Home › Forums › General › EHTrust/EHT Topics and Creative Real Estate Financing › What/How to collect upfront money from RBs
May 18, 2011 at 7:04 pm #6778
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.
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.May 18, 2011 at 11:23 pm #33785
…but I don’t WANT a pair of Big Fuzzies! Would my pair of D’s count?
AmyMay 19, 2011 at 3:49 am #33786May 19, 2011 at 5:06 pm #33787
…but I don’t WANT a pair of Big Fuzzies! Would my pair of D’s count? Amy
ROTFLOL hahahahahahahahahahahahahaMay 21, 2011 at 3:40 pm #33788
Amy has taken over 1st place in the Funniest Post of the Year contest.May 21, 2011 at 6:01 pm #33789
Had to pick myself up off the floorMay 22, 2011 at 2:19 am #33790
Let’s close the contest right now. Ain’t nobody gonna beat that one in a gazillion years.May 23, 2011 at 7:06 pm #33791
Winner Winner Chicken Dinner!May 23, 2011 at 7:30 pm #33792
Chicken Dinner? What a Piker. How about some big fuzzies??? Or maybe a compromise between big fuzzies and D’s?May 23, 2011 at 7:54 pm #33793
“D” is for Dice, right?
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