All Forum Posts by: Jason F

Maybe it was Rich?

J/k

As long as you are buying the houses for far less than what they are worth....it's always a good time.

Well think of it this way,

Try to think of reasons NOT to take the money right now. What will you say to the tenants when they send you a check for the entire next year? "I'm sorry, I would really rather take the risk of you not paying"

I was just thinking about this today.

I would gladly pay $100, even more, to have someone take some really nice photos of a property for a website.

I think that is the last thing most people would think of when trying to sell a house but it would definitely get people out to the property to check it out.

Do you think it would have to be a really nice property for nice pics? I could see how a fully rehabbed/decorated property would translate to really nice pics. But what about a decent property?

Well most of the things you are looking for in a person that would sign over the deed without you paying off their loan would be found with people facing foreclosures. So direct marketing to them would probably be your best bet.

I think you mean 'if the buyer took over payments and never paid'. That's the best/worst part of a sub2. The buyer gets the property but is never on the hook for the loan. If they do not pay then the loan can go into foreclosure. This is a benefit to an investor but I don't think anyone should ever take advantage of that.

There is a company that makes something called "the yellow letter" or something like that. Evidentially they are suppose to be pretty effective.

From the beginning of my RE career I have personally addressed and signed every letter I've sent. It takes an incredible amount of time. But it really makes people feel comfortable when the get it. Might be something to try in your market. Test it with 100 properties and make a note of which ones you sent to which house. It will become very obvious which ones are working.

Good luck.

Just my 2 cents.

It's a relative.

Does the $200 a month make it worth what you have to do to make it? Don't worry about what everyone else thinks.

I'd say if you were killing yourself on the rental for $200 a month, let it go. If it's easy, buy another one and see what happens.

Well I guess it would depend on a lot of different things:

Do you own the warehouse outright? How many loans, if not?

Are the warehouse and the widget company different entities? Do you own both? What are you selling debt on if seperate?

Maybe if the widget company owns the warehouse, they would feel more comfortable loaning money to the widget company. With the warehouse as an asset it shouldn't be a problem

You have to consider a couple of things:

If there is enough equity in the warehouse to warrant investment, why can't you pull out equity with a traditional loan? Run a cost analysis to make sure you aren't paying more for capital from these investors.

Also, investors are not going to want to invest considerable money if it is not liquid. Say one of these people wants out, will the other shareholder want to purchase their shares?

Just my 2 cents.

No fire problems here. I' think I looking for that craftsman look. Let me know if you think of it. I appreciate it.

J

The collateral on the loan the investors make will be interest in the company. That might be a hard sell if the company is not well established with assests. If the company owns the building at a low LTV, that would probably help.