You must be logged in to reply to this topic.
-
I’m sure some of the Cash Flow Depot members have sold or optioned out their properties to other investors. When I advertise my properties with owner financing I only get calls from owner occupant prospects who would love to own the home, except that they have no money and no hope of getting financing.
I heard some of the conference call the other night and I missed the part about Buy Back Options. I thought it might be a good solution for an investor to buy my property with an option, then if that investor can’t sell the property or doesn’t want the landlord responsibilities, I could buy it back at the previous “sale” price. Do I understand that part of the Buy Back Option correctly?
Also, I would offer the manage the property if that investor didn’t want to do so. I would need to be paid for managing. Would I still enough (or any) ownership interest in the property to manage it as a rental without being a Broker?
I figured if the people on my list have previously invested in RE they might like some of my deals. These are not people who I typically see at REIA meetings. What is the best way to approach these people? Is there a letter that Jack has created somewhere on the website?
Thanks!
Hey Deb
Instead of a l-o-n-g post here let’s talk about it on the Tuesday night call.
There’s a better way….
Will you be my guest speaker on September 7th?
Jackie
you need to be VERY careful not to violate the SEC ( securities and exchange commission) laws
I only just now saw this reply. Sorry I missed the Sept 7 call opportunity.
I am trying to be very mindful of the SEC.
I’m trying to design a postcard right now to send to prospective lenders and I’m petrified that I’ll say the wrong thing. All my examples start out with “Get 9-15% returns blah blah blah”. I’m worried that approach will get me in trouble without some huge disclaimer about returns not being guaranteed, etc.
I thought I remembered you handing out some sample mailing pieces at the meeting in Dallas? Do you recall if any were for finding private lenders?
Best,
Debbie
Deb
The sale – buy back option only works if the buyer is getting a significant discount.
If the property is highly leveraged you won’t find any buyers willing to take the risks in a market that is still going down down down in most areas.
Deb
In my opinion, it would be a HUGE mistake to do a postcard marketing campaign to try to find money.
You could get in to big trouble with the SEC to advertise for private investors and especially if you are marketing a 9-15% return — don’t do it.
A guy in Ohio who did what you are planning to do got a $100,000 fine and some jail time AND he was banned from any future real estate activity. He was a Ron Legrand student back in the mid 90’s — I don’t remember his name but I remember meeting him and his wife just before it all hit.
Another buy in Pennsylvania got a letter from the insurance commissioner (who handles SEC violations)with the threat of a $10,000 fine.
Jack Miller and Peter never advertised… they NETWORK to find private investors.
You must be logged in to reply to this topic.
