Home Forum Contact Create an Account Sign In Create a Trust

What/How to collect upfront money from RBs

Home Forums General EHTrust/EHT Topics and Creative Real Estate Financing What/How to collect upfront money from RBs

This topic contains 8 replies, has 0 voices, and was last updated by Avatar of scott_l._moyes scott_l._moyes 8 years, 6 months ago.

Viewing 10 posts - 1 through 10 (of 10 total)
  • Author
    Posts
  • #6778
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @spunky wrote:

    Hello,
    When you say “5% moves you in for Lease to Own with Tax Benefits!”
    Are you assigning 25% or half % cobeneficial interest ?

    When you say ” 3-payments plus closing moves you in for Lease with Tax Benefits!
    what is the term of the long lease?
    If the person who is only leasing does not want to become an RB, but wants to cotinue renting only, will you refuse to continue the lease?

    Here’s what I do.

    For 10% upfront, I assign the RB a 75% interest.
    For 5% upfront, I assign the RB a 50% interest
    For 3% upfront, I assign the RB a 25% interest

    I always give them an opportunity to increase their interest. All my marketing says…

    “AS LITTLE AS” (followed by)
    3% plus 1st month…
    MOVES YOU IN

    But, I want 5%. I look for a min of 5% but if they don’t have that much, I will take payments for what they don’t have. So, if they only have 3%, then I’ll create a Promissory Note for the balance of the 5%. They can pay it in the form of an addition to the regular payment or in a lump sum later.

    For example:

    I had one guy that owed me $5000 for the remaining 2%. He paid me $500 in August (that’s when he got his bonus) and $2000 in Feb from his tax return. He did over 24 months and paid me off. Once he was paid, I sold/assigned him the remaining 25% which gave him a total of 50%.

    Never, ever, ever, let someone come in with less than closing costs and two payments. If you must, set it up on a Promissory Note for the balance. Also, use a UCC1 for the amount so even if they don’t pay you back you can go take their stuff and sell it, even if they leave or you evict them. I have a camper, motorcycle, car, furniture, etc from RBs who have owed me money and not paid. One guy almost had to give me his entire Electrical Business (Truck and all equipment).

    This is a BUSINESS guys, not a handout or something we do to “help” people. You need to help yourself first. You’ve already “helped” them by letting them get in to a house and be treated as an owner with all the benefits for almost nothing and no qualifying. DO NOT make excuses or payments for them and do not carry them. Grow a pair of BIG Fuzzies and Get In Business.

    #33785
    Avatar of amyhutton
    amyhutton
    Participant

    …but I don’t WANT a pair of Big Fuzzies! Would my pair of D’s count?

    :)

    Amy

    #33786
    Avatar of mtnwizard49
    mtnwizard49
    Member

    #33787
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @amyhutton wrote:

    …but I don’t WANT a pair of Big Fuzzies! Would my pair of D’s count? :) Amy

    ROTFLOL :lol: hahahahahahahahahahahahaha

    #33788
    Avatar of mtnwizard49
    mtnwizard49
    Member

    Amy has taken over 1st place in the Funniest Post of the Year contest.

    #33789
    Avatar of sstanton
    sstanton
    Member

    I concur!

    Had to pick myself up off the floor :lol:

    #33790
    Avatar of janediehm
    janediehm
    Member

    Let’s close the contest right now. Ain’t nobody gonna beat that one in a gazillion years.

    #33791
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    Winner Winner Chicken Dinner!

    #33792
    Avatar of mtnwizard49
    mtnwizard49
    Member

    Chicken Dinner? What a Piker. How about some big fuzzies??? Or maybe a compromise between big fuzzies and D’s?

    #33793
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    “D” is for Dice, right?

Viewing 10 posts - 1 through 10 (of 10 total)

You must be logged in to reply to this topic.

Posted in
Contact Form
Your Fullname:


Email Address:


Phone:


Best Time to Call:


Subject:


Your Message:


Security Code:

 

Can't read the above security code? Refresh