Curious; Are There Any David And Peter Students Here?

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Are you a Student of David Finkel and Peter Conti? Have you purchased 1 or more properties with their system?

I would love to talk to you! Myself, I am using their methods, I love Purchase Option INvesting. Pretty exciting stuff.

MarkB

Comments(16)

  • tex647th June, 2004

    Mark,

    I am currently reading 2 of their books and I am going to start in the Purchase Option Investing. I have talked at length with there mentor staff about joining, but I just don't have what they are asking to join up. It looks and sounds great, but it is pricey.

    Just my $0.02 worth.

    John

  • MarkB7th June, 2004

    Have you gone out and spoke with any sellers yet?

    If so, what sort of response did you get?

    Mark B

  • jeff1200210th June, 2004

    MarkB,
    Personally, I would not recommend Purchasing properties using Lease Options. It leaves too much out of your control. It is a much better tool to use when selling.

    There are in my opinion better ways to acquire properties that give you control of the property. You should strive to own the property. No seller changing their mind after a few years, No seller further encumbering the properties with liens etc. It's just too dirty of a transaction for me.

    Just my opinion,
    Jeff[ Edited by jeff12002 on Date 06/10/2004 ]

  • MarkB10th June, 2004

    I ofcourse disagree, mainly with the assumption this is all I do as an Investor!
    In adition, Purchase Option Investing like man other methods of investing has its advantages and disadvantages.
    However, it is by far one of the easiest ways for Investors with little to no capital to get started. But, then thats now why I think it is so exciting.
    I think its so exciting because of the way sellers feel Like I am doing them a favour and are excited that finally they can sell their property.

    Another exciting this is finding Agents that are now so open to it.
    Anyway, since my thread was about finding if there were any students of Peter Conti and David I take you are not
    I guess to each His own, for me I happen to like this, so I have added it to my arsenal.

    Mark

  • jeff1200210th June, 2004

    MarkB,
    Good for you. You unlike over 90% of those that get information seem to be putting that information to work, and I congratulate you for that.
    I do consider myself a student, as their material is in my arsenal of information, and I have read it, and learned what they had to say. I have simply chosen not to use it to purchase properties, for the reasons I stated above.
    I have proposed purchase options on occasion. When I have decided that I'm not prepared to commit to the property personally. My experience is that If I'm not prepared to commit to the deal personally, I do everyone a better service by walking away from the deal. This is just my opinion, and my experience. Your situation is obviously different than mine.
    I didn't understand when I first responded to your post that you were only interested in opinions that are in agreement with yours.
    Much success to you,
    Jeff
    [ Edited by jeff12002 on Date 06/10/2004 ]

  • HomeSelling10th June, 2004

    I don't know how many sellers in hot markets are going to sell on an option. Certainly not my market. On top of wanting a large option fee. Sure i coulf buy options, but it will be from other investors wanting some cash flow, not your average home owner. On top of that you will be paying more then what the property is worth in an allready inflated market. Just my 2 cents.

  • MarkB10th June, 2004

    Thank You both for you expressed feelings.
    In responses to Options working in a Hot Market. I must disagree with that assumption. Every Market including Hot Markets have people that find themselves in financila binds. Financial binds are not only or caused by areas where the economy is bad.
    I have come accross oportunities where people became motivated sellers due to financial stress or circumstance.
    Also in every market there are properties that are more dificult to sell than others. This alone presents opportunities ripe for this method.

    Though it may be more effective in other areas because of Market, it doesnt mean it is not effective or useable in others.

    But Hey, I am always open to new ideas and or better ways.
    SO what is your favorite method and How many properties have you pruchased with it?

    Mark B

  • maxwellpropertyinvestment10th June, 2004

    I use this tool often and if structured properly it works great. Keep all your ducks in a row and escrow the necessary documents and it does work. You do not have to own the property to make money. You do however have to control it.

  • MarkB10th June, 2004

    Well said, and I agree it does work.

    I would love to have a look at your Purchase Option agreement/Contract!

    Ofcourse one that wasnt filled out :-D

    If you dont mind sharing that is! I am trying to get a feel for the things I might be overlooking.

    Mark

  • mitnick22nd June, 2004

    MarkB,

    I have read all three of Conti & Finkle's books, 3 times each. They are truly great books. I Have yet to actually purchase as of yet, i'm a cautious fellow however, they are "in my humble opinion" on the for-front of some exciting creative strategies!

    Send a message my way, love to talk more.

    Eric

  • dealfinder22nd June, 2004

    MarkB,

    I have used Purchase Option Investing and continue to use it as one of the many ways to acquire property.

    I both agree and disagree with Jeff's comments. I agree that it does have some risks involved (i.e. future liens on property because of action or inaction of seller, seller gets cold feet down the road, etc.). I disagree that it is a "dirty" type of deal.

    Make sure you protect yourself. Subscribe to something like DataQuick for your research of the property, get the right forms to use (David & Peter sell them on a CD-Rom seperately without having to purchase them with an expensive course.) Study these documents and have your attorney look them over for your specific area and needs.

    I use an escrow company to record all the documents including a Memorandum Of Option which clouds the title. Some think I'm foolish to spend the money to have an escrow company perform the signings and recordings. Well, to each his own, but it works wonders for me. The Sellers are treated to a formal signing with escrow instructions and the legality of the documents are disclosed. I have not had a Seller get cold feet and I believe it is because my closing is of a formal nature.

    In answer to your original question, yes, I do use Purchase Option Investing as one of the tools in my arsenal. It has been successful for me.

    BTW, I just acquired a property using a lease option and I already have interest from two families who are willing to lease option allowing me to recoup a little more than my option fee and will give me a $200.00 positive cash flow monthly. My agreement allows me to do this as I may sublease the property, or any portion thereof, at my sole discretion throughout the term of my agreement with the Seller. I am now in the process of tenant/buyer screening to determine which family is the better risk. Good Luck.

    Dave

    _________________
    "Opportunity is missed by most people because it is dressed in overalls and looks like work." (Thomas A. Edison)[ Edited by dealfinder on Date 06/22/2004 ]

  • dealfinder22nd June, 2004

    MarkB,

    Also one of your posters says that you will have to pay more than the property is worth and he feels he couldn't use it in his area because of the market in that area. He certainly is entitled to his opinion and obviously does not feel comfortable with or convinced of the method.

    The property in my previous post is in the So. Calif. market in an area that is appreciating at a rate of 21.6% per year. The option price that was negotiated with the Seller is $35K less than today's Fair Market Value. It does need about $2,500 to $3,000 in cosmetic fixup (paint, carpet) which will leave me at $32k below today's market. Remember my option is for 5 years.

    How did this happen? The Seller was very motivated due to a relocation. He was running out of time and felt this would work for him and solve the problem. I have title insurance on the property at close and I will cash him out within 2 years in all probability. It didn't hurt that I gave him enough of an option fee to cover his moving expenses and thirty days worth of "breathing room" once he got to his new home.

    Dave

    _________________
    "Opportunity is missed by most people because it is dressed in overalls and looks like work." (Thomas A. Edison)[ Edited by dealfinder on Date 06/22/2004 ]

  • jeff1200222nd June, 2004

    Please let me qualify one of my earlier statements. When I referred to it as a "Dirty" transaction, I in no means meant to imply that there was anything underhanded, or dishonest about it. What I was trying to imply was that there are potentially lose ends that can impede the deal along the way.
    Sorry if there was any confusion,
    Jeff

  • Stockpro9922nd June, 2004

    I have not used the P.O. method but have gone thorugh their books and bought their course on apartments. Very interesting and straight forward, there are the possibility of some complications but this is true with almost every method smile
    [addsig]

  • dealfinder23rd June, 2004

    Jeff,

    I knew perfectly what you were trying to say when you said it was a "dirty transaction" for you and I can appreciate your opinion. No offense was taken and your point that there is some risk was well taken.

    The biggest fear is that the Seller will cause judgements or liens to attach to the property. That's why I look at the Seller's track record on his credit and if there are any collections, prior judgements, etc. in his/her past I don't consider an L/O.

    Another thing, every technique for creative financing will have some risk to it. If you do your homework, understand the risk involvement, have good exit strategies, and are comfortable with the risk, then you'll use a particular technique. Not every method or technique is going to be used by every investor. Good Luck.

    Dave
    [addsig]

  • jeff1200223rd June, 2004

    Dave,
    You and I both understand that, and I can't disagree with your points. Choice is a wonderful thing, and variety is the spice of life. I just wanted to try to avoid confusing a new investor that might read this while they are still trying to figgure things out for themselves.
    Best wishes,
    Jeff

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