I have been following your channel for the past month, it is helping me move from a full-time employee workimg on someone else's dream,, to a full-time investor with my own real estate business. Thank you!
This is the first time I fully understand everything you are saying but I do have one question where do you get the paperwork to give to the sellers and the buyers?
Thanks again for another great informational video! Hopefully this will help me get my first deal sooner. When I do I will let you know and maybe I can buy you some lunch just to show my appreciation :)
This is a good formula. One thing I think is good to mention though is that getting 15 to 20% down from a buyer isn't typical. Even guys like John Jackson and Joe McCall say you'll typically see 3 to 5% down. What you can do is set up a promise to pay the remainder 5 to 7% through monthly payments and maybe even through a lump sum on tax return season. Just some ideas. Can you make a video about that?
Thanks for the input. On a lease purchase 3 to 5 percent can be typical. Depends on the market. With seller financing those numbers go up. But yes... this can be structured in any way. All things are negotiable. If you don’t ask, you won’t receive :-)
Jamel once again you're right on time. A couple months ago I asked you about doing a creative deal and you answered it with a RU-vid Video!!! But this breakdown right here was exactly what I needed, thanks again!
So I watched 2 videos by you so far and the more I watch the I’m getting pumped!! I’ve been thinking about going into real estate but really don’t have the means of affording school. But these videos are so educational I’m feel ready to start after 45 minutes! My only question that I haven’t been able to find is what happens if the original owner has a mortgage? How would you work that into a profitable deal for both of you?
That is a great question. The issue with that is called DUE ON SALE CLAUSE. If a seller sells his house with a mortgage on it, they will call the FuLL note due IMMEDIATELY. I would only do this with homes that are paid off. Some people take a chance and do it. As soon as the title changes, they mortgage company will find out about it.
I use the rental comps/2 as well. In my experience, allocating 50% of the gross rent for debt service is usually a good deal. I know one guy that will only go 40% but he only does mobile homes in a small area of California.
Great video! I've enjoyed them thus far. Question I have is in this scenario, you promised the seller $500/m. If you put 10% down, the asking price is now $90,000 and at $500/m payments it will take 180 months (15 years) to pay off the original owner. Maybe I am misunderstanding this portion.
I like Mitch Steven's formula in your podcast with him. I would also not offer a 10% down payment off the bat. It would be much better to find out what they need to move out or feel comfortable with as a down payment and most of the time you can get a lower down payment. Just my 2 cents though! Glad to see you doing more of these type videos since many sellers are asking for full market value right now.
I love this info and the specific strategies provided. I keep getting caught up on the lease buyer option. You don't have the lease offer buyer yet, but you go ahead and purchase the property....correct? If the lease buyer isn't able to close in 5 years, what happens?
Hi Mr. Gibbs. Thank you for the great content. Do you have enough time to get a tenant and the deposit from the tenant to be able to make the deposit in time yourself?
@@jamelgibbs How much time would that take? If the seller is willing to wait until the day of closing for the DP you MIGHT have time to find a buyer from craigslist or whatever. What if you do not have a tenant for the place? Then what do you do? Are you putting in any contingencies? Do you set up your add for rent to own BEFORE hand so that you have time for the application and vetting process?
Great video thanks. If they have a tenant in the property, can you still offer to buy the property this way and raise rent to match rental comps in the area? Thanks
This is gold! Thank you so much for sharing your knowledge. I have a question. How do you find out if in fact these properties don't have any lien's or backed up in taxes etc before you make the deal?
Do you have rental agreements samples and advice, or a video of what could go wrong? I'm new to real estate snd I can easily see having issues with renters canceling the lease ...
Love it! My only question is any portion of the rent money that the tenant-buyer is paying to you monthly being deducted from the final purchase price or is that full difference (in this e.g. $500) profit?
Thank you for this great content! What about if the home needed renovations? Will I be able to get the Tenant Buyer to cover this as he continues with lease option?
Thx Jamel. I’m a beginning investor still in the midst of acquiring my 1st deal. I’ve made some calls off Zillow, but nothing so far. But again, I’m just getting started, I’m sure it’ll happen soon. Question, I’m thinking of proposing a creative financing offer on my current residence. My landlord has expressed an interest in selling. Do you suggest something like this? I was thinking lease option or seller financing. Thx.
hey man ive been watching your videos and taking a lot of notes and I have a question, what if it takes too long to find a tenant to rent the property out to? is there a deadline to find a tenant willing to put a 15%-20% down payment on the property?
What happens if the buyer is a rent to own buyer and they decide to back out or something happens to where they cant make the payments. will that responsibility fall on us "the middle man" or are the buyers fully responsible for everything and the seller is aware of that as well
Hello Jamel. My name is Carline and I am a newbie in the real estate market. I have been so interested in learning more and getting more knowledge so that I can be the best investor. I am a child development specialist and I love what I do. I love children. but I am also passionate about becoming an entrepreneur in the real estate world. I have couple of reasons why I am interested ; the first reason: I would like to have financial freedom. And the second reason, I would love to give back to my country Haiti. I would like to make a huge difference in the lives of the orphans. What better way to have cash flow poring in and to be able to send funds in helping with their education. So so important. You podcast has been helping me in many ways and teaching me to have the confidence I need to say I can do this. I’ve been watching your videos and taking notes for a couple od months. Not sure yet which avenues I’m going to take, but I know I am in and ready. Thank you Jamel for your great explanation. And thank you for helping others to get where you are. God bless you.
I am looking to hold my 1st deal.... I am currently paying rent. My balloon payment should be available in 2 yrs because I will keep my 'day job' until my 6 months emergency $ is secured
So since there is no amortization, would the monthly price that you pay to the seller not be counted as credit to the financing? You would pay them the monthly income until you cash them out with the full asking price?
In this process what if your potential buyer is an sec 8 receiver will this financial assistance be ok to turn the property? Ik the end result is to purchase the home but can we still put the stipulation of on the 61 month the house is to b paid in full?
My question is how likely is it that I’d be able to get a lease to own tenant to put 15 percent down. I would assume most people doing a lease to own don’t have the money to pay upfront.
Hey thanks for the video. Just wondering how would you factor in a property that needs significant repairs ? Your example seems like it’s geared towards move in read properties? Also if this was for a buy and hold what would be your exit strategy? Would the seller have to carry the loan until it’s paid off ? Thanks for the videos !
Buy at 85%-100% minus repairs. I have an entire course on creative investing and wholesaling. It's called Hybrid Wholesaling. If you want to take advantage of it, let me know.
Check out these videos for your answer: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-mJ7sJrktOFk.html ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-w_Nc1a6BSZo.html
@@jamelgibbs thanks bro I watched the second video n took notes and everything I’m fresh out the Feds and you really motivated to start this your video is clear cut
In the rent to buy offer who pays the utilities? Are they included in the $1,000 dollars you're asking from the buyer or do they also pay that on their own in addition to the $1,000? Thanks for this!
How do I sell the property to a tenant buyer without having given the seller there 10% down payment ??? Since the seller is waiting on me to close before they get there’s???
@@jamelgibbs remember I told you a while back I would be on your podcast lol.but check this.i was contacted by a land owner who was developing a neighborhood 21 lots on land she owned Here partners pulled out after they finished 3 properties she has 18 lots left.its located outside of Atlanta and she is selling each lot for 14500.how should I handle this?
