Dan Butler
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When I have done private money loans, I have a secondary insurance company Lloyd’s of London. And the addendum that I have my deed of trust, make some aware that when they fail to pay, I will pay someone else 3 or 4 times as much it will cost them.
And that balance that I pay plus my time will be added back to the attorneys fees and add to the charges of the deed of trust, note, or land contract.
I always get a guaranteed 1st lien position from the title company in writing prior to signing and funding.
I explained to the borrowers when I buy the secondary insurance from Lloyd’s of London you get to pay and because I’m buying it. I can only answer myself not you!
It’s true.
Dan Butler
I learned late, if I had learned earlier I probably could have saved thousands of dollars it would have been tax free, it is a super IRA and regardless where are you invest the money be at your IRA, the HSA you don’t and won’t have to pay taxes on unless you use it incorrectly.
Anyone who is young enough should always use it 🙂
Dan Butler
I learned late, if I had learned earlier I probably could have saved thousands of dollars it would have been tax free, it is a super IRA and regardless where are you invest the money be at your IRA, the HSA you don’t and won’t have to pay taxes on unless you use it incorrectly.
Anyone who is young enough should always use it 🙂
Dan Butler
The time to make your money is before you buy, structuring your transaction and your price to your benefit now and for the future, will allow you to let time heal all wounds!
If you pay as much or more than the property is worth that can hurt!
The time to make your money is before you buy, in essence structure your transaction and the price as well as your terms, to benefit yourself and of course attempting to give the seller what they need.
Over the years that I bought properties I have actually told people gee I like your house I think I can do a deal with you but your price is just a little high is that the best you can do? And I have spent as long as 4 and 1/2 to 5 hours, you put your foot in the door when you knock on the door you go in and if you can put together a deal that makes sense for both of you, then and only then proceed. To your success usually spending time with sellers door knocking and making sure that they have your name and number if they would come disappointed or their price comes lower can be to your benefit.
The time to make your money is before you buy
Dan Butler
Bill is correct,
Your security interest is what you need to protect with this property. I don’t know your state laws, but if you’re acquiring you want to secure your option with a deed of trust or mortgage that is recorded in your state.
My niche is I own some properties and I do option agreements with prospective purchasers who can’t afford and don’t want to own right now, but will be able to ,
I personally spoke to, and went to Jack Miller for more than 20 years and the way things are turning now I am very glad that I did.
I have owned rental properties for years and, with the landlord-tenant laws. The way they are. I will not be using them for rentals I will instead be offering them on an option,
My options are a little unique there much like, commercial options where there is interest that cumulative during the time of the option.
In essence, the longer they take to execute the option. The more money I make in interest. I look at the buyers were procuring the option and determine, by looking at who they are, where they been what they’ve done and what my risk factor is and I execute the agreement subject to the qualifications and with that and the qualifications. I also determine the amount of money that I will require, as their option consideration upfront.
I also set the interest rate based on the risk represented.
In my case. As a seller. It is much easier and simpler, to utilize the options and not record them. I will never and have never followed through and granted good clean clear title to a buyer who has performed.
If in fact you’re taking money out of your pocket, just be smart enough to secure an attorney that will make sure your security interest in that property is properly documented!
To your success.Dan B
Don,
I have more than memories of Jack and his family, his son and daughter, Jack was there to help everyone and when I didn’t make it on a cruise one year, somebody that up the words of my mother wasn’t doing good. After he got home, give me a call and his first point was our her affairs in line ?
Jack had a caring heart and he was there for the benefit of people and the people well knew that and many of the referrals that I gave to his classes could not and would not stop coming.I don’t know about everyone, but I had Jack’s number and I can call him any time I didn’t bother him, but I did quite often send him transaction showing him and telling him what I had done and he told me himself. Sometimes you amaze me 🙂
After going to his class options, that was a game changer for me.I purchased multiple properties from people who had gone through foreclosure and had attorneys either side, this enabled me to help the sellers get what they could and give me what I needed and I was always person in title on those transactions, or simply put, they sold to somebody else.
I told him one time I am going to get all I can from you while you’re giving!
Because you are a treasure and I am pleased to have you in my life.Life is so fragile,
Dan Butler
I myself, utilize the option, especially now as an owner of my properties. Because the rentals have gave me a lot of gray hair, they paid for themselves and ultimately now,
I have written an installment contract for option, this is an instrument that I use and have used for years, dispensing and giving to others. The right to purchase, the agreement never recorded in the reason is simple. I never want to have to go through foreclosure.
The option is a unilateral contract, and if they underperform and do not deliver, as the purchaser I simply execute the occupancy agreement through Municipal Court and they are removed from the property.
In your situation. I think what you want to do, I might be wrong, but you want to secure your interest in the option at a high strike price for your benefit, and execute a deed of trust and record that.
I am not sure I would have an attorney assist.One of my properties I have sold on option four times three of those executed and we rolled the option into a buyer seller agreement, and those three failed ultimately.
The fourth one. Unfortunately passed away, and so now having that property back, I will do you the same thing once again.
Options are the real way to go!
Jack Baby was the king of options and when she discovered options. He himself turned in his real estate license, he needed not for somebody else, but instead structure is on transaction for his benefit?
One night at one of the classes, I during that class asking some very difficult questions and he looked me up and came to my room and said you know I wanted to answer your question, but it would turn the room upside down and on the whole thing off of kilter!
Jack and I went to dinner and is it you got one hell of a good idea.
So what I do is sell properties that I own, they are all owned free and clear good clean clear title and each is an individual separate trust. This is simply to protect me and those properties as well as other items that I have..
In the contract for option agreement. It states that it is a unilateral contract. This is truly what an option here, are not affected the same as a sales contract are carried financing.
With an option, you write the rules, and between yourself and your optionee/buyer, you together can construct a transaction that is beneficial to both parties
DanButler
I agree with Greg, red flags everywhere.
It might not be illegal, immoral or even fattening, to offer to pay their taxes on the property in exchange for an option on that property that you’re interested in. If it’s financially feasible for you?
It would be very smart to secure the option with a deed of trust, putting you in the chain of title, and therefore if there’s any action or inaction, for instance, property taxes, you might be one of those are notified!
Dan Butler
I learned late in the game about HSA accounts, only two years to contribute for me. And the beautiful thing about an HSA there is never any tax implications. As long as you use the money for your health, please anyone correct me if I’m wrong.
I only wish I started 10 or 15 years ago because my understanding is that the HSA is like a super IRA and there are no taxes that can be taken from it!
DanButler
Bill,
Please be sure to give her lifetime membership. 🙂
I know you will.
I was most likely at a number of the option classes that you went too that Jack taught.
I myself use the option for private money loans, being a private moneylender instead what I do is I acquired title from the borrower, and simply give them the option to repurchase property.
What this does for me is it avoids any opportunity for having to go through a long out foreclosure.
A number of times with properties that I owned outright, I have utilized an option. Just like you would an installment contract in fact, Jack liked the name installment contract for option.
I Breaking into his presentation, and finally one night during a classic into my room and said you know you got one hell of that idea, the only thing you have to do is find an attorney who will understand.
The beautiful thing about an installment contract for option is, on properties there is no transfer of title. At least in my state and an option is simply a unilateral contract whereby you title is not transferred, and the optionee fails, prices usually climb and you get to do it all over again.
Congratulations and I give my vote to Jackie receiving a lifetime membership.
Congratulations,
Dan Butler. Portland Oregon
PS-Peter called me and told me the good news. 🙂
Bill,
Thank you for giving Jackie a break, I’m sure that you and I have darkened the same room. Many times over the years.
Options are perfect vehicle in the economy, wherein to make money, irrespective of whether the values are going down.
Again, thank you for giving Jackie a break, and I was one of the original beta testers, who helped her get her website up and going after Jack went kicking and screaming when she offered to him the ability to the webpage.
Chris Miller Jacks son and I were talking outside of the room, Jackie came up and presented are offering to Chris, immediately asked me, my thoughts are absolutely if your dad will do it, why not let him share and mine is here.
Options are my vehicle replace and my challenge is to always ask someone whether buying or selling, or lending, where you not using an option?
To your success with the cash flow depot,
Dan Butler, Portland, Oregon
Jackie,
For anyone who has taken Jack’s classes and those that Peter offers, they will do fine, inflation just another invitation to make money.
Jack taught this in his classes and there are so many spots that a person can make a mistake somebody does need to be careful, purchasing on an option. A well-written option will help you avoid all downturns.
I myself am using options as an installment contract for option when I sell my properties. They’re not a typical option they do have a clause that includes interest and I’ll never forget the night that Jack came to my room at the hotel and said.
I’m very sorry I couldn’t answer your questions in class!
We went to dinner and he simply told me I was thinking outside the box! And that was a good thing and it has been on every transaction is done.
Inflation should not install fear in any one transaction and if it does they need to learn how options work and how options and that the inflation or as a purchaser, you can use negotiations, and convince the seller that the world is falling in on them and give them a failsafe offer and you be the optionee.
Dan Butler
Portland, OregonJack would definitely execute using the power of negotiation and options, his son Chris Miller, once asked me which of the classes I felt was the most powerful. And I told him, respectively negotiations and options have made me the most money.
I have helped a number of people utilize successful options, and the strategy of negotiations is something that you only learn over a lifetime or after completing Jack’s classes and knowing him, personally.
Over the past 30 years I’ve used options whenever I’ve done private money loans borrowers simply to secure good title for myself and giving them an option to repurchase a property and if they underperform and do not deliver, there is no foreclosure!
Many of my rental properties have been converted for years to options, I utilize interest on the unpaid balance of the option during the term of that option. And patience is a virtue because usually marital situations or financial situations but many times take people away from their initial option to purchase.
I have put together an installment contract for option, there are rules that you must follow and many of the attorneys that I’ve worked with have been astounded over the years at the returns and I’ll it all. Jack Miller and I want to say that Jackie Lange has been a very large part for me. 🙂
She will be a backbone in cash flow depot, and she will give great support! I am excited for her to have the freedom she deserves and it will share her wisdom, knowledge and power bill and his wife.
Options are a unilateral contract and they allow you to control property and not have the burden of ownership. And if you’re not in control, where are you?
The structure of your transaction is the strength of your transaction, I have many option properties that I have sold multiple times and whether it is a residential or commercial property, the rewards are humongous.
God bless Jack Miller!
Dan Butler
Jack was always for selling and cashing out. He did not like owner financing and he loved options, if he was going to hold anything for longer-term it would’ve been an option.
However you like to structure transactions from the sellers equity!
Years ago I approached Jack, and I’ve been using options after attending multiple options seminars from his getting questions ask and once having him come to my room at the hotel where he was teaching the class, much to my surprise!
Options are a unilateral contract, and it’s not unlawful for me as the seller to charge interest on the option balance during the term of the option. How much? Who knows? You qualify. The optionee and gauge their needs wants and desires.
I am preparing an option and have a property that I will be utilizing this on and circumventing landlord-tenant laws.
Dan Butler
Mike,
I do private money loans. I live in Oregon and Washington is okay for me. However, federal way is a ways away, you have anything closer to Portland?
I would certainly consider helping you and my interest is security. For you and myself.
I would consider subordinate property as collateral, an Oregon property Washington property. Perhaps in Vancouver Washington or the surrounding area.
Until they revamped the Dodd Frank rules, most licensed loan originators were all willing to originate loans. There are fewer of those now.
My rates are not attractive I will say that, but I have borrowers that use my money and fixup and refinance and simply hold their properties with new financing.Dan Butler, Portland, Oregon
Nick,
I’ve been investing for years, I’ve done private money loans near my home, and more recently, the default of taxes on a property on behalf of borrower help me expedite my foreclosure not only on that particular property which was subordinate collateral for another loan.
But also I was able to get around state laws, in my area. The governors are democratic and they love to protect the occupants.
Be sure to know and check the laws in your area for your own safety.
Dan Butler
Excuse me if I’m not replying to the exact question that was asked,
I have been options for years and executed as the seller therefore I am the optionor in all of the transactions that I put forth and offer.
I am once again during the pandemic going to be offering a property.
I have a pretty thorough agreement and you can do a unilateral option, but if you do a bilateral option that usually gives you the right to purchase or sell at the same time that you’re doing your option.
My situation is a little different……….
I own my property outright, no debt service and where I am going to do is I am going to simply separate the house from the land.
This will be done with the use of a trust, the house will be on by one trust and the land will be owned by another.
My state is pretty much outlawing rental properties and therefore I will not collect rental payments any longer!
What I plan to do is to offer an option for someone to purchase the home.
There will be a carry-on in that I will also offer the property to that same person. Both contracts will be holy exclusive to the purchaser and there are about 5 or 6 Different Way that my contract will state, how they can lose their option.
Contrary to the traditional option, I also have a contract that includes interest on the unpaid balance of the option during the options term, whereby iron interest on the unpaid balance much like a note or mortgage.
I am revamping my option to read like a lease option but it truly does only convey an option to the potential purchaser.
During the term,
The interest on the option for the land will have interest during the full term. Therefore, it will be earning income at the rate placed on the option.
Interest on the option for the house will have interest during the full term. Therefore, it will be earning interest on the income placed on that option.
I have a specific contract giving time frames as to when the exercise of the option can take place. This can all be negotiated with your purchasers.
I never convey title by way of the option. I always convey title, when and if a borrower/optionee actually performs.
As Jack Miller said when he taught classes you need to think outside the box relation point.
And if you don’t think it’s possible, think again because it might just be.I’m going to utilize 2 different agreements and I would love to know and get ideas from anyone who has ideas themselves on how I can better utilize and structure my transaction. The main reason that I am not doing rent is the state that I am in and they are not friendly to landlords. Therefore, I no longer want to be a landlord but instead a seller conveying only the option and the right to purchase.
When the purchaser performs, they will attain a desirable result by purchasing and or owning the property. I do plan to make each the land in the home. Under separate contracts.
It is totally possible that each of those could be owned by different entities, this could cause additional confusion and chaos when the potential purchasers attempt to obtain legal counsel. In the event they were litigious this could be a great discouragement to them pushing forward.
I would love to get anyone’s them, but and ideas,
Dan Butler my email addresse is, [email protected]
ButlerKenneth,
With our new administration, I think will see strengthening of the DEQ and for anyone who hasn’t dealt with them I sure have.
I believe that short and sweet. I appreciate your input and I would like to say that I have dealt with DEQ and they are not friendly and they are certainly not cheap!
Please make sure that you cover your bases!
Remember that flushing drugs down the toilet is popular for those who are trying to evade the law! And usually those go into the sewer system??
Depending on your location it can make a difference in how many people might be chasing you later.
Everyone should cover their bases and their assets!
Staying safe while helping somebody else with an issue should be the main goal thanks for your ideas,
Dan
