[Ron Steele]

Ron Steele

Hello everyone,

My name is Ron, I am from Alabama but currently living in Italy for my job. I am new to the site, but I am finding it extremely informative.

I am a relatively new investor and i have just a few properties that I rent out for cash flow. I just started wholesaling lease options an have not completed my first deal yet. I need help on the following scenario.

If i find a deal thats a good deal and I get under contract and lets say the rent payment is $1,000 a month. Lets say that gives me 30 days to find a potential renter/buyer. In those 30 days I am unable to find a renter/buyer then I would be stuck holding a $1000 payment until I could find a buyer. This would be negative cash flow and goes against my rule for investing.

I have tried to put a clause in the contract that states if I cant find a buyer in 30 days contract is void, but then the seller doesn’t think I am truly committed in the deal, or they dont understand the process think that I am trying to scam them somehow and pull out. This has happened 3 times for me and is very frustrating.

Any advice or help would be greatly appreciated.

[Jackie Lange]

Jackie Lange

HI Ron

Welcome to the group. It goes against our rules to do anything that has risks too… especially negative cash flow.

If you look in the Landlord Section there is a lot of training about what you want to do.. we call it a Master Lease or a sandwich lease.

Did you tell the seller that your plan is to rent the property to someone else? you need to do that. Be up front and honest with your game plan then the selller will usually go along with it.

I’d tell the seller, I’d really like to pay you $1000 per month in rent. But my plan is not to move in to the property, instead I will rent to someone else. If that tenant has any problems, they will call me. If they don’t pay, it’s not your problem. You won’t get any calls in the middle of the night that the air conditioner is not working or the toilet is stopped up.

I will be able to guarantee the $1000 per month, even if the house is vacant.

But I won’t be able to start paying you rent until ti find the right tenant who will
take care of “your” property. It may take 1 week, it could take a month. Mr. Seller
you do want to make sure I find the RIGHT tenant and property screen them don’t you?

If you’ll give me 30 days I’m sure that will be enough time to find the right person.

If I can’t, then ___________________ You need to decide if you will start paying rent
or if you want to just walk away from the deal

If you can’t find a good tenant within 30 days, then it may be that the rent is too high or
the neighborhood or schools are not so good and you can’t attract great tenants.

Watch the videos or listen the the audio lessons in the Landlord section for more
clues about what to say and do when Master Leasing.

Let us know how it turns out.

Jackie

[Ron Steele]

Ron Steele

Thank you very much for your response. i will check out the landlord section. Thanks again