All Forum Posts by: Shane Wilson

This is not from my personal experience but an investor that I know sends a package with an offer fedex to the loss mitigation department immediately after the foreclosure auction. He claims there is a 21 day lapse before it hits the REO department. So you might be able to catch the deal before it goes to the REO department.

You idea of buy cheap, fix cheap, and rent to own is what I'm currently doing. I keep my rehabs to less then 10K. I try for less then 5K. Your biggest expenses are generally going to be leaking roof's and central a/c units. Keep your investment as minimal as possible. If you take the houses back you'll have to reinvest in about half the cases.

I owner finance to anyone who fills out my application and doesn't lie on the app. Then if they have the downpayment its theirs.

Absolutely make sure you cashflow though. You will kill your ability to borrow if you don't. So while you may be ok with breaking even and helping people which is good it will kill your ability to buy more houses due to debt to income problems if your not careful.

From experience I made a really low ball offer in dec of 2006. Listed at I think $59,000 maybe? I may be off on that but I think it was up there. I offered $35,000 and they countered. They ended up taking $39,000. So the year end is a good time to make offers with them if you can close quick. Thats true with most banks at that time. I would think end of quarters is a good time too as it is with most banks provided you can close before the end of the month.

80% of my acquistions are REO's and HUD's. They work fine for me. Any other way works too as long as the numbers always work.

There are plenty of ways to find deals. There's no single best way. Learn one method. Practice what you learn. Make some money. Learn another method or redo the same method. It doesn't matter what method you choose. It just matters that you are taking action and that your making money.

Why not just do a double closing? A little more cost then just an assignment but it accomplishes the same thing.

You could also amend your contract with the bank to add add your buyer to the contract. Close the deal and then quitclaim your interest after you close. I've added partners to my contracts after the contracts were accepted and haven't had a problem with that. As long as everything matches up between whats on the contract and who closes it then there's no problems and no fraud.

Sign a contract with your investor to sell your half interest contigent upon you two buying it in the first place and after closing sell the other investor your interest for whatever the agreed assignment fee would be and quitclaim out of your interest.

If you have a cash buyer let them bring the cash and secure them with a security deed to close the deal. Afterwards deed your interest over to the investor for the assignment fee.

I wouldn't ever do an assignment or double closing unless I knew 99.99% that my buyer would close, however if your buyer fails then delay closing a few days and just make sure you have plan B in place to buy the property yourself. Make sure you close before the deadline so you have time to put your plan B in place before the contract expires.

Just make sure you have a good attorney or title company and document everything.

There's all kinds of ways to structure deals.

Here is my structure.

S-Corp for flips
LLC for Passive Income from Rentals

I agree its not an excuse to wait to get started. Doing this part time in the bad credit and no cash state is fine as long as you have a stable source of income. There are tons of ways to get started like you said but if you want to do this fulltime and operate a true business then ultimately you have to be able to manage your your money and credit and you need cash for unexpect circumstances.

If your 720 or above then your fine. You need to work on networking and finding potential partners who have the cash to work with. Raising your limits to just 10K isn't going to hurt you. It'll probably help you. The percentage of use on your credit cards is the thing that affects your credit most just keep them paid off. I personally use truecredit. They allow you to pull all three everyday for about $15 a month.

For those starting out with bad credit and no cash you need to get your own financial house in order. You can buy houses without either and using someone else's cash and credit but for long term success and if you want to do this fulltime you need cash and credit. I would start with partners if I had no cash and no credit.

Its just a different market now. In my market selling retail hit a wall since June of 2007. Its not impossible to sell it just takes longer here. Currently, 90% of everything I do is Rent To Own and this area of my market is thirving. I'm buying as much as I can since I'm finding plenty of good deals.

As far as funding ofr conventional buyers, I don't have a problem getting people financed. My mortgage broker can do 575 or better its just the buyers are all scared off with the press and everyone talking doom and gloom.

Shane

Your ability to sell the property also depends on your ability to market the home and making sure the home is accurately priced. If you have the contacts, time, and/or money to spend on marketing then selling it yourself is an option.

Another option as far as a Real Estate agent goes is to find a Realtor who agrees to do a deal that if you sell it of your own accord that he/she doesn't get a commission. If they sell it they get their commission.

Shane

If you want to deal with REO's get used to making offers after offer. Just be persistent and always make a cash offer.

Shane