a clean and sanitary manner including fixtures, equipment, appliances, furniture, and all other furnishings. If they should choose not to exercise the option, the residence should be left in the same condition as originally rented, normal wear and tear excepted. Residents are responsible for changing the furnace filters and the batteries in the smoke detectors on a regular basis. Residents should be responsible for the maintenance of the property and the house costs. The tenant cannot make major changes to the structure until he owns the property. I had one resident who tore off an upper decking because he decided he didn’t want it, and I had to pay for it and then rebill him because I didn’t own that house. The resident also cannot paint, hang wallpaper, or make any other changes without my consent. I had one tenant who repainted the inside of the home navy blue, and then left after two months. I had to sue to recoup my costs for repainting the home. Residents must also be responsible for the cleaning of sewers and drains that have become blocked due to their negligence in keeping them cleaned.
If the resident damages any windows or doors, it is their responsibilty to replace those items immediately. If the resident hsn’t reparied the items within seven days, I will replace the items and charge the residents for the repairs, and these costs will be due immediately. I tell my tenants that any repair under $10 must be reported to me and any repair over $10 must be approved in writing. In other words, they don’t have an open checkbook to make any repairs they want. Make sure your tenant also doesn’t run off and do repairs and then bill you for them, such as “My furnace went out and I paid the guy $200 to fix it.” My furnace company might only charge $100. Also, the tenant may then try to take that repair bill and apply it against their rent. Make it very clear to the tenant that no repairs can be made without your consent if the repairs are over $10.
Appliances - One of the things I list on the contract is all the appliances already in the home. I make it clear to the tenant that all the appliances in the home are there for my convenience- in other words, they belong to me. If, therefore, one of the appliances stops working and they dispose of it without telling me and then leave the home with that appliance missing, I will bill them for it. If they want to remove the appliance, I have to agree to it and I will cross it off their rental agreement with my initials and the date.
Ordinances and Statutes - The tenant must abide by local zoning laws for usage of the property. For example, they can’t run a day care business at the home if it isn’t zoned that way (not to mention the excessive liability that would incur). A home-based business of web site design, however, violates no zoning laws anywhere in the country. You have the right, as the landlord, to evict immediately for any illegal operations on the premises- for example, druge usage or manufacturing.
Liability of the Tenant - The resident is responsible for any personal injury or property damage caused by the resident or tenant or the tenant’s visitors. The tenant is also responsible for damage due to negligence in caring for the property. If there is a fire, however, and all the tenant’s property is lost, the owner is not responsible to pay for that since the tenant carries his own renter’s insurance for just such an event. The tenant must keep all the sidewalks clear and clean, all access to the home free and clear, and should maintain the outside premises to be a safe enviroment.
Insurance Coverage - Because the owner’s policy does not cover the belongings of the tenant, the owner requires the tenant to carry their own insurance against the risk of damage to their personal property. This insurance must be in place before the tenant moves in.
Defaults—Landlord Remedies - Let the tenant know that failure to comply with even one part of the agreement will constitute a default of the entire agreement. This means that the owner can immediately repossess the property.
Attorney Fees - In the event that either party has to take legal action to enforce the terms of the contract, the owner will be allowed to recoup all attorney fees permitted by law.
Security Deposit Act - Make sure that the Security Deposit Act (SDA) of your own state is in your rental contract. The SDA varies by state, and you must know what the rules are for your state. You are the one providing the contract, so you are responsibly for that information.
Notices - Any notices must be in writing for your own protection, and not verbal. Notices should be sent to the residence address. If the tenant is sending you a notice, it should be sent to the address specified in the contract ( either office or post office box).
Waiver - Failure of the owner to enforce any part of the contract will not constitute a waiver of the contract. For example, if I waive the late fee one month, that doesn’t negate my right to enforce it the next month.
Holding Over - The tenant must give a 30-day written notice of intent to vacate the property.
Additional Terms and Conditions - Some further things you may want to add to your contract include:
• Vehicle limit.
• No motorcycles (some can violate the city noise ordinance).
• No working on the car on the premises. All repair work is to be done off site.
• No permanent stickers on the bathtub, and only nonabrasive cleaners to be used on the tub.
• No carpet cleaners will be used without landlord permission. The reason for this is that some of the over-the-counter cleaning solutions can actually bleach the carpet and leave a white spot.
Make Sure Your Tenants Read and Understand the Agreement
It is very important that you go through the contract line by line with the tenant so that they have heard everything out loud and are fully responsible for the contents when they sign their name. Don’t skip over any points of your contract, even if they begin to fidget because it takes awhile. You might also ask after each point, “Do you have any questions about that?” If they want to take the contract with them, then that is okay also.
Excerpt taken from Investing in Real Estate with Lease Options and “Subject-To” Deals, Chapter 13, Pages 187-191.
To view this post in its original location, http://www.wendypatton.com/blog/points-to-consider-for-the-rental-agreement-part-2
Occupancy - The contract needs to specify that the premises will be used as a residence with a specified number of adults and children. The premises will be used for no other purpose without written permission by the owner. Having any guest staying more than 14 days will be considered a reach of the agreement unless the resident tenant recieves written consent from the landlord. I also don’t allow them to use the premises for a home business without my permission. A lot of people have home-based businesses, and that’s not a concern except if they have customers coming in and out of the home, which creates a potential liability issue. So check with your tenant to see what kind of home-based business they will have.
Pets - I make sure that they sign an agreement with me about having pets on the premises. I need to know, for example, if they have pit bulls or any other potentially dangerous animals on the property. It doesn’t matter to me if they do have pets, and in fact almost all of my tenants have pets – I just need to know about it.
Entry and Inspection - This gives you the right to enter the property at reasonable times and with reasonable notice to inspect the premises. It’s not that you are inspecting their personal lives but that you want to make sure the home and property, which do not yet legally belong to the tenant, are maintained in accordance with the rental agreement. You also may want to show the home to prospective new tenants or buyers. If the tenant decides not to exercise, you want to have the right to affix “for sale” signs on the front lawn, but you shouldn’t even step onto the lawn without calling the tenant first. This is violating their rights to peaceful enjoyment.
Assignment and Subletting - I do not let my tenants sublet or rent any portion of the premises without my prior consent. The subletter’s name is not on the rental agreement.
Joint and Several Liability - Anyone who signs the contract is 100 percent responsible for all the points within the contract up to the total amount due. I had three men who signed the agreement and all three split later. I was only able to find one of them and I told him he was 100 percent responsible for one-third, but this inclusion of joint and several liability protects the landlord from having to find all the tenants. If one can be found, that one is 100 percent responsible.
Maintenance, Repairs, and Alterations - It is the tenant’s responsibility at all times to maintain the residence and property in a clean and sanitary manner including fixtures, equipment, appliances, furniture, and all other furnishings. If they should choose not to exercise the option, the residence should be left in the same condition as originally rented, normal wear and tear excepted. Residents are responsible for changing the furnace filters and the batteries in the smoke detectors on a regular basis. Residents should be responsible for the maintenance of the property and the house costs. The tenant cannot make major changes to the structure until he owns the property. I had one resident who tore off an upper decking because he decided he didn’t want it, and I had to pay for it and then rebill him because I didn’t own that house. The resident also cannot paint, hang wallpaper, or make any other changes without my consent. I had one tenant who repainted the inside of the home navy blue, and then left after two months. I had to sue to recoup my costs for repainting the home. Residents must also be responsible for the cleaning of sewers and drains that have become blocked due to their negligence in keeping them cleaned.
If the resident damages any windows or doors, it is their responsibilty to replace those items immediately. If the resident hsn’t reparied the items within seven days, I will replace the items and charge the residents for the repairs, and these costs will be due immediately. I tell my tenants that any repair under $10 must be reported to me and any repair over $10 must be approved in writing. In other words, they don’t have an open checkbook to make any repairs they want. Make sure your tenant also doesn’t run off and do repairs and then bill you for them, such as “My furnace went out and I paid the guy $200 to fix it.” My furnace company might only charge $100. Also, the tenant may then try to take that repair bill and apply it against their rent. Make it very clear to the tenant that no repairs can be made without your consent if the repairs are over $10.
Appliances - One of the things I list on the contract is all the appliances already in the home. I make it clear to the tenant that all the appliances in the home are there for my convenience- in other words, they belong to me. If, therefore, one of the appliances stops working and they dispose of it without telling me and then leave the home with that appliance missing, I will bill them for it. If they want to remove the appliance, I have to agree to it and I will cross it off their rental agreement with my initials and the date.
Ordinances and Statutes - The tenant must abide by local zoning laws for usage of the property. For example, they can’t run a day care business at the home if it isn’t zoned that way (not to mention the excessive liability that would incur). A home-based business of web site design, however, violates no zoning laws anywhere in the country. You have the right, as the landlord, to evict immediately for any illegal operations on the premises- for example, druge usage or manufacturing.
Liability of the Tenant - The resident is responsible for any personal injury or property damage caused by the resident or tenant or the tenant’s visitors. The tenant is also responsible for damage due to negligence in caring for the property. If there is a fire, however, and all the tenant’s property is lost, the owner is not responsible to pay for that since the tenant carries his own renter’s insurance for just such an event. The tenant must keep all the sidewalks clear and clean, all access to the home free and clear, and should maintain the outside premises to be a safe enviroment.
Insurance Coverage - Because the owner’s policy does not cover the belongings of the tenant, the owner requires the tenant to carry their own insurance against the risk of damage to their personal property. This insurance must be in place before the tenant moves in.
Defaults—Landlord Remedies - Let the tenant know that failure to comply with even one part of the agreement will constitute a default of the entire agreement. This means that the owner can immediately repossess the property.
Attorney Fees - In the event that either party has to take legal action to enforce the terms of the contract, the owner will be allowed to recoup all attorney fees permitted by law.
Security Deposit Act - Make sure that the Security Deposit Act (SDA) of your own state is in your rental contract. The SDA varies by state, and you must know what the rules are for your state. You are the one providing the contract, so you are responsibly for that information.
Notices - Any notices must be in writing for your own protection, and not verbal. Notices should be sent to the residence address. If the tenant is sending you a notice, it should be sent to the address specified in the contract ( either office or post office box).
Waiver - Failure of the owner to enforce any part of the contract will not constitute a waiver of the contract. For example, if I waive the late fee one month, that doesn’t negate my right to enforce it the next month.
Holding Over - The tenant must give a 30-day written notice of intent to vacate the property.
Additional Terms and Conditions - Some further things you may want to add to your contract include:
• Vehicle limit.
• No motorcycles (some can violate the city noise ordinance).
• No working on the car on the premises. All repair work is to be done off site.
• No permanent stickers on the bathtub, and only nonabrasive cleaners to be used on the tub.
• No carpet cleaners will be used without landlord permission. The reason for this is that some of the over-the-counter cleaning solutions can actually bleach the carpet and leave a white spot.
Make Sure Your Tenants Read and Understand the Agreement
It is very important that you go through the contract line by line with the tenant so that they have heard everything out loud and are fully responsible for the contents when they sign their name. Don’t skip over any points of your contract, even if they begin to fidget because it takes awhile. You might also ask after each point, “Do you have any questions about that?” If they want to take the contract with them, then that is okay also.
Excerpt taken from Investing in Real Estate with Lease Options and “Subject-To” Deals, Chapter 13, Pages 187-191.
To view this post in its original location, http://www.wendypatton.com/blog/points-to-consider-for-the-rental-agreement-part-2
Monday, June 14, 2010
Points to Consider for the Rental Agreement Part 1
The rental agreement: The rental agreement specifies how long the tenant will rent the home and how much they will pay each month in rent to me. During the rental period they can purchase the home, unless otherwise specified. A rental agreement also comes in handy if ever taken to court, so that no matter what the tenant hs put into the property, the judge will let me evict if necessary rather than foreclose.
The rental agreement gives the tenant the right to occupy the property during a specified time period. It is similar to the rental agreement you signed with the owner/seller, except obviously your rental agreement with the tenant will be very pro-landlord (pro-you).
The rental agreement needs to be separate only for selling on an option. If you are the buyer, you certainly can put them into one document, but when turning the option around, you’ll want to use the three different documents. The reason is that if the tenant doesn’t pay, or the deal goes south, you will want to be able to evict them as quickly as your state allows. If you have all three agreements in one contract, some judges will look at the lease option as a sale rather than a lease, and therefore make you go through a full foreclosure or forfeiture process versus an eviction. This will take much longer, be more expensive, and may require an attorney.
Anyone who will be residing on the property over the legal age must sign the rental agreement. This includes children of legal age (determined by the state).
A cosigner can be an important safeguard if you have a weak applicant and they have a strong parent or friend who is willing to sign with them on their rental agreement. It works well for giving liability to someone else who will come through with the payments. I have a situation where a mother cosigned for her daughter. It was just a rental but the daughter had terrible credit. The mother, however, had worked for General Motors for 25 to 30 years and made a good guarantee person for me. The daughter stuck me for nearly $5,000 in unpaid rent and damages, and now the mother is paying for itout of her GM checks. In another case, the mother was a local Realtor in Michigan, and she asked me to help her daughter get a house. Her daughter had been through a rough time, and the mother was willing to cosign. I probably didn’t even run the daughter’s credit because I knew the mother was a well-known Realtor and was good for whatever might happen. The mother paid the $5,000 option fee, and the rent was $1,300. Eventually, the daughter left, owing me $3,000 in unpaid rent, and the mom had to pay if off.
I like to make all rent due on the first day of the month. If a tenant moves in on the seventh, I prorate the rent for the month. My rental agreements specify late fees of $25 for the first day late and $5 per day afterwards, and the tenant, of course, must sign the agreement to this. I can’t reiterate enough how necessary it is to have everything in writing, spelled out in detail. That way your tenant can’t say, “I never agreed to that.” All you have to do is point to the contract and say, “Here it is in black and white, and there’s your signature underneath it.” I also like to add an incentive to encourage my tenants to pay on the first of the month. My contracts state that if they make their monthly payments on time, inlcuding any unpaid option fees, then I will credit them with $100 towards the purchase price of the house.
Your other fees on the property can include a pet deposit, security deposit, cleaning fees, and the like. In a lease option, I usually do not require a security deposit, because if they have an extra $1,500 for a security deposit, which is refundable, I’d rather have them apply that to the option fee, which is nonrefundable. There are some good reasons and areas of the country where even a small security deposit is recommended. It gives the tenant something they can get back if they don’t purchase. Some judges like a small amount showing as a security deposit. None of the option fees, however, show up on the rental agreement, as the option agreement is a separate document.
Your rental agreement should state the total cost to move in. For example, if there are fees, you will add them to the first month’s rent to get the total for the rental agreement, but that is not the total overall cost since you also need to add in any security deposit. The rental fees plus the security deposit make up the total move-in costs. The rental agreement must also show the total amount of anticipated rent for the contracted period, including prorated months.
You can also state in the agreement that if the rent is more than 10 days late, the agreement may revert to a month-to-month rental (nullifying the option) at the discretion of the landlord. I generally don’t do this unless I want to get rid of the tenant, because when this alternative plan is set in motion it allows the tenant to move out at any time. Be sure your rental agreement states that the keys are due back within 24 hours if the tenant does not exercise the option and/or moves out.
Payments should be postmarked by the post office rather than a Pitney Bowes machine, as these machines can have their dates changed. In my rental contracts I also specify that any bounced checks are subject to an additional fee. Although I start out trusting my tenants and allowing them to pay with personal checks, if one check bounces, all payments after must be paid in certified funds or bank checks only. I also tell them that if their rent is late twice within a 12-month period, their monthly rent will increase by $25 per month.
You should specify to the tenant how their payments will be applied, and in what order:
1. Outstanding dishonored check fees.
2. Outstanding late fees chargeable to tenant.
3. Outstanding legal fees, court costs or both.
4. Outstanding utility bills that are the tenant’s responsibility.
5. Any damage caused by the tenant.
6. Collection agency fees.
7. Costs for re-letting the property, if applicable.
8. Option fees owed.
9. Rent.
You should apply their payment toward rent last because it is easier to evict on unpaid rent than on unpaid utilities. So use their money to pay for unpaid utilities, and if the rest doesn’t cover the rent, you can begin eviction proceedings in most states. Again, check with your local investor group or a local real estate attorney on landlord eviction laws.
ALSO, the upcoming webinar, "Find Cash Buyers Now" is scheduled for Thursday, June 17, 2010 at 8PM (Eastern). Click here to register early for this great webinar!
Stay tuned for Part 2 of “Points to Consider for the Rental Agreement”.
Excerpt taken from Investing in Real Estate with Lease Options and “Subject-To” Deals, Chapter 13, Pages 183-187.
To view this post in its original location, http://www.wendypatton.com/blog/points-to-consider-for-the-rental-agreement-part-1
The rental agreement gives the tenant the right to occupy the property during a specified time period. It is similar to the rental agreement you signed with the owner/seller, except obviously your rental agreement with the tenant will be very pro-landlord (pro-you).
The rental agreement needs to be separate only for selling on an option. If you are the buyer, you certainly can put them into one document, but when turning the option around, you’ll want to use the three different documents. The reason is that if the tenant doesn’t pay, or the deal goes south, you will want to be able to evict them as quickly as your state allows. If you have all three agreements in one contract, some judges will look at the lease option as a sale rather than a lease, and therefore make you go through a full foreclosure or forfeiture process versus an eviction. This will take much longer, be more expensive, and may require an attorney.
Anyone who will be residing on the property over the legal age must sign the rental agreement. This includes children of legal age (determined by the state).
A cosigner can be an important safeguard if you have a weak applicant and they have a strong parent or friend who is willing to sign with them on their rental agreement. It works well for giving liability to someone else who will come through with the payments. I have a situation where a mother cosigned for her daughter. It was just a rental but the daughter had terrible credit. The mother, however, had worked for General Motors for 25 to 30 years and made a good guarantee person for me. The daughter stuck me for nearly $5,000 in unpaid rent and damages, and now the mother is paying for itout of her GM checks. In another case, the mother was a local Realtor in Michigan, and she asked me to help her daughter get a house. Her daughter had been through a rough time, and the mother was willing to cosign. I probably didn’t even run the daughter’s credit because I knew the mother was a well-known Realtor and was good for whatever might happen. The mother paid the $5,000 option fee, and the rent was $1,300. Eventually, the daughter left, owing me $3,000 in unpaid rent, and the mom had to pay if off.
I like to make all rent due on the first day of the month. If a tenant moves in on the seventh, I prorate the rent for the month. My rental agreements specify late fees of $25 for the first day late and $5 per day afterwards, and the tenant, of course, must sign the agreement to this. I can’t reiterate enough how necessary it is to have everything in writing, spelled out in detail. That way your tenant can’t say, “I never agreed to that.” All you have to do is point to the contract and say, “Here it is in black and white, and there’s your signature underneath it.” I also like to add an incentive to encourage my tenants to pay on the first of the month. My contracts state that if they make their monthly payments on time, inlcuding any unpaid option fees, then I will credit them with $100 towards the purchase price of the house.
Your other fees on the property can include a pet deposit, security deposit, cleaning fees, and the like. In a lease option, I usually do not require a security deposit, because if they have an extra $1,500 for a security deposit, which is refundable, I’d rather have them apply that to the option fee, which is nonrefundable. There are some good reasons and areas of the country where even a small security deposit is recommended. It gives the tenant something they can get back if they don’t purchase. Some judges like a small amount showing as a security deposit. None of the option fees, however, show up on the rental agreement, as the option agreement is a separate document.
Your rental agreement should state the total cost to move in. For example, if there are fees, you will add them to the first month’s rent to get the total for the rental agreement, but that is not the total overall cost since you also need to add in any security deposit. The rental fees plus the security deposit make up the total move-in costs. The rental agreement must also show the total amount of anticipated rent for the contracted period, including prorated months.
You can also state in the agreement that if the rent is more than 10 days late, the agreement may revert to a month-to-month rental (nullifying the option) at the discretion of the landlord. I generally don’t do this unless I want to get rid of the tenant, because when this alternative plan is set in motion it allows the tenant to move out at any time. Be sure your rental agreement states that the keys are due back within 24 hours if the tenant does not exercise the option and/or moves out.
Payments should be postmarked by the post office rather than a Pitney Bowes machine, as these machines can have their dates changed. In my rental contracts I also specify that any bounced checks are subject to an additional fee. Although I start out trusting my tenants and allowing them to pay with personal checks, if one check bounces, all payments after must be paid in certified funds or bank checks only. I also tell them that if their rent is late twice within a 12-month period, their monthly rent will increase by $25 per month.
You should specify to the tenant how their payments will be applied, and in what order:
1. Outstanding dishonored check fees.
2. Outstanding late fees chargeable to tenant.
3. Outstanding legal fees, court costs or both.
4. Outstanding utility bills that are the tenant’s responsibility.
5. Any damage caused by the tenant.
6. Collection agency fees.
7. Costs for re-letting the property, if applicable.
8. Option fees owed.
9. Rent.
You should apply their payment toward rent last because it is easier to evict on unpaid rent than on unpaid utilities. So use their money to pay for unpaid utilities, and if the rest doesn’t cover the rent, you can begin eviction proceedings in most states. Again, check with your local investor group or a local real estate attorney on landlord eviction laws.
ALSO, the upcoming webinar, "Find Cash Buyers Now" is scheduled for Thursday, June 17, 2010 at 8PM (Eastern). Click here to register early for this great webinar!
Stay tuned for Part 2 of “Points to Consider for the Rental Agreement”.
Excerpt taken from Investing in Real Estate with Lease Options and “Subject-To” Deals, Chapter 13, Pages 183-187.
To view this post in its original location, http://www.wendypatton.com/blog/points-to-consider-for-the-rental-agreement-part-1
Thursday, June 10, 2010
Points to Consider for the Option Agreement
The option agreement: On the buying side, the option agreement turns control of the property over to the optionee without ownership. When I am doing a lease option, I sign an option with the buyer. I control the property as if I owned it, but I am giving them the right to buy upon exercising the terms of the option, usually in 12 to 18 months.
It’s important to get the optionee to be as responsible for the maintenance and well-being of the house and property as possible so that you are not tied down with constant maintenance. Here are some points in my option agreement:
1. Optionee agrees to accept the property in “as is” condition.
2. Optionee agrees to make all repairs major and minor to the property.
3. If the optionor has to make any repairs to the property, the cost of the repairs will be added to the purchase price. (If someone’s water heater or furnace goes out and the tenant can’t afford to fix it, you should go ahead and pay for the repairs. In Michigan, you just can’t go without heat in the dead of winter.)
4. If there is a septic system, the optionee agrees to have it pumped once per year.
5. If there is a pool, optionee agrees to open and close the pool each year and to maintain the pool.
6. Optionee should pay for all additional assessments, including water, sewage, sidewalks, and road paving.
7. The option can become void if the optionee pays their rental payment or any option payment more than 10 days late. (It is important to remind your tenants that their record of payments will have to be submitted to the mortgage company and may damage their ability to secure a mortgage. So, if they’re serious about owning the home, they need to be serious about paying on time.)
8. If the option is voided for any reason, then the contract becomes a month-to-month rental-only agreement (so that I can take steps to resell the property if I choose to.)
9. Optionee agrees not to record anything against the title of the property. (In other words, the tenant cannot file a Memorandum on the property. The memorandum is used only when you purchase, not sell.)
10. Optionee understands that optionor does not hold title (own) this property, but is transferring their interst in the property. If the optionor can’t transfer title due to something out of their control (i.e., owner refuses to close or can’t transfer clea title), optionor will reimburse optionee the entire option consideration plus an additional $500 for their inconvenience, as full and complete liquidated damages for optionor not being able to close on this property.
11. Equitable mortgage: This Option to Purchase is not, and shall not be construed as, or interpreted as any form of equitable mortgage. It is hereby declared that it is not the intent of the parties to create a loan of any nature or to create a mortgage of any kind. In the event that the optionee hereunder should ever raise such an issue in a court of law or otherwise this Option shall terminate immediately.
12. Optionor has advised the optionee to seek the advice of a mortgage lender and attorney prior to signing this document. (The mortgage broker might look at their credit and their history and tell them that even with an 18-month option they will not be able to clean up their history enough to qualify for a mortgage. They should also always have a lawyer look over any type of document that commits them to an agreement. In my experience, most people talk to neither, but they sign the document saying that they have.)
Excerpt taken from Investing in Real Estate with Lease Options and “Subject-To” Deals, Chapter 13, Pages 183-184.
To view this post in its original location, http://www.wendypatton.com/blog/points-to-consider-for-the-option-agreement
It’s important to get the optionee to be as responsible for the maintenance and well-being of the house and property as possible so that you are not tied down with constant maintenance. Here are some points in my option agreement:
1. Optionee agrees to accept the property in “as is” condition.
2. Optionee agrees to make all repairs major and minor to the property.
3. If the optionor has to make any repairs to the property, the cost of the repairs will be added to the purchase price. (If someone’s water heater or furnace goes out and the tenant can’t afford to fix it, you should go ahead and pay for the repairs. In Michigan, you just can’t go without heat in the dead of winter.)
4. If there is a septic system, the optionee agrees to have it pumped once per year.
5. If there is a pool, optionee agrees to open and close the pool each year and to maintain the pool.
6. Optionee should pay for all additional assessments, including water, sewage, sidewalks, and road paving.
7. The option can become void if the optionee pays their rental payment or any option payment more than 10 days late. (It is important to remind your tenants that their record of payments will have to be submitted to the mortgage company and may damage their ability to secure a mortgage. So, if they’re serious about owning the home, they need to be serious about paying on time.)
8. If the option is voided for any reason, then the contract becomes a month-to-month rental-only agreement (so that I can take steps to resell the property if I choose to.)
9. Optionee agrees not to record anything against the title of the property. (In other words, the tenant cannot file a Memorandum on the property. The memorandum is used only when you purchase, not sell.)
10. Optionee understands that optionor does not hold title (own) this property, but is transferring their interst in the property. If the optionor can’t transfer title due to something out of their control (i.e., owner refuses to close or can’t transfer clea title), optionor will reimburse optionee the entire option consideration plus an additional $500 for their inconvenience, as full and complete liquidated damages for optionor not being able to close on this property.
11. Equitable mortgage: This Option to Purchase is not, and shall not be construed as, or interpreted as any form of equitable mortgage. It is hereby declared that it is not the intent of the parties to create a loan of any nature or to create a mortgage of any kind. In the event that the optionee hereunder should ever raise such an issue in a court of law or otherwise this Option shall terminate immediately.
12. Optionor has advised the optionee to seek the advice of a mortgage lender and attorney prior to signing this document. (The mortgage broker might look at their credit and their history and tell them that even with an 18-month option they will not be able to clean up their history enough to qualify for a mortgage. They should also always have a lawyer look over any type of document that commits them to an agreement. In my experience, most people talk to neither, but they sign the document saying that they have.)
Excerpt taken from Investing in Real Estate with Lease Options and “Subject-To” Deals, Chapter 13, Pages 183-184.
To view this post in its original location, http://www.wendypatton.com/blog/points-to-consider-for-the-option-agreement
Friday, June 4, 2010
Marketing- Signs & Flyers, Newspaper, Internet, and Word of Mouth Part 2
Newspaper- Old Reliable
The newspaper classified ads are probably the most expensive form of marketing your home, but they also work for many sellers. Most newspapers in addition to listing your ad in print also have a website which will show your ad.
People have long considered newspapers as one of the biggest sources for housing. So it’s a good idea to have your home listed in this resource. There are ways to keep your cost down when it comes to newspaper ads. The first is to talk with the representative at the classified ads departement to learn what types of ads work best and what days are the most read. Sundays are typically the big day of the week for housing classifieds, but there is usually at least one other day that is popular as well. Focus on those key days if it’s cheaper to advertise just on those days than for an entire week.
Look for local (smaller) newspapers that just target your home’s area.
Some real estate agents, especially agents that work for larger brokerages, will run ads in the Sunday paper for homes they are listing. These brokerages may get discounts for their ads. Not all agents run these ads, or some may charge you for them. It’s certainly better to take advantage of any discount your agent can get than to run the ad on your own. Also keep your ad short and sweet and focus on the most important details, since you’ll probably be charged per line. A useful trick is to ad a line of space at the start and the end of your ad; this really separates it from the other ads and draws your potential buyer’s eyes to your ad. This is actually more effective than having an ad of the same length but with more details and no blank lines.
Here is a same of what I mean:
RENT-TO-OWN
Oakland Hills, 3 Br/2 Ba. $1250/Mo
(123) 456- 7890
This ad would be a total of 5 lines, including the 2 blank ones. It is very simple but it tells your tenant-buyers the key criteria they need to know to get them started. The first is putting rent-to-own in all caps, which lets them know they’ve found what they are looking for. The second line tells them if the home has enough bedrooms and baths to meet their needs and whether they can afford the monthly rent. The third line tells them how to contact you so they can learn more. Also, depending on where you live in the country, rent-to-own might be more recognized, but there are some other phrases that might be better understood: Lease with Option to Buy, Lease to Own, Rent with Option to Buy, etc. See what works for your area and go with it.
Compare that ad to this 5 line ad:
Rent-to-Own Oakland Hills
3 Br/2 Ba. 1350 Sq Ft.$159,900.
$1250/Mo
Gorgeous Home
(123) 456- 7890
This second ad does contain more information, but it get’s crammed in and hard to read, plus some of the information just isn’t necessary to have in the ad. Rent-to-own buyers are acutally less concerned with the asking price than they are with the monthly rent amount (at least initially). The “gorgeous home” line is meant to entice buyers, but when it comes to real estate ads, that really doesn’t mean much anymore.
There is another approach you can try with ads as well. A student of mine from Seattle always says he uses “romance” in his ads. For instance, instead of saying:
Nice 3 bdrm home in SEATTLE.
He might put something like:
Sit by the fireplace in the winter
w/your sweetheart in this
3 brdm home in Seattle. $1295/month
Rent to own this great home.
(123) 456- 7890
He also has a fun one that I also have used with some success. It sounds odd, but goes like this:
FREE PIZZA
with this beautiful rent-to-own home
Seattle area. $995/month – call today.
(123) 456-7890
This ad would make people call and say, “What do you mean by FREE PIZZA?” Then we would respond by saying, “Well, when you rent a home with us you get a FREE PIZZA every month delivered to your door. Would you like to know more about this home?”
Join me on Friday for Part 3 of “ Marketing- Signs & Flyers, Newspaper, Internet, and Word of Mouth”.
Excerpt taken from Rent-To-Sell: Your Hands-on Guide to SELL Your Home When Buyers are Scarce, Chapter 7, Pages 102-105.
To view this post in its original location, http://www.wendypatton.com/blog/marketing-signs-flyers-newspaper-internet-and-word-of-mouth-part-2
The newspaper classified ads are probably the most expensive form of marketing your home, but they also work for many sellers. Most newspapers in addition to listing your ad in print also have a website which will show your ad.
People have long considered newspapers as one of the biggest sources for housing. So it’s a good idea to have your home listed in this resource. There are ways to keep your cost down when it comes to newspaper ads. The first is to talk with the representative at the classified ads departement to learn what types of ads work best and what days are the most read. Sundays are typically the big day of the week for housing classifieds, but there is usually at least one other day that is popular as well. Focus on those key days if it’s cheaper to advertise just on those days than for an entire week.
Look for local (smaller) newspapers that just target your home’s area.
Some real estate agents, especially agents that work for larger brokerages, will run ads in the Sunday paper for homes they are listing. These brokerages may get discounts for their ads. Not all agents run these ads, or some may charge you for them. It’s certainly better to take advantage of any discount your agent can get than to run the ad on your own. Also keep your ad short and sweet and focus on the most important details, since you’ll probably be charged per line. A useful trick is to ad a line of space at the start and the end of your ad; this really separates it from the other ads and draws your potential buyer’s eyes to your ad. This is actually more effective than having an ad of the same length but with more details and no blank lines.
Here is a same of what I mean:
RENT-TO-OWN
Oakland Hills, 3 Br/2 Ba. $1250/Mo
(123) 456- 7890
This ad would be a total of 5 lines, including the 2 blank ones. It is very simple but it tells your tenant-buyers the key criteria they need to know to get them started. The first is putting rent-to-own in all caps, which lets them know they’ve found what they are looking for. The second line tells them if the home has enough bedrooms and baths to meet their needs and whether they can afford the monthly rent. The third line tells them how to contact you so they can learn more. Also, depending on where you live in the country, rent-to-own might be more recognized, but there are some other phrases that might be better understood: Lease with Option to Buy, Lease to Own, Rent with Option to Buy, etc. See what works for your area and go with it.
Compare that ad to this 5 line ad:
Rent-to-Own Oakland Hills
3 Br/2 Ba. 1350 Sq Ft.$159,900.
$1250/Mo
Gorgeous Home
(123) 456- 7890
This second ad does contain more information, but it get’s crammed in and hard to read, plus some of the information just isn’t necessary to have in the ad. Rent-to-own buyers are acutally less concerned with the asking price than they are with the monthly rent amount (at least initially). The “gorgeous home” line is meant to entice buyers, but when it comes to real estate ads, that really doesn’t mean much anymore.
There is another approach you can try with ads as well. A student of mine from Seattle always says he uses “romance” in his ads. For instance, instead of saying:
Nice 3 bdrm home in SEATTLE.
He might put something like:
Sit by the fireplace in the winter
w/your sweetheart in this
3 brdm home in Seattle. $1295/month
Rent to own this great home.
(123) 456- 7890
He also has a fun one that I also have used with some success. It sounds odd, but goes like this:
FREE PIZZA
with this beautiful rent-to-own home
Seattle area. $995/month – call today.
(123) 456-7890
This ad would make people call and say, “What do you mean by FREE PIZZA?” Then we would respond by saying, “Well, when you rent a home with us you get a FREE PIZZA every month delivered to your door. Would you like to know more about this home?”
Join me on Friday for Part 3 of “ Marketing- Signs & Flyers, Newspaper, Internet, and Word of Mouth”.
Excerpt taken from Rent-To-Sell: Your Hands-on Guide to SELL Your Home When Buyers are Scarce, Chapter 7, Pages 102-105.
To view this post in its original location, http://www.wendypatton.com/blog/marketing-signs-flyers-newspaper-internet-and-word-of-mouth-part-2
Thursday, June 3, 2010
Marketing –Signs & Flyers, Newspaper, Internet, and Word of Mouth Part 1
When it comes to marketing your home you want to get the word out and you want maximum exposure so that you can get quick results. This means you’ll want to explore multiple marketing options instead of just selecting one. The more potential buyers you reach the quicker you’ll find your tenant-buyer and get an offer on your home.
Go Beyond Your Real Estate Agent
Most people that list their home with a real estate agent leave it entirely up to their agent to market and sell their home. In hot markets this usually works for most sellers. In down markets this means that your time on market might be substantially longer and in the end you’ll probably end up knocking your price down a few times before you get an offer. Who wants their home to sit on the market for eternity? It’s not that your agent isn’t doing their job; it’s just that you have many other homes to compete with. Even when you make your home available on a rent-to-own basis with your agent, your exposure, while better, is still limited. Not all real estate agents will do everything to market your home. This chapter is something you can discuss with them and figure out a plan together.
Maximize Exposure to get it Sold Fast
The real key to selling your rent-to-own home quickly is maximum exposure. The different marketing methods I’m going to talk about are almost all inexpensive or FREE. For the ones that cost money you’ll need to decide how much you can afford; but for all of the others, since they are free, you should make every effort to do all of them. When advertising I use the For Rent and For Sale section of www.Craigslist.org and the newspaper. Try them both out to see what works best for you.
It’s also a good idea to enlist the help of your real estate agent in these extra marketing efforts, you’ll get even more exposure that way.
Wendy’s Wisdom: I can’t emphasize enough that you should take advantage of every type of free marketing you can. This is how to get your home sold FAST!
Stay tuned for tomorrow’s Part 2 follow up on “Marketing- Signs & Flyers, Newspaper, Internet, and Word of Mouth.
This excerpt was taken from Rent-To-Sell: Your Hands-on Guide to SELL Your Home When Buyers are Scarce, Chapter 7, Pages 101-102.
To view this post in its original location, http://www.wendypatton.com/blog/marketing-–signs-flyers-newspaper-internet-and-word-of-mouth-part-1.
Go Beyond Your Real Estate Agent
Most people that list their home with a real estate agent leave it entirely up to their agent to market and sell their home. In hot markets this usually works for most sellers. In down markets this means that your time on market might be substantially longer and in the end you’ll probably end up knocking your price down a few times before you get an offer. Who wants their home to sit on the market for eternity? It’s not that your agent isn’t doing their job; it’s just that you have many other homes to compete with. Even when you make your home available on a rent-to-own basis with your agent, your exposure, while better, is still limited. Not all real estate agents will do everything to market your home. This chapter is something you can discuss with them and figure out a plan together.
Maximize Exposure to get it Sold Fast
The real key to selling your rent-to-own home quickly is maximum exposure. The different marketing methods I’m going to talk about are almost all inexpensive or FREE. For the ones that cost money you’ll need to decide how much you can afford; but for all of the others, since they are free, you should make every effort to do all of them. When advertising I use the For Rent and For Sale section of www.Craigslist.org and the newspaper. Try them both out to see what works best for you.
It’s also a good idea to enlist the help of your real estate agent in these extra marketing efforts, you’ll get even more exposure that way.
Wendy’s Wisdom: I can’t emphasize enough that you should take advantage of every type of free marketing you can. This is how to get your home sold FAST!
Stay tuned for tomorrow’s Part 2 follow up on “Marketing- Signs & Flyers, Newspaper, Internet, and Word of Mouth.
This excerpt was taken from Rent-To-Sell: Your Hands-on Guide to SELL Your Home When Buyers are Scarce, Chapter 7, Pages 101-102.
To view this post in its original location, http://www.wendypatton.com/blog/marketing-–signs-flyers-newspaper-internet-and-word-of-mouth-part-1.
Wednesday, June 2, 2010
WEBINAR TONIGHT
The "Turning Bankruptcies Into Gold" Webinar is tonight at 8:00 PM (Eastern)!
YOU DO NOT WANT TO MISS THIS.
To join tonight's webinar, CLICK HERE!
I can't wait to see you all there!
Wendy
To view this post in its original location, http://www.wendypatton.com/blog/webinar-tonight.
YOU DO NOT WANT TO MISS THIS.
To join tonight's webinar, CLICK HERE!
I can't wait to see you all there!
Wendy
To view this post in its original location, http://www.wendypatton.com/blog/webinar-tonight.
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