All Forum Posts by: Account Closed

Use a title company

Here is the number you havent thought about...

What could you do with the 50k to make more money and what is the cost of not using it there?

Here is mine

If I may ... I think one of the issues you have is that you sent all of them at once...

I have a consistent marketing plan so I am not bombarded with leads then no leads at all. I don’t want a roller coaster lead generation cycle.

I also use a drip system and send the prospect multiple touches and if you’re farming by all means you will have to keep touching them to have the most effectiveness.

By the way what does your postcard say?

Michael Quarles

I am certain I will get beat up for saying this but buying out of the MLS unless at a value less than 65% of resalable value is paying too much for advertising… So I wouldn’t.. The last house I bought out of the MLS I paid 305k and it was listed for 599k so there are good deals to be had but I still like my chances using the 6% for advertising.. Besides agents can screw up deals faster then you know.
Buyers pay commission that sellers authorize.. 6% of 330k is 19800.00 of advertising dollars you could spend finding better deals..
So are you buying it for 65cents on the dollar?
If all you have is 65k to use as an investment I wouldn’t spend 50k on one deal. There are going to be many more opportunities out there.

Monthly Mortgage (6.5%) = $1,800
Insurance (EST) = $300.00
Taxes (last year) = $525.00
Water (EST) = $500.00
Total expenses: $3,125

Let’s assume I can only get $1400 rent for each property.

Monthly Rental Income = $4200

In my mind this would be a good deal. Of course there are maintenance costs to consider, but could you all give me some input as to whether or not my numbers are way out of proportion? Or if there are other things I should be considering.

I knew there was a reason I didn’t like the rental market… 50k to make a possibility of a grand a month. I think I would wait for one of those 30k deals Mike talked about on another post… That would make more sense to me..

Returned mail is just part of direct mail... I dont waste time finding the sellers... If you send out enough effective mail youll get the leads you need...

Just be glad youre getting the mail back so you can stop mailing them..

Michael Quarles

I run this commercial during Oprah and Jerry Springer

http://www.ibuyhouses-inc.com/divorce_30.wmv

In California they sign this puppy ...

It is understood and agreed that this agreement applies to all known and unknown claim of loss and we, (husband/wife) waive all right or benefit that we may have or in the future may accrued under Section 1542 of the Civil Code of the State of California, which section reads as follows:

General Release: Claims extinguished.
“A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release which if known by him must have materially affected his settlement with the debtor.”

They also sign this.

DEFAULT BY BUYER: In the event Buyer should fail to consummate the transaction contemplated herein for any reason, except default by Seller or the failure of Seller to satisfy any of the conditions to Buyer's obligations, as set forth herein, Seller shall be entitled to retain the earnest money deposit, such sum being agreed upon as liquidated damages for the failure of Buyer to perform the duties and obligations imposed upon it by the terms and provisions of this Agreement and because of the difficulty, inconvenience and uncertainty of ascertaining actual damages, and no other damages, rights or remedies shall in any case be collectible, enforceable or available to Seller other than as provided in this Section, and Seller agrees to accept and take said deposit as Seller's total damages and relief hereunder in such event.

I dont know about anyone else but I think you should have a very good contract if youre investing in real estate.

I personally have met several lease option "buyers" who were involved with lawsuits with lease option "sellers" when the seller got into financial trouble and couldn't follow through with the sale (because the property was being foreclosed upon (usually after the seller refinances and ends upside down). These can turn into a real mess, real fast.

Mike

This is why you should never allow the Seller to make the mortgage payments to the lender...

Michael Quarles

Jon you have some very good points and I can’t argue them with you… I am not an investors who believes my method is the only method.. I just happen to like it the best. Sub 2 has allowed me to buy a ton of houses and resell them for profit… I do not believe the conventional manner would allow me to do the number of transactions I do…

Originally posted by "Wheatie":

If I buy a property, get a loan on it, and then rent it out, that's about as simple as it gets. If I don't pay my loan, I get foreclosed and the tenant gets the boot. Regardless of the details, if the tenant doesn't pay, I still have to pay.

I have to agree that is one of the simplest ways to buy housing... Not as simple as Subject to but most definitely the method most people use.

If I may ask... aren’t you already expecting to get a loan since you don’t invest this way? If so where is the issue by buying it Subject to? The worse thing that can happen is what you’re expecting to do anyway.

I am not a lease option guy I know how to do them and understand the reasoning behind them but I would rather buy Sub2. And I agree about the payment issue which is why you should never send the payment to the seller always to the lender.

two words "disclose everything" I still think youre worried about something that I can say has never happened to me or anyone I know... But it is a point to consider.

where is the risk as long as everything is disclosed to all parties. Sandwich leases typically dont have equity in them so your not at risk for losing your equity and typically you dont have money at risk.

I think at some point youre going to run out of available borrowing power. Buying Sub2 doesn't have those issues although it comes with it fair share of concerns...

Michael Quarles

here is the other one