All Forum Posts by: Brian Gibbons

Brian Gibbons has started 114 posts and replied 4413 times.

Bill Gulley might want to comment, Dodd Frank is about owner occupant seller financing, lease options if rent credits are used could be construed as a financing instrument, if subtracted from the option price. So use a straight lease and a pure option.

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And the $50K could come from a Self Directed IRA Loan , set up through a custodian, like https://www.trustetc.com/investment-options/private-lending

So the $20K profit could be tax deferred or at least tax favored.

@Steven Hamilton II might want to comment.

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Hi Brian and Happy New Year. I want to better understand your JV with seller example. House is free and clear and ARV is $485K. I offer to pay for $50K in repairs and want to clear $20K profit, so I secure $70K with a note and deed of trust against the property. 90 days later the property sells for asking. Seller gets proceeds minus commission/closing costs of $45K and minus my note of $70K. Seller nets $370K. If I spend the entire $50K rehab budget, I make $20K.

Questions: where did the $50K repairs come from and how much did it cost? Do I really net $20K?

And, is managing a $50K rehab really better than wholesaling? :)

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Hi @K. Marie, Happy New Year too! :)

Say you already K Marie have a rehab crew, you get them work, so you know the quality.

So you are not babysitting.

The $50K is private money.

The $20K is your profit, secured with a note and mortgage.

The JV needs cooperation though with the seller.

The plusses are you are avoiding holding costs, avoiding conveying title, and getting your profit assured.

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Hi @Jason May

Welcome to BP.

There are good and not so good things about wholesaling, rehabbing and bird dogging for a fee. It does not work that well everywhere, and it takes time.

Getting a license helps but does not gurantee anything. Learning contracts helps alot. Learning what a property will appraise for helps alot. So does learning sales and negotiation.

The basic info from your TREC site will help you learn contracts. See http://www.trec.state.tx.us/formslawscontracts/forms/forms-contracts.asp

Now creative techniques like lease option assignments, where you lease opotion from a seller and assign the deal to a tenant buyer, you can make an assignment fee and be out of the deal.

@John Jackson a Texan has written many posts on that, as I have.

Go to your local REIA and make some friends.

I wish you much luck in real estate.

Brian

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Originally posted by @Jason May:

I have read about wholesaling and see it might be a way to make money without financial investment (besides marketing etc.) I am also thinking about getting a real estate license.

Im not really sure where to start or if it would even matter to get a license.

Start here... http://www.biggerpockets.com/forums/12-starting-out

And have fun!

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See @Jerry Puckett http://www.biggerpockets.com/users/ejpuck

Listen to his podcast and ask him directly.

Hes awesome.

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I can appreciate Cory's frustration. He wants quick results.

He is new to sales and has been frustrated with other Lease Option Trainers.

He came to me to get 1 on 1 coaching. He has made an investment with me.

I have spent numerous hours with him one on one and have delivered more than he has stated above.

He signed an agreement with me for 1 year. I will honor that agreement.

The skills and abilities that are focused on over the year is on this link:

[REMOVED]

I have many satisfied coaching clients since 1986.

Testimonials are here:

[REMOVED]

Not being a one trick pony and being transparent to all concerned is what I am all about.

It does take time to be an effective REI.

I am devoted to all of my students. I take my coaching very seriously and am extremely supportive and empathetic to all concerned.

1 Vote

Originally posted by @Steven J.:

@Pam R. I'm working with a Realtor who specializes in small towns like you're doing. He gets a property for 20k does the necessary repairs and rents it out for $500. You're also able to provide a lease/option although now Dodd Frank has made that more burdensome. Check out @Brian Gibbons link about DF stuff. Its a great resource.
I'm researching what it might take me to get into some of these same kinds of deals and if they are possible further out. Of course the concern is the smaller towns are smaller markets but this Realtor buys them right. He's getting around 2% of purchase price for the rent.

I have 2 resources for Dodd Frank:

http://bundlr.com/b/dodd-frank-safe-act-respa-tila

and @Bill Gulley

The latter is invaluable.

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Originally posted by @Trey Leigh:

@Brian Gibbons
If we did a lease option, what is a typical option fee as a % of sales price? and is that received on top of the deposit for the lease? I assume they forfeit the option if they don't buy the house correct?

Thanks for the great info

Contact @John Jackson he will guide you in TX.

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Welcome!

Read everything from John Jackson, King Authority on Lease Option Assignments in TX!

@John Jackson

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All Forum Posts by: Brian Gibbons

Brian Gibbons has started 114 posts and replied 4413 times.

Post: Dodd Frank re: lease option monthy credits

Post: SKIN IN THE GAME

Post: SKIN IN THE GAME

Post: What should I do?

Post: What should I do?

Post: Help building my direct mail list

Post: My experiene with Brian Gibbons and his REI Skills coaching program.

Post: Advice on Investing in Rentals in VERY small towns

Post: What would you do with this?

Post: Newbie from Houston, Tx.