All Forum Posts by: Jackie Lange

Wholesaling is a great place to start. If you structure the contract right, you can reduce your risks. You'll get paid very nicely while you're learning how to negotiate, how to value properties, how to estimate repair costs, etc...

I don't know if it is still there but I added my book, Real Estate Profits on Steroids to this site for FREE - it is a step-by-step guide to wholesaling.

Once you get your confidence built up, it will be a good time to diversify with Leases (not options) - just start with master leases. They will produce cash flow which adds up fast.

Jackie

It's not that difficult to stay compliant -- just pay a mortgage broker $100-$200 to handle the paperwork for you.

No big deal.

There is a GREAT free one hour audio by Lonnie Scruggs (who invented mobile home investing) at his web site www.lonniescruggs.net

There are multiple ways to solve the SAFE act issue and it should in no way stop you in any way from doing mobile home deals.

There is a one hour audio at www.lonniescruggs.net which explains the solutions and ways to stay legal with the SAFE Act. It's well worth listening to if you're selling anything with seller financing.

You can also listen to Lonnie's legendary talk, Create Your Own Economy at his web site.

My book, "Real Estate Profits on Steroids" is available for free in the resource section on this site. It will teach you a step-by step guide to using Options to wholesale and you'll also learn a lot about identifying opportunities, negotiating stragegies, marketing, contracts, etc...

Options are a great strategy to use for beginners because you don't need money, credit or experience ( because you don't actually buy the house)

Best of Success

Seems the best strategy would be to contact the note holder/hard money lender and offer to buy the note. The BK will tie them up for 3-6 months and they may be anxious to solve the problem quickly and easily...and at a BIG DISCOUNT

Once you get the note offer to do a loan modification with the owners. Reduce their payment and extend the term. With a track record on "on time" payments, these sound like people you'd want to work with.

Derek

the absentee list is ok - but you need to research the DEED DATE too. If the property was not purchased at least 15-20 years ago, then there probably won't be enough equity to do a wholesale deal. The older the DEED DATE, the better.

One of my absolute best sources for whole sale deals has been code violations. These properties can be purchased for 10- 20 cents on the dollar usually. The owners are getting hounded by Code Enforcement to fix them up but they don't have any money so they can't. they are extremely motivated sellers. Most of the properties can get a certificate of occupancy again after certain repairs are made.

See my ebook in the files section for more tips and tricks about wholesaling.

In my experience, you'll get much better results with a yellow postcard.

Average response rate ( if you have a good list to begin with) with a letter is 3-4%
with a postcard it will be 10-12%

The response rate is better with a postcard because people don't have to open it to see your message. In a split second, your message should be enough to GRAB THEIR ATTENTION and make them want to call you.

If you advertise the same old. we buy houses, message, you will NOT get a good response rate.

Instead, sellers want to know WHAT'S IN IT FOR THEM.( not what you do) -- what's your answer to that question? That should be your message.

You should also look at small mobile home parks near military bases. They are a CASH COW.

Buy with seller financing. There is no need to do bank financing.. especially in this market.

There are also many private lenders who would be glad to put up all or part of the money IF you buy below market. Most of them will prefer to get part of the cash flow and part of the upside vs.a fixed interest rate. That makes it much safer for you too. Be willing to give up part of the deal for 100% financing and less risks.

Welcome to the wonderful world of real estate investing. It is the best way to create your own economy.

There are two Special Forces brothers( active in Afganistan) who will be at Lonnie Scruggs Ultimate Mobile Home Bootcamp in Norfolk the end of October.

We invite active military people to come to seminars as our guests for free. You are welcome to join us.

The brothers bought a 170 space mobile home park in North Carolina a few years ago so the income will supplement their military retirement pay.

Best of Success

Jackie Lange

If you do not borrow from hard money lenders you absolutely will NOT pay a higher interest rate than bank or institutional financing.

In fact, you'll pay much LESS - both in the up front costs to get the loan and in the interest rate.

The last private money loan I did was 2%.

When I buy with seller financing, which is another form of private lender, I almost always get ZERO% financing ( try that with a bank)

Plus my terms are very flexible with private lenders - you can't do that with banks.

Another reason to NOT use bank or institutional financing is the loan application itself.. Of course, you should always fill out the application with accurate information and you sign a statement that all the information is accurate.

But i know 2 investors who were convicted of loan fraud and went to prison. You see, as soon as a loan goes in to default, the first thing a bank/mortgage company does is look for potential loan fraud on the application.

Even if you complete the application with accurate information today, the bank can come back later and claim that you lied and sue you.

It's much better and safer to buy with seller financing or to use private lenders ( NOT hard money loan-shark lenders) to finance your deals.

There is plenty of private money available and it's much easier to get than bank financing.