All Forum Posts by: Matt Skog

@Chris M. Since time is of the essence here, and you're locked in emotionally, I really want to see whose objection is dominating the negotiations. My best guess is that it's the seller's agent.

I'd be inclined to ask if you can deal with the seller directly. At this point in the game, I would still plan on paying the real estate agents, even if you're dealing directly.

I see exactly *no one* suggesting going with a Lease Option. You would negotiate a price for an impending sale in the future, say 2-3 years from now. You would set the price to have room for appreciation. So perhaps the future sale price for that timeframe might be $35,000.

If the property appreciates to at least that range after those 2-3 years, then you have the *option*, but not an *obligation* to buy at that time.

Get good legal advice, whatever option you choose to go with. Best of luck to you!

If it doesn't, then at least you've had a good few years in the place to save up for a purchase someplace else.

@Tom Scott,

For me, at first the biggest upside was to build up down payment money to buy a new house.

It took me so long to find a good money partner, who was willing to do it the way I wanted to. Many want to do it their way only, because that's how they were taught. I had a different vision.

Traditional money partners will only give you a tiny finder's fee for giving them such a great deal. Then the next thing you know, they're cashing out on a huge deal, but all you made off of it was $500-$1000, all upfront at the purchase.

I wanted to receive less money upfront, and to receive payments over time for the balance of the agreed upon fee. Ever since I had uncovered what a partial was, I knew that this was the only way I wanted to structure my deals.

For the first few deals, I wanted to have the back end payments, along with $50 a month for 6 months but nothing upfront. I realized early on that many money partners didn't even *know* what a partial was, let alone how to use them.

We tweaked our deals as time went by, and I found the right formula to profiting well by trial and error.

I guess I'm an anomaly in the business. I refused to go along with the status quo, and carved my own pathway forward.

@Mitchell E Bauman,

Since you posted in this particular forum, are you more interested in the physical real estate, or into the paper aspect?

If it's the latter, you can stretch your investment dollars further, into several newly created notes.

Ex: You buy the estate from the Personal Representative, and he/she can decide whether to sell conventionally, or using a note either partially or fully. Assume that the seller doesn't want to take a tax hit on short term capital gains, and is more interested in receiving payments over time.

In my opinion, I would rather make several deals with the money instead of a time consuming single deal.

@Martin Saenz,

It all depends on what type of note ultimately. I think many newer investors are busy swarming into the NPN field, instead of learning to JV on performing notes.

New investors need to know how each asset type works, and it should be made more clearly to them that NPN investing is an advanced strategy for those who are more experienced.

Can you just keep the dog at her present rent, and double the rent according to the Stupid Human Tricks addendum? 😂

@Anthony Smoke,

Can you afford to put the current tenant up in a short term stay hotel, while doing the rehab? That way, IMO, you can lock them in for whatever timeframe their remodeled home stays affordable for them. Then you can decide whether to (sell, rent, option) the property. That's my $0.02 worth.

My area is one of the two largest suburban counties. We have very few options for the Section 8 crowd, and a 2 year waiting list for the fortunate few who eventually get accepted.

Our only other viable option for our area are Mobile Home Parks. There are 15 public Parks, ranging from 30 to over 500 lots, in my county alone. Most of these parks require trailer ownership, but management will work with those who truly are Section 8 qualified to have a decent place to stay.

I don't know of any new construction builders who are involved with any Section 811 housing around here. This is the best option for me to have a good shot at long-term housing in a B to C suburban neighborhood.

How popular is Section 811 in your investing areas?

@Charlie Moore,

He sells the house by CFD. When the payor can't get refinanced to avoid the balloon, he evicts them, and uses a Cancellation of Contract. Then on to the next victim.

@Kyle Bishop,

What's to keep you from rewriting the note once you're the noteholder?

Instead of having the payor applying extra toward an artificially low payment, you can decide on how you wish to accept their payments every month.

If I'm going to take 1/4 payment 4 times/month, then the end result is the same for equity buildup. Without the need for extra money sent.

There are so many things that you can do with notes, possibilities are endless.

Many people keep it simple, but there are a few on BP who use advanced strategic structures.

@Joe Donohue,

Do you get involved with Michigan at all? We're at almost 3 months out since they held theirs.

Are any counties there doing over-the-counter sales?