All Forum Posts by: Account Closed

@Tyler Ferguson What you want to do is very common for Canadians into the Phoenix area. All of the supporting services are already in place.

@Sterling Fields I once upon a time was a loan officer. I actually sell my houses now using FHA, Sometimes. (But, not often.) In your position, I would buy Subject To (taking over someone's loan, for somewhere around $25k "all in" and then fix up the property and either cash flow the property or live in it, your choice. It is soooo much easier than trying to buy FHA and trying to cash flow the transaction.

@Benjamin Cowles Post cards are a waste of time and money, sorry. I have been doing real estate for twenty five years and about a year ago, I tried 5,000 postcards, professionally designed, full color, over sized and to a good mailing list. I got 1 call. They wanted to know how I got their name. Sigh.

@Justin Currie @Brianne H.

Here is what I do, it is called “Owner Carry” or Subject To

Actually, it is very lucrative. These are generally Not Fixers - Most sellers in this situation either:

1) have to sell quickly or

2) don't have enough equity to cover real estate fees, closing costs and other fees or

3) don't want to or can't afford to do repairs and or don't want to have people traipsing around their house or

4) have bought another place and are carrying two mortgages or

5) lost a job or have a medical emergency, etc or

6) are in pre-foreclosure and have to do something quickly or

7) are inherited with a mortgage and can't make the payment or

8) have a job transfer and need to sell quickly

I allocate $25,000 per property. The money I give a seller comes out of the $25,000 investment.

When I sell to a Tenant Buyer, since I am offering Terms that they otherwise can't get, I sell the property "As Is" for a "built in equity" of an additional $10,000 to $25,000 depending on the house. (I bump up the sales price what the value WILL be) then I get that (it is called "the back end" when they refinance or sell. The buyers are usually successful businessmen that can't get bank financing because they aren't W2. They have good income, money in the bank and want to buy a home.

I get a "down payment" up front of $10,000 to usually $25,000 then I get the monthly cash flow and then I get a "back end" equity payoff.

When I "Buy & Hold" and only rent it out, I have to take care of a tenant, fix the roof, replace the AC etc. Worry about them trashing the house, worry about vacancies. When I eventually have to replace the roof or AC it wipes out the profit from that house. The most I get up front is one month's rent. I continually have to find new sources of money for the next one, usually a bank. Bank's Stop Lending at 10 properties.

However, when I sell it to a tenant buyer, there are no real estate agent fees, I get $25,000 immediate cash, I don't have to worry about roofs, ACs, and tenants and I get the same cash flow. When the roof or AC goes, the Tenant Buyer owns the house, so he takes care of those. If the market tanks, my built in equity still exists. Each time I get a Tenant Buyer’s down payment, that gives me Money to Buy the Next one and the Next one and the Next.

Pretty cool, eh?

If you want to learn how to do them for yourself PM me and I can send you some info.

@Nathan Waters Excellent. An interesting dilemma people run into when trying to finance through banks is that banks will limit the number of properties they will allow you to have. Some limit at 4, some limit at 10 but if you are clearing $200 a month on a rental, it's like $2,000 if you have 10 properties. With Subject To and creative financing only your work ethic limits you. There is no limitation. That is how I've gotten to so many properties. PM me if you want to learn how to do these long term.

@Doug Bryant I've read that the $3000 fee for 100% financing is only the start and sometimes it never gets lent anyway. I wouldn't go that route at all. And no, any sane lender won't risk 100% financing unless the flipper has a successful track record and a relationship already built. Your most likely source will be Joint Venturing with someone who has done this before or someone (friend, family, associate) who has a 401k or IRA that they can use for investing. Be sure to have a written agreement and to form an LLC. (Among other things.)

 Some markets appear to be over heated:

The explosion in home valuations in urban markets like Brooklyn, Washington D.C. and San Francisco has inspired real-estate speculators to search for the next big score, with the highest percentage of home flips completed with the aid of outside financing occurring in Colorado Springs, Colorado (69.3 percent); Denver, Colorado (54.8 percent); Seattle, Washington (51.6 percent); Boston, Massachusetts (51.3 percent); and Providence, Rhode Island (47.3 percent).

Matthew Gardner, chief economist at Windermere Real Estate noted that escalating home prices in Seattle forced flippers to rely on financing their purchases.

Other markets where more than 40 percent of home flips completed in Q1 2017 were originally purchased by the speculator using financing included San Diego, California (46.3 percent); Minneapolis-St. Paul, Minnesota (46.2 percent); Phoenix, Arizona (44.1 percent); San Francisco, California (43.0 percent); and Washington, D.C. (40.5 percent).

http://www.zerohedge.com/news/2017-06-07/home-flip...

@Nathan Waters Heh, heh. heh. Your attorney didn't want to go through the learning curve, that's all. He probably won't do another one for years. I only do "zero down", creative financing, owner financing, Subject To, Wraps, Lease Options, Contracts for Deed etc and I had to go far and wide to find an attorney who even understood what I was talking about. Once you find them though, they are golden. Keep calling around and just ask if the attorney does Subject To, Contracts for Deed and Lease Options (you don't really need an attorney for Lease Options but it is a test to see if they are your new attorney). If they don't know what you are talking about, thank them for their time and move on to the next one. Good job for completing the task. From here on, it is a lot easier.

@Travis Toler Uh, just thought I would mention that Tacoma, Lakewood and Puyallup are just south of you. I have done lots of deals in each of those. Don't be shy. Come on down.

@Caroline C. First you would file a police report. Next, you would want to go after the liability or "Errors & Omissions" coverage of the Broker that the real estate agent worked for. Send a "Demand" letter outlining the incident and the amount of damages to the Broker by Certified mail. Then you want to file a complaint with the State. Then you want to call the local universities to see which ones have law clinics. Meet with them and show your evidence. If they think it has merit and can be won, they will take the case pro bono (no fee). Once a case gets filed in California, I think the trial is set out for about two years away depending on case load. During the two years there are depositions, interrogatories and various court appearances and Motions. Some 95% of cases get Settled prior to trial. If your case is strong, it will likely be Settled. However, Forgery is very, very difficult to prove. You would have to have the Notary that witnessed the signature or the signing on Video or some other very strong evidence to be convincing in court. If you win in court, the forger might be able to file bankruptcy and wipe out the debt. Collecting after winning a court case is entirely different than winning and not automatic nor guaranteed.

This is Just my opinion. I am not an attorney no do I play one on TV.  This is not legal advice and you should consult a competent attorney in the county that the property is located if you wish legal advice