All Forum Posts by: Art G.

@Ross Greene Yes you make a good point, nice counter point to my comment. Every deal has to be evaluated according to the terms presented. OP made it sound as if his one and only option was a short sale. I was pointing out it wasn't. My number one goal on rental acquisition is to allow a renter to pay it off, even if the profit margin short term is not great. So my first concern is, can market rents cover PITI? If I can acquire someone's land by using a renter then I will. If I can't acquire it through rent payments and it cannot be wholesaled then I move on.

So generally speaking... its impossible to say the answer with general numbers. It comes down to details.  You make an excellent point that is worthy for OP to keep in mind. But I was pointing out there are many ways to skin a cat since he is new to the game.

My first thought is to offer them more money to do owner financing with you.  Sounds crazy, but not if you can get that many units with owner financing. Either increase the purchase price or tell them you will do interest only for the first two years. Then in 2 years you will do a balloon payment for remaining balance. This increases their overall profit and gives you time to accumulate more of the rents as a down payment for a mortgage, and or gives you more time to find an equity partner.  The equity partner comes in with the major down payment and you give him half your interest in the properties. You benefit by not having to put the large down payment he benefits because you found him a good investment.  Also you can look into note buyers for them. Tell them to do the deal as owner financing and you will connect them with an investor that will by the mortgage from them in all cash.

Just some creative thoughts on how I structure deals. Good luck!

Congrats on your progress! I remember how scary and exciting my first call on a yellow letter was, same thing... deer in headlights and some how managed to get better and better with each one. Now its nothing to get the call.  Keep up the good work. Send as many as you can. Soon you will have so many leads you will be rejecting them with ease for not being a good deal.

I am writing to let you know that a short sale was not your only option. There is another... and better way. It is called "subject to."  You tell the seller, look a short sale is not good for your credit and certainly you don't want a foreclosure. But there is a way I can help you save your credit and free you of this financial burden. I will take over your loan payments, get you current, and fix up the house. In its current state I cannot get a loan for the home and could not refinance it. So by taking over  the payments on your mortgage, you save your credit, I can get in and fix up the house and then refinance it. She will say, How do I know you will pay my mortgage? Tell her because you are going to be spending money to get her current and if you don't pay the mortgage then the bank will foreclose and I will have lost all my investment.

From there, you get the property under contract with the term "taking over subject to existing mortgage", close escrow, call the bank and let them know you will be making the payments and rehabbing the house to refinance it (they usually don't care as long as they are getting paid), then rehab the house, put a renter in their to make payments for a year, refinance the home and pay off her loan and pull out some cash for your effort. or just sell the home. This is how you buy properties without all the money down to start and save someone's credit and stress in the process. Then you have a long term rental for your portfolio.

Good luck. Don't ever quit. It is tough and stressful but a ton of fun and so worth it in the end :)