All Forum Posts by: Jim Wineinger

I would note who it is that is attempting to sell the property and give him the note.

You would have to talk to him after the end of all the auctions have taken place. And say something like "I could not make anything happen for the opening bid, but here is an offer I would like you to take to the actual seller for me. If they think anything can be done my contact information is included, thank you for your time."

Short, sweet and to the point, should be respected. I might even add "If you would like to meet for lunch sometime, just call me"

Yes, be sure to check out all local laws.

Include in this check the eviction laws as some eviction courts have said that they do not have jurisdiction in this matter because there is a question of who has "interest" in the property due to the "rent to own" contract possible giving the renter an interest in the ownership until the time that they choose not to exercise their option. And they do not have the authority to evict anyone who has an "interest" in the property.

Eviction still can be done, but sometimes not by the normal eviction process as it would go through another court.

One way to get that money needed is to make it one of your "bills". And you put $5, 10, 25, 100, or whatever you decide per month into a savings account for the purpose of building up that money, AND NEVER TOUCH THAT ACCOUNT, until you can do a deal.

Some have refered to this as "Pay yourself first". It will depend on how motivated you really are!

Tomorrow (ok now later today) you might also want to try (if no opening bid is recieved) something like:

"I wont go as high as the opening bid that you want, but will you accept XXXX??? as an opening bid?"

Worst thing is it is rejected and the bank would have to purchase the property, just like they would have with no opening bid at all!

I will make another guess here that Paul can correct, if he will. Right after the auction means that the offer the homeowner put forth is accepted by the bank AS LONG AS there is no higher bid recieved at the auction.

If any such deal is in place with the homeowner then your bid would have to be a formal bid at the auction. And it would have to be higher than the homeowners (pre-bid, so to speak) in order for it to take presidence over it.
These kind of deals are kind of like a sealed bid auction, where you do not know what to bid, you just bid your amount and hope it is accetped.

One more step you can take since you mentioned an HELOC is to make sure that the appraisal person that the bank uses actually comes out to your house and walk around with them.

It might make your application fee(s) a little bit higher, but they can give you an indication of what to do which would increase your marketability, and what you should not do because it will cost you more than the return is really worth. They can also suggest good people to use in your areas of need.

Here is a link to the "land and farm" properties that BP refers us to on the link section that I referenced before.

http://www.biggerpockets.com/farm-rural-land.html

and a copy of that page:

Farm and Land Real Estate
BiggerPockets Land Directory
Search thousands of land and farm properties right here on BiggerPockets!
LandandFarm
Allows you to search for land and farms for sale in the US, Canada, and around the world. FREE
LandWatch
Search thousands of land and farm properties throughout the United States by type, size, price, and many other options.

Horse and Farm Magazine
National directory of farms and horse properties.
Lands of America
National directory of 1000s of farms, ranches and waterfront properties for sale.

DMI Land Sales - Southeast US
Search Rural land for hunting and timber properties.
Land Incorporated
National Directory of Land, farms, ranches, etc.
Mossy Oak Properties - Southeast US
Search Rural land for hunting and investing.
PineSouth - Georgia
Specializing in Southern Plantations, Timberland, Farms, Recreational Properties and Investment Properties.
Prairie Rose Realty - North Dakota
Land, Farms, Ranches, Rural Property, Hunting Land, CRP, Wetland, Country Motels, Rural and Community Homes For Sale
Ranch Investments & Associates - Texas
Land, Farms, Ranches, Rural Property, Hunting Land, etc. Search by acerage or other attributes.

IT definately looks better by doing a copy and paste of the link provided above.

Use some leverage, but only to what you have comming in!

I personally like to purchase at those "free and clear" tax sales. I do find that building wealth "free and clear" is the only way to weather the storm (economically) these days.

While everyone else was screaming about their lines of credit being reudced, I went into my bank with my "free and clear" deed and obtained a line of credit.

Using that line of credit of 36K I now have increased the equity of the house from 58K to 125K-36K which is 89K.

But doing this 5 different times all at once would bring my total payments to those lines of credit to a level higher that I could make if I do not have someone paying me for the house (rent) and to sell one I would have to pay off that 36K which is like asking the buyer to put almost 30% down.

The point, I guess, that I am trying to make is some leverage is ok but too much (leverage as a business model) will bite you in the end one day.

I think free and clear is much better. But then that takes one to "How do you buy those flips?" Since cash is king you can often get a greater discount paying full cash right now!!

And the lower you leverage that property the lower you can accept as downpayment when selling using owner financing, which I think is the way to go as now not only do you (acting as bank) get all the equity by selling at your price, but you also get to have the interest that would usually go to the banks.

This alone will greatly build your wealth.

due diligenge is the key, as in most things.

You do get what you pay for. If you skip that due diligence you may be paying for a salesman, or you may be paying for a real knowlegable person. You skipped the due diligence it's pot luck time!!!

If you have done your due diligence and know the person is actually knowlegable on the subject, then I would have to say that asking for a mentor to walk you through the process is asking someone to give up their income for XXX amount of time to show you the ropes.

If I were to pay him for his lost income and time that would be very expensive indeed. Of course there are many variations between this and finding out what you want to know by just reading. It is up to each and everyone of us to decide which route to take.

In what area are they looking for the land to be in? Any state in specific?

I do not remember exactly where I have seen these but there are listings. I believe on some of the land auctions sites.

I think that I started on this site by scrolling down to almost the bottom at the left hand side. There is a section called "find specialized properties" and under that is two links that you can start with: Farm & Rural Land sites and Land & Property Auctions.

Hope that helps you, Chris.