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All Forum Posts by: John Stevenson

John Stevenson has started 2 posts and replied 125 times.

Post: I get the message!

John StevensonPosted
  • Foreclosure Specialist
  • Miami Beach, FL
  • Posts 131
  • Votes 123
Originally posted by Dale Osborn:
People in the US can see the opportunities, but FEAR keeps them from taking any action. Fear of making a mistake, fear of losing all their money, fear of the strange & unknown or whatever. They need to learn to overcome this then they can see the profits to be made.

That is true and that is why this forum is such a good place. When you have a network of mentors and experienced advisers to double check investment decisions then your fear can be pushed to the side.

It is strange though that the American public has very little fear of maxing out their credit cards on flat screen plasma TVs and buying gas guzzling automobiles but has such fear of real estate.

Post: Wholesaling dead in Northern Nevada?

John StevensonPosted
  • Foreclosure Specialist
  • Miami Beach, FL
  • Posts 131
  • Votes 123
Originally posted by K. Marie Poe:
Originally posted by John Stevenson:

Where are these markets where all the inventory is readily available? I think there are many active investors on this site who would like to know. :)

I took a quick check of our inventory of active foreclosures. Here is what I found for some towns in and around Central Valley, CA:

Redding: 122 Properties
Yuba City: 103 Properties
Modesto: 362 Properties
Fresno: 643 Properties
San Jose: 894 Properties
Sacramento: 1,074 Properties

This is just a sampling. I guess you just have to know where to look.

Post: I get the message!

John StevensonPosted
  • Foreclosure Specialist
  • Miami Beach, FL
  • Posts 131
  • Votes 123

ABSOLUTELY! You have to see beyond the financial troubles of today and invest for tomorrow. The adage has always been buy for a little, sell for a lot. Since housing prices are the lowest they have been in a decade, it does not take a lot of vision to see there can be a lot of money to be made here.

I have seen investors buying discounted homes out of the foreclosure and short sale market, rent them out for a period of 3 - 5 years and plan to sell them after the market recovers. They can easily see a yield of 15 - 20%! The sad thing is that these investors are coming from other countries to take advantage of our deals. As Americans, we need to step up and see the potential!

Post: Judges Determining Sale Price?

John StevensonPosted
  • Foreclosure Specialist
  • Miami Beach, FL
  • Posts 131
  • Votes 123

Estates that are in probate use real estate appraisals to set market value. Once an appraisal is part of the estate file, it can be a difficult matter to get them to budge.

@K. Marie Poe makes a good point. All you can do is prove that the purchase price needs to be less and make a solid offer. If they cannot find a better one within a reasonable amount of time, they will be "forced" to consider what they have.

Good luck.

Post: contracting to someone with a loan

John StevensonPosted
  • Foreclosure Specialist
  • Miami Beach, FL
  • Posts 131
  • Votes 123

Whether a person comes to the table with cash or with a loan really makes no difference in the end - there is still a closing.

One big question is will the VA loan be finalized before you need to fulfill your end of the contract? Sometimes these loans can take time to complete.

Additionally, you need to make sure that all the paperwork is complete on your end and that there are no lose ends that could unravel under VA scrutiny.

Post: Wholesaling dead in Northern Nevada?

John StevensonPosted
  • Foreclosure Specialist
  • Miami Beach, FL
  • Posts 131
  • Votes 123

If you decide that the market cannot support wholesaling right now, I would like to offer another option. I personally would recommend investing in discounted single family residences. Here is why I think it works in this economy.

1. Distressed properties (Foreclosures, short sales, REO etc) are readily available and are being sold for cheap.

2. Because of the restrictive lending requirements, loans are hard to get forcing many people into renting. If given the choice, people like renting homes more than apartments.

3. As the economy improves and lending requirements relax a little, these renters are going to want to buy. In fact, rent to own or land contracts are become more and more attractive.

4. As demand increases and the economy improves, so will real estate prices.

My research indicates that if done properly, the yields will be between 15 - 20%. I estimate the holding period to be no longer than 5 years.

Post: Pay off mortgage or refi to buy more property

John StevensonPosted
  • Foreclosure Specialist
  • Miami Beach, FL
  • Posts 131
  • Votes 123

There are some good comments made in this thread. Since you already have four rental properties, you are not new to the finance game. In the time it takes to pay off your mortgage, property values and interest rates are bound to raise and the potential for super high returns on your investment maybe all but lost. If your investment strategy is calling for purchasing more rental properties, then my advice is to do that now before prices begin to increase.

Of course, make sure you project your cash flow and yield rates for both scenarios over let's say a 5 year period to make sure that you will come out ahead. But I bet the numbers will come out better with a refinance and purchase.

Post: How can I ensure getting a referral fee for finding a tenant buyer?

John StevensonPosted
  • Foreclosure Specialist
  • Miami Beach, FL
  • Posts 131
  • Votes 123
Originally posted by Jon Holdman:
No, in most states its not as simple as that. This is "unlicensed brokering". You're brokering a real estate transaction. In most states in the US that requires a license.

Jon makes a good point here. Since the fees are so low, you have to ask yourself if it is really worth all of the hassle.

Now you mention that you are an investor... hmmmm. Have you thought of flipping a property to them? You purchase an investment property and they turn around and purchase it from you on a land contract. You make the interest and they get their property.

Post: "Can You Teach An Old Investor New Tricks"

John StevensonPosted
  • Foreclosure Specialist
  • Miami Beach, FL
  • Posts 131
  • Votes 123

Your enthusiasm is great! I wish you the best of success. So what is your game plan? Do you have an idea of what you want to invest in? Are you looking to wholesale, get into the rental market or flip properties?

I personally would recommend investing in discounted single family residences. Here is why I think it works in this economy:

1. Distressed properties (Foreclosures, short sales, REO etc) are readily available and are being sold for cheap.

2. Because of the restrictive lending requirements, loans are hard to get forcing many people into renting. If given the choice, people like renting homes more than apartments.

3. As the economy improves and lending requirements relax a little, these renters are going to want to buy.

4. As demand increases and the economy improves, so will real estate prices.

My research indicates that if done properly, the yields will be between 15 - 20%. I estimate the holding period to be no longer than 5 years.

Good luck. I will keep an eye on this post and see how you are doing.

Post: suggestions

John StevensonPosted
  • Foreclosure Specialist
  • Miami Beach, FL
  • Posts 131
  • Votes 123

Real estate investing without good credit or cash means that you need to take it slow and steady to build equity. The worst thing you can do is overextend yourself and trash your credit even further. Here is what I would recommend:

Find a house that you can either rent, rent to own or by on a land contract. Now you have to make sure that you find a good quality house with either two or three bedrooms. Why? You want to buy a house that others would want to live in and one that is not going to turn into a money pit.

If you rent or rent to own, make sure that the rental contract will allow you to sub-rent. This means that you can turn around and re-rent it out for more. Finding cheap rent helps. For example, you rent a house for $600. You then find someone to rent it for $675. Every month you make $75. Of course, if they do not pay the rent then you have to cough up the $600. So find a good tenant. Now, do not spend this money. Save it to invest again.

The other method is to buy on land contract. Because mortgage rates are so low, this is not always the cheaper option but it keeps you from going to get a bank loan. In a land contract, the owner plays the role of the bank but he will charge you a rate higher than the bank, especially if your credit is poor. You put a little money down, lets say $1,000 - $5,000, then you make monthly payments to the property owner for generally a period of 3 to 5 years. At the end of the payment period, you have to pay the remaining amount in one lump sum. That is when you get a loan. By then, you have equity and hopefully a higher credit rating. Meanwhile, you rent out the property for at least what you are paying.