[Tim Myers]

Tim Myers

Hey Jackie, I have a few questions about the highest bidder auction. I have a owner that wants to do a lease/opion on his house. So i am going to write a pure option contract with him that says that i will get half of the down payment I can get with seller financing. here are my questions?
1. What exact words do you use when advertising on craiglist, newspaper etc?
2. Is it a good idea to have a mortgage broker their to pull credit, or can we just pull credit ourselves with free credit report.com? any other suggestions with pulling credit?
3. Once we call everyone to see who wants to increase their down payment bid, I just have the owner give me half of the down payment and let him and the tenant buyer sign the contracts between each other. He can just pay me and sign a release of option agreement, correct?
4. When advertising for the highest bidder with down payment, do you state the price and lease payments or how do you attract a lot of potential tenant buyers?

thanks for the help jackie, I have 2 of these in the pipeline, and after I get these done, i am hoping all the neighbors that are trying to sell will sign up with me as well.

PS On of the audio files I heard you say that somebody in texas that you know is making 5k-10k every weekend doing this very technique, did i hear that right?

[Anonymous]

Anonymous

Before I can answser your question we need to clear up a discrepency

You said the owner wants to lease option his house — but you want to sell with seller financing

That will not work.

You can do one or the other but you can’t do both.

You can get a down payment if you sell with seller financing. But you can only get option consideration if you do a lease with an option

so let me know which plan you will be using.

(you heard it right)

[Tim Myers]

Tim Myers

I am sorry jackie, I meant to say option consideration doing a lease option and splitting the option money. Thanks

[Anonymous]

Anonymous

1. What exact words do you use when advertising on craiglist, newspaper etc?

$1,000 could buy your dream home

Home is Being Sold to the Person with the Most Down Payment
Starting Bid Only $1,000
Spacious 3/2/2 with huge fenced back yard
Close to xyz Hwy
No loan fees, No Banks Needed, No Hassles
EZ Qualify
135 Main Street – Anytown
BEST Deal in Town at Only $145,000

2. Is it a good idea to have a mortgage broker their to pull credit, or can we just pull credit ourselves with free credit report.com? any other suggestions with pulling credit?

Since you are not expecting them to get new financing immediately you do not need to have a mortgage broker there. You should subscribe to a service like ntnonline.com to you can pull credit. ( see notes below)

3. Once we call everyone to see who wants to increase their down payment bid, I just have the owner give me half of the down payment and let him and the tenant buyer sign the contracts between each other. He can just pay me and sign a release of option agreement, correct?

the owner will pay you $X to release your option contract – but you should not get paid until it closes. I would suggest that you still close at a title company

Make sure the buyers pay with certified funds.

4. When advertising for the highest bidder with down payment, do you state the price and lease payments or how do you attract a lot of potential tenant buyers?

You should always state the price of the house and in this economy it should NOT be over market value.

I like to advertise a discount on the monthly payment for a higher option consideration. For example

$1k – $3k down – payment of $1450
$4k – $8K down – payments of $1375
$9k – $12k down – payments of $1275
More than $15k – payments of $1100

or something like that

However — a better strategy may be to sell the house to a person who gets a new loan.
The $8,000 GIMME that Obama is offering is a huge incentive for people to buy now.