All Forum Posts by: Brian Gibbons

@Rayna Barnett

 What about a note, $7K down, payment of half of collected rent, 5 yr balloon, 30 yr amortization.

Is there existing financing?

@Shawn Holsapple

Hi Justin

Real Estate Investors needs private lenders and joint venture partners all of the time

Private lenders take a look at trustetc.com and look at private banker concept in the search bar

Work on a elevator speech

Something like, how are you today, they answer fine, and then say, "I have a wonderful job, would you like to know about it, Big smile

What can They say?

Then say, "I look for bargains in real estate and I help people make 67% of their money which is a lot better than the CD rates of 1 to 2%

People use their IRA money and get a good rate of return

May I email you a free report on how that works?"

Then take out your phone and put it on your notepad

----

Solo 401 K&S you can't use 100% of the money you can use 50%

I would focus on private lenders and joint venture partners like  Brian said

Joint venture partner money can be found the same way by talking to people, you can be your next-door neighbor that has IRA money

If you don't have any success in real estate as a realtor, meaning nothing to brag about, and I am presuming that, why don't you work for a successful real estate investment company for a year?

Best of luck to you in Massachusetts.

Look up 

@Paul Timmins

They're awesome resources in Massachusetts

@Adam Bossen

I coach wholesalers scale their wholesaling business by using their same marketing dollars and doing more with those dollars

There are deals out there but you throw the leads away

For instance let's say you had a light rehab and 100,000 needed 5000 work

70% of the hundred thousand 70, subtract 5000 for the work, and subtract 5000 for the Wholesaling fee and you left with 60

You can JV with that particular home seller and use your money to fix it up; you figure out the closing costs and sales costs, get private lender money and pay the interest, fix it and resell, you pay the homeowner when it resells, no payments to the homeowner until it sells

Say it costs 10% to sell, 5000 in work, 10,000 in a JV fee, net to the seller on the joint venture is 75k, better than the Wholesaling offer

For houses that have no equity but they're pretty and don't need work, are in good areas and have good schools and low crime, you can buy on subject to, buy on a wraparound mortgage, or do a lease with option and then assign the deal. These deals can create 3 to 5% value in assignment fee relatively quickly like 10 hours

Free and clear houses that have no mortgages, have opportunities for creative finance too

You could buy the house and give a payment that is low enough for cash flow with market rent

You could have a homeowner get a 50% mortgage for cash now and then get some cash later with a private second mortgage

The negotiation with the seller on terms deals is completely different than pushing the price down like car dealer in wholesaling, it's not apples and oranges, it's grapes and watermelons

Being a one trick pony doing "only wholesaling" with all the competition you have I think is crazy

I get a ton of my pretty house terms deals from wholesalers that only know how to wholesale

Like Bill said it's not rocket science but you need to know the basics of negotiation and marketing, and find a wonderful contract attorney

Search sub2, lease option, wrapped around mortgage, etc.

@Russell Brazil

I am in Sherman oaks ca median of $900k :) 

Yes numbers work well here for commission only but few can afford the mortgage 

For free

Type in the search bar

"Brian Gibbons lease option sub 2 wrap"

That will get you about 1000 pages lol

Did I say for free???

@Account Closed

If you are going to be involved with talking to sellers, you may want to get licensed.

See 

http://dredefenselawyer.com/california-bureau-of-r...

Then find a boutique RE Broker to hang your lic with.

We sue everybody here in Cali.

Should you hang your license at a small boutique realty firm or a big-named brand?

If you're doing transactions in your own LLC name as an investor and business owner and not "acting agent for" you will do a lot better with the boutique firm.

Let's say that you wanted to do lease-option assignments on pretty houses with little equity say 5%.

If you're listed agent with Keller Williams or Caldwell Banker or Remax, you're probably going to not even pitch the listing of 5% equity.  

Why? Because we too much for the costs to sell, like 10% of value, so a seller that has only 5% equity has to pay to get rid of a house

Most brokers don't like the idea of lease-option assignments or sub 2 - fix and flip or wrap purchase.

Their EAndO (errors and omission insurance) only covers straight listing agreements.

No matter what you tell them, they have a corporate structure, their own legal dept, and they don't like any creative transactions PERIOD.

If you want to do creative transactions like subject to, lease option assignments, wraparound mortgages, and you want to "act as a principal and not an agent", I would find a boutique firm and a flat rate fee.

You can always go lawsuit insurance on top of your EandO

See your insurance broker for business liability insurance

There's so many deals but just don't work with a straight listing

And I can make a lot more money by doing a lease option assignment or a wrap or subject to - fix and flip compared with getting 1.5% of a gross sale

@Ellis San Jose

@Rick H.

Dmitriy Fomichenko, you are too kind.

@John Hodson

I give 30 min consultations for free

See what other BP Members say about me

http://www.biggerpockets.com/search?utf8=%E2%9C%93...

Best wishes to you,

Brian

Studio City

I don't understand your question and why you are thinking that way. You can't control what the future dogs and you should just have a solution phrasal is higher than today, lower than today, or same as today