All Forum Posts by: Brian Gibbons

@Brandon W.

Multi Family 2-4 involves Dodd Frank.

See 

http://www.biggerpockets.com/blogs/3/blog_posts/39...

Multi family 5+ does not involve Dodd Frank so notes from sellers are common.

Learning about notes is not easy.

@Dion DePaoli 's posts are excellent.

So are @Joel Owens s posts.

I enjoy this site about note education.

http://www.mortgage-investments.com/sell-your-mort...

When  I negotiate with sellers, I basically have a CASH OR TERMS talk.

ALL CASH is a discount of at least 20%.

Terms is the seller carrying equity in a note or some other way.

If I am buying commercial, I like working with a realtor that has a CCIM designation.  It is a commercial advanced designation like a CFP in financial planning.

Good luck!

Watch this video 

A respected attorney is interviewing the Dept of Real Estate Licensing and Enforcement.

I know the discussion is in Ohio, but the regulators are pretty fed up with the abuses of wholesalers saying 

1. they have money partners when they do not

2. have no intention of buying the property if their so called money partners do not fund (and the wholesaler has no plan B if the cash partners do not fund)

3. wholesaler is acting like the owner being on title, marketing to sell a property on CraigsList (where they should be advertising "a contract for assignment",  not a property for sale)

@Bill Gulley has written ad nauseum about this.  

One of the biggest risks I feel to the newbie that is not licensed is his-her activity is reported to his-her State Dept of Real Estate for not being licensed and selling property they are not on title without a license.

Get a "Cease and Desist" letter from your Dept of Real Estate.

Now you need a lawyer.  And a big check to pay for the attorney.

And you are going to get a legal problem and perhaps a misdemeanor or maybe felony.

Lastly, how hard is on this public forum to be reported to the Dept of Real Estate authorities?

Here is my advice.

1. Get licensed and act as principal and a fidiciary.  See

http://homebuying.about.com/od/glossaryf/g/Fiducia...

2. Tell the seller you will buy it (have transactional funding set up or buy it sub2, etc)

3. Market and Sell something you own.

4. If you do not own it, tell cash buyers they are buying your contract, not the property.  Advertise it as such.

I agree with @Richard C. 

Senior BP posters are fed up with wholesalers that waste precious summer marketing home selling time for unsuspecting home sellers.  If you lie, you should pay.

Just like insurance sales.  Don't lie to consumers.

And investment sales.  Don't lie to consumers.

The home is too important.

Here is the video of the attorney.

Traditional VS Creative Financing

The below are not for Texas specific, I would look at 

@John Jackson s posts re lease options in TX

And

http://www.lonestarlandlaw.com/Executory.html

The below ideas are non traditional financing.  You can have great credit and still have financing problems with lenders, govt and non-govt guaranteed loans.

___________________________________________________________

Creative Financing 101

No Banks No Credit

1. Lease Option and assign - easiest - You lease Option from Seller and assign for 3% to 5%. Be fair, charge market rent, market sales price, no rent credits.

2. Sub2 - Get the Deed - must deal with the due on sale clause - not impossible. You get the deed, seller agrees to keep the loan in their name for a short time, good for fix and flips, not long term.

3. Wrap Around Mortgage - must deal with the due on sale clause - not impossible. You wrap a new loan around the existing financing, aka "all inclusive trust deed", seller agrees to keep the loan in their name for a short time, good for fix and flips, not long term.

4. Land Contract - popular in many states. Depends on Local Customs.

5. Free and Clear Houses - Buy on Private First Mortgages - Create good private terms, like a Moratorium on payments, Subordination, and Substitution of Collateral.

6. Sandwich Lease Options - You lease options from seller, sub lease, sub option - you must pay seller even if Tenant Buyer you are sub leasing and sub optioning to.

7. Joint Venture with Seller on minor rehabs, free and clear house - You get private money for minor rehab, give note for equity, no payments to seller for 4 months, buy it, fix it, resell it, pay off private loan and seller's private note

8. Joint Venture with Doctors and Business People - many ways, I like LLC creation and JV Agreement, I find and supervise a local rehab, get funding with private individual, or hard money, buy it, own it, fix it, resell it, split net profit after all expenses, large numbers does not need 50 50% split, can be 25 75 split if deal is strong enough.

9. Wholesaling and Co-Wholesaling - You find a deal with a lot of equity and a lot of work in a reasonably good area. You can co wholesale by partnering with other wholesalers, either just find the house and seller, or just find the Cash Buyer.

This is just residential, commercial is wide open.

Dodd Frank applies to financing owner occupants. See

http://www.biggerpockets.com/blogs/3/blog_posts/39...

the CFPB has the final say on owner financing.

Creative Financing is useful for not just credit impaired investors; there are restrictions even with good credit on US Govt backed loans such as FHA 203B

http://portal.hud.gov/hudportal/HUD?src=/program_o...

Marketing for Creative Deals

Forget the MLS except for Expired Listings and Cancelled Listings. I like LONG Days On the Market (DOM) , "about to" expired listings. Knocking on doors is the fastest way to a good creative deal.

Getting Licensed or Having a Licensed Agent in your C Corp or S Corp or LLC

Having a good excuse or reason for Bad Credit might be enough of an explanation to getting approved for a Realtor's Agent Sales License.

Good luck to anyone with bad credit.

It is a temporary problem.

Start building you Good Credit NOW!

See

http://www.myfico.com/CreditEducation/ImproveYourS...

@Peter Lange

See 

http://pmfpartners.com/about-us

You need to consult with a Private Lender Expert privately.

@Don Konipol

Sorry duplicate post. :)

@Rick H.

is my good friend and a veteran REI negotiator.

Here is a list of questions to burn into your memory.

___________________________________________________________________

The following is a list of sample questions you should ask a seller. When talking to a seller, try to ask the questions through the course of a conversation and try not to sound like you are reading from a list.

(Note: You will not ask all of these questions depending on the answers the seller gives and your investing objectives.)

Asking About The Seller And Their Property:

Asking About The Existing Financing:

What Kind Of Deal Can You Get:

Hi @Account Closed

Search "creative financing brian gibbons"

I write about sub2 and other strategies 

Geez @Cody Steck

Sellers have 3 options

• Sell with an agent and pay the Costs To Sell with an Agent
• Rent it out
• Sell it Creatively with Terms (sub2, wrap, lease 2 own, lease purchase, installment sale)

Show the home sellers all of their options.

Help the seller sell and solve their problem.

Have buyers pay closing costs or split them.

@Bill Gulley

Links for you

http://www.realtor.org/stay-connected/apps

http://www.agentharvest.com/blog/top-5-real-estate...

Welcome to Iphone World. :)

And look at this book

http://www.dummies.com/how-to/content/iphone-for-d...

 Hi Kristy,

Learning about the exemptions to the Due on sale Clause through the Garn St Germaine Act of 1982 is important with lease options.

See

http://www.biggerpockets.com/blogs/3/blog_posts/45...