StevenB GA Journal - COME GROW WITH ME!!!!

StevenB GA Journal - COME GROW WITH ME!!!!

Read tons of books. Been to seminars. Had some bad luck with employment. Newly married and baby on the way. Time to get this dream off the ground and put some $$ in my pocket.

I've got a motivated seller who's moving out of state and lives in an upper income neighborhood. Found his house through We've emailed and he's very interested in my idea to take over his payments until the house sells. However, he wants to know how I'm going to do it. We have a face to face scheduled for sunday 6/13.

Is it better to sandwich lease or attempt "subject to?" Does it matter as long as I get it under contract. What verbage should be used when he asks how I'm going to accomplish making his mortgage payments while he's gone so he doesn't have to worry about it? How can I get it under contract FIRST WITHOUT putting my own money down. Need some advice on lease/option contracts. Does anyone have one thats complete that I may be able to look at to get a good idea of how its filled out??

PLEASE give me a little HELP on this so I don't look like a rookie(I am)!! I wanna come off as professional and knowledgable so he feels better letting me get his home under contract.

God Bless,



similar situation

A couple years ago I was in a similar situation, but the house needed some updating. I gave him the price he wanted but I got the terms I needed that started off with no payments for the first four months. We also wrote in the contract that I would have him cashed out within 24 months.

Good luck,


First Deal??

Well I met with the owner of the FSBO home this afternoon that the conversation went GREAT!!! It was so good we even watched a little baseball on espn and he offered me a drink...of water. I accepted the offer! Now I just have to get him to accept mine lol!

He purchased his home for $188,500(did homework) almost three years ago and put in about 5k in updates. He has the largest home per s/f and the largest lot in the neighborhood. He has a bona fide appraisal from October 09 for $203k that he showed me and the tax assessed value appraisal done in march '10 is $196k. He says he owes $185,600 and his mortgage is $1591.00/mo.

I ran some comps from,, and and they all said that the FMV today is around $176k. He needs to move to TN for a job but says he'll let it go into foreclosure before he takes one penny less than he paid for it.

He said he would take $190k for it but then that would means he loses money when/if the house sells due to closing costs. So, he said that he'll do $192k with $3k down(don't have to pay 'til i find tenant/buyer). I believe my problem here will be finding some one to pay me more than his nearly $1600 monthly mortgage payment. That is very high for someone to commit to paying in my home town right now during this economy. I've already posted an ad on craiglist and got two calles in 3 days. If i can get someone to pay $1700/mo on a lease/option then I'm all over it!! I know that I can probably get someone to pay b/t 5k-10k down and sell it for $204k(3% appreciation conservative). Albany didn't get hit extremely bad during the recession. We will do a 2yr lease/option.

He wanted to know where I'm making my money and I told him that I'm making money on the monthy payment from tenant/buyer due to the mainetenance and overseeing of the property each month until someone buys it. If someone does buy it in two years I keep all of the equity in the home, plus upfront dwn payment, plus monthly cash flow for a total of $20,400 profit!!!! Not bad if I can find someone with enough income to cover the mortgage every month. I think I may like this whole REI thing! We should sign the contract within 48hrs.

If anyone has anything to add that I might need to negotiate or if they would do it differently let me know. I welcome any advice!



I notice he said he would let it go into foreclosure if he didn't get what he wanted. I know for me the only way I am going to do a deal like that I am going to make the payments to the mortgage company to be sure they are being made. But then again that's the way I do all my deals.




That will have to be negotiated. He says he has great credit but he doesnt care if it goes into foreclosure because he's never going to buy a home again. Its a pride thing with me because he feels his home is worth at least what he paid for it and you know a home is only worth what someone will pay for it lol. He told me he has some hook up in TN where he wont have to worry about to much fincancially or with a home. He's divorced and is 64 years old.

So you're saying not to do the deal unless i can make all the payments to his mortgage company? I was thinking of getting the check from the tenant and then writing him a check. he's not behind in any of his payments. I don't think that would be a deal breaker for me if he didn't let me make the payment to the mortgage company.

Not pride with me but pride thing with him

my bad!


I just know for me i make all the payments to the mortgage companies so i know that they are made. I did put in a couple of my contracts that if I missed 2 payments the house would revert back to them.



Good Idea

I may do that Randy. Thanks for the advice. In your case you do 'subject to's' whereas in this case its a lease/option so he technically owns the home and no deed has been transferred to me so he has no reason to not pay his payments. Good thought though definitely gonna contemplate it.

Look Up Greg Murphy

Greg is the sandwich lease king. Look for his stuff on here, I am sure it is full of good info.


... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...


What his username man?

somethings not quite adding

somethings not quite adding up with this sounds like the owner is just concerned about getting his money back off what the house cost him plus improvements...right away you know the house only has a fmv of $176 000 which tells you already its worth $16000 less than what he wants for order to make a profit the house is going to have incresase in value way aboove the $192 000 he wants to get for it with 3 grand down...what also is not making sense is that he says he has perfect credit but yet isnt concerned about going into foreclosure which of course would ruin his credit...also too hes divorced which tells you that he wouldnt have perfect credit anyway because a divorce affects your credit rating....if he's living there by himself and leaving the state for a job that tells you that he probably cant keep up with the mortgage payments on the house.....but the thing that really bothers me about this deal is that the owner says he owes $185 600 on the mortgage and yet paid $188 500 for the house 3 years ago...why does he owe so much money on the mortgage still...if his mortgage is almost $1600 a month after 3 years he should have paid of almost $60 000 of the mortgage....doesn't make sense why does he owe so much still...even with interest and property taxes he should owe waaaaay less than the $185 600 he says he still owes on the mortgage....i would stay away from this doenst make any sense what the guy is telling you.

Your not adding up

You need to get back to the books a little more, I really hate to see people miss lead someone when they don't have a clue on what they are talking about. You do not deduct the interest from your principle. The deal you are referring to is pretty much in line give are take a few cents. If you decide to buy a house pleas be careful, Because it will in no means be payed off when you think it will. GOOD-LUCK on doing some more research.



new developments on this deal

I told the owner that I could not agree to purchase his home at the price he wants since the fmv today is 176k. It wouldn't make sense for me. Then, today he sent me a forwarded email b/t him and his ex-wife saying that he knows the house isn't worth today what he wants. He saying that he may just end up walking away from it. I'm SHOCKED that he would tell me this. He must really want to be done with it and move on. The email also said something about a short sale and the definition of it. Him and his ex were trying to figure out what it was. I'm now assuming that he is behind on payments, even just one.

I'm a little confused at how to respond to this email. I don't know if I should try to purchase the home for say 150' and guarantee a quick closing and assign the deal to someone else for a profit or attempt to purchase 'subject to' and try to lease it. I'm worried about his 1600/mo payment and finding someone to lease/option but then again I have some escape clauses to get out if possible. He has no repect for low ball offers but he almost has no choice since he's so eager to 'walk away'. This home is a very nice home with zero fix up on it and I just wish I could figure out a way to make a profit on it but will walk away easily if need be. Somebody help me find some money here.


in the mean time...

I keep getting more 'buyers' from ny ad on craigslist. They are lower income buyers than anything but at least I'm getting some reponse. I need to post something for buyers to see what kind of reponse I'm getting and start puuting out some flyers and bandit signs. Also. I found a true 'cash buye'r today who wants to work with me if I find some deals to either assign or wholesale. He actually taught a class I took in college and owns around 90 propeties and his own brokerage company where he lists, manages, and invests in RE. Then on thursday I have a meeting an agent and on friday too to see if I can find a good agent. I have my doubts about agents because I'm a rookie and they'll probably be able to tell and I can't prove that I have the $$ to invest so we'll see what happens.

My brother told me today that he is committed to selling his business, which I help run and has a buyer lined up he thinks is leggit so now this becomes more real than ever cause I don't know what the heck to do if it sells and I've got baby coming in december. Talk about sleepless nights...geez! Well I'm gonna keep learning and pursuing and turning it over to Jesus and trust Him to guide my path and make it straight. Things will work out I know.

i already own 2 houses and i

i already own 2 houses and i can tell that after 4 years of paying mortgages on them the amount owed on them is now quite a bit lower than what the original mortgage was for them initiallly....the person should not be owing almost the same amount of money for the house as what their original mortgage was after owing it for 3 years.....the person almost owes the same on the mortgage as 3 years that rate the house will never be paid off....i think YOU need to do some more research instead of being arrogant and thinking you know it all....the facts are 1. the guy doesnt have good credit...and 2 . the house is not worth whats he asking...those are the facts plain and simple....

you;re in the drivers seat

don't offer the guy what he wants for his you said the fmv is 176k...thats the facts of the matter doesnt matter what he paid for it 3 years ago....think about this....he has to move out of state for his new job right?...that means you know he has to find a new place to live and pay another mortgage or at least know that hes not that wealthy because of the simple fact that hes living in a house worth less than have him over a barrel...because you know that he probably wont be able to afford to keep paying almost $1600 a month mortgage PLUS what he will have to pay in the new state hes moving to whether it be a mortgage or rent...this gives you control...i think you;re right on track putting in an offer around 150k....remember hes THE ONE that has to move for his new job sooner or later which means he cant hang around too long waiting for the ridiculous price hes asking for which is waaaay more than the fmv.....put in your offer and wait him out.....dont be soft and give in to what he wants because at the end of the day its going to hurt you financially


You have a good point! I'm suppose to be speaking with him tomorrow. If I offer 150 I know he's gonna be a little upset since he stressed so much that he has no respect for people who low ball their offers. If I offer than and he does accept I now have to find a buyer to assign. The cash buyer I have only does cash for properties that need a lot of fix up. I guess I could just google cash buyers online and find someone there who will buy it. If I buy it short sale style then from my understanding I have to approved by the bank to buy the house. I don't have much money, decent credit, and not enough income to buy this house I know. I may just move on from this and see if I can give him some tips to sell the house quicker. We'll see what he says tomorrow...

Its too bad you couldn't buy

Its too bad you couldn't buy the house for yourself. even if you upped your offer to say 160k...that would still leave a potential profit of 16k if the current fair market value is 176k...even if you sold it for 170k after expenses you would still probably clear close to 7k...which would come in pretty handy in keeping you in diapers,formula,clothes,crib and strollers for the baby you're expecting.Like you said yourself the house needs nothing really doing to obviously that cant be used as angle to put in too low of an offer and the person you have whos a cash buyer looks for houses that need a lot of work doing to them so he obviously uses that as a means to get houses cheap in the first place so he can make a profit later on....having said all that the fmv is still 176k and putting in an offer at 160k is not really an insult....the worst that could happen if you put the offer in is that he will say no...if thats the case leave your details with him and just give him a call once a be honest i cant see anybody rushing out there to pay him the 192k he wants when the fmv is waaay lower...i think sooner or later he will cave in and take your offer..after all he doesn't have much choice and needs to get rid of the for trying to get the house rented or leased out that could be pretty risky due to the $1600 a month someone would have to pay...thats a lot of money to pay for rent or lease.....i think it could be difficult to find someone especially if its in a small town with not many big high paying employers close by....maybe check into how long other houses have been on the market in the area and if they have been up for sale for several months and use that to your advantage to put in your lower offer or try and see if the mortgage payments could be drastically reduced somehow.....another possibility is to try and break up the house a little and rent out seperate rooms for say $400 a month instead of the whole house for $1600....if theres a college or university close by students would probably rent the rooms....

Taking Action isn't that Hard!!!!!

I sent out a bunch of mailers to homes I got off of and received a call from a gentelmen two days after sending them out!

Here's the down low:

Owner knew he was headed for financial trouble due to economy and business going bad(nightclub owner) so he reached out to lender who told him the bank couldn't help because all of his payments were being made. So he didn't make payments for three months and filed paperwork with lender to have mortgage reduced. He was outside of the bracket by $100 so he filed additional papers with lender to see if that would help. All of this took bout 3 months so he's 6-7 behind on payments at that point. He's made on payment to lender in about a year and it still hasn't gone to complete foreclosure yet.

-He is $11,295 behind on payments
-Payoff was 118k but now 133k with penalties and fees for not paying mortgage
-Had two mortgages on home but the second he apparently will not be penalized for or held accountable for...he says...don't know why? Anyone? says home value is about 136k
-1st mortgage payment is just under 700/mo. both loans were just over $1200/mo.
- He wants to stay in home but now is to far behind on payments and can't make up over 11k in back payments.
-Now that his 2nd loan isn't an issue he wants to stay in his home if possible because he can cover 700/mo.
-He understands I need to make money but REALLY wants me to let him stay in the home if the backpayments are made..don't know about that!!

Should I purchase subject to or lease option?? I keep finding homes with owners that need help but their monthly payment is either to high or they owe to much in back payments!! This sucks because its hard to find someone who can pay down over 11k or pay close to 2k in monthly payments.


From my view he will have to move out in order to give me a chance to make up his back payments. I could flip it to an investor but then it would be a short sale and hurt his credit for two years and I wanna make it a win win. WHAT TO DO WHAT TO DO??

bringing it back to the top

Any advice anyone?