All Forum Posts by: Brian Gibbons
Brian Gibbons has started 114 posts and replied 4413 times.
Post: John Jackson Lease Option Classes
- Investor
- Sherman Oaks, CA
- Posts 6,088
- Votes 3,921
I trained John Jackson in lease options in 2002. He is honest and knows Texas re law better than many tax attorney.
Post: Does IT Matter What You Pay, As Long As it Cash Flows?
- Investor
- Sherman Oaks, CA
- Posts 6,088
- Votes 3,921
Originally posted by @Matt R.:
Yes it matters. Figure you will lose anywhere from 20% to 50% of todays cash flow value every 10 years due to inflation. And fyi with Brian Gibbons example , you will not find a 600k valued LA place renting for $2200 today.
Yup, away from the water you can rent a 3 B $2200 to $2500, but in LA near the water, 1 B crap apartment $1900 to $2500 +. Santa Monica good luck.
Here is a great article about living expenses in LA...
Post: Does IT Matter What You Pay, As Long As it Cash Flows?
- Investor
- Sherman Oaks, CA
- Posts 6,088
- Votes 3,921
Los Angeles is not Cleveland is not Houston is not Tacoma.
Expenses and repairs and what is habitable-rentable is sooooo subjective, and enforcement varies.
I like lease option assignments in great schools and great safe streets. People will put up with things like outdated kitchens and bathrooms, with the intention to rehab and renovate down the road.
Buy and hold? I like paper over properties. Notes over tenants and toilets.
I have a friend that is a property manager in Cleveland OH. He owns over 200 properties that rent for $700 to $800 a mo, all Section 8 Govt Housing, single family houses, all valued between $20K to $30K each! Hows that for diversification? Cash on Cash?
But in Los Angeles, CA, a $600K 4 B is going for $2200 a mo in rent, a good use of capital?
@Steve Vaughan may want to comment.
Post: Alternatives options to buying property
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- Sherman Oaks, CA
- Posts 6,088
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Post: How would you fund this deal?
- Investor
- Sherman Oaks, CA
- Posts 6,088
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If there is an equity spread, I would get on title, and sell it retail cash or sell it on a delayed sale and purchase (lease plus sale & purchase delayed closing with 3 - 10% down).
Private Lender and JV Partner Marketing should be done daily to find money for down payments, credit partners in deals, etc.
Thanks @Steve Vaughan !
Post: Land Contract a Land Contract
- Investor
- Sherman Oaks, CA
- Posts 6,088
- Votes 3,921
As a rule I buy on land contract and lease with a rofr as an exit.
Buy on terms and rent out or help the renter get financing.
It gets ugly when you sell on CFD or other types of executory contracts and the vendee defaults.
See my article
https://www.biggerpockets.com/blogs/3/38181-rofr-is-better-than-an-option
Post: Tips from Brian Gibbons re: Creative Financing
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- Sherman Oaks, CA
- Posts 6,088
- Votes 3,921
@Oliver Salmon:
1. Selling on CFD or Wrap has a long repossession period in case of default.
2. Buying sub2 for a short time to quickly rehab and resell is wise to avoid any problems having the loan called. Many readers on BP do not have the ability to get a 20% down investor's mortgage.
Post: Tips from Brian Gibbons re: Creative Financing
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- Sherman Oaks, CA
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Originally posted by @Daria B.:
Originally posted by @Brian Gibbons:
Ok lets get started...
Buying Strategies...
A. Free and Clear, no loans
A1. Private First Mortgage, 10 - 20% down, Mortgage or Deed of Trust, with 1st Position Note
1c. Florida Mortgage
(the downloads above are for educational purposes only, see your local attorney)
Why in the world would a Seller sell on a Private First Mortgage?
Why would someone want to take payments instead of cashing out?
Why would they want money over time, instead of getting all their money right now?
Well, maybe they don’t want to be landlords, but they like the cash flow on a private first position mortgage. Or maybe they’re up there in their years, and they have no use for a chunk of money, but would rather live out their days in extra comfort with some extra income.
Or maybe they don’t want to pay the taxes on the whole amount! Defer taxes.
Whatever it is, their reason doesn’t really matter. Just ask!
I like comparing a Private First Mortgage Investment with an annuity, give a chunky big deposit and a receive a payout cash flow over time.
Better than owning a Rental? No Tenants, No Toilets!
And as a Private Note Owner, you can pass these payments onto your surviving spouse or your kids.
Or a Charity, like your church or synagogue!
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Next is Buying NOT Free and Clear Properties, Properties with Existing Financing (e.g. Sub2. Wraps, Land Contracts, and dealing with the dreaded DOS!)
Brian-
The 1a link did not work for me. I get this error message:
The folder ‘/REI/@@notes’ doesn’t exist.
Can you repost it?
Thanks
Post: Tips from Brian Gibbons re: Creative Financing
- Investor
- Sherman Oaks, CA
- Posts 6,088
- Votes 3,921
Originally posted by @Daria B.:
Thanks for the education!
I didn't quite understand which of these you were referring to, is it 'sell for cash' or 'keep' of the note that has the best PV?
The one you sell for cash or keep is the one with the best PV or present value. You can trade the lower PV for equity in real estate.
You need to learn
PV
FV
i
n
PMT
See
Post: Subject To questions
- Investor
- Sherman Oaks, CA
- Posts 6,088
- Votes 3,921
I would get a coach to learn sub2, wraps, lease purchase, tics, joint ventures, private first mortgages and other tools.