All Forum Posts by: Jay DeCima

Thanks for your support Mike.

Remember, with seller financing........keep in mind the huge benefit of buying back those seller notes at a discount.....Money owe to previous seller.  I have bought many for 50% off.

This is so worth learning about.  Discounts like this significantly add to your personal wealth and cash flow.

Stay in touch.

Let me know if I can help.

Fixer Jay DeCima

Anthony

Try to narrow down what you want to do.

If you do not focus you will waste time and become a "wandering generality".

Over 50 years I did all kind of real estate and loved it all.

But starting out, unless you have a boatload of cash, you need cash flow as fast as you can get it. 

I have done flips but realized this was a job with no tax benefits, highest tax rate, and no long term wealth accumulation.

My plan helped me buy and manage 250 homes in No.Calif. over the last 50 years.

I buy groups of homes on single parcels, in need of fix up and better management. Most of the time I use seller financing.  This buy and hold has been very good for me.

With 250 rental house at my "high water mark" I had to create a system to manage them.........without going crazy.  Click here for details.

Click here

Hi Gang,

For those of you that do not know me, do a google search, Jay DeCima.

You will see I have been investing and teaching for a long time.

This year I released my book #5, THE REAL ESTATE FISHERMAN.

Full of techniques that you probably newer heard of before.  Use my experience to learn real estate investing. 

Best,

Fixer Jay DeCima

PS:  Read the first 2 chapters free Click here.

Thomas

This year I released my 5th published book, THE REAL ESTATE FISHERMAN.

It is a fun read and loaded with examples of "my kind of investing".

I have been investing in Northern Cal. for 50 years and teaching investing for 28 years.

Take a look at the book. Just one idea like buying back your own debt can be very profitable.

Also, anyone you choose to rely on for instruction..........check them out thoroughly.

Do a google search on Jay DeCima or go to fixerjay.com.

Good luck.

Fixer Jay DeCima

Jessica

I have done many flips over 50 years of investing, but quickly figured out a few things:

1.  It is really a job.  You get taxed at the highest rate (personal income).

2.  You pay social security like you were an employer (both you and the employer).

3.  The amount of cash you calculate you should walk away with is almost always less than expected.  

I switched to long term buy and hold for a much rosier and profitable adventure.

Good luck with your investing.

Best

Fixer Jay DeCima

Exactly!

HUGHE ADDED BONUS for owner carry back deals.  

On many deals I went to the holder of the note (the previous seller) and offered him/her a lower price than the amount of the note if I gave them that cash amount IMMEDIATELY.  Many, many note holders choose to take the cash now rather than small monthly payment for years to come.  Think about it.  

You many do the same if you were the note holder.  Maybe you need money for a child's college or wedding, divorce, good business deal that needs cash now.

Tons of benefits with seller carry back notes that are not available with traditional institutional loans.

Using these techniques will speed up your profit accumulation far more than buying one single family home at a time.

Let me know if I can help you.

Best.

Fixer Jay DeCima

Do you owner finance and carry the paper, and perhaps sandwich your original owner carry back loan into it? 

Yes.  Excellent observation!

I do not divide up the lots.

Don't feel sorry for me when I sell.  I insist on carrying the financing.  I will wrap any underlying notes and add in the balance for my equity.  I call this "pajama money".  I pick up the monthly mortgage checks, made out to me, from my mailbox, in my pajamas... if I so choose.

There are buyers lined up all day long to buy a property with financing they can afford!!

Do I want the properties back if I held them for 20 years and want payments instead of tenants?  The answer is no, no and no.  I want the new buyer to be successful and make money.  Why?.......You guessed it.  I want my monthly pajama money not the property and tenants (I already had my fun).

I will structure the deal so the monthly payments to me that are no more than 50% of the gross monthly rents.  To do this, could the interest rate be below market to keep the payment low? Probably.

Could I sell with a higher sales price in exchange for a low affordable payment?  Yes, for sure.  Most people on BP would pay a premium on the price for a low down payment deal (about 10% to me) and lower than market payments.  You would, I am pretty sure........especially if you did not have a boatload of cash.

Good luck.

Fixer Jay

To answer you,

I look for a single parcel that has multiple houses or duplex, etc.  Ideal is 5+ because that is the best to almost guarantee seller financing (remember, these are not nice and clean at time of purchase so banks are NOT interested).

To find these, they may be on MLS. I work with agents, look online (Craighslist), send my 8-step cold call letter to potential properties that I identify. I have run ads myself to tell sellers that I am looking.

This concepts take a little while to wrap your head around, but I assure you that you should explore it to see if you like this kind of property.  Certainly your competition is less with my kind of properties.

Certainly any time you find something off market, you have way, way less competition.

Good Luck.

Fixer Jay DeCima