All Forum Posts by: Brian Gibbons

Brian Gibbons has started 114 posts and replied 4413 times.

I'm a bit bummed though. Shelled out a strong amount of money to learn about wholesaling double closing and everything in between. I know that if I do it right I won't have to worry about being caught...but my conscience won't let me engage in something that may or may not be illegal. Still very excited to get started. Just got to make a few changes to my strategy. If anything i'll get my license and use my commissions and such to pay off the classes I took. There is money in real estate. Just gotta be open to different avenues.

Charles you need to learn other strategies besides the assigning strategies of wholessling

For property that needs work buy it on subject to, use private money for rehab and resell it

For free clear house minor rehab, do a joint venture with the seller, create a private first mortgage with no payments for four months, use private money for the rehab, fix it, resell it with an agent, make ten grand after you pay off first and second mortgage

Get on title with a land contract in Ohio, and do a lease option exit

If you're on title you're in good shape

2 Votes

Source:

http://www.housingwire.com/articles/34640-regulato...

What does BP Nation think? Overly aggressive?

0 Votes

http://portal.hud.gov/hudportal/documents/huddoc?i...

FHA INFO #14-73
December 10, 2014
NEWS AND UPDATES

TO:All FHA-Approved Mortgagees

What’s New

Expiration of the Federal Housing Administration’s Property Flipping Waiver

Today, the Federal Housing Administration's (FHA) Office of Single Family Housing announced that the temporary waiver of FHA's regulation that prohibits the use of FHA financing to purchase single family properties that are being resold within 90 days of the previous acquisition ,expires on December 31, 2014.

The waiver applies to all sales contracts executed on or after February 1, 2010, until 11:59 PM, December 31, 2014.

FHA deems a sales contract to be executed when all parties to the contract have signed the contract, and the contract is enforceable under the law of the state the property is located.

Mortgages that are made on properties in which sales contracts have been executed after 11:59 PM, December 31, 2014, are not eligible for a waiver of the regulation prohibiting property flipping.

FHA will not extend the waiver beyond December 31, 2014.

Section 203.37a(c) lists the sales transactions exempt from this rule.

The exempt transactions include sales by HUD of real estate-owned (REO) properties under HUD's regulations in 24 CFR part 291, sales by other federal agencies of REO properties, sales of properties by nonprofit organizations that have been approved to purchase and resell HUD REO
properties, sales by state - and federally - chartered financial institutions and government sponsored enterprises (GSEs), and, upon announcement by HUD through issuance of a notice, sales of properties in areas designated by the President as federal disaster areas.

The regulation, including its exemptions, is still in effect.

Quick Links and Resources

Review the Federal Register Notice (Docket No. FR - 5397 - N - 05),
“Federal Housing Administration (FHA):
Temporary Waiver of FHA’s Regulation on Property Flipping; Extension of Waiver” ,
dated November 29, 2012 at
http://www.gpo.gov/fdsys/pkg/FR-2012-11-29/pdf/201...

View the Electronic Code of Federal Regulations at http://www.ecfr.gov/cgi-bin/text-idx?rgn=div8&node...

Contact the FHA Resource Center:

Visit our online knowledge base to obtain answers to frequently asked questions 24/7 at www.hud.gov/answers

E-mail the FHA Resource Center at [email protected].

Emails and phone messages will be responded to during normal hours of operation, 8:00 a.m. to 8:00 p.m., ET, Monday through Friday on all non
- Federal holidays. Call l 800-CALLFHA (1-800-225-5342).

0 Votes

Originally posted by @Steve Vaughan:

@Brian Gibbons- what you just shared is invaluable. Huge! Years and years of knowledge and experience shared in one post! Hey new folks - that is what you do!

To learn more than one thing from one thread has never happened to me before. You and @Josh Caldwell are rockstars. Looking forward to hearing you both as future knowledgeable guests of the BP podcast! Until you're 'discovered' I feel honored to have you both as colleagues. Cheers!

Steve you're excellent in Washington state and

you really should have a REIA where you live

you can really help people buy on cash or terms :)

0 Votes

@Josh Caldwell

The big thing that I've learned in 30 years of "**** happens" and "the road to hell is paved with good intentions"

If you buy it subject to, give a note to the seller, fix it with private money, and make a profit fast in 90 days and you're out of it

well do that four times a year

And always always always remember that

someone with a superior knowledge like a real estate investor talking to an owner always lose in court always always always

Think what judges think:

people with inferior knowledge always get screwed,

I would much rather get on title with sub to get private lender money, fix it up, resell it, get a profit

Now sandwiches on A B areas with no equity or a little equity I think is a terrific idea

Go after expireds, deal with the seller that does not have a lot of money in the house, explain to them that it cost 10% to sell, so that sucks to pay to get rid of a house

Being a landlord sucks and trusting a property manager suck and show them why

then show them "option one option two"

"Option one Mr. seller is I'll take over your payments for you, and in 2 to 3 years all pay off your existing financing. You don't have to pay a thing

no insurance no taxes no maintenance

And to reassure you that I'm going to pay this bill on time I'll leave a quick claim deed in case I default, in escrow

The only thing you need to be willing to do if I take over your payments is to transfer the deed to me and keep the mortgage in your name. But I can take over your payments and pay them religiously for 2 to 3 years

Option two we turn this into an investment property

find a buyer that just missed financing and have them rent for a while, work on their credit, pay down some debt, and then when they buy it, they pay full price, you have a sale without a real estate agents commission, without closing costs

It takes 2 to 3 years to get that done and you do have to have an insurance policy and pay taxes but you got some great tax write off's from the IRS

So Mr. seller

which one of those you like the best,

listing it with an agent and paying the costs to sell, maybe paying 5 to 10 grand out of your pocket to get rid of the house

dealing with a property manager and gambling with landlord-tenant law,

me taking over your payments, or

turning it into an investment property and selling it down the road for full price, no commissions, and no closing costs?

2 Votes

Josh this is awesome but this deal is not for newbies.

My comments are in bold.

Originally posted by @Josh Caldwell:

I just completed a deal in the bombed out part of Alliquippa PA, its a great little town for turning out NFL talent but it is a pure war zone for real estate.

The core of this deal is a solid brick 4 bed 2 bath house that hasn't been lived in for at least two years. The house had a lot of mold growing on the top floor, a roof leak, dog feces on the carpet, cracked and broken windows, and most importantly a motivated seller. Major rehab, not for newbies to rehab.

The poor guy grew up in this house and he has concluded that being a landlord is not for him, did I mention the dog crap?

I found this house by tracking expired listings and yellow lettering the owner.

Best marketing, expired listing, agent 6% solution failed, now what? :)

The house was listed at $10,000. Did I mention that this property is in a war zone? So I wanted to help the guy out. I didn't bother haggling on price, I wanted good terms. So my offer was $10,000 paid as $300 per month at zero interest until paid, with the first payment due in 6 months. He quickly accepted. A note with good terms is better many times than low cash offer with major rehab.

Then with contract in hand, I marketed the property as a "handyman special" with 100% owner financing. It took 3 weeks of tenant screening to find a guy with a steady income, crap credit, and handyman skills. He is now fixing the house up on his own dime, while paying me $500 per month at 5% interest for a total of $30,000 in principal. If this is a lease to occupy, landlord tenant law may come into play.

If he completes the transaction, I will net more than $20,000 for a house that most investors would touch. If he fails to complete the payments, I will take an improved house back from him and make more money. The title will stay in my name until he pays me off, so I will evict him like a renter if needed.

Again, if there is a lease to occupy, can you have a tenant legally improve a property? Perhaps a JV with the Tenant buyer to fix for ownership?

In my state that takes about 30 days. I will be inspecting his work every 30 days or so and he has to meet certain progress or he is in violation of my contract and out he goes. So the pressure is on him to improve my house.

Wow, lots can go wrong. Not for newbies. I would love to see the Buyers Acknowledgement of Terms.

Perhaps a JV with the Seller could have been done,

Private first mortgage, moratorium on payments,

private money for rehab with 2nd mortgage,

resell to landlord investor buyer, unless no one likes that area for landlords..

collect $10K JV fee or more in 90 days without a bank or a HML.

Just thinking out loud....

2 Votes

Have you looked into the zoning or perhaps changing the zoning into flats and working with a developer?

Where is it

what kind of streets? Is it purely industrial? Los Angeles where I live downtown has been converted into condos with good parking and security

1 Vote

Originally posted by @Rae Remer:

I think it was removed can you message me the link @Brian Gibbons

If you Google

Brian Gibbons costs to sell

you'll find it

0 Votes

@James Trautz

Congratulations finding a coach mentor

If you're entering into a lease with option and assigning that you may want to get license because Illinois may look at that as brokering an agreement without a license

If you get on title first and act as a principal you're not brokering

0 Votes

Originally posted by @Rae Remer:

@brian

@Brian Gibbons can you break down the cost of sell. I know the listing agent may get 3 percent but what else should be considered in the cost to sell so thatt i can explain to the sellers

Hi Rae,

that goes over the costs to sell.

0 Votes

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All Forum Posts by: Brian Gibbons

Brian Gibbons has started 114 posts and replied 4413 times.

Post: Getting Busted in Ohio for Wholesaling and Praticing RE without a License

Post: Is the CFPB being too aggressive in fining Mortgage Marketing?

Post: The Return of Seasoning for FHA?

Post: Turning Crap Into Cash

Post: Turning Crap Into Cash

Post: Turning Crap Into Cash

Post: What are some ideas for a use of a vacant warehouse without spending too much in renovations?

Post: Would you do this deal?

Post: Implementing What Your Mentor Says WORKS

Post: Would you do this deal?