All Forum Posts by: Brian Gibbons

@Stacey Everett 

Do a Lease Purchase with a 5% down.

Buyer forfeits the down payment if defaults.

Low equity deals pretty houses, creative finance: Sub2, lease option assignments, wraps, master lease, master lease option, etc.

High equity rehab - Private SDIRA loans, HML

Mild Rehab, not 65% ARV less costs model - JV with the seller, give private note for equity, get deed, fix it with private lender money, sell it with an agent, use JV agreement for profit

See my blog -

http://www.biggerpockets.com/blogs/3-reiskills-and...

Lots of Dodd Frank compliant seller carry info there.

@David Krulac

I think true investjng is finding problems and offering solutions and making money using many creative tools.

Low level Investing is paying retail, 20% down, non portfolio lenders, obeying conservative bankers, having no reserves puts panic in your lives and many sleepless nights.

High level real estate is "not using your own money and making money".  I like Dodd Frank Compliant Lease Option Assignments, where I make 3% in 10 hours, with no banks.  I use a RMLO for the tenant buyer even though many think Dodd Frank does not apply to Lease Options.

I'll buy a Sub2 or a wrap or a sandwich lease and use a land trust, and even offer for the Home Seller to keep a Warranty Deed in escrow in case the loan gets called due or I do not pay the underlying lien, but then I have cash reserves to pay.

I'll offer to do a JV with a home seller that needs minor rehab, too thin for a Wholesale deal, buy it with a private mortgage (no banks), fix it with private lender SDIRA loan, sell it retail with an agent, pay the private lender plus interest, and get a JV fee of 3% to 5% of retail when it sells.

Finding problems and offering creative solutions is key to not just getting started but it growing - scaling your business.

 I love Ray Alcorn, a real deal maker, old school.

Also, I met Anthony Chara at a Los Angeles REIA http://anthonychara.com/index.php

Wonderful guy, great website, teaches private money-seller financing for apartments.

My 2 cents.

You could consider a JV with the seller worry you bring in some money to get it properly rehab and then resell it and then pay him when the house sells his 99000 and make 10,000 15,000

I think if your wholesaler and you are flipping contracts it's not a big deal to get licensed especially if you can get access to the MLS through a partner who is licensed

If you're in the seller financing space doing subject to's, wraround mortgages, lease options I'd highly recommend you get licensed :)

@John Matthews 

This as you know is a cash and/or terms offer business.

One of the terms offers might include a JV with the seller

You buy the house private 1st mortgage no payments for 4 months, then a payment of 400 PITI or so. Sales Price is $70K.

You get private money for the $15K rehab.  Interest might be $1000.

Costs to sell = 10% = 120 x .10 = $12K

JV fee of $10K

Sell for $110K 

- (16K rehab) 

- ($70K profit to seller) 

- ($10K JV fee to you)

- $12K costs to sell) 

= $2K wiggle room

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Negotiating Terms Deals - see http://www.biggerpockets.com/blogs/3-reiskills-and...

@Dashon Jones 

I love to congratulate people who do well.

@Brandon Turner wrote a book on Creative Financing which I think is a good read.

I have a blog here on BP, one of the oldest http://www.biggerpockets.com/blogs/3-reiskills-and... Make Money without Banks or Credit.  

@Ben Leybovich has a course that is awesome for Multis http://justaskbenwhy.com/videos/

My WARNING to you was credit card advances COULD get you in hot water.

Now please learn OPM, or Other People's Money or Credit, and spread your liability.

Private Lenders - SDIRAs, JV Partnerships, Syndications, etc.

Best of Luck!

Brian

@Lonnie Pickard 

@Bill Gulley 

He knows many RMLOs in the private note and lease option space.

@Lourdemir Aime 

Seller Financing or Owner Financing is rare and not talked about by agents to home sellers.

So you want to buy w Owner Financing.

First see a RMLO, or Registered MLO (mortgage loan originator) and fill out this 1003 app

https://www.dropbox.com/s/xd2qn5djkf6z15v/Mortgage...

The most common way to buy (owner occupant) on Owner Financing with little down is a Lease Purchase or Lease w Option.  You will need 3% within 24 to 26 months and go through a home buyer's education class if you are living in it.  Home Buyer Class for California http://ehomeamerica.org/calhfa

If you are an investor, that is different, as the new laws (Dodd Frank, et al) do not apply for NOO, and I would find a seller that wants debt relief on a rental or an expired listing (where a home owner tried to sell with an agent and failed), and you contribute by buying on terms, either sub2, lease option and assign, or on a wrap. These terms are explained on my blog http://www.biggerpockets.com/blogs/3-reiskills-and...

The biggest thing about presenting "terms deals" to sellers is you educate the seller about selling traditionally with an agent vs renting it out w a property manager vs owner financing (sub2, wraps, lease options, etc).

Owner financing deals are negotiated, and not found on the MLS (well rarely found, and that is usually because a real estate investor that is selling on terms that knows more than you, so beware!) :)

Marketing for Motivated Sellers

Free Marketing (takes time and patience)

1. Expireds

2. Listed Houses

3. Landlords

4. FSBOs

5. Wholesalers with >= 80% equity  (have a marketing agreement to give you the lead for a flat fee if you are successful)

6. COIs - Centers of Influence - I like Financial Planners to network with

Paid Marketing

@Michael Quarles are all pros at paid direct response marketing (post cards, yellow letters, zip letters, etc)