Click Here Note, All questions will remain anonymous and will be placed on the blog!

Hi Adam,
Thanks for your response. The owner has been living this house since 1999 (purchased at 148K). He has been regular on payments and has had good rate of interest. To me, he looks like someone who has equity, wants to sell this property and make some money, not desperate (willing to wait to make more money with lease option purchase), doesn’t want to pay realtor commissions. I may be able to make more money if I do lease option to purchase and not coop lease option because he has equity but I just want to coop lease options in the beginning.
The 2 mistakes I did while speaking with owner when I visited his property were:

-    I did not ask about his monthly payment on mortgage + tax + insurance
-    I did not show samples docs and draw a picture

I will call him tomorrow to make an offer. My final offer will be 190K + 5K (my assignment fee) for 2 years. The city assessment for 2011 was 193K and for 2012 it is 179K (pretty sharp drop in city assessment). Many end buyers look at city assessment while buying a house.

Is it hard to find tenant buyer for a 3 or 4 years lease option?? I have heard people say this.

ANSWER

(Not if you justify the rent.  I have had people qualified do a lease option because the rent payment was lower than their forecasted interest rate.  They took the time to rent “one year” and built up their credit.  They then cashed out with a lower interest rate therefore lower their payment again.)

From the zip file with all documents in your course package, I believe the documents that I need for cooperative lease option are:

1.    OPTION TO PURCHASE REAL ESTATE TENANT BUYER

2.    ASSIGNMENT AGREEMENT STRAIGHT OPTION

3.    Assignment Addendum LEASE OPTION

Please let me know if I have the correct list.

ANSWER
(Look at the flowcharts from both ebooks. The manual and the free ebook on the frustrated investor site.  If you are assigning to the tenant/buyer it’s “pro seller option and rental agreement” and assignment agreement.  The assignment addendum may not be necessary as the tenant/buyer is buying the contract.  But, a letter of assignment is just one more vehicle to cover your bases so everyone knows what’s going on.  And remember, you’re not assigning your straight option, you’re assigning the pro seller option and rental agreements)

On page 63 of your full manual, you have a flow diagram of “Lease Purchase Assignment”, in step 3, you have mentioned a document called “Rental Agreement You as the Tenant Buyer”. What is the file name for this document??

ANSWER
(It’s the pro seller rental agreement.  The one you assign to the tenant/buyer that allows them to step into your place)

I will also request a right to extend the option for 1 year. Do you already have this clause in your lease document?? 

ANSWER
(No, it’s something you and your attorney would need to put in)

THanks

________________________

Next Email

Yes, I think the house has enough equity but I will verify tomorrow. If there are no rent credits, why would a tenant buyer even buy a house considering the declining house values? In the example that you for lease option assignment in page 63 of your Full Manual, I noticed that your example does not mention the rent credit. 

ANSWER
(You must consider the possibility of equity being gained through the principle payment.  Everything is negotiable even in a down market.  If the house declines, the tenant/buyer may want the seller to adjust the purchase price.  And, if the tenant/buyer just got done paying for 2-5 years rent, that payment may have given the seller wiggle room because of the principle being paid down.  Remember, it’s about saving money on the payment so the tenant/buyer can put more down later if they want to.  Everyone is tied to the emotion of “how much now”, use that towards your advantage.  The credit card companies have and they’re winning…)

This was an email I recently received from a student. Powerful, truthful and so much more.

Enjoy,
Adam

_____________________________
I have purchased your course and listened to your audio on the
Cooperative Purchase Elite.
FINALLY, someone who understands. This is the first day in months I woke
up feeling enthusiastic about real estate. I now have a plan that I feel
confident to intact.

You can see where I am using this analogy.

Most gurus teach you how to swim. Now they put you on the coast of
California and say, “Now swim to Hawaii and all the gold is there.”.
Which for this example is true.

The worst gurus don’t tell you Hawaii is like 2000 miles away. They have
you thinking it like swimming and Olympic sized pool.

Others are more honest and says is like 1000 miles. And the most rare
are the ones that say “Yes, its like 2000 miles away”.

A few poor swimmers (or lucky ones from those gurus) that actually think
its like a pool, swim for a while get tired and turn back. Some
unfortunately still thinking they are just tired and out of shape spend
thousands more on swimming lessons, snorkels, oars and all the way up to
a full Viking ship (the rowed type).

The other set of swimmers know its a long way off and are prepared to
swim for as long as it takes to get there. (this would be me)

Almost every “Coaching Course” teaches either the basics of swimming for
the ones that know nothing about swimming and just dove in heading for
Hawaii.

The “Advanced Coaching Courses” teach the already swimmer the breast,
back, side, etc strokes. They now FEEL more confident since they know
how to swim BETTER.

So here all these swimmers are on the coast of California and every guru
on the planet tells them “Swim West for the gold in Hawaii!”.

So off they (we) go swimming West.

MOST OF THEM DROWNED!!!! WHAT HAPPENED?!!!

Hawaii is a very small place in a very big ocean.

For this example lets say Michael Phelps CAN swim all the way to Hawaii.

If he headed West to Hawaii without pinpoint direction on where he was
going what would happen to him. He would drown like everyone else.

They tell us you need to “swim hard everyday”, “don’t stop swimming”,
“don’t let anyone stop you from swimming”, “write your swimming goals
down” (true). And there we are swimming and swimming and swimming.
Swimming hard. Due to the steer mass of swimmers out there someone
actually makes it to Hawaii. We feel well they must have “been swimming
harder than me”, so we keep swimming and swimming and swimming HARDER”

A lot of them (me) don’t have a problem “swimming harder”, the problem
is that we don’t know if “swimming harder” is working at all. They (me)
realize that we could be “swimming harder” in the complete wrong
direction, questioning “swimming harder” in the first place. What I am
saying is people ask “are you willing to work hard” and my answer from
now on will be “I can give %110 of focused effort” and not I will
blindly work “hard” in an unfocused direction. For me, coaching is the
direction and I supply the “effort”. It is hard to find true “direction”.

THIS IS THE PROBLEM WITH MOST GURUS.

They send their students off on the ocean with everything they need
(true for this example) but NO pinpoint direction and only a few lucky
ones (or ones who looked for a map) actually make it to Hawaii and the gold.

Every guru knows there is only so much gold out there and they don’t
what to share it. Or have never been to Hawaii themselves but know
someone who found gold there and they can tell where it is for a fee.
They can share their SECRET location with you since they never gave you
a map or compass on actually HOW to get there any they know almost all
of you will drown on the way to Hawaii.

What we need is that Viking ship and a map and compass.

What we need is a craftsman too show us how to build that ship.

What we need is a good crew to row us to Hawaii. We can row the ship by
ourselves but it will take longer, be a tremendous strain and we will go
off course since no one is manning the rudder while we are rowing. When
stop to man the rudder we will slow down since no one rowing anymore.

You ask what is my goal, I just now figured it out. I want to man the
rudder. I want a crew that will do the rowing nonstop since they know I
am the captain, I know where the gold is, I have a map and we will all
profit when we get to Hawaii.

What is the status of Cooperative Purchase Elite?

Is there a way to get it for that price again?

I bought your map already.

What I need and I believe from what you have said is that you can help
me build my ship and show me how to find my crew.

Thanks.

Kevin
_______________________

Final thoughts by Adam

First off, thanks Kevin for such a powerful email.  I’ve been there and know what it’s like to not know how far off success is.  Even worse, we don’t know what it will look like when we get there.  And this, is the trick that “us” gurus often play upon the audience if they’re not paying attention.  Learning how to have faith in yourself is your greatest asset while trying to navigate the “course” waters.
Thanks again Kevin..and of course, welcome to the CP Elite program.  Just received your sign up verification.
Adam

Hi Adam,

Thanks for your response.

Yesterday, I called 9 FSBO ads in Madison, WI. One of them might consider Lease Option so he asked me to visit his property. His list price is 217K since he paid that much when he bought it a few years back but Zillow.com shows 184K as market value; City assessment is $193K. This house was build in 1964. I am thinking of asking him to consider 185K but the highest I would go is 205K including my fee of $5K for a 2-year option. Would this be reasonable??

_______________________

Answer
(First off, I would NOT trust Zillow!!! I would have at the very least, have an agent to a market analysis so you can see what’s sold and what the average property is listed for. Remember, a property is only worth what a bank will finance if for.  So, your price may be right, but that’s ONLY for you to decide once you get better data.  Also, because of the economy, I’d shoot for no less than a 2 year lease.  This way the rent payments can knock some of the mortgage balance down giving the seller some wiggle room on price.)

In another scenario, the home owner has been trying to sell their home for sale since 2009 through various realtors. The Current FSBO  listing is 6 months old. The property is listed at 224k (zillow – 213K; city assessment – 243K). The lady said her husband commutes more than 1 hour to work so they want to move closer to work. I thought she would be very motivated to lease options but she said she wants to be done with the house once it is sold. I am thinking calling back after few weeks. Do you have any suggestions on how to approach this property? 

________________________

Answer (At first sight they seem motivated, but they must know what market we’re in.  If she wants it gone for good she’s going to have to take a beating on price.  Remember, that’s what a LO is all about, it’s for motivated people who cannot sell or don’t have the equity for a quick sale.  And yes, I would get back with her and mention these two scenarios.  Could be worth it to take an option for cash and lease (Section H. on the Cooperative Option agreement) higher and agent and get it listed for those two terms.  If it sells cash, release your option to the seller for a fee.  If it sells on terms, assign your interest.  And, as always make sure you talk with an attorney to make sure you fulfill these two scenarios properly according to your state.)

Please respond and let me know.

Thanks

Question:
I have a question about the cooperative purchase course.  How are we able to offer this service to a homeowner in the Sate of Florida and/or also Ohio without a real estate license?  Will your program show me anything different than a lease purchase with option that will be assigned?  If there is a twist in this and it is legal, I’m in. Thanks.

Answers: Part One
First off, if I have a nickel for every time someone asked me about the “brokering without a license” question, I’d be retired.  Second, you’re using the wrong word right from the get go.  ”service”

Question:
Hi Adam,
I’m a brand new investor here in CA and I haven’t done a single deal yet. A lot of thinking/talking and not much doing:) Well, I’m ready and eager to start my investing career and would like to start with Cooperative Lease Options/Assignments. I’ve heard great things about your course on the Bigger Pockets and Flipping Homes forums. Before I make the purchase I have a couple questions…Does this program and it’s concepts work in California and is everything I need to structure these types of deals in California in this course?

Please let this newbie know either way.

Thanks and keep up the great work!

Answer:

QUESTION

QUESTION:

Adam,

The Cooperative Purchase Elite Joint Venture and Real Estate Building System is now available!

CLICK HERE

PS The Elite Program will be fully open again later on this month.

“You Only Succeed by Leveraging the Self-Interest of Others.  BUT, There’s a HUGE Catch”

This Tuesday, I am going to show you what I did to get my very first deal,  how I arrived at 40+ deals at the end of that year, and how I leveraged myself in order to build a national network of over 120 investors that did most of the work for me.  All within 18 months from that first deal.

I’m going to show you how I obtained partners IN ONE DAY who had millions of dollars at their disposal.

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Title: The 30 Minute Real Estate Empire for Leaders
Time: Tuesday, November 29th at 9:00pm Eastern
Listening method: Phone + Web Simulcast
To attend, visit:
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