So recently I was chatting with my bud Brian about one of his deals…

(You may remember brian from my “Pink Bath, Buyers Out the Wazoo” case study a while back – he’s a short saler, rehabber and darn fine transactional lender.)

…and he was sharing with me about his own personal policy with contractors and the contractor lien waiver.

Brian’s deal is, once the work is done, his contractors don’t get their check until they first hand him a signed contractor lien waiver, which protects him (should things go cross-ways in the future) from them slapping an unwarranted mechanic’s lien on his property.

Admittedly I’m embarrassed to say it, but I have never done this.  I admit it, I’ve been too lazy.

Brian reminded me that, in the same way someone doesn’t necessarily need a viable case against you to bring all hell upon you with a frivolous lawsuit, likewise an unscrupulous contractor could easily bring you a world of hurt with an unwarranted mechanics lien.

Truth be told, I didn’t even have a contractor lien waiver in my forms folder.  I also had a few personal questions about how Brian deploys use of the contractor lien waiver in different situations, so I asked him if he’d kindly hop on video chat with me and let me record a quick Q&A with him about it – plus walk me (us) through exactly how he fills it out.

Happily he obliged, so here we go…

Contractor Lien Waiver – How to Fill Out and Use

Contractor Lien Waiver – Free Form Download

Brian his graciously allowing his contractor lien waiver to be added your own personal forms arsenal. You can download it here.  I’ve also recently added it to my zip file of free forms.

Bottom line, a contractor lien waiver should be standard issue for every real estate investor’s forms folder, and your standard operating procedure whenever dealing with contractors. Use it.

Oh and By the Way…

I’d be remiss in now sharing that Brian offers a killer deal on transactional (one-day) deal funding also.  In all 50 states.  I wholeheartedly recommend him and regularly send folks his way.  You can find him at www.CashForMyClosing.com 

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Well regardless of the fact that I freely give away my package of 53 REI forms, I’ve never had a Master Fee Agreement in my Pile-O-REI-Forms up to now.  Not surprising since I’ve never done a bulk REO deal, but still, I figured I’d do a little looking around to see if I can find one somewhere and see what it’s all about.

Score!

I actually zeroed in on two of them.  And what’s better, they’re in the “public domain”, which basically means I can freely pass them on to you guys directly.  (I got mad internet skillz, I tell ya. 

So I say why not go ahead and download these bad boys and add them to your arsenal of REI forms?  You never know when one of them might just come in handy sometime…

…for that random Bulk REO deal you end up brokering…

…for that random $400,000 cut in hip national bank. 

• Click here to download “Irrevocable Master Fee Protection Agreement” #1…

• Click here to download “Irrevocable Master Fee Protection Agreement” #2…

And if Bulk REO is a sexy topic for you, here’s an interesting webcast on Bulk REOs you might want to check out…

Take care!

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* Note: There’s a fresh, hot and tasty FREE REI form waiting for you at this end of this here article.

So I was reminded recently of an important tactic I learned way back in my first year as an investor.  It’s a handy maneuver that has saved me heaps of time, money and hassle since I first learned it, and one you’d do well to have in your bag-o-tricks also, whether you’re a “keeper” or a “flipper”.

I’d like to share with you my own spin on it, along with the paperwork I use to make it happen. But first here’s the email I got from a local investor (Steve) that’s inspired me to share it with you…

So yeah, without a doubt one of the toughest issues any landlord deals with on an ongoing basis is dealing with deadbeat tenants with as little pain and loss as possible.  And truth be told, “tough” doesn’t quite cut it – it’s more like ridiculously miserable much of the time.  (My fellow landlords…can I get an amen? )

Even non-landlord investors will face this one from time to time. Let’s say, for example, you snag a killer deal, yours for a song…provided you solve the tired landlord’s real problem by taking over his deadbeat tenant so he doesn’t have to deal with the shyster anymore?  It happens. I’ve done it.

So when it’s time to finally cut the apron strings, what’s the next logical step most of the time?  EVICT. And sadly, evictions are nearly always expensive, time consuming, and exhausting.

But…Could There Be a Better Way?  (Hint: Yes)

One of my early mentors shared an eviction alternative with me years ago that, when you can pull it off, frankly beats the pants off wrangling an eviction.  But admittedly, it involves a little pride swallowing that can be challenging at times.  (And no, you can’t just turn the power off or remove the front door…but oh, a guy can dream…)

It’s called “Cash for Keys”.  And simply put, it’s when a property owner offers the occupants a cash incentive to avoid eviction and surrender the property quickly instead.  In other words:

“You give me house, I give you money…OK?”

Now I can hear some of you already…

“Noooooo waaaaaaaay!  Why in the HECK would I want to PAY someone to leave MY property???…Some deadbeat who OWES ME money and doesn’t have the DECENCY to even act humble about it??? Why I oughta…”

There’s No Crying In Baseball!

Look, I get it – I really do.  I’ve been there myself more times than I care to admit.  It actually hurts to even imagine the ridiculous injustice of rewarding that kind of behavior.  But get over it.

Look, you’re running a business here, right?  And in the end, aren’t you really just trying to turn profits and minimize losses?  The fact is, if you can set your poor hurt feelings aside for a moment and think clearly, you’ll see it’s almost always be a better deal for you to pay them to leave than wading through the muck of an eviction.

See if this convinces you…

Clear Advantage #1: Weeks vs. Months

In my area, a full eviction and set-out takes 60 days at minimum– and in many areas it’s a lot longer.  If you’re unlucky enough to have a “professional tenant” on your hands (someone who really knows how to work the system) then you have literally months on top of painful months to look forward to enduring.

My “Cash for Keys” offer dictates that time is absolutely of the essence.  I’m shooting for a week – two tops – for them to be totally moved out, leaving the place in “broom clean” condition for me.  And trust me, reclaiming your house in weeks rather than months helps a lot in easing your hurt pride over the whole thing.

Clear Advantage #2: Hundreds vs. Thousands

In my area, even if I handle an eviction myself (which I don’t recommend), I’ll end up spending $500 – $700 to make it happen.  Hire an attorney (which I do recommend) and you’re over around $1,000 – $2,000 or so.  And then of course, for every month you’re dealing with this, receiving no income for your property, you’re still on the hook for those mortgage payments, aren’t you?

The collective bottom line for a full eviction will almost always be in the thousands…much costlier than the $500 or $1,000 your tenant would likely settle for quickly.  Think about it.

Clear Advantage #3: An Non-Trashed House

Remember, part of the deal is they have to leave the house in “broom clean” condition.  Either that or no dice.  Compare that to the tenant who elects to steal all the copper, knock holes in the walls and smear his dog’s poop inside the cabinets on his way out the door…

(…Yeah……trust me, if you’re a landlord and that post-eviction scene isn’t a familiar one to you yet, it’s a matter of when not if…)

Cash for Keys gives me the leverage to help keep budding, expensive temper tantrums at bay.

How to Say It

First off, don’t go in with guns-a-blazing.  No matter how injured you feel or how much it hurts to offer your resident deadbeats your hard earned cash to leave, you need a level head when you approach them.  Find your inner Zen monk or put on your best thespian face or whatever, but do what you can to “come along side” them rather than remaining emotionally charged opponents.

The idea is to try and help them see what a good deal it really is for them, and my own conversation typically goes something like this:

“Look…let’s be honest…this isn’t working out.  I know we’re both smart enough to see it’s time to part ways.  Now I’ve got a powerhouse eviction attorney who’s really good at what he does…but I know we’d both rather avoid all that if possible. That kind of thing can really haunt you for a long time.  So here’s another idea, and I think you’ll be happy it’s a win/win:

Today’s Monday…if you can find a new place to live and move totally out in one week, then I’m willing to cancel what you owe me up to now, and even offer you five $100 bills.  I’m willing to do this because, frankly, evictions are a hassle and I’d rather get a new tenant in here sooner rather than later.  And it’s a great deal for you, because you get a fresh start quickly, debt off your shoulders and some cash to help you get restarted.

So again, (restating for clarity) what I’m offering here is, if you can move out in one week and leave the property in “broom clean” condition when you go, then I’ll forgive your past due rents and pay you five hundred bucks to boot.  Would that take a weight off your shoulders and make things a little easier for you right now?”

Now I don’t use a script or anything, but it typically goes something like that.  The main thing to remember is to NOT be confrontational, no matter how you may feel, and to point out exactly how and why this is a better deal for them.

How to Prove It (And Cover Your Butt)

You need to document this to make it formal and binding.  It spells everything out in plain English and keeps everyone somewhat more accountable.

I happen have a form I’ve used for just such an occasion and I’ll gladly share it with you, with the disclaimer that, 1) it comes to you “as is”, 2) should be used at your own risk, and 3) is not to be construed as legal advice.  Please consult your attorney before using it.

Here’s a short video I made walking through this agreement…

OPTION 1: Click here to download my “Standard Cash for Keys Agreement” (MS Word)

OPTION 2: Or click here to get all 53+ of my personal REI Forms…Free (ZIP file)

Now it’s true that eviction is sometimes necessary.  If you have an unpaying tenant who’s also unwilling to cooperate for some reason, then unfortunately eviction becomes a necessary evil you have to contend with.  But it’s also expensive, time consuming, often confusing, exhausting and often down-right gut wrenching.  Not for the faint of heart.

So I say, whenever possible, make Cash for Keys your FIRST line of attack, and you’ll save yourself heaps of headache, time and money more often than not.

So…what’s your take on this?

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So hey…here’s another one!

This one’s about a relatively “new breed” of option contract that’s become increasingly popular over the last few years – the non-exclusive, “flexible option”.

It’s actually an extremely simple agreement, and one that savvy wholesalers are increasingly using to open doors to new profits by tapping into flipping other wholesaler’s inventory of deals.

Some questions answered in this here video:

• What the heck is a non-exclusive, “flexible” option?
• How is it different from a regular real estate option?
• Any danger of practicing real estate without a license?  (Why/why not)
• What does this form actually give you, in a legal sense?
• Who’s really obligated and who’s not?
• Can you shop other investors deals to your buyers list?  If so, how?
• Can other investors use this to shop your deals to their buyers?  If so, how?
• What’s a good “option term” for a deal like this?
• And more…

Intriguing, say you?  Then watch the video, says I!  Arrrrgh!

http://www.youtube.com/watch?v=-wj4c1Y6eUQ

The Originator…

The original “Flex Option” is a concept conceived and born (and now trademarked ) by Tim Mai of DoDeals.com. ANd while the “Non-Exclusive, Flexible” Option here is along similar lines to Tim’s, there are also some key differences.  For starters, Tim offers one Flex Option for Wholesalers and another for Owner Financing deals.

But credit should be duly given to Tim for being the first mad scientist (that I know of at least) to really come out witha form like this, and start teaching people how to use it to wholesale other people’s deals.  You did a good thing, Tim.  Thanks!

Also, in order to get Tim’s two flex options, you historically had to be a student of his full blown REI course.  But he actually shared with me via email that  both of his original Flex Options are now freely available to his premium dodeals members.  So if you want Tim’s original Flex forms, go check it out!

Other Quick Stuff…

• You can download the “non-exclusive, flexible option” by itself here…
• If you already have my packet of 53 free REI forms, yes, you’ll find it already inside (under the buy/sell folder).
• Very special thanks to my buddy Erik Stark for being our guest start in this “REI Undressed” episode.  And again, thanks to Tim for the popularizing the original concept!

And yes, I’d really love your honest feedback on this one please.  After you watch/download, please leave a quick comment with your own thoughts or questions below. Thanks in advance!

PS – If you enjoyed this free video form, you can say “thanks” by voting for me in the 2009 REI Battle of the Blogs!

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Honestly this is one of the handiest little forms in my new tenant packet.  Basically it restates a handful of crucial items from the lease, and does it in plain English so I KNOW we have a crystal clear understanding.

Step 1: Watch the Clip

In this short little video (from Starbucks after just having signed up our most recent tenant) I’ll walk you quickly through it, explain the purpose and mindset, and my personal approach I take when explaining it to the tenant.

Enjoy!

http://www.youtube.com/watch?v=Bk7xZDE0fSM

Step 2: Download it, Use it

You can click here to download (and freely use) this form yourself…

Keep in mind, it’s also already included in my packet of 53 free real estate investing forms (which you should download for yourself if you haven’t already).

Step 3: Comment, Share, Pay it Forward

Within a couple of hours of uploading the above video, I already had a couple of comments on my YouTube account about it…

Deviant6969 has made a comment…
I have been giving a early discount on my homes and it works great. I also include that they cannot call me for anything under $50 in repair cost during that month, That money is to be used for those minor repairs, gas for your mower, etc.

bwingy has made a comment…
I have a dumb question it says rent can be dropped off in person then the next line says we do not accept payments in person.Can you explain that some or am I missing something with that.Great videos by the way!

And that’s before I even had time to post it here to REI Tips.  But it gave me an idea: Post your own Landlord Tips in the comments!

As always, I love getting your comments and follow up questions to the post.  But the one guy gave back with his own little tip in his YouTube comment.

So what about you?  Does this bring anything useful to mind worth sharing with the community here?  Then bring it!  Leave it in a comment below!  Pay it forward!

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Yep, that’s right, it’s time for another FREE REI form and video! Yay!

This one comes from my buddy and short sale sherpa Shaun – and actually I had to get special permission to use it, as it comes right out of the forms videos included in his full Short Sale Wealth Academy home study course.

This form is very similar in function to my Affidavit of Equitable Interest, but does have a few differences.  The video below explains it.

Key Resources:

• You can download Shaun’s Memorandum of Agreement here…

• If you haven’t already picked up my goody bag full of other forms, you can get ‘em now at FreeREIforms.com…
  

And now without further ado, please enjoy the free video…

http://www.youtube.com/watch?v=Mr4bxE5GFrc

Please share your comments on this below!…

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Yay!

In case you missed the others, you can back track ‘em here.

Today’s installment brings you my Assignment Agreement, which is in my opinion one of the most important core forms any real estate investor should have handy and ready to whip out at a moment’s notice.

Three Things You Should Do Next:

1) Start by downloading a copy of the form for yourself…

To do this, right-click here and select “Save Target As…” from the Windows menu that pops up.

Easy as A-B-C:

A) If you’re still unsure of how to download the form above, please click here to watch a short screen-capture video I made for you

B) If you’re a Mac user, then you’re on your own.  Just do whatever it is you Mac folks do to download stuff.

C) The form is in MS Word (.doc) format.  If you don’t already have MS Word on your computer, then Open Office should do the trick for you, and the price is right (free).

As always, I’m giving you a personal license to use this document in your own real estate business.  But please don’t sell it or give it away yourself. If you’d like to share it with someone please send them to this page to get it.

Why?  Because I’d like to give them the chance to become an REI Tips subscriber…just like you.

2) Enjoy these two “how to” videos…

Here’s my short, 2-part video walking through this form, how to fill it out and how I use it specifically.

I hope you find it useful, and I’d really appreciate hearing any comments you may have if you could please share them below.

Thanks.

Carving Up the Real Estate Contract Assignment, Part 1…

http://www.youtube.com/watch?v=TEmThcZaYXQ

Carving Up the Real Estate Contract Assignment, Part 2…

http://www.youtube.com/watch?v=ba6Gi74sS7Y

3) Tell me what you think!

Enjoy the videos?  Got some feedback?  Please comment below!…

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Today it’s my “Quick N’ Dirty” buying contract — specifically the one I use for wholesale/quick flip deals…and even more specifically when going “belly to belly” with an individual seller (i.e. non-listed property)

I think you’ll be glad to see it’s about as simple, plain-English and non-threatening as you can get.

Granted, it may not be the most comprehensive real estate contract around — but for that you can go to your local board of Realtors.  And from time to time you probably will.

But I like this one a lot because it’s notably lacking in bloat, but I find it gets the job done real nice for me.

1) Start by downloading a copy of the contract for yourself…

To do this, right-click here and select “Save Target As…” from your Windows menu.

3 quick things:

1) Here’s a quick screen-capture video I made demonstrating how to download the doc in Internet Explorer on a Windows computer.

2) If you’re a Mac user, then instead do whatever it is you Mac folks do to download stuff.

3) The form is in MS Word (.doc) format.  If you don’t already have MS Word on your computer, then Open Office should do the trick for you (and it’s open-source freeware).

Oh, and I’m giving you a personal license to use this document in your own real estate business.  But please don’t sell it or give it away yourself.  If you know of someone else who would benefit from this, please send them a link to this page so they can come here and get it themselves.

Why?  Because I’d like to give them the chance to become an REI Tips subscriber…just like you. 

2) Then watch the “how to” videos…

Here’s my short, 2-part video walking through this form, how to fill it out and how I use it specifically.

I hope you find it useful, and I’d really appreciate hearing any comments you may have if you could please share them below.

Thanks.

Real Estate Purchase Agreement, Undressed – Part 1

http://www.youtube.com/watch?v=gxjH0tPmRP8

Real Estate Purchase Agreement, Undressed – Part 2

http://www.youtube.com/watch?v=dlXOgUDUNHg

Technorati: Real Estate Investing, Free Real Estate Purchase Contract

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Ok, so if you heard my recent interview with Andy Proper about his Virtual Bird Dog Blueprint, then you may recall I promised I’d share my personal real estate option agreement with anyone who’d like to see and use it.

Then I decided to do one better and make a video about it, kind of running through the form itself, what different parts mean and how to fill it out.

Then it turned into two videos.  A combined factor of me being a bit too wordy and YouTube only allowing videos of up to 10 minutes.

I remember how intimidating real estate forms can be, especially early in your REI career.  There’s nothing all that hard about the option agreement, but I know a tutorial like this would have been a tremendous help to me earlier on.

So here’s the deal…

If you want to download and use two of my personal Real Estate Option Contracts I use in my own real estate investing business, please feel free.  Just right-click on the links below and choose “Save Targe As…” or “Save Link As…” (depending on whether you use FF or IE as your browser…and I don’t know what the heck it is for Mac users…sorry.)

Download 2 Free Real Estate Option Contracts…

Disclaimer: I’m not an attorney and am not attempting to give legal advice in any way.  Please use this form at your own risk.  By downloading it you agree to hold this site and it’s owners strictly harmless from liability due to your use of these documents.  Also you should consult your own legal counsel and real estate professional(s) before taking any action or inaction based on these documents or the videos below.  By downloading these forms and/or watching these videos you agree 100% with these terms.

1. Real Estate Option Contract #1 – “The Simple 1-Pager”
2. Real Estate Option Contract #2 – “The Still-Pretty-Simple-But-Slightly-Fluffier One”

Watch the Real Estate Option Contract Tutorial…

And here’s part 1 and part 2 of me sharing a few tips and pointers about using Real Estate Options in your real estate investing endeavors, as well as a walk-through of the first (1-pager) contract.

Hope you enjoy — and hey, I’m considering doing more like this and giving more forms away.  But I don’t want to do it if nobody really cares.  It does take some time, after all.

So please chime in with a comment about whether or not you found this useful and how much or little you’d be interested in more of the same in the future.

Thanks,

Real Estate Option Contract Undressed – PART 1

http://www.youtube.com/watch?v=rNo8m7VSDUM

Real Estate Option Contract Undressed – Part 2

http://www.youtube.com/watch?v=Av0Ebnte0Ew

Please comment below!

Technorati Tags: real estate option contract, real estate investing, free real estate forms, real estate option agreement

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