All Forum Posts by: Ann Bellamy

I'm ok with a gum'mint raising revenue, in principle, since we have to build roads and provide schools, but the bigger the gum'mint, the more room for waste and corruption. In addition, it's a government control issue - our great Socialist States of America.

Thanks, Chris Clothier, for your input about the section of Craigslist you use.

And Andy, I don't think Jeff read it that you are trying to rip people off. He's trying to say that your potential customer might feel that way. And if they feel that way, they won't call you. And if they don't call you....well, the whole point of marketing is to get them to call you.

You can have them self screen all you want, but in the end, if they don't call you, and your phone doesn't ring, what's the point?

At least then you can make them an offer. And follow up later. Maybe some of them will become deals when they realize they have to give up price to get speed. But if they don't call you, you never get that opportunity.

Everyone wants to feel they are getting the best deal they can, no one wants to feel they left money on the table, certainly not from the get go.

Short and sweet is the way to go. People won't read 90% of what you say, you have to get their attention in the first line or two.

I don't care if you shut it or keep it - both sides of the issue have validity. I personally won't chase bulk REO's - I know they happen, but they don't happen on my level. They are institutional, I believe. I chased a couple and got fed up with the bs, and decided not to waste time on something I would be unlikely to crack.

But Jon, the bulk NPN notes are another thing. I have recently connected with a couple of guys who bought small portfolios of NPN's. They screened the owners, foreclosed on the ones that had no desire or means to stay in the homes, and then worked with the homeowners to renegotiate the notes to make them performing. Their strategy is to sell the notes as performing, and they've asked me to see if I could find a buying connection.

So that's how I know that Bulk NPN's are real.

Definitely an open house, I'm with Mitch - I don't do individual showings either.

When I advertise, I include showing times in the ad, such as Friday at 5PM and Saturday at 2PM. that way, if they can't make one, they can make another.

I put as much info as possible in the ad so they know what the qualifications are. Why waste time with people who aren't going to qualify in the first place? I put a link to my email, and my phone number in the ad. And half of them won't read it anyway, and will call and email you with questions that you answered in the ad. Just part of being a landlord.

Try vflyer.com - they have a electronic flyer account for up to 5 flyers at a time. You then copy the html and paste into Craigslist for a very professional ad - it includes photos. It will then post to other sites such as hotpads, etc.

Start advertising at least a week or more prior to the open house, and if you get someone who wants to see it early, and they are qualified, then by all means show it to them. If you are in the final stages of prep, and the place looks good, then you can show it before it's ready. But realize that most tenants don't have the vision to imagine what it's going to look like when it's done. So if it's dirty still, or dark, or needs painting, don't let them in. They won't see past it unless they are desperate. And if they are desperate, you probably don't want them. I don't think I'd advertise a date and then push it back unless you had to for weather reasons.

I also make sure to put a sign outside of the building. I have subscribed to Phone.com and bought an 800 number, so I set up the menu with a recording about the unit for people who have seen the sign but not the ad. they can listen to the prerecorded message, then menu through to my cell phone.

I also offer a discount for good credit scores. You can try that in your ad also.

I then have a handout with detailed info about utility costs, parking arrangements, etc and be sure it has my contact info on it. If they are interested, I take their application with a fee for pulling a background check. Be sure to check rental history and credit score. The best indicator of a good tenant is rental history information. Always call all references, but be wary of the current landlord: they might give him a good reference in order to get rid of him.

Good luck

James and Bryan,
According to an SEC attorney I consulted, straight loans (as long as you are not advertising guaranteed returns) are different from raising money as an "investment". However, new laws also trip up the unwary on that front too.

It used to be that a private lender could make up to 4 residential loans per year. No longer: the SAFE act, (a federal law) was passed in 2009 that requires each state to enact it's own version of the SAFE act.

And that means that ALL residential lenders must be licensed now. Even for one loan. So now, you must be licensed as a lender if you sell a single family house with owner financing to a homeowner.

There are ways to comply with the law, such as getting licensed (expensive, time consuming and with experience requirements), doing commercial loans only, or working through a licensed mortgage broker.

Disclaimer, I am not an attorney, and don't play one on tv either. Consult your LOCAL attorney who is experienced in creative real estate and private lending. Each state is a little different, and not all real estate attorneys are up to speed on this.

And as for raising capital with flyers and ads that offer a specific rate to people you don't already know, my SEC attorney says that is probably an SEC violation also. And the SEC has agents combing Craigslist (and probably sites like this) looking for cuprits.

BE CAREFUL!

Sounds a little paranoid, but I'm told its true.

I agree with Jeff S, I'd lend it out. But of course, Jeff and I are in the same business.

I'm also a real estate investor, but I'm realistic about the issues of real estate - tenants, toilets, all that stuff. There is always the grief to revenue ratio, and residential tenants cause the most grief.

Mitch, that's perfect. Education is a wonderful thing, but if someone is pitching something that you don't understand, then either:
1. You shouldn't be considering investing in something you don't understand anyway, or
2. It's a scam. Most likely a scam.

Wasn't it Warren Buffet who said to invest in what you understand?

PN $320,000.00 14% interest only, short term loan for 6 months. Extended twice, now matures 9/30/09. Borrower has been performing , I have been servicing the loan and can provide complete payment history. Borrower wishes to extend again.

Secured by 1st position mortgage 2-family with 1.08, on busy road in Concord, NH, (state capitol) ZBA approved for 8 units, zoned RH Residential High Density.

Lender wishes cash back for another investment.