All Forum Posts by: Will Barnard

You said it, one deal at a time. You need to find the "desperate" seller who has had a death in the family, job loss, job transfer, or some other desperate situation where they had not planned on selling or moving, but now have to and have that equity position. The equity is key, and although it is hard to find, they are out there. I have an associate of mine who has been successful completing these deals here in CA.

Slinger,
As Jon mentioned, local small community banks are a great option, particularly ones that will carry their own paper, tehrefore they do not have to go with the Freddie/Fannie guidelines.

You will want to use the bank in the area you are investing, as the bank is familiar with that area and not the bank where you live.

Hate to point out another problem, but be aware that some of these local banks will be more apt to loan to a "local" for the property in that area as opposed to an out of state investor. It is just a sign of the times. Keep searching the banks as there are many local ones and one of them should be able to accomodate you.

Have the funds deposited into an account, then send them the bank statement with the account number blacked out.

Welcome to BP Jeremy.
Will you be using a buy & hold strategy or will you want to wholesale the deals you put together?

Plenty of info and seasoned investors here, so finding partners and making deals is a high possibility here.

Good luck to you.

Buying sub to is not assuming a mortgage. Most loans these days are not "assumable". Buying sub to refers to keeping the loan in the "seller's" name and you, the buyer, "promising" to pay that mortgage on time.

The only way this method works is if the loan is "worth" taking over, meaning that it is not some ARM or high interest adjustable loan and that there is enough equity remaining. You must find a jewel with a decent loan rate and term AND plenty of remaining equity.

Stated income is practically gone.
Seasoning is a huge issue right now.
A NOO loan will currently require up to 6 months of seasoning. I am currently seeking creative alternatives around this as it is an issue for some of my current strategies right now. There is another thread about this issue.

First off, sub to and pre-foreclosure investing requires a ton of marketing and advertising as well as the need to sift through hundreds of phone, email, and web contacts before finding one worth pursuing further. This require $ and lots of effort (as well as time).

1) Choose sub to when their is equity in the property, short sale when it is upside down.
2) Sub to is a way to control a property without using your own credit and very little money invested (sometimes none)
The win-win is created when you get control of a property with equity and are able to lease option it to a tenant buyer with cash flow, and the "seller" gets out from under their financial difficulties.
3) Depends on your state, but in CA, you either need to get it from an experienced attorney or another investor who has already done so. You can easily be sued and violate laws in CA by attempting this strategy without the proper guidance and contracts.
4) Not necessary, but always an option. I recommend using a third party who collects the mortgage payment, notifies the "seller" and pays the mortgage. This gives both you and particularly the "seller" a source of "protection" (which is limited) as well as info/notification.

Best of luck to you.

Will B

I am not an attorney or an accountant (your attorney is the one you should be asking this question of), but I understand it to be the sell price less the "basis" which would be the acquisition costs, closing costs, and repair costs added together.

Bruce Norris is a very experienced investor with much more means than the average investor. This is one of many reasons why he is able to accomplish this.
He is also using alternative strategies to accomplish this feat.

Jon gave you very important advice. All deposits and 1st month's payments must be paid in cash, cashiers check, money order, or hold until personal check clears before giving out keys.

File small claims, win the case, they probably will not show. You have their bank info from the ckeck so you can have their account "raided" in many cases. (Check you state laws)
You can also contact a collection agency who will know exactly what you can & can not do to recover funds.