All Forum Posts by: Mark Sewell

OK @Kaelyn Motzel so tell us, who are the RMLOs that you have used here locally?

Jamell we got plenty of buyers WITH FUNDING looking for those deals.  I will help however I can.

There is lady named Sharon Vornholt that puts out a lot of good content on probates.

Tracking down relatives is a whole skill in itself and for sure, I don't possess that skill.  I actually ran across a deal like that and I never got anywhere with it.

I think the no money down thing is mostly hype.  It is technically possible, but you also want to be prepared for things that go wrong.  No plan survives initial contact with the enemy, and house flipping/remodeling is really scary when you are low on funds. 

But I will tell you this - one of my very first clients here at Jet Lending is another buddy that I knew from BP and he was able to get very, very close to doing a deal with no money down.  It was a nice deal he found.

You can do the same.  my email is in my signature (not sure I'm able to post it in forum threads). 

Do this.  Find a deal, and call me.  We will run the numbers together.  If you keep it, then great.  If not, I got a ton of qualified clients that would like to have a look at it.  

But let's not be running around town putting houses under contract when you aren't in a position to complete the transaction.  Probably not legal, definately not ethical.  If you aren't there today, I'll explain how you get there.  But let us decide that - way too many people jump to the conclusion that they don't have enough resources to do deals and many find they do, or are at least much closer than you thought.

Just about all of them will do this, provided you buy it deep enough. 

Here is what I mean: We loan up to 70% of ARV on your house. Your house ARV is $200k, so we lend up to 140 which has to include your renovations. Great, you say. You go buy the house for $99K, and the renovations are determined to be about $36k (it is a mess). So there you are at $135K. Now you can roll in $5k of your closing costs.

You might come out of pocket about $2k in this scenario.

And it is not common, but now that I am in this HM lending gig, I see that it happens more than I would have guessed.

So does this mean that you can start doing deals with no money?  No, not really.  You do need to show some liquid reserves - that can be a combination of cash + credit lines.  You don't have to hand it all over to your lender, but you do have to document that you do have it.  

We want to see that you have (a) enough money to pay closing costs (b) enough money to make 6 months of payments and (c) about 1/3 of your total renovation budget.  So using the scenario above, you'll have to show me that you have about $24k in liquid reserves - even though you are only required to show up to closing with $2k down.

@Ryan Vega

My opinion and it is going to come off as a bit biased, but I think wholesaling is the hardest thing to do (well) in REI. You have to get very good at marketing. You have to get creative with learning ways to find sellers. Once you find them, you have to learn to talk to them. You have to show them you are a real buyer. You have to follow up with them.

You have to manage all this alongside a stable to solid buyers.  You have to figure out how to get access to the house so you can show it to these buyers.  It's not so simple.  

One thing that would help you is to just DO ONE DEAL. Get one done and nobody can ever take that away from you.  Even if you lose some coin on your first one, you will recover.  Then if you decide you want to wholesale, you have at least some credibility.

Whatever you decide it starts with learning the market, recognizing a deal when you see one, and getting good at making offers.

Oh wow, didn't know they were an RMLO.  I've made payments to them on a HM loan I did a couple years back, so I just assumed that they were some kind of mortgage servicing company.

But they can refi them.  And they do.  It takes about 5-8 years, that's how long his notes stay in place until they pay them off or refi out of them.  Some improve the properties and get there quicker.

I think it also depends on a lot on your market.  This would be really hard to do in WA state I suspect.  Rents are high enough in relation to the cost of the crummy little houses.

Hey @Wesley Copeland I used to finance some of that yellow iron that you haul around around to jobsites.  I bet we know a few of the same people.  I got some local resources for you.

Take a look online at Houston Buyers Club, and/or AC Ramos at Prosperity Group.  

The trick to this is getting deals and buying them deep enough.  That makes the rest of it relatively simple.