All Forum Posts by: Shane Wilson

I've never heard of anyone doing that but I'm not in the mortgage business. I will say that because of all the "credit crunch" talk the regulators are wanting my bankers to reduce from 80% to 75% LTV. They told them they couldn't for market reasons but things are definitely changing in other areas I'm having to adjust to.

Its a matter of time and effort. I'm not a millionaire yet either. Evenutally I will be a but its just a matter of persistence and wanting it enough.

Just keep it simple. Get a game plan together and work it. If you stay persistent and never give up over time you will succeed.

The type of siding should be dependent on what what area your home is in and what you intend to do with it. If you want to sell it retail and your home has masonite siding thats falling down, cracked, chipped, etc and the other homes in the area have been remodeled with vinyl then I would remodel the home in vinyl too. If vinyl is not prevalent in the area then I would find out what is the common siding. If its just a rental I wouldn't worry about it to much. Thats just my views though.

Hardie board is just a type of siding. Go to lowes or home depot and look around the siding section. You can see what it looks like there. Whether or not it adds value depends on the factors I stated above. If your home is the only one on the block with terrible looking siding then it would add value. Appearance counts for a lot.

My very first deal was funded through a hard money lender. I scraped, borrowed, and did whatever I had to do to get the money to do the deal. I had to get $4,000 to purchase it and I had to get money to do the repairs. I did and I made $20,000 on that property that got me started. So if the numbers work and if you want to do it find the money and do it.

On the topic of partners. I highly recommend partners. Its the quickest way to get started if you know an experienced investor that you can trust. Just be careful and choose the right partner. A wrong partner can sink you. Always get everything in writing.

I use interest only commercials loan on everything. Visit your local bank and talk to a commercial bank lender. There are different rules to commercial loans then conventional loans and mortgages.

Commercials loans do not show up on your credit report unless you don't pay them or become deliquent. They require less information. A balance sheet, last years tax returns, and a credit score usually over 620 is all you need. You can also get construction loans which will allow you to have draws to help in repair cost. Closing cost are also minimal. I just refinanced a loan and the closing cost was $781. Thats appraisal, attorney's fees, and the banks fees.

However, on the downside LTV will only be 80%. I use private money lenders for the 20% down on a purchase plus rehab cost. I then refinance when the project is done to cash out the private lender. The interest rate is a little higher then a conventional fixed rate loan. For example my loans are currently a quarter plus prime which is 8.5%.

The interest only loans I use fit my game plan. Study up and figure what works best for you.

First you will need to meet with the sellers to see if they will work with you.

Second you need to verify all the information and then you need to run the numbers. Is it a deal yes or no?

If Yes and you have no cash to buy then do this. Get a purchase and sale agreement contract signed with the sellers. Put in the special stipulations section that "This contract is assignable"

Next find another investor. You can assign that contract to them for a fee. Assigning a contract is basically selling that contract to another investor.

Do you know any other investors in your area that you could assign a contract to? If not you need to be networking.

Thats the simplest way to do it. A double close has a lot of moving parts and if you do not have an attorney on your team yet I believe assigning the contract is easiest method.

I find my deals from three main areas

What: My Marketing
How: Billboard, Yellow Pages, Ad in Paper

What:My Network of Contacts
How: They all know I buy houses and call me on leads.

What:Listed Properties
How: I constantly look and target properties to make offers on

You could agree to pay $10,000 and take over payments but you need to do a lot of homework on how to properly structure it.

You the buyer takes title via a warranty deed. The mortgage stays in the homeowners name. You make the payments for them. Thats the very simplified explanation. Your exit strategy is up to you.

I can only speak for where I"m from which is georgia but here is how it works here. A contract is not binding until both parties have signed it and a binding agreement date is filled in. If you are making an offer then why would you not want it to be binding if the other party accepts? Thats the point of making an offer is to buy the property so I'm a little confused on that?

I would not bring an intent to buy offer to my agent. It would make me look like I was not serious. If you want to make sure your safe put a 5 day inspection period in the special stipulations section of the contract giving you to terminate if you inspect the property and find it unstatisfactory.

Again these are my views from Georgia. I know New York sometimes have different ways then the rest of us.