Buying Foreclosures, REOs. Short Sales, FSBO, MLS and More

Hello, I'm new here. I just read the entire book, and listened to some of the previous conference calls, and although I understand most of the information, there is a ton of it to have to understand. I'm very motivated to get started, but a little unclear about how to go about doing it. I have very little knowledge of real estate except for what I have read so far. There are a lot of questions that I had that weren't really addressed in the book.

A common reference in real estate is a Sandwich Lease Option. This really means that we have purchased the home using a lease option and are re-leas optioning the property to another buyer.

Most likely, and especially in today’s market, you should be able to purchase a home below market and even use a lease option to do this.

When you purchase using a lease option you want as much of your payments to go towards the purchase of the home later. I would suggest 20% or higher if possible.

The option is the contract that allows a buyer to purchase a home after payments or in other words it is the buyers right to purchase a home at price determined before.

Most option now are about 2 years with chances to renew. During this renewal time the price may be risen or continued as it is.

The option is also a contract that binds you to sell the property at the predetermined price.

Most, about 3/4th of buyers, do not purchase from the option. This is great for you to re-lease option the property and make the benefits of the lease option again.

If you do a lease option you will be receiving payments each month. As investors we want more money to be paid each month if possible. This money is normally non-refundable.

The more money you can obtain for the option credit the more money you have to fix the property, carry payments, or invest elsewhere.

Here are some ways I have seen that can bring in more option credit:

If you do a lease option you will be receiving a payment at the beginning called an option credit. As investors we want more option credit money paid if possible. This money carries our payments if needed and gives us money to invest in other properties. The option credit is the money paid for the rights or option to purchase the property you are selling. This money is normally non-refundable and is given at the beginning of the lease option.

The more money you can obtain for the option credit the more money you have to fix the property, carry payments, or invest elsewhere.

Lease Options are a fantastic method of purchasing and selling property. Many have not seen or understand the benefits and I have covered them below:

- You make money upfront (non-refundable option credit)
- You make money month to month (the rents)
- You make money at the end (difference between the sales price and what you owe)
- You often get more than market rent
- Renter is not your typical renter. They have more ownership in the home and will often take better care of the property.

When I first started in real estate I was given an idea to call people in the newspapers that were RENTING their properties and ask the landlords if they would be willing to sell.

I did this during a market that was selling great and 1 out of 4 people I called said they would sell the property.

Here is the great thing - they were willing to rent the home and they are willing to sell. This works well for us because they may be willing to do a lease option or seller financing (both are low or no money down methods).

You can do this without credit and income.

Many of may not be able to use HUD's Good Neighbor Program and there are some reading this information that can find this very usefull.

HUD has a program that will allow Teacher, Cops, Firemen and EMT's to purchase HUD properties at 50% of the listed asking price. This programs name is Good Neighbor Next Door.

Here are the requirements for those wanting the HUD homes at 50% of the asking price:

- They have to be full time in the employ.
- They need to have been sworn in if needed (cops)
- If they are a teacher they need to be teaching K-12.

Hi...Newbie here. I have no money, and below average credit. I am starting out doing pre foreclosures, etc., to make some cash and get a start. Question: Would you go to the West Coast of FL, Sarasota, Tampa area, where there are many opportunities like this right now, or stay closer to home, in the Stamford-Bridgeport area which I know very well.

I'm savvy and I believe I could get to know a new area quickly especially if I got a job driving a cab or limo. Also, I have about 10K to live on and expenses would be considerably cheaper in FL, not to mention the weather.

Hud (housing urban development) houses are sold and often a great prices. Hud offers properties differently than other selling agencies.

Here is a little on how most HUD offices deal with the foreclosures.

The first week is own occupied only. There are looking for people who will live in the property for 12 months.

Often the second week of a HUD offering is owner occupied, good neighbor, non-profit and government organizations bids.

The final week is open for investors.