Here is a story, please just read it through and let me know your thoughts in an email...Can it work in your area?
"Here's a story that illustrates how you make money with the cooperative assignment:
“Bob and Susan on a nice house in a nice neighborhood: three bedrooms, fenced in yard, good primary and intermediate schools within walking distance, not far from shops and the post office. So Bob and Susan are trying to sell their house, and have had it listed with the agent. The agent hasn't brought any buyers by over the last six months that have been able to get bank financing. In fact the agent is no longer an agent and working in a different field. Bob and Susan are very disappointed with the real estate process so far. Bob has to go out of the area because his job requires some to go to another office in another city out of state. Susan is really stressed out about their situation, trying to time everything with the kids changing schools, and kid’s friends missing their children.’
Kathy Richardson owns a business called a business called www.TampaHomeSolutions.com which focuses on helping sellers sell their home using the Cooperative Assignment Instruction.
Kathy sat down with Bob and Susan, and explained that there is a possible solution for selling their house almost immediately.
And the solution involves getting a tenant buyer in their house as soon as possible to pay all PITI (principle interest taxes and insurance) costs.
Kathy reviewed the financial information on Bob and Susan's house, and was relieved that there was a fixed rate mortgage on the house, not an ARM (adjustable rate mortgage).
When there are fixed mortgages, Kathy explained, the cooperative assignment service works really well.
ARMs do not.
Bob and Susan were excited that Kathy could quickly solve their problem, not getting them cashed out quickly, but making sure that their cash flow every month would not be jeopardized, as long as Kathy could get the numbers to work.
Kathy got to work quickly after the paperwork was filled out on the Seller’s side of things.
• She created a flyer for Bob and Susan's house, • placed a webpage on her Tampa finance homes website,
• and did other marketing to find tenant buyers that could afford Bob and Susan's house.
A few days later, Kathy got a phone call from Ted and Beth, and they were interested in this house of Bob and Susan's. Kathy explained to Ted and Beth that her job was to totally understand their own unique financial situation, so that she could get quickly approved.
She needed to run a check on them, which they would need to pay for. This home would be financed for them through a rent to own or lease option, and even if they had credit problems in the past, they would be able to build a equity fund so that a mortgage company would lend them an 80% mortgage in the near future. In order to enter this financing plan, they would need 3% of the market value of the property, or $6000. If they didn't have the full $6000, Ted and Beth could have 50% or $3000 finance at 12%. A property inspection has been done on the house and can be reviewed once credit has been checked, a fee of $40 will be necessary to check credit reports.
Kathy was patient with Ted and Beth, having them both on the phone at answering their questions, preventing any confusion. After the phone call, Kathy checks credit reports on Ted and Beth, after receiving their credit card details for the $40 background check.
Kathy called Ted and Beth in that to let them know the good news in that their credit and financial information had been approved, and the next stage they needed to prove that they had the $3000 available in order to see the house. Kathy gave them her fax number for a print screen of Internet Banking to prove that they had the liquid funds.
Once Kathy received this, she called Ted and Beth to arrange a walk-through of the house. Then Kathy called Bob and Susan, and let them know that she had a strong candidate the house. When could she walk-through the prospective tenant buyers? Kathy finished the paperwork with Ted and Beth, collected her assignment fee of $3000, and her promissory note of the other $3000 at 12%, over 12 months, and then met with Bob and Susan, to go over this agreement with them line by line.
Kathy went to her own home, and had dinner with her family. She works more now on marketing new houses, and has plenty of extra time to enjoy her professional and personal life as a real estate investor.
• Kathy was patient with the owners, not hard selling or ‘pushy’, and was patient answering her clients’ questions.
• Kathy was cautious when qualifying the tenant buyers, knowing that many prospects are “tire kickers”, and will waste her time.
• Kathy received a $40 credit report fee up front on a credit card before allowing the Tenant Buyers to enter the house. • Kathy carefully verified the $3000 was available, knowing from experience that prospective customers many times do not tell the truth.
• Kathy did not give the keys to the tenant buyers until she met with the seller, going over the agreement line by line, and having them sign off that they approved the lease option agreement.
I hope you'll agree that this Cooperative Assignment mechanism of making money is simple, and effective, Sellers are in trouble—and are by necessity MOTIVATED-- and they can't sell because there's so many bargains out there, creating a world-wind of competition.
There is an old saying in real estate: lease purchase and lease options are created by trained professionals, they are not sold.
I am looking for AR opinions to how this Cooperative Assignmnet might work in your particular home seller market.
Brian Gibbons, http://LeaseOptionCoach.com Advice@LeaseOptionCoach.com