All Forum Posts by: Account Closed

I guess if you are the VP of the bank, they might give you a unsecured line of credit!

It's hard enough to get a secured line of credit. I have used credit lines all my adult investing career; basically you are at the mercy of the bank; they can and usually do pull your line of credit sometimes without notice and usually when you need it the most.

CREATIVE WAYS TO MAKE MONEY IN REAL ESTATE

• Create a note on equity you own, alternative create a note on someone else's property with a partnership agreement.
• Sell that note at a discount to a note buyer, use the cash to buy properties.
• Use full face value of the note as a down payment for a property you want
• Refinance after using your note to pull out cash.
• Design your note to be subordinate to a first. This will permit you to create a first or borrow more money.
• Charge yourself low interest and good terms with a discount for early pay-off.
• Always have "first right of refusal" in the even note holder decides to sell the note at a discount, you will be in a position to benefit from that sale.
• Ask friends and family to deposit money in an interest escrow account for your use to purchase real estate - offer them an interest at a good rate, with a equity bonus when property is sold and optional give them an equity position in the property.

Hope these ideas will help you. Charles Parrish 

Been investing in Balto. now  for over 40 years, glad to help you. You may want to check out www.MDREIA.com

A great place to meet like minded folks.

Good luck. 

Charles

I prefer to flip properties locally (Baltimore), but do flip houses, commercial and non-conforming properties in ither states. 

You must be a proficient and expert investor to be able to invest in remote states, I have been doing this now for years and making some great deals, please help us by responding to these questions so we are able to share techniques and ideas.

Question to compare notes:

• How and where do you get leads?
• Not knowing the market in remote states, how do you determine value?
• Sellers don't always give true and correct information about their house, they hide things like mold, lead paint, water issues and other house defects - if the property is a hundred miles away - how do you make a decision to make an offer?
• Do you ever physically look at the property?
• Do you settle or assign before settlement, if so, how do you collect your spread (cash - equity profit)?
• What type of contract to you use; a skinny, MAR, long form or hybrid contract?
• What contingencies do you use in your offer?
• How do you find a buyer for the house you put under contract; auction, use an agent or remote advertising?
• What method do you use to show the house to prospective buyers?
• How much do you make per deal?

Thank you for sharing.

Charles

• Contract Engineer, writing delayed settlement offers, skinny contracts, hybrid offers, control and roll, delayed options with seller participation.
• Creative financing ------
• Vertical break up
• first and second stage negotiations
• systems of seller financing
• creating seller leads
• tax sale poaching and foreclosures without trustees or auctions

Would like to hear your perspective on the above techniques

• What's in it for you?
• Why do you need 2-3 property mangers? 
• Isn't one good one enough?
• Couldn't you be the manager who manages the manger?

Find what ur looking for at public auctions. 

We sell hundreds of houses at auction,  most are sold below market value and most need some rehab. 

Have ur cash ready. 

Ask for immediate possession before settlement.  

Sell using the auction method. 

you need to go into what we call a second stage negotiation, negotiate a lower price based on the estimated cost of the repairs that are needed.

I would think that you would be more successful connecting with motivated sellers.

• When you find the great deal and negotiate an equity position
• Your power team will materialize
• Find the deal and the folks who charge for their services will always be available to help themselves to part of your potential profit.
• If you have not done any deals yet, you don't need a CPA
• What would you use a lawyer for.......they'd love to charge you a fee
• I am not sure what an appraiser would do for you that you can't do for yourself, they'll quote top price, you need to know the lowest price.
• I would suggest you concentrate on negotiating profitable transactions

Real estate is a wonderful business, there are so many willing to give advise, but sometimes you need to take your own counsel or help from those who are where you want to be in the real estate investing business. Wishing you good luck and happy hunting for those great deals out there waiting to be found.

Been doing what you want to do now for many years now; it it's great concept when you learn how to do it right, that is -------

• have the right contract offer (I call my contract a "skinny"' easy to read and understand.)
• A perfect way to exit in order to profit (the auction method of marketing)
• Control low, assign low, collect your profit and do it often
• Making full disclosures (keeping yourselves legal from potential trouble and conflict with sellers and their lawyers)
• Power Prospecting, how to find, negotiate, control and close (knowing values, your market area and having multiple choices of properties; houses, commercial, businesses with real estate, lots, land and subdivisions ----- don't restrict yourself to residential.)
• DO NOT depend on agents to make you successful......... They do have a place in your business plan, but not initially. 
• Been working an exclusive system now we refer to as Control and Roll, it has helped us settle and profit from flips almost weekly, over a $100,000 in 3 weeks.
• Do not hold your signed contract offers too long, you need to be in and out and on your way to the settlement table within 7 weeks. If it takes much longer than that your potential profit will decrease.  
• There is a Baltimore Meet Up meeting next Tuesday that will be discussing these techniques, you may want to stop by.

Disclosure: I am an auctioneer, investor, been investing in Baltimore for a long time and practice Control and Roll. My comments here is not a solicitation to represent anyone or to sell a service.

 Is your contract contingent on financing? 

Do you have cash to settle?

If the house is vacant try to get possession immediately so that you can show it to assignees or tenants. 

Call your title company to start title and lein report. Ask them for an estimate HUD-1, negotiate their fees. Be aware of junk fees on the HUD-1.

If there is a mortgage on the property you may want to take title subject to the existing mortgage.

Start making offers immediately for your next deal, don't slow up, keep the pressure on yourself to create cash flow. Set a goal to make 5 to 10 offers a month.

Good luck.