All Forum Posts by: Dave Salcido

@Wayne Brooks, sorry, no. There's no need to ever rent skim. Respectfully, please consider the title of this post, "Can you cash flow an abandoned, underwater, rejected short sale?". If the answer is "no", that's pretty much the end of this conversation and it's on to the next. If the answer is "yes" or "maybe", what then is the intellectual mindshare? I believe 3 examples have already been proffered in various degrees of detail. Are there more?

@Rick H., Your comment is duly noted. Thank you!

Beautiful Brian! Awesome Kerry!

Okay Steve, I will tell you my answer to mitigate acrimony but I choose to withhold specific details and documentation until later because the purpose of this dialogue is to invite open discussion for creativity regarding a common scenario. If you have a contribution, I would welcome it. I welcome it from everyone that reads this thread. My answer is an equity share with the homeowner and occupant with no change of title and no homeowner management participation. And no, it's not a wrap or a lease option or assignment. 

So, what would you suggest? :)

This is an exercise in innovation. Perhaps the question would be, based on the described circumstances, how do you convert a non performing asset such as this into a performing asset? If this property were compared to a failing business, what would you do to make this business prosperous?

Okay, good questions. Nice single family home. Nice neighborhood. No renovations. Monthly payment is a little above average rents for the area.

Great answer @BrianGibbons

Here would be my proposal to the home seller: "Don't wanter seller, I am a licensed real estate agent. I'd like to offer you $5000 to take over your payment so I can get a qualified person to live in the house as a 'live in property manager'. They will make the monthly payments, take care of repairs and improvements inside and out at their expense. I will also personally make sure that the 'live in property manager' fulfills those responsibilities religiously and gratefully. After 10 years, the house will be sold  and the three of us will enjoy the benefits of the amount the loan was paid off and any additional equitable growth of the property."

This is a three way equity share. I would include monthly cash flow that the live in property manager would agree to pay because of tax deductions received. I would have contracts in place to protect the interests of all parties so everyone is safe, secure and profitable. Oh, and the live in property manager would bring at least $5000 to the table for the right of use and occupancy and equity.

I already know the answer is yes but let's evaluate, discuss and see how many variations of a workable solution we can create. 

True successful investing in real estate to me is nothing more than proper use of available assets. So, what assets can, or better said, SHOULD be utilized to close a deal? Some investors have lots of money. Others have plenty of time. A few have the ability to structure transactions through creative innovation. Really, these are just tools of the trade. 

What then, is really needed to control a particular piece of real estate? If I were asked, which of the above mentioned  "tools" I would prefer, I would have to answer that with a question. Which tool or a combination of tools are best for giving all parties the satisfaction they seek? Ask the seller enough of the right questions and you may find that NMD is the best solution for his or her circumstances. You may also learn otherwise. There are a lot of conditions to a sale, but if you come into a transaction uninformed, you will not know what assets are necessary and you may be left with no ability meet the needs of the seller and everyone loses.

The most successful investors find ways to equip themselves with a tool belt with few empty compartments.

 I believe that cash, credit and creativity go hand in hand. One is not more important than the other. What is needed to seal the deal? Do you have what it takes? Yes? Great! No? Can you get it? Yes? Great! No? On to the next!