All Forum Posts by: Account Closed

I only buy houses that cash flow. The typical cash flow is $500 a month but some go as high as $1000 per month. If you want more info let me know.

Several reasons. The loan may be backed by FHA or VA and there is no loss to the bank if the borrower defaults. Also, they may be able to buy the loan from the other bank for pennies on the dollar. Another is that they expect the borrower to reinstate and the interested rate is high enough to be of benefit to the bank.

You are better off getting a copy of the local contract from a friendly real estate agent or see if the Title company has one to use. I always use whatever local MLS forms are available if I can. If you can't get a local MLS copy, you should use one that is prepared for your state. Read the Agreement before you put it in front of the Seller. In fact, make copies and fill it out several times so you know what information you need and you aren't stumbling around in front of the Sellers. But, the general sequence goes like this, call the prospect (seller) and set up a time to meet with all people who are on the Title. After everybody has agreed on a price, closing date, financing, etc you put that into the agreement. Each party signs. This shouldn't take more than half an hour. Don't drag it out. You could end up changing their minds. You then make a copy and give them a copy. This may mean running to the Fed EX store to make a copy and then going back to give it to them. Then you leave. You then call the Title company and order a Title report. You then have them set up Escrow and a closing date. Call the Sellers and confirm the closing date and tell them which Title company. The Title company will send them a packet they have to fill out. There is a lot more but you get the idea of how to get started.

When I JV we split the profits 50/50. Everything is in writing. One of us will be the "cash" guy and the other will be the "work" guy. I do JV's in California, Arizona, Texas and I'm looking at a couple of southern states. I don't do JVs in Florida because the foreclosure process takes so long & I don't do commercial. But, I will buy properties using Owner Finance and Subject To and Wraps. So, there isn't nearly as much cash needed and no bank qualifying. I don't "fix & flip" so there isn't nearly as much work needed. I made a lot of money doing JVs and so have my partners when we team up.

A JV agreement can be structured however you want, just be sure to get everything nailed down in writing. Include the "exit strategy" and "what ifs" so if it doesn't go well, and you decide to do something else it is an easy exit.

I would stick with someone who knows what they are doing, who is working the zip codes or state you are interested in and then do a couple with them so you can learn the process. After that you can do some on your own if you wish.

 It's a little more complicated than that. If the lis pendens references a foreclosure, the lis pendens can take months & months to complete and you need to track the docket to know the status. So, mailing become a bit of a challenge. Most people don't do anything while they are foreclosure and wait until just before the sale to sell. However, if you are tracking other kinds of lawsuits, you have to track the docket and you are buying trouble if you don't get the lis pendens released before you buy the property.

It isn't clear what you're going after.

 Yep. Split 50/50. Join the local service groups or find someone (family, friend, church, work) who wants to become an investor. It's easier than you think if the deal is real.

 I'd actually take the property "Subject To", bring the loan current, give the guy some moving money and get a great deal. 

 Perhaps you came across as a newbie and they only work with experienced accredited investors. It's their money. They will set the rules who to lend to and why. 

I only do Owner Financing, (Subject To, Wraps, Lease Options etc) . With the scarcity of information provided, it's hard to tell if that is a "good" deal, "okay" deal, or "walk away" deal. There is a long list of "due diligence" items that you should attend to. Some need to be answered up front just to determine if you want to spend the time worrying about the opportunity. 1) I'd verify that the seller owns the properties and there aren't any unpaid liens, unmentioned other owners, legal issues, drug lords living in the premises, that kind of thing. 2) Verify as close as possible what the actual value of the properties are. 3) Find out why he wants to sell. 4) Depending on the underlying note, see if there is a Due on Sale Clause. 5) Check and see if the properties are cross collateralized 6) Have a plan in place for property management 7) Ask for the rent rolls 8) Verify taxes and monthly, yearly maintenance costs 9) Your Owner Financing arrangement needs to be written by an experienced local real estate attorney 10) Call a couple of banks and ask them if you will be able to refinance the properties in two years per the agreement. It could be a good deal, I just don't know enough to make an educated guess given the information provided, but that will get you started. If you want collaboration, PM me and we can discuss.

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Most everyone already knows how to fail. That isn't the hard part. The reason people focus on the successes is to prove that there ARE successes. 

Besides - The Sky Is Falling!!!! (I've always wanted to say that and now I have. ;-)