All Forum Posts by: Brian Gibbons
Brian Gibbons has started 114 posts and replied 4413 times.
Post: What would you do with this?
- Investor
- Sherman Oaks, CA
- Posts 6,088
- Votes 3,921
Sorry John, but with all the uncertainty about Dodd-Frank floating around I would strongly advise against doing rent credits of any kind.
Patrick, that's why I referred them to a licensed real estate agent. I've heard the ins and outs of rent to own can be complicated and we definitely want everything to be on the up and up. We still don't even know if that is something we'd be interested in, hopefully the agent can put together some scenarios for us to ponder. Another question is how would the agent get her commission for a prolonged payout scenario like lease to own, or would she?
Dodd Frank has to do with Owner Occupied Seller Financing.
@Bill Walston will chime in here, as well as @Bill Gulley ,
If you have a lease and a separate option, no rent credits, you are not offering financing, just taking the property off the market for a set time, and giving some one time to get their DTI and Credit better.
Go take the Tenant Buyer to a RMLO and do a preliminary 8 point Dodd Frank check (See What is a Qualified Mortgage http://www.qualifiedmortgage.org/definition/)
Bottom Line - Have a RMLO look at every Tenant Buyer on a Lease with Option just to be safe.
To have the agent get paid, you could have some of the option fee to agent, and a lien on the title to have the balance of commission paid when the house sells.
Post: What would you do with this?
- Investor
- Sherman Oaks, CA
- Posts 6,088
- Votes 3,921
Re Fi and pull the cash out?
Go to your small bank, tax free loan proceeds.
Ask the bank to fund 80% of appraisal all deals.
Post: SKIN IN THE GAME
- Investor
- Sherman Oaks, CA
- Posts 6,088
- Votes 3,921
Creative Finance is a key to people that are rookies.
Pretend you are bankrupt with a 550 score.
Get away from needing down payments money, get toward finding a way to -
- Cash or Terms (give low cash offer)
- Use Lease Options, Sub2, Installment Land Contracts, Wraps - AITDs, Private First Mortgages (free and clear) to get the solution without banks.
- Use IRA Private Lenders and Joint Venture Partners. Wholesalers should consider JVing with the Seller.
If you had a $500K house, $50K work needed, free and clear.
Most sellers will reject most WE BUY HOUSES offers. Why? The seller loses too much.
What if you offered to JV with the seller, bring in $50K of work, $20K profit, $70K in the deal.
Do the work, resell the house with an agent for $485,000, subtract the $70K, subtract sales costs.
Protect your $70K with a note - mortgage or note Deed of Trust.
Not all the time this works, but if you have a gorgeous house, you JV with the seller, you secure the debt and your profit upfront, you don't have to convey title, no purchase closing costs, no carrying costs, and you get your $70K when it sells.
You might need to check with an attorney to protect your JV interests.
But isnt that better than wholesaling? :)
Post: Private Money Buy & Hold Strategies
- Investor
- Sherman Oaks, CA
- Posts 6,088
- Votes 3,921
Originally posted by @Shaun Reilly:
The flaw I see in this particular scenario is why do you think you would be able to get a conventional loan after a year to pay off the private money? It isn't easy to get 2nd mortgages or lines of credit on investment properties.
Anyway if you can qualify for one why not just start there? I would not go into the plan assuming that a place appreciates enough to get a big enough equity cushion to make a bank bite on that.
Hi Shaun,
I like long term private money off of credit reports, no PGs, and in land trusts for privacy so I do not own anything when lawyers check (lol)
Cmon, do an asset search, I dare you!
Post: Private Money Buy & Hold Strategies
- Investor
- Sherman Oaks, CA
- Posts 6,088
- Votes 3,921
Think of REI as a 4 legged stool.
Leg 1 - Buyers - for Investors, FHA Buyers, Tenant Buyers, Owner Financing Buyers
Leg 2 - Sellers - A B C D Areas, Needs Work, Pretty Houses, Equity, No Equity
Leg 3 - Funding - Bank Loans, Private Lenders, JV Split Partners, Hard Money Lenders, Owner Financing for Free and Clear Houses.
Leg 4 - COIs - Center of Influence Referral Partners - Only after you have success stories, like CPAs, Attorneys, Financial Planners, etc to refer you business.
Techniques include: Wholesaling, Rehabbing, Lease Option Flips, Sub2 Rent Out, Sub 2 Lease Option, etc.
Private Lenders for Buy and Hold was your question.
I would focus on sub2 and rent out. No Private Lending.
Or Owner Financing for Free and Clear Houses (payments only at full price)
But that is me.
Post: Looking For Suggestions On How to Structure Owner Financed Purchase with Equity for Cash Flow
- Investor
- Sherman Oaks, CA
- Posts 6,088
- Votes 3,921
Thanks @Curt Smith
Hi @Ted Chan
I'd conserve cash and look to buy with as little cash as possible on sub2.
Here is a primer on Sub2 http://www.biggerpockets.com/blogs/3/blog_posts/32276-sub2-training---01---introduction
Making up back payments and learning rights of redemption in Oregon is not easy. Foreclosure rescue issues from the Attorney General's Office need to be observed , you need to be careful of Pre Foreclosures.
Find the best school districts, buy sub2 and rent out or sell on lease option.
Learn Dodd Frank issues on Owner Occupant Seller Financing.
Call me or email me for conversation about what you are doing.
Best Wishes,
Brian
Post: Deceased owner of property in my neighborhood
- Investor
- Sherman Oaks, CA
- Posts 6,088
- Votes 3,921
@Rick Harmon
http://www.biggerpockets.com/users/RTPG1
Is awesome in Probate Matters.
You might want to ask him.
Post: New Investor
- Investor
- Sherman Oaks, CA
- Posts 6,088
- Votes 3,921
With the Dodd Frank Act starting tomorrow, you could...
1. Buy on Sub 2 and rent out or sell on a wrap in TX
2. Lease option from seller and assign in TX (see @John Jackson who is an expert in LO in TX)
Both of these require little funds and much knowledge about sellers and buyers and financing. Lucky for you there are experts here.
Search on BiggerPockets "Brian Gibbons REISkills" and "John Jackson LeasingtoBuy" and you will find tons of free stuff.
Post: Searching for sellers
- Investor
- Sherman Oaks, CA
- Posts 6,088
- Votes 3,921
Originally posted by @Darrell Shepherd:
Sure, anyone that runs ads has talked to people like this. There are lots of different sellers in different situations out there, good work on diving in, you'll learn a lot from getting knee deep in the mud.
If you aren't planning on keeping them yourself, you need to have an exit strategy in place for when you find deals. You'd be well served to build a buyers list. Call the other we buy houses ads, rental ads, network, etc. There are tired landlords that want out that will sell at a discount and new guys getting in that will pay retail and you can have the difference for putting them together. That is WAY over simplified, but you get the idea.
When you talk to the guy the first convo should go something like this:
What are the addresses?
What do you think each is worth?
What kind of repairs would they need to be in perfect condition?
What are you getting monthly?
How well do they pay?
Why are you selling?
How much do you owe on them?
Would you sell them for that?
How soon do you want to close?
OK, let me take a look at them and get back to you, whats the best way to reach you?
Then look them up online and see if the situation is worth driving out to look at them.
My offers vary a great deal based on the sellers need, and I like getting creative, but that's the general idea. If you are wholesaling, you should know what your buyers will buy and structure your offers to fit that.
Remember, you are looking for a situation, not a house. Houses that people want to sell are a dime a dozen, just in the MLS, DEALS are made by finding someone with a problem you can fix.
This is nice and clear, well done
Post: Dodd Frank
- Investor
- Sherman Oaks, CA
- Posts 6,088
- Votes 3,921
http://www.biggerpockets.com/forums/83/topics/109430-plans-for-dodd-frank
5 pages of post there @Abel Vazquez