All Forum Posts by: James Hamling

Yup, N.D.= North Dakota, and the U.S. largest oil strike since Texas, look it up.

I am also in the building trades, and the requests have been insane, it is like how the gold rush was described back in school. There is a continuous caravan of people and trailers going that way. Right now, I could put 5,000 trades people to work 70 hrs a week for the next 2yrs guaranteed, but I literally have no where to put them, no hotels, no camp grounds, not even anywhere to park a camper.

If someone was good at working with local gov for rezoning, we could make 7 figures in the next 12 months. I am trying to finalize some land, and rezone, so on and so fourth. I have much in place logistic wise, just gotta do the face to face.
Short story is, I can buy the units for 2,500-30K depending on level of lavish, and sell now for 150K-250K, by simply moving it. Or, rent for 4,500 mnth, rate is around 11 sqft.

Im telling you, it's insanity.

I have no idea what you saw or read, but there is no way, absolutly no way what so ever any HML will lend on a 1-5yr term, at 9%-11%, hands down no way, especially not to someone without a track record.

A 5yr term is not even really HML anymore, it is private financing. I have a hell of a track record, for both simply executing AND profiting, and I in my wettest dreams don't have a 5yr term at 9%.

A better reality check is more like a 3month - 6 month term to balloon, with 5pts and at 15%. Thats the reality, and I strongly doubt you could even receive that with absolutely no skin in it and a plan to self occupy.

Your best bet is the gov's program, I think it is called homesteps. It is very common, but being as I can't remember the last year I bought to occupy, I really know little on it.

I am in Minnesota, dosn't get much worse for winter then here, and no, hell no, why would the difference in how the rain falls matter to if I will flip or not??????

Rain, snow, hail, locusts, I don't care what falls from the sky or how hot or cold it gets, I invest when I find a deal period.

And I have never noticed much difference in the sell side either, actually my best sells have come in January, which always surprises me a bit.

Thank you Jerry, awesome reply.

For all, lets pretend attorney's don't exist, there gone, they all loaded up in the caddy and drove off a cliff, and we are all mourning the loss of a great Cadillac, ok.

For me, running directly to the attorney to do this all or answer it all is in line with telling someone to get a realtor to finds properties to buy, and we all know how that works, sure they will find one to buy, but not how we want to buy. Yes, I can get an attorney, but not to do this in the perimeters and style I am speaking of.

I guess what I am asking most is from those in the "know", who has actually done 1, 2, 5, 10, 1,000. What contracts do you use, what verbage, what DON'T you use, and why?????????????

And more to it Jerry, is it best that I use a standard purchase contract with an addendum for seller financing, or a subject to kind of format with addendum. Which foundation contract platform is best???????? This is most similar with a c4d in my mind.

Branden Raftery

Really it depends on a lot more factors. what is your tollerence threshold, what is your income working capital, time availability, knowledge base, financial goal, so on and so fourth.

For me personally, if looking to build, now is the time by far, all is on discount. But you sound rather leveraged already, so I would consider looking at how you are buying, not saying it's wrong per say, just defenently warrens some thought.

If looking to build, then I'd say what tools are in your basket of tricks, because that dictates what and where to invest. DO you have tons of cash, tons of know how, lots of hard money, financing, on and on, all this determines what and where. A person with lots of hard money will loose there shirt doing long term rentals, money costs will kill the deals. And those with only l.t. financing probably can't do well in flips.

For me, it's all about N.D. right now, it is the most insane money to be made hands down. A smart R.E. investor can very realistically make 1 mill in there first year, easy. It is absolutely bonkers out here.

So tell ya what, if you have no clue what to do shoot me an e-mail if you think you can assist in being part of a property park I am working on, my spread is only about a 1,200 margin right now, no joke. I rent the trailers monthly for what I bought them for. I'm looking to take a jump up and place a 100 unit park. it is gonna be 3 or 4 years of insane profits.

I have looked into HUD a tiny bit, what I saw looked very promising, but very much a specialty unto itself.

There is a whole release for bidding time table they do based upon who/ what you are, ie a owner occupier or a R.E.I.. R.E.. were well at the bottom of the feeding chain, although non-profits are right near the tip top.

I have considered making a non-profit just to flip them, then maybe buy them out with a holding entity. Not too legal, so, it is a definite work in progress, a pet project of sorts.

I was just getting up, saw the tv on, went to go see the news. The first plane had already hit, as I watched I asked "what movie is this?". My wife said, "what movie?". "This boring action movie, another one of those firefighter movies, some sky scraper on fire". So with us both standing there, I changed it to find the news, channel after channel was all the same, I though I was in some twilight episode. It was so surreal, and then it hit us, this is real. We looked at each other, looked back at the tv, and WHAM!!! the second plane slammed into the tower. My wife jumped back with her hands over her mouth (we had just stood at my recruiters office a few days earlier talking about my contract at where my MOS stood) I looked at my wife and said "were at war babe, prepare yourself".

Later that week the gravity of the situation hit me even more, because at the time I worked at some little known gigantic warehouse, the central routing warehouse for Conagra, the U.S. #1 food producer. 75% of all food consumed passed thru my warehouse at at least 1 stage, be it raw in form of flour or grain, or mid cycle like the granola batch's or the sugar. One day a series of black SUV's showed up, it was CIA, FBI, and a slew of other acronyms I never heard of before. We were cited as a top national target, and hence were prepared as a facility and as personnel. It was insane to even consider it was really happening. A world gone crazy.

I would like to add, I still would like an explanation how the F THERMITE happened to be in the towers??
It's been confirmed countless times, certified and undenied, yet no explanation what so ever. A lake of molten iron for weeks and termite trace in concentration. I wish that was just a bad dream too, but it's not, and any other person with an engineering background also knows what I am talking about. F'in thermite.

Thanks Rob,

Yeah, I know the mechanics of the "free& clear" seller financing I am looking at very well, it is as Will pointed out, the vebage and technical s I do not have a in depth knowledge of, and hence the posting. I am hoping to fire off the the conversation as I believe there are also many others out there like myself not in the know on the technical s. To be more precise, the contract itself.

And yes, the ultra-favorable financing terms are my entire point in my interest. I will example my current deal:

2 properties, 3 units in all, 2 currently occupied, combined rents currently at 1,500 mnthly, with all 3 2,500 mnthly. ARV ~250K, purchase opportunity of 125K. Rehab under 10K, minor cosmetics.
Now I could do this several "conventional" ways and come out very well, but why, when I COULD use the best road which is seller financing, maximizing the ROI for this deal.

So, here I am.

Please, solid advice on the contract needed.

Thanks for the reply Will.

Yeah, Barney F'in Frank..... I will not even go there, that is a post all in itself, as well is Ding Dong Dodd.

I have no plans on flipping the free& clear properties, why would I, there free, why sell something that cost me nothing but pays me monthly, forever. Thats my 401K, the insurance encase I ever go completely witless over night and can't ever flip again.

I absolutely will get everything finalized by the sharks in suites, but I have found it best to have a very clear path to hand them, rather then ask them to find the path.

As I said, in devising redemptions in my area (which I was part of a group that was the first to do so here, so much so we also made a how to hand book for the sheriffs as to what to do since they never had seen it before) I found rapidly it is best to have the rough layout and to allow them to refine it.

Any advice from those in the know, as to the paperwork to use when sealing the deal on an owner financed purchase on a free& clear property?

Simplicity rules the day, the idea is to have it pro buyer, legally iron clad, escape options, and non threatening simple language that can be done at the kitchen table, notarized at the bank, and make for a cheap as ez as possible closing/ filing.

I am new on this home front of free & clear homes, which just scream "seller financing me!". As a "flipper" cash flow is never enough, so to expand the rental portfolio while not impeding the flip cash is to good to pass by. Not to mention I am quite literally having these dumped in my lap lately.

Searching for the "innovative" solutions.
Hiring attorneys to draft papers is not innovative. And as I learned when originating "redemptions" in my area, too often the attorneys don't think creative enough to create opportunity.