ponyfire
22-09-2005, 10:06 PM
Hi Guys
I have been searching for somewhere to rent when a message popped up on the email from these guys. They asked for a 'dream' property, any price range, that we would like to buy. My fiance and I had already considered one before changing our minds and deciding to keep renting and buy IP's instead.So I sent them the details, this is their scenario:
Does it sound safe for all three parties concerned?
Is it a good idea from their point of view as an investment?
Please keep it simple for me
Cheers
Pony
'Dear Robyn,
Thankyou for your reply.
I will try to explain to you how we can secure properties for people
that do not qualify for a loan at the time of wanting to buy a property.
I rang the agents "Chris Brennan of Elders". The agents told us that
the owners want $550,000-00.
I had a look on the website of this property. I think that it is well
overpriced.
Properties are not selling well in this area. They have many
properties for sale in that area and the owner wants to move up to
Queensland. He is moving because of his work which is now moved to
Queensland.
This is a good sign for you. He will most likely want some cash to buy
in Queensland, which means he will want a deal, and if he gets urgent he
will and may accept any reasonable offer well below his asking price.
I thought that you could get a far better property than this one at
this price.
Do you intend to make this property an income producing property?
I believe that this property is a hobby farm.
You said that you approached them for a lease. Did you approach the
owner or did you approach the agent?
The agent would have naturally said NO! Most real estate agents have
never learnt that we can do things that can be more suitable for both the
buyer and the seller instead of a "snatch and grab raid" with whoever has
the cash in hand.
Now we operate this way. We actually control the properties with a
"lease option to buy" at any length of time we desire that suits our
purpose. When we find a buyer that wants this property, we then can assign
it to the buyer.
For example. (1). We make an agreement with the owner for the
purchase price. (2). Then we agree on a lease payment price per month,
part of which can become a credit towards the purchase price. (say $800-00
per month in lease payment of which approx $350-00 is your credit payment
towards purchase.)
You can lease it for a period of time of say, five years or less. This
period of time is made and agreed on by both parties. Then somewhere during
this period of time you can exercise the option that you have, and in most
cases by this time you will have qualified for a loan from a lender and you
can now pay out the loan to the owner and it is all yours. This option is
made to suit both the owner and buyer.
All the contracts of leasing with a "lease option to purchase" are
made at the very beginning.
The way that you qualify for a bank loan is done in this way.
. At the beginning of the deal all the contracts are signed and in
place.
There is an option guarantee that has to be paid of say, one or two
thousand dollars that also comes off the purchase price at the time when the
option is exercised.
However if the option is not ever exercised during the time that has
been agreed upon, all of the money goes to the owner and is non refundable.
At the beginning of the deal, the price of the property is pegged.
This normally qualifies you for a home loan, and if it is a first home
loan, you can get the Govt grant of first home buyers.
WHY RENT TO OWN WITH AND OPTION TO BUY? HERE'S WHY!
1. You get faster equity growth.
2. Rent money is working towards the purchase of the home.
3. Option deposit is 100% (this is only a guarantee only, whatever
you are prepared to put down as a guarantee of your sincerity, but is not
refundable if you should not exercise the option to buy at some time during
your chosen time of the option. Credited towards the purchase of the home.
4. Minimum cash out of pocket to control this home.
5. Frequently no bank deposit needed at exercising the option.
6. Sale price of the property is locked in.
7. Profits from appreciation in land value.
8.Time to "kick the tires" improve credit and /or find the best home
loan.
9. Supreme privacy.
10. You can move in immediately after the contracts are signed, not a
three months waiting time, in most cases.
I spoke to the agent and he has never heard of this "lease with an
option to buy".
It would be good if you could somehow approach the owner and tell him that
you are interested to buy his property but that you will need a bit more
time. He may say go and speak to the agents. You can tell him you have
something in mind that may suit his situation and yours too. If we could get
him to understand how this "lease with an option to buy" works, it could be
much more in his favour as well. If he wants cash in a hurry he may very
well have to drop his price very drastically.
I wonder if it is possible that you could ask him to talk to me, and I
could explain it all to him and I will do all the negotiating for you and we
could have a really good Win-win situation for all concerned.
I have all the contracts that need to be signed.
We could make it far better for all concerned. It is just a pity that he
will have to pay approx $15,000-00 or $20,000-00 in agents fees and
advertising costs. Plus if he wants to sell immediately for cash he could
lose another $100,000-00 by having to reduce his asking price.
It would be good if you could give me your contact phone as well.
I would like to email you most times, so that you can think about
things in your own time, and there is no pressure to respond.
If you could let me know your thoughts on what you would like to do
regarding this property I would like to know so that we could know your full
intentions and go from there.
Regards Kevin and Wendy.'
I have been searching for somewhere to rent when a message popped up on the email from these guys. They asked for a 'dream' property, any price range, that we would like to buy. My fiance and I had already considered one before changing our minds and deciding to keep renting and buy IP's instead.So I sent them the details, this is their scenario:
Does it sound safe for all three parties concerned?
Is it a good idea from their point of view as an investment?
Please keep it simple for me
Cheers
Pony
'Dear Robyn,
Thankyou for your reply.
I will try to explain to you how we can secure properties for people
that do not qualify for a loan at the time of wanting to buy a property.
I rang the agents "Chris Brennan of Elders". The agents told us that
the owners want $550,000-00.
I had a look on the website of this property. I think that it is well
overpriced.
Properties are not selling well in this area. They have many
properties for sale in that area and the owner wants to move up to
Queensland. He is moving because of his work which is now moved to
Queensland.
This is a good sign for you. He will most likely want some cash to buy
in Queensland, which means he will want a deal, and if he gets urgent he
will and may accept any reasonable offer well below his asking price.
I thought that you could get a far better property than this one at
this price.
Do you intend to make this property an income producing property?
I believe that this property is a hobby farm.
You said that you approached them for a lease. Did you approach the
owner or did you approach the agent?
The agent would have naturally said NO! Most real estate agents have
never learnt that we can do things that can be more suitable for both the
buyer and the seller instead of a "snatch and grab raid" with whoever has
the cash in hand.
Now we operate this way. We actually control the properties with a
"lease option to buy" at any length of time we desire that suits our
purpose. When we find a buyer that wants this property, we then can assign
it to the buyer.
For example. (1). We make an agreement with the owner for the
purchase price. (2). Then we agree on a lease payment price per month,
part of which can become a credit towards the purchase price. (say $800-00
per month in lease payment of which approx $350-00 is your credit payment
towards purchase.)
You can lease it for a period of time of say, five years or less. This
period of time is made and agreed on by both parties. Then somewhere during
this period of time you can exercise the option that you have, and in most
cases by this time you will have qualified for a loan from a lender and you
can now pay out the loan to the owner and it is all yours. This option is
made to suit both the owner and buyer.
All the contracts of leasing with a "lease option to purchase" are
made at the very beginning.
The way that you qualify for a bank loan is done in this way.
. At the beginning of the deal all the contracts are signed and in
place.
There is an option guarantee that has to be paid of say, one or two
thousand dollars that also comes off the purchase price at the time when the
option is exercised.
However if the option is not ever exercised during the time that has
been agreed upon, all of the money goes to the owner and is non refundable.
At the beginning of the deal, the price of the property is pegged.
This normally qualifies you for a home loan, and if it is a first home
loan, you can get the Govt grant of first home buyers.
WHY RENT TO OWN WITH AND OPTION TO BUY? HERE'S WHY!
1. You get faster equity growth.
2. Rent money is working towards the purchase of the home.
3. Option deposit is 100% (this is only a guarantee only, whatever
you are prepared to put down as a guarantee of your sincerity, but is not
refundable if you should not exercise the option to buy at some time during
your chosen time of the option. Credited towards the purchase of the home.
4. Minimum cash out of pocket to control this home.
5. Frequently no bank deposit needed at exercising the option.
6. Sale price of the property is locked in.
7. Profits from appreciation in land value.
8.Time to "kick the tires" improve credit and /or find the best home
loan.
9. Supreme privacy.
10. You can move in immediately after the contracts are signed, not a
three months waiting time, in most cases.
I spoke to the agent and he has never heard of this "lease with an
option to buy".
It would be good if you could somehow approach the owner and tell him that
you are interested to buy his property but that you will need a bit more
time. He may say go and speak to the agents. You can tell him you have
something in mind that may suit his situation and yours too. If we could get
him to understand how this "lease with an option to buy" works, it could be
much more in his favour as well. If he wants cash in a hurry he may very
well have to drop his price very drastically.
I wonder if it is possible that you could ask him to talk to me, and I
could explain it all to him and I will do all the negotiating for you and we
could have a really good Win-win situation for all concerned.
I have all the contracts that need to be signed.
We could make it far better for all concerned. It is just a pity that he
will have to pay approx $15,000-00 or $20,000-00 in agents fees and
advertising costs. Plus if he wants to sell immediately for cash he could
lose another $100,000-00 by having to reduce his asking price.
It would be good if you could give me your contact phone as well.
I would like to email you most times, so that you can think about
things in your own time, and there is no pressure to respond.
If you could let me know your thoughts on what you would like to do
regarding this property I would like to know so that we could know your full
intentions and go from there.
Regards Kevin and Wendy.'