All Forum Posts by: Brian Gibbons

http://www.consumerfinance.gov/guidance/?utm_source=newsletter&utm_medium=email&utm_campaign=20131212%2Bregimp#semanual

@Mike Matern

Why dont all 3 of you start a LLC together,

Have the LLC buy the property

Have the operating agreement spell out duties and compensation

See a lawyer to help you if needed.

I work with bad credit high income home buyers.

I use a debt negotiator. He is also a credit improvement specialist. His name is Blair out of Texas, and he does not charge to review your debts and credit report.

I have all my high income tenant buyers go through his service. I get no compensation.

Best solution: Get your credit better, pay 25% negotiating debt.

Blair is at www.UpGradeMyCredit.com

underwater rehabs YUK!

Have seller borrow from family and have u coordinate the rehab, then lease option and assign it for $5K

Or walk!

@Bill Gulley , first of all Merry Christmas to you and all of your loved ones. You are a treasure here at BiggerPockets, contributing to a level that is truly immeasurable and without peer.

Second of all, being an ex US Marine, "giving a kick in the pants" to who I am fortunate to coach REI to is a gentle kick in the pants.

Hell I think I am harder on my lacrosse boys (13 - 15) than I am on my REI Coaching Clients.

First of all, What is your "why"?? is a conversation I have with my potential students.

If your personal "why" is weak or without strong conviction to build a business over time, I do not want to get involved as a REI coach.

"Awaken the Giant Within" by Tony Robbins gets to your real motivation. If you do not know what your real "why" is read that book.

"The Emyth Revisited" by Michael Gerber helps you visualize working "in your business" for a while, then working "on your business" and supervising.

Being creative in deal making involves many skills. Listening well is one of the most critical. One of my favorite books about learning high level listening skills is "The 5 Essential People Skills: How to Assert Yourself, Listen to Others, and Resolve Conflicts" by Dale Carnegie Training. If you lack people skills, PLEASE read this. Also the classic, "How to Win Friends and Influence People."

Selling is a skill, and ethical selling is importnant. "How to Master the Art of Selling" by Tom Hopkins is extremely valuable. If you are talking to wealthy people re: Private Lending, the best book I know is "Values Based Selling" by Bill Bachrach. It is written for financial planners and stock brokers to sell to the wealthy.

Know the Fair Credit Reporting Act, the FTC, and how Credit Reports are created and improved are important when assisting seller financed home buyers getting home loans. "Hidden Credit Repair Secrets" by Mark Clayborne is a fine book to lean some interesting tactics to have to improve credit FICO scores.

How to Finance any Real Estate Any Place Any Time by James A Misko is one of my favorite "creativity books". We in REI are problem solvers, first and foremost. He goes into IRAs and Real Estate, Using Options, 1031 Exchanging, Combining Purchase with a Lease. Using Zero Coupon Bonds to Secure a Loan, Sale Lease Backs (not with distressed properties), using loan to equity options, and more. There are 45 examples to learn from. And he is a CCMI, and has been a NAR Instructor.

Gary Keller of Keller Williams wrote a book called "Shift - How Top Real Estate Agents Tackle Tough Times", and in Chapter 10 he wrote about using Creative Financing to help Sellers and Buyers. Many times I will buy that book in mass and give it to real estate brokers that I like to work with. You can buy cheap slightly used books at Amazon, like for a buck!

As far as never stopping to learn, the 2 references I use DAILY are "Dictionary of Real Estate Terms" by Barron's, and "Black's Law Dictionary" by Brian A Garner, et al.

The books by the Wall Street Journal are awesome: "The Complete Homeowner's Guidebook" by David Crook, and "The Complete Money and Investing Guidebook" by David Kansas.

Lastly, business savvy books I like to read at night:

"What They Dont Teach you at Harvard Business School", by Mark H. McCormack, like how to run meetings, running a business, et al.

And my all time favorite, "Swim with the Sharks" by Harvey MacKay, of MacKay Envelope Company and the Minnesota Twins. I have used that book to assist me run my businesses since 1986, especially see the chapter on Negotiation.

Merry Christmas to all at BP Nation, and let's have a great 2014, in the Dodd Frank Era of Real Estate Finance! Sub2 anyone? :)

Well @Bill Gulley I'm going to order you some popcorn from Amazon.com and ship it to you!

See http://bundlr.com/b/dodd-frank-safe-act-respa-tila?order=inverse&view=grid

:)

Here is a recording on the the exclusion of a Sub 2 mortgage from the DTI.

The relevant wording is found in Appendix Q to Part 1026 - Standards for Determining Monthly Debt and Income.

More specifically Section IV. Consumer Liabilities: Contingent Liability.4(a).

Link to reference is

https://www.federalregister.gov/articles/2013/07/24/2013-16962/amendments-to-the-2013-mortgage-rules-under-the-real-estate-settlement-procedures-act-regulation-x

Bottom Line: Sub2 Mortgage Seller after 12 months does not have to include their mortgage that has been taken sub2 in their Debt to Earnings as per Appendix Q, Part 1026, Section IV, Consumer Liabilirties : Contingent Liability 4(a).

@Bill Gulley I know you love my videos!

What do you think?

BTW thanks @Bill Walston for your kind assiatance with this.

This deal is thin,

$5K in repairs,

equity is too thin,

rent spread is too thin,

Possible play: get an option to purchase via sub 2, record the option, sell the option to your investor buyer.

@Bill Gulley might want to comment.

Cleanest way is sub2, rehab, sell for cash.

What are the #'s of the deal?

I don't know if this would help...

I have done a JV with Cash - Credit Partners, like Doctors - Business Owners:

1) JV agreement states I will do all work:

a) find and contract with seller in name of partner

b) rehab as project manager

c) manage sale of property

2) JV agreement says partner will put up all costs

a) credit and down payment

b) closing costs

c) all other costs, like holding costs

-------------------------------

Once the property sells, the net net net profits are split anyway the deal makes sense, does not have to be 50 50. Taxation of net profits should be looked at.