All Forum Posts by: Damon Armstrong

Do a little research on wholesaling.

Also, if you are interested in buy/holds for longer term wealth, do some research on owner financing. There are many creative financing techniques out there but in my opinion these are the easiest two to execute with little or no money. 

Good luck! 

Damon

Ok here's the simple secret recipe to learning how to find comps...

1. Go to the search bar at the top of bigger pockets

2. Type in "how do I find comps" 

3. Pick a forum 

4. Read it

5. You've now learned how to find comps 

All the information is provided, don't thank me, thank BP! 

@Account Closed 

I have no advice for you concerning the repair costs...however...

The 70% is not your profit. The remaining 30% is. The 70% rule is when your total investment (purchase price, repair costs, closing costs, and any other expenses up until the home is resold) is 70% ARV.

For example...

Purchase price = 30k

Rehab cost = 30k

Additional expenses = (we'll use 10k to keep the numbers even)

ARV = 100k

So now you take the sum of all of the expenses...

30k + 30k + 10k = 70k

70k = 70% of 100k (ARC)

So all in all, you spent 70k to acquire and and repair the home back up to it's ARV of 100k.

Once you sell the home, you make back your 70k and receive roughly 30k profit. 

I would use your example but a purchase price was not given. 

Hope it helps.

Damon 

@Joey Kendall 

Look at the bar on your home page. Go to resources > file place > contracts

Maybe you could do one of the 4 houses for free...no profit at all for you on that one house to help make up for a large chunk of that down payment. Find our from him what his ROI would have to be in order for him to fund the deal 100%...once you find out what he wants his ROI to be, you give it to him, and keep what's left.

Talk to your HMLers and explain to them your situation...explain to them the reason you came to them was because you don't have money for things like down payments...Even if you have to take extra money out of your personal profit to have them follow through, some is better than none. When pay day comes, you'll give them what they originally made, and 25% of your personal profit to help make up for covering those expenses. It may spud like a pain but it really is better than nothing. Your gaining money, experience, and knowledge. Tell the HML that after the first few flips you'll have the down payment saved up...and then you can go about your regular partnership. That 25% is negotiable too...it could go up or down depending on what your HML says. Of course all of this will be eventually written up into a contract. If none go for it, looks like you better start wholesaling to put 60k in the bank...

http://beta.biggerpockets.com/forums/62/topics/134196-investor-psychology---direct-mail-campaign

@Steve Babiak 

So the current lender is verifying the buyer of the home to is qualified to take over payments? Or is the lender of the buyer paying off the current loan, and expecting the buyer to continue those same payments to them?

I am a little confused. If you are looking at purchasing it subject-to, why do you need a loan? I thought subject-to was simply taking over the payments. So why would you need a loan to take over payments? Unless you are using the loan for the repairs? But that would have nothing with the actual subject to transaction, it's just borrowing money for repairs that you will pay back...can someone fill me in on why a loan is needed here? 

@Russell Ponce 

Thanks for the reference! My two primary focuses at this point in time is wholesaling and building a rental portfolio...when you said his "method of building a rental portfolio BY wholesaling," my eyes popped! Going to get on that podcast now! Thanks again.