All Forum Posts by: Joshua Crampton

I have heard of remodelers working with investors as a team.  Buying, renovating together and cashing out together.  I would be interested if there are reminders in Houston that are part of Bigger Pockets that I could link up with in the future. 

wow, that's good insights. I appreciate it.  This model works great if you can pay upfront for the property or get a remodel loan on top of the bank loan for the property.  Then you can keep all the profit. 

What if you:

1.) lease to own a distressed property

- very low deposit (your only actual out of pocket expense) 

2.) made a deal with a contractor friend to renovate it for free if you paid him a percentage of profit

3.) immediately put the house up for sale way more than you agreed to pay in the lease to own contract

I wanted to hear from people with more experience dealing in this type of entrance strategy and tactics.  

Entering real estate with low or no money down 

other option: do lease to own in distressed property.  Get a partner to renovate fir free if you split the profit, then sell it at a big profit.  All you did was put the deposit money to secure the lease/purchase contract.  

This is the only tactic I know that could work...but still learning 

I have this exact same question.  I have decided that this is the year I'm starting my real estate company.  No matter what I'm buying.  So, I'm researching lease to own the either owner finance it out or just rent it out.  

The renting it out option does give you some equity it normally only a small percentage of the rent will be deducted from the agreed sale price when you go to buy out the property in whole.  So, renting only buys you time until you can get a loan to actually buy the property.  

But...what if you owner financed it out after signing the lease to own contract? ?? If it's a $100,000 property and you owner finance it fir 20% down, you just put $20,000 in your pocket.  Then take that $20,000 and do what with it??  

I'm just trying to be creative here, but if you put $3,000 down to lease/purchase then a month later get a $20,000 check from an owner financer, seems to me you turned $3,000 into $20,000 in 30 days.  But your still stuck with a promise to buy the property out in case in a certain amount of time.  So, then what are you left with? 

$20,000 to invest in other properties I guess. 

I'm just trying to learn.