All Forum Posts by: Kyle B.

Kyle Hipp, appreciate the response, thanks. For sub2 purchases, when you acquire the remaining mortgage balance does that imply you are also acquiring the seller's equity? If that's the case, I'm assuming these are all situations where the seller has very little equity built up. Am I assuming correctly here, or is the seller able to retain some of the equity?

Brian Hoyt, yes definitely plan on speaking to some banks. Wanted to learn about this strategy at the same time though.

Thanks Bill Gulley, I'll do some more research on different threads for your suggested topics. I should be able to come back with some specific quesitons.

Bill W., I think wholesalers commonly require an EM deposit, so in the event that the buyer does back out, the wholesaler will be able to keep the deposit money.

Hopefully an experienced wholesaler will hop on this thread and expand upon this further.

I'm looking to purchase rental properties, and I recently spoke with a family member who told me that traditional financing for non-owner occupied properties is very difficult in my area (NW Indiana). If you are able to get a loan, minimum equity will be 50%.

He recommended I look into acquiring the property through a Land Contract. I wanted to see if anyone had experience acquiring properties through this method. If so, I'd be interested in hearing how to begin structuring a deal like this. I'm assuming you would need an attorney to structure the contract and make sure both parties understand the agreement.

From my understanding, this is essentially seller financing, but is there a specific difference between this and land contracts? If so, what are the pros and cons of each method? Is this the best financing option given that traditional lenders are scarce?

I'm hoping other BP members have experience in this area.

Thanks,

Kyle

Nichole Gabriel, I would recommend searching for "Direct Mail" in the forums. This topic comes up quite a bit as a very effective marketing method, and there have been a number of good threads recently on the subject.

I am a long way from even considering full time investing, but I'm curious as to how full-time investors are handling this. What do you do for health and medical insurance? I would think this is a large living expense for those that don't get their insurance through a work group plan. Adding children to the equation would make this an even more important question.

If I get to the point of evaluating whether to go full time in real estate (which is a long term goal of mine), this will defintely be an important consideration for me, especially given the fact that my current company provides a very good insurance plan.

I'd be interested in hearing how full-time investors are handling this.

Thanks,

Kyle

Tyler Bond, when Ben said have the tenants buy equity for you, I believe he is just referring to the fact that their rental payments to you will exceed what you are paying in interest and principal to the bank for your mortgage. So indirectly, they are paying back your principal (aka equity) for you.

Ben Leybovich, am I correct in this, or were you referring to something different?

Cody Croslow, appreciate the need to make your girlfriend comfortable with your transition into investing, but I would assume you can find a way that is cheaper than $8k to make that happen (if I'm understanding you correctly, part of your justification for hiring a coach is to make your girlfriend comfortable with this transition, correct?).

If that isn't high maintenance, than I don't know what is (just kidding here).

For your question about what is legal to do given that you're a realtor, I would consult with a real estate attorney about this. I'm guessing it will be a lot less expensive than $8,000.

Cody Croslow, this topic is being discussed on another forum as well if you want to check that out. It should provide you with some good info:

http://www.biggerpockets.com/forums/12/topics/82597-is-it-a-good-idea-to-pay-for-a-me-for-since-i-am-just-starting

If you do decide to go that route, before forking over $8k, I would ask if you can speak to other students this person has successfully coached. In essence, you're hiring him to coach you, so just like any other advisor you would hire (whether it be financial, legal, etc.), it is common to be able to talk to other clients for referrals.

That could just be one way to properly vet this person before paying him a substantial amount of money. I'm not saying he's charging too much or too little (although I would never pay that amount personally), just that you should be allowed to do some due diligence of your own.