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Keeping My RB

This topic contains 7 replies, has 0 voices, and was last updated by Avatar of tmr28 tmr28 11 years, 4 months ago.

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  • #4910
    Avatar of tmr28
    tmr28
    Member

    How can I keep a seller from going around me if I send an interested RB to their house for them to show the RB the house? This would be for a standard “take over the payments deal”. Thanks one and all in advance!

    #26148
    Avatar of areyes
    areyes
    Member

    even if the seller circumvented you by taking on your RB directly, that RB is expecting to take the tax deductions, get a portion of the equity share, and expect to get their closing costs refunded if they purchase. the seller wont have any clue on how to structure the deal, paperwork and most certainly will keep the tax write offs themselves if they left you out of the deal.

    make sure you’ve got your RB on a leash with the benefits and incentives.
    make sure to tell your SB not to talk to the RB in regards to numbers and to just show the property.
    the SB and RB will NEED you to make this all work otherwise theyre both exposed to the risks and liabilities if they were to structure their own lease option or contract for deed.

    if the seller does something shady, id just withdraw the NEO and work the RB with another property.

    most investors would protect their interests by recording their exclusive option to cloud title. i personally do not record my non exclusive option after a seller signs it.

    #26149

    @TMR28 wrote:

    How can I keep a seller from going around me if I send an interested RB to their house for them to show the RB the house? This would be for a standard “take over the payments deal”. Thanks one and all in advance!

    1. Why would you ever send someone to a seller’s house and let them show your prospect around?

    2. Why are you there at the house too?

    3. What happened to your NEO and Locator Agreement with your Seller and Prospect?

    4. Why aren’t you having an Open House with ALL your prospective RBs all at one time to fight over the house. (the seller shouldn’t be there)

    5. If you are not available or local, why don’t you have a Realtor (your Ground Partner) showing the house?

    That ought to get us started.

    #26150

    Hmmm, very interesting Scott.

    I had not even considered using a realtor as a GP, though it certainly makes sense if you are not in the area the property is in. I am presently working with a couple of SBs thousands of miles from me and had wondered how to find GPs and RBs. I guess a realtor should have been an obvious answer! Seems I’ve seen some other posts on working with realtors, but I do not remember this being mentioned.

    I haven’t progressed past the proposal/NEO as of yet, so what is a Locator agreement? No, never mind, I bet its in the documentation package! When I need it, I guess Bret will explain it.

    I can’t see how, if you have the SB show the house, that you could prevent them from talking to the RB unless you were there yourself, and even that would be no guarantee, unless you plan to use strong arm tactics that would probably kill the deal anyway.

    And if they want to cut me out of the deal I would wish them all the luck and move on to the next. I personally do not have the time to try to force a situation knowing that there are plenty more deals where that one came from.

    Just an opinion from a new Narsorian!

    #26151
    Avatar of dbhenderson
    dbhenderson
    Member

    @Just call me; RICH!! wrote:

    I haven’t progressed past the proposal/NEO as of yet, so what is a Locator agreement? No, never mind, I bet its in the documentation package! When I need it, I guess Bret will explain it.

    I can’t see how, if you have the SB show the house, that you could prevent them from talking to the RB unless you were there yourself, and even that would be no guarantee, unless you plan to use strong arm tactics that would probably kill the deal anyway.

    And if they want to cut me out of the deal I would wish them all the luck and move on to the next. I personally do not have the time to try to force a situation knowing that there are plenty more deals where that one came from.

    The locator agreement is what you use with the GP. It’s the agreement you have the GP sign with you to set up your GP deal. It’s in your document manual.

    As Alvin points out, your protection from losing your RB is to just be sure your potential RB understands the benefits of the NEHTrust system that are not available to anyone else; that NO ONE ELSE can offer. Like tax benefits, share of the future appreciation, mortgage reduction, and payment of closing costs. There is also the fact that because of the trust you are considered owner occupied so when your are ready to go on title and buy the house you are leasing you can do a refinance instead of a new loan, you also have a contingency fund with a servicing company that provides a record and enables you to get a lenders letter that shows you’ve never missed a payment or even been late (my mortgage broker tells me that’s as good as a 700 FICO score) for 36 months and also because you get 100% of your trust contribution refunded, along with your share of the appreciation, you now have “sourced and seasoned” funds that has become a big requirement in loan qualiifying. So because of these reasons our tenant/buyers become homeowners most of the time where the other guys only achieve home ownership for their tenant/buyers 14% of the time. You also need to be sure he knows what his net lease amount is and that the biggest part of his lease payment is going into his very own savings (instant equity).

    If your RB understands all these advantages and still wants to go around you, then I totally agree, NEXT! You have got better things to do with your time than to deal with a Benedick Arnold (Judas)!

    DavidB

    #26152
    Avatar of areyes
    areyes
    Member

    dont forget that Scott Moyes is a Mortgage Banker that has access to lenders that can do the refinance. 8)

    #26153
    Avatar of dbhenderson
    dbhenderson
    Member

    Yep, and I’ve seen him perform miracles. Not only does he save them money he get them qualified.

    He just did one for me where my tenant/buyer came out in two years instead of three and I never would of believed he could have gotten them approved, but he spun his magic and did it!

    DavidB

    #26154
    Avatar of tmr28
    tmr28
    Member

    I thought about the realtor route as far as a realtor being my GP. I guess the issue I had with that is what is the realtor’s motivation? He/she has no listing agreement with me…and there is not going to be a sale..so…say a realtor agrees to show my RB a property…how is the realtor compensated for his/her effort?…Does my RB now have to come up with more than the 5% contribution to cover the realtor’s fee?…In some ways I would be concerned even more with a realtor going around me than an RB because the realtor might try to get the listing….Am I off base here?

    #26155

    If, they want to be 25% co-beneficiary with you on a bunch of these, all they have to do is work with you vs. be un-motivated or a shyster.

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