Getting Started on a Budget

Thanks very much for this information! It is a big help!

Karen

I would first like to say that all that you wrote makes sense, but the corrigated bandit sign work wonders for our business if you don't use these you can not catch the clients that don't have a computer, and or don't get a mailer. There are alot of people on the road these days. We do all of these but Bandit signs ROCK!!! So I recommend these if you are starting out! Questions are good Thats how you learn if you don't ask you will never know the answer. You defently need a web site to push clients to. Great info.Just do it and see what happens! Learn from your mistakes. People are looking for answers and are not going to cretic what your doing.So, you have to start somewhere and L/O are a great way to start. We have 3 now and they are bringing in about 250 a month cash flow does not sound like much but in about 8 months they will produce about 70,000 after closing. Great way to start and a Great way to run a Business!

Thanks John for the info!

Jay C

You bet Jay!
I use coro directional signs and they get things rolling for sure!
What I did find though, is as far as hand written bandit signs....bandit signs bring bandit buyers...no money, no credit.
BUT..BUT PLEASE understand..if standing on a street juggling bowling pins works...DO IT!!
AllI can do is say what I found did or didn't work for ME.
I got lazy for a year and didn't put out my super duper directional signs, and this month was slow for me for some reason. I put two out, and within 2 weeks picked up earnest money on 2 houses that will bring me $10k...SPECIFICALLY because of the directional signs....
Maybe I shouldn't be lazy.....

I just want every new investor to know that when I started out I could not afford to purchase corrigated signs I def wanted to keep my cost down so I have a Remodeling Business and I had some scap 1/4" plywood laying around and I cut them into 18"x24" bandit signs then went to the Home store a purchased a bright Flurecant Green paint and wrote on them and all the sudden my phone started wringing I had A Lead sheet with questions to ask. Thats how things started for me and I will be honest this is a part time gig for me but It will soon be a Full time GiG soon. I Love this business. Now we do have a web site we do, do mailer we do Probates and L/O but you have to start somewhere and get your feet wet. So why not put out a bandit sign take a call and build your confidence that what is all about!!

Good Luck
Jay C

John, thanks for the information as this really helps alot. What about in Texas with Lease Options as investors seem to stay away from L/O in Texas. Please advise on why this is and which contracts do you use for L/O's. Do you use a particular title company or lawyer for your transactions? I look forward to hearing from you.
Best Regards,
Joseph Latu

5 years ago the legislature in TX addressed LO's thanks to some crooked investors and lobbyist from Acorn. The original draft of the law was horrid, but was amended before it was passed. But, it didn't matter, because the rumor mill had already started, and most people didn't read the final bill. So....a lot of people think they are illegal, which they aren't. Which is fine with me I guess...more business for me! HA!
I have specifically drafted contracts and we only need a title company when we go to close the deal, but we have the financing in place so when we get the tenants ready we take them to finance and there are a couple of title companies we'll use, but the title company doesn't really matter.

This really helps as I just started taking action finally over 3 months ago and I as other investors in Texas thought l/o were illegal. Time to go out and make things happen. All the best! Joseph

That a lease option contract has to be updated every 180 days in Texas to be legal?

No, the 180 days refers to certain statutes not relating to a LO that is less than 180 days. The reason..TREC has a temporary lease agreement that can go up to 180 days, so the legislature...visited by TAR lobbyist...put that clause in...It's actually amazing the rumors...(PLEASE believe me..it's not your fault!) about LO's. One source of these rumors...Attorneys that sell land trust courses!!!!! Hey...I can't make this stuff up!
Now, I only do assignments and our docs are 22 pages long, strictly for CYA, so you can't use generic docs.

How just about every investor I've discussed L/O's with in San Antonio automatically puts up a cross with their fingers when I say Lease Option or think I'm Kobe Bryant and fear has set in instantly...lol

Thanks to you John, I can move forward with L/O's in San Antonio as I have not yet done a deal and was very hesitant with L/O's due to those huge rumors going around here, but now I have the facts and I'm ready to fly and be a passenger on your plane.

I'm thankful for your help John and once I build enough capital, I'll be sure to take your class to better run my system and meet you as well.

Many Thanks,
Joseph

Is 22 pages really needed for a lease option? I can understand the need for CYA, but with prior experience as a property manager, our documents through TREC were rarely beyond 8-10 pages, and covered every facet.

As I am literally new to REI, I am trying to absorb as much knowledge as I can, while building my investor lists over the next week.

On a side note, how much experience have you had involving assigning contracts? I ask because this is probably going to be my starting point, however if I can find the right deal with OPM in play for a nice single family home to hold and cash positive on its own, then having some additional knowledge on L/O's would certainly be great.

My area is Austin / Cedar Park area currently... looking forward in building professional relationships with others here in Texas.

Best,

Mark Rasmussen

I am really gratefull to be able to come to this site and see all of the helpfull information. I'm in the process of setting up everything and looking into the signs and the answering service. It surely a little overwhelming, however, I'm sure it will definatley be worth.

Thanks DG Family,
acookNOC

I have read so many great threads re: LO's and I try to pick up the little nuggets each one provides. You mentioned the forms you use and the fact they consist of 22 pages. I as well as the other "virgin" investors reading this would be very interested in looking at samples of your extra CYA paperwork. Your information and your desire to help us get on the right trac is greatly appreciated.

Now comes the embarrasing newbie DA question: You mentioned title companies and a formal closing, and I did not realize a formal closing was required. "Dang brother, maybe you shouldnt have said that". Anyway, I am just trying to sort things out.

Steve

Lots of useful info and tips found in this thread.

Thanks John !

Randy Sherman
Elkton MD