All Forum Posts by: Brian Gibbons

Man I love equity Share JV Agreements. Nice job Dave.

Yo @Mark Brogan

Glad to see that Sub2 deal was successful!

@Jesse Conners  you are in NY, lots of lawyers, pro and con.

See

http://www.biggerpockets.com/blogs/3/blog_posts/43...

for sub2 training.

I coach creative financing where a motivated seller of a pretty house will consider terms instead of cash.

This includes wraps, sub2, master leases, jv agreements with sellers, lease options, and more.

It is all about the negotiation.

See

http://www.biggerpockets.com/blogs/3/blog_posts/30...

@Jason Shaffer

Getting an option to purchase, recording the option, then charging an "option release fee" is a good way to earn income, it may pay to be licensed in some states, but act as a principal in the transaction.

@Josh Caldwell

@Dave Salcido

Let's say it worth 500k

Owes 550

Payment 2000 PITI

Rent 2500

And let's say owners want to preserve their credit

I would say

"Would you be willing to contribute to the negative, say I pay 75% of the house problem and you contribute 25% ?"

.75 x payment 2000 is my contribution guaranteed to seller for 5 yrs

And I'll rent it out

You are trying to assist an underwater seller.

Worth $160

What is the payoff? 

Type of mortgage - fixed or ARM?

Most of 30 yrs first 10 yrs is interest.

In terms deals, you need the existing financing info.

@Dre Couch pm me once you get the existing payoff amount and type of mortgage.

@Erin Elam

In GA you are lucky, you can assign easily.

@Curt Smith

@Natasha Crosby

Welcome to BP!

I train in wholesaling but also lease options and subject to and wraparound mortgages

Virginia is pretty strict and having a real estate license really does help you

I would start a marketing campaign toward houses with good school districts in medium priced houses

I like expired listings because they want to sell

I would knock on their door and give a free report and then follow up

Most expired listings are overpriced because They don't have a lot of equity

Instead of an assignment I use an option release because in many states assignments are frowned upon

So here are the steps

-Contact the expired listing seller

-Show the cost is sell by listing with an agent

-Compare that with lease to own in getting your sales price without a sales commission down the road

You can either act as a principal in the transaction by creating a lease and option with your LLC or sign a listing agreement and charge a fee to facilitate the lease to own

If you're acting as a principal, you take your option and place a memorandum of option against the property at county records

Once you have the house under contract you market for tenant buyers in that area that have 3 to 5% down

Either the tenant buyer or the seller or both will pay your option release fee

P.m. me if I can help you

Best wishes

Brian

Brandon I've done several minor rehabs and done joint ventures with the sellers on "grandma's house"

Say grandma's kitchen that's 1970s old kitchen and can't sell

Let's say it costs 10,000 to update the kitchen, completely rip out everything and replace new 

Say you have access to private lender loan money from your REIA's members

You go to an expired listing where grandma tries to sell with an agent and didn't get any great offers (free and clear house, no loans).

Let's say the ARV is 100,000 after repair value

After 10,000 in rehab and 10,000 in re-sales costs with commissions and closing costs

Seller has a perceived profit of 80k

A good idea on how to convince the seller that they're not going to get their 80K is to bring a "we buy houses" person for a quote

At 65% of ARV or 100k is 65,000 less the rehab cost of 10k is 55k, offer.

Is 55k a good offer for minor rehab?

I don't think so.

I explain to grandma that "the we buy houses people have to buy it, fix it, sell it, and make a profit."

"That's why they're only offering you 55,000"

When I do instead is buy it from them for $70,000 on a note, 

Then a joint venture agreement that says that 

-I'll buy it, 

- give them a note for their equity, 

-fix it, 

-resell, and 

pay off your note within three months

This way they make 15,000 more than the 55,000, or $70K.

And I make $10K for facilitation the rehab.

Notice there is no hard money there? :)

Hi @Carlos 

@Carlos Powell

You want an RMLO in California for seller financing.

Please PM me for an attorney.

Best to your success,

Brian