All Forum Posts by: Kyle Cabral

PS... not sure if this was the right section to throw this question in but couldn't find another spot.

Hey guys,

I'm setting up a Google voice number and saw on a video that instead of having an actual number on bandit signs... say 508-123-4567 they used the idea of a word so in this case they used 508-123-SELL.  Unfortunately, there are no numbers available with the word SELL at the end but could get one for HELP.  Is HELP too strong, or do you guys think that's a good ending to a number.

If you have any other words or combinations, i'm all ears.

Kyle

 Not only possible, but likely : ) lol but I guess that's a separate discussion/debate.  Thanks for the insight!

Thanks @Winston Spence makes sense.  @Bill S. I'm thinking that every situation is different and there are special cases/individuals that just won't care and go through it, regardless of cost differential.  Of course, there will be those cases where you have people who have wet feet or bark up a storm... maybe that's what @Phil Pustejovsky was referring to when determining step 3 and what step to use.  I'm guessing, and I'm definitely going run this by my lawyer to make sure but the following could some conditions for each approach.

1.) Difference in price isn't that substantial, you list on MLS for a flat fee and find a relator willing to do this for you. Offer comes in, maybe it's 7k difference, you have the original seller countersign with conditions, stipulations, that originated from your first agreement with the seller that sends the original seller/new buyer to closing where in some sort of fashion have you receiving the 7k difference in the form of an equitable interest credit.

2.) Difference in price is substantial.  Let's say 25k.  You get nervous that original seller will get wet feet and be upset with the huge profit.  You sign the counteroffer and do 2 separate closings.  One with original seller for x amount, 2nd for new buyer for x amount, maybe on the same day.  Get rid of the need for anyone to know anyone's profit?

3.) Not sure where the assignment of the original contract can come into play with a new buyer.  Seem's like a "typical" wholesale deal to me and really, the difference between the first scenario.

Very interesting stuff.  Just for knowledge, I'm going to pick my attorneys brain on this one and see what he says.  I'll get his insight and repost here.

Bob,

This looks like an opportunity... big one.  Ton's of equity, merely 7k in association fees and you say the condo is trying to foreclose but hasn't gone through the process? This spells MOTIVATED to me. Obviously the seller doesn't want to go to foreclosure and lose out on any liquid assets you would be willing to provide/equity. I think I need to resort to others on the forum on the question on the MLS or FSBO.

To me, if they are filing but the owner is still the legal owner you have all the leverage in the world and the condo association will just care about getting their 7k.  Here is where you come in, offer 65cents on the dollar for the condo and offer to pay the 7k in closing costs.  Get someone in there on a lease option or heck, just keep it for yourself and buy and hold.  The numbers work, if you get 1000 a month, at 65k with no 20% down or anything you still can cash flow in excess of $300.00/month on a condo with limited maintenance.

I'd make calls, do some research, and plug away at this one.

Kyle

Hi Bob,

What could you get for rent in the area? $1421.00 for $166k seems high, what type of rate is it? Do you know what he'd be willing to let it go for? If he won't budge for anything but close to FMV then maybe subject-to is best bet and then getting somewhere in there on a lease-option for 12months - 24months with option to buy. I think we need a little more details surrounding average rental rates but it does sound like you can get pretty creative with this one...

Kyle

Talk about creative @Phil Pustejovsky - Thanks for the insight.  I'll get legal advice in my area but will try to get some other deals under my belt before I finagle with this type of strategy.  Definitely doesn't seem like a rookie approach.  Regardless, thanks for all the videos you put out, as you have a knack for simplifying things when needed and have a common sense approach to everything, which I appreciate.  

P.S. love your investor intelligence IQ test, especially the question surrounding deal of the century, family, what do you do... Helps put in perspective your integrity.

Best of the luck in the future.

Man, do I like this guy Phil and his videos and I'm definitely buying his integrity and the fact that he really cares about people learning and succeeding.  But obviously, he's a business man, a very successful one at that so he knows how to make his money and his 50/50 strategy really is great for people who want to go that route... Just feel like with hard work, research, and using mediums like bigger pockets I'm in control of my own real estate destiny.  That being said... there's one concept he threw around in this video, that is very interesting to me.

Basically he says people leave money on the table far too much with respect to wholesaling and don't have to reinvent the wheel. Get a property under contract and since you have equitable interest, there's nothing wrong with listing the property and basically collecting the difference as an "equitable interest" fee. By using the MLS and other sources, you can get a far greater return.

My question, how does this look from a contract perspective? Are there people actively using this strategy and if so, how is it done in a clean transaction?  My thoughts...

1. Locate motivated seller, get property under contract and gain equitable interest with your $10, $100 or whatever deposit

2. Based on region, MLS network, etc. ensure there are no restrictions and that a non-owner can post a listing on MLS. So the language on MLS is "seller" as opposed to "owner".

3. Find a buyer and .... what's next : )

Hey guys, I'm really hoping for some simple advice on a simple scenario when discussing subject to deals with respect to Dodd Frank.  I downloaded the law, it's huge, and will eventually pierce through it but very congested so I figured I'd ask the question in this forum.

Scenario: I locate a house, let's say $150,000 ARV it has $35,000 in equity, needs no work, seller decides to get rid of it for $115,000. I decide to take over his mortgage subject to his original financing. I simply take over the deed/note, start making payments on behalf of the seller and have conditions/exit strategies in place just in case the due on sales clause (DOS) clause is exercised to prevent the original seller from facing a financial crisis if it defaults. (Either sell it, assign back to owner, etc)

Should I be concerned with any language in Dodd Frank? Or is this more of an issue with Lease Options where credits are being applied to the purchase price of the mortgage on the option to buy.

I was going through a ton of Dodd Frank forums and it was just all over the place so I figured to get very specific on a simple scenario to get feedback.

Thanks,
Kyle

Bigger Pockets is simply the best.  I started by diving head first into real estate and without much knowledge surrounding the subject of investing, I can honestly say in a few short weeks I know about 10 times more than I did prior to being active on Bigger Pockets.  Whether it be listening in to the weekly podcast, using the deal analysis tools or reading up on topics I am not familiar with.  Everything is here.  If it hasn't been discussed, I start a forum, it's amazing the kind of response rates that are seen.