Creative financing for MLS properties?

Question

I had a question related to creative financing with mls listed properties. Has anyone had success negotiating creative financing with mls listed propedties, and if so what steps did you take in negotiating such properties...

John H. · Answer

Real estate agents (in my area anyway) are quick to discredit you if you mention owner financing...  In the beginning I had a lot of trouble...  I've spent a lot of time educating my current agent...  he just does as I tell him.  I used to get the same old line,  "they won't do owner financing"... I wanted it in writing though along with my offer that they rejected it.  A lot of times real estate agents aren't willing to present the seller with an owner financing offer, even though they are required to.

Brian Haskins · Answer

No, I haven't had any luck because the agent always is in the middle. I have had luck with recently expired listings, especially vacant ones.

Brian Haskins

Champak Shah · Answer

Hello Anthony-- First thanks for your service.
I strongly suggest --Assignments and Flipping or Birddogging for short term -cash flow.
Spend few days or weeks --go thorugh all the Articles in BP- about Wholesaling, List Building, and Finding Motivated Sellers -
Yes - Lease Option or Rent To Own --is viable altrenative with FSBOs. --but just Assign your Option Contarct to some one else and make $3000  fee --  many peopel do it full time 
and make $5000 to $10,000 per month --
Depends what city are you in ? total population  --- average home prices  -- blue collar workers -- etc 
Do not be afraid of paper work--once you do one or two --then it is all repeatation --  
Also many old folks --have --Free and Clear homes -- if you can negotiate selling with owner financed --low enough to Flip to other end buyer --make $5000 --

Do not get hang up on buying and renting --
 even $200 or $300 month positive cash flow possible on  REO -or  Fixer upper --but never know --unexpected major expense --

Since you are handy man --you can find Investor to do JV with --you can finn the deal and  offer to do repairs ( swet equity) for profit sharing and Investor put up cash or his credit and get hard money --
Make sure to haev an attorney and good agreements with anything you do.
By the way -Commercial Foreclosures coming 
soon --becoming an agent is easy --but getting listing and undrstanding numbers --evaluating NOI and cap rate etc may be tuff --unless you have  some friends (  from high school or college ) willing to take you on board and train -

Also suggets taking on some courses --may cost $3000 to $6000 one time --but worth it for 
fast track --cash flow

Good Luck --let us know how you make progress in 90 days --  stick to goals and work hard --

Anthony Larson · Answer

Bill the reason I never got in touch with you is because I volunteered To go to Kuwait and have been busy. This deployment would end until 2011. But I should be close to a bacheloras in Finance

Bill Gulley · Answer

Anthony, to be the First Sergeant, I'd have to give up my commission!

Paper work is more than a straight sale but not complicated with good documents and due diligence.

Realtors usually have one thing on their mind....commissions! Where does the commission come from in seller financing? A sale of 100K house with 10% down might only give the seller a couple grnad to walk away with and many times the seller tells the agent....if I have to wait for my money, so should you! They don't want to deal with it.

John, good deal, put it in writing and make the acknowledge the offer one way or another.

Anthony, specifics are way too much to explain in a forum post! You, or anyone can contact me if you need to. Bill

Mark Updegraff · Answer

Much thanks,
Mark

Jimmy H. · Answer

Anthony,

With 10k to invest (30k - 20k you want to keep = 10k), options and wholesaling/bird dogging might be your only choice. Both would provide a good avenue for you to get some hands on learning experience.

I am actually in the same boat, trying to decide how to use my funds - I am also looking at owner financing possibilities. That may be the option that i go with, unless of course i saw a good option opportunity i'd take it.

I understand how you get someone under an option contract, but how would you be able to rehab a property that you don't own but only have the option to own - a special option contract that gives you that right or besically the equivalent of the right of ownership?

Anthony Larson · Answer

your welcome if I had to I would to it all over again

As far as the beard, LOL, thats not my real pic. I'm 23 if I had hair like that people would probably think I"m a freak. Thats Tom Cruise in Tropic Thunder. Hilarious movie "silly" comedy. It's about a guy that was considered a hero in war wrote a book and ben stiller and a few others are actors making the book into a movie
          Tom cruise is the Money Hungry producer.

Anthony Larson · Answer

Anyway, back to making the battle plan I would like to get in the game with little as possible I understand little about fixing houses. 
"Top" has promoted you to First Sergeant and your mission is hopefully to teach me how to do option fix and flip. Sounds like a lot of paperwork is involved.
My title is handyman because I refused to call myself a real estate investor at this point.

Bill Gulley · Answer

Anthony, sounds like you need a battle plan. With 30K, I doubt you'll turn that into 30+% return in lease options, the options have to be taken for the winnings to be paid. Obtaing an instant income from cash flow is not as easy as some make it sound, don't be mislead.

Picking up properties as the Optionee and selling them as a fix and flip will be quicker money, with 30K you might run 3 or 4 proeprties at the same time, if you can carry the load and if not much costly repair is needed..

You can always regroup, circle on me at our alternate base and get a new plan order of battle. Gee, I didn't know you were deployed! With that beard you must be in the Navy, but maybe not, some of us Army guys had a beard thing going on. Thanks for serving Anthony!!! Bill

Creative financing for MLS properties?

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