This episode is a follow-up to the last one. We did a coaching call on July 10 and took questions from attendees. We received so many questions that answering them is taking several podcasts.
These notes contain mostly questions… just a few answers. Watch or listen to the podcast to get the answers, plus the dialogue between Gavin and me. There’s a lot of good information for you.
Q: For a new guy investing in several markets, what is the best way to start a cold call?
A: Be yourself and say the address of the property right away.
Q: My option payments are too low. Can I simply say I won’t make a payment until I find a tenant?
A: Yes, that’s what our contracts specify.
Q: If using a leasing agent, is $500 really enough to pay? They laugh at me.
A: It’s a volume thing. Pay more now; then once you start doing numerous deals, you should be able to find someone who will work with you.
Q: In Scotland, lease options are all but illegal. Are there any states in the US that restrict lease options?
Q: How do I get the one-page lease option contract?
Q: I purchased a 4-plex, and I am the tenant buyer. My option is about to activate and I have to sell. How do I do a closing without the seller knowing the amount I sold it for?
Q: How do you get people in pre-foreclosure out of the house once you’ve bought it?
Q: If you make a cash offer for wholesaling expensive (more than $1mil) homes, how hard is it to find buyers?
Q: How do you handle situations in which the tenant buyer decides not to buy the house at the end of the term?
A: Generally, it’s because you are not screening them well enough credit-wise or it could be that the house is in a bad neighborhood.
Q: How do you handle damage done by a tenant buyer? Who’s responsible for getting the house back in rental-ready condition?
Q: What can I do today to get started in lease options?
Q: Where do I find the contract language that addresses a 60-day notice to give a seller the property back? What if an underwriter tells the tenant buyer the assignment fee will not count as a down payment when they buy the house?
Q: How do we generate leads for a multifamily property?
A: Targeted direct mail is the best way. Then follow up with phone call.
Q: Can a Canadian do deals in the US without a US bank account or LLC?
Q: Does a Realtor who does lease options have to share proceeds with a broker?
And there’s more. If the answers to questions like these would be helpful to you, watch or listen to this podcast. You’ll get very specific information about situations that you will experience in this business.
Listen and Learn:
- Five offers a day, 5 days a week will bring success… it’s a numbers game.
- Watch the compilation of case studies and podcasts listed below.
- If you get into a ‘what if’ spiral about things that could quash a deal, you may be in the wrong business.
- Be certain that you never give legal or tax advice to seller prospects or tenant buyers.
Mentioned in this episode:
- Joe’s podcasts on iTunes: RealEstateInvestingMasteryPodcast
- Joe’s Lease Options book: WLObook
- Joe’s CRM: REI Simple (Send email to firstname.lastname@example.org to get it.)
- Smartphone messaging app: Voxer
- Compilation of case studies and training videos/podcasts: JoeMcCall.com/apply
- Online course on lease options: SLOclass.com
- Skip tracing companies: Batch Skip Tracing & Need To Skip
What are you thinking?
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