All Forum Posts by: David Drew

Here's an update.  It's been about 5 months since I decided to start investing in Real Estate.  I'm happy to announce that I just closed 2 properties, simultaneously, last Friday.  I went from 1 unit to 8 in a matter of hours - and it felt great.  These last five months have seemed like years though... Now begins the property management phase of my investing.  All of my units are filled so I'm interested in the best ways folks have found to collect rent payments.  Everyone is sending checks in the mail right now and if that works out, I think it will be OK.  I've been experimenting with Cozy as a property management tool and so far, it seems challenging to get folks in there.  I also have an account with Erentpayment...Any other suggestions?  

I'd agree with @Jessica Zolotorofe.  Your ability to partner will come down to the value you can add to the relationship.  Property management can be one way.  Another way can be to find a better deal, though it sounds like this potential partner has made a decision about the homes already.  This (Bing) market can be tricky.  There are pockets of great investment areas and then some not so great...similar to any other market, I'd suppose.  It all depends on what you you/they want to do.      

DOSC is the risk, sure, but if the payments are being made, I'm told banks don't usually care.  I'm thinking this is a 'Subject To' situation.  I just start paying the mortgage for the owner and he signs over the title.  

@Christopher Stanis this is smart and it makes sense to me.  Thank you and I'll look into it.   

No.  Willing to pay $20k as my cash offer.  You're right though @Gary Kline, I'd be paying more for no dp in the long game. Let's assume the home has a strong ARV, maybe $70k to make it worth doing and my $20k was a low-ball.

Alternatively, what if I offer the same $20k, 0 down, 7%, amortized over 20, and paid him the same amount he owes, $450.  Are there more attractive ways to get that done?  How do I get a house for 20 where the owner owes 30?  That's my question.              

Hi BP. I am a REI in Binghamton, NY. I'm currently receiving a good stream of leads for owners who want to sell their homes. What I'm finding is that many of them are either under water or have a mortgage owed which is more than I'm willing to pay for the property. A few of these properties are really good deals. What I'm interested in understanding is how to take over payments or have the owner supplement those payments in a purchase agreement. Here's an example: Owner wants to see a house for $30k, he owes $30K. I'm willing to pay $20k. What are my options?

I think I can set something up where he transfers ownership to me (risking Due on Sale Call himself) and I start making payments to him in a Seller Financed deal.  If he owes 30k and his payment w/ taxes is $450 per month, I could offer 30k with 0 down @ 10%, making my payment to him $550.  He makes 100 bucks a month and I get a house.  

@Ana G. Say what??  A mobile notary, that sounds great.  I found one.  

@Account Closed and I hope it gets easier.  I was totally counting my chickens here, all well before they were hatched and my contract was signed.  Crushing.  

Had a lead on a house with an owner who wanted out.  Made him an offer and her accepted.  12k for a house he paid 48k for, 10 years earlier.  I was thrilled.  I sent him a full contract and then a number of addendums.  The guy really didn't want to do anything and he was remote, 4 hrs away.  I called him back every day and it really felt like things were moving in the right direction.  He got a lawyer and was going to sen the paperwork.  Called him today and he said his brother was going to handle the sale and that sale wasn't going to be to me.

I'm wondering now whether or not there was a better way to get the deal on paper faster and if that may have helped.  

@Jerry W.  There is no appreciation here and consequently, there was no impact to the RE market in 2007.  Values stay the same...forever.  I'm in NY so it's more like $250 interest, the rest is property tax/ins.  I would likely move into lower income levels too, yes.  For this area, $200 is low.  We're more like a '3% rule' market for rentals here.  I can get $1400-$1700 on a $50k house.                   

@Chris T. Thanks for this. The tenant's lease expires in December. The roof isn't in dire shape and selling to the tenant has crossed my mind. I've already advised them to try and leverage their VA loan options and I'm pretty open to selling.