All Forum Posts by: Brian Gibbons

The ONLY thing that will work is to allow the market to return to equilibrium (which involves some pain).
This entire mess was caused by the government. Alan Greenspan pumped cheap money into the economy after the last bubble (the dot-com bubble) because they are trying to do the impossible - keep the economy going up, up, up. Of course, this flies in the face of common sense that "what goes up, must come down"). That caused the real estate bubble!
Then you had Bill Clinton, George Bush, Barnie Frank, the Congressional Black Caucus, Chris Dodd and numerous other socialist idiots in Washington who promoted the Community Reinvestment Act, which was designed to promote "homeownership" for people who weren't credit worthy! How's that working out????? Even after their loans are modified, more than half of these borrowers are going right back into default!
The interest rate and principal are NOT the problem. A certain percentage of the population is simply irresponsible and they should not be homeowners!
What is the answer? The answer is for the government to simply go home and let the market correct. Let failed homeowners become renters. Let failed banks go bankrupt. Let credit card companies go belly up if they made a bunch of bad loans. Let insurance companies and hedge funds go bankrupt if they bought instruments that were based on bad mortgages.
In other words - LET THE MARKET WORK!
That's a plan that WILL work and it came from a hillbilly in Ohio!
Mike

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Mike:
I think you know too much about REI to be a HILLBILLY! :mrgreen:

Home ownership costs.
It casts time, money, upkeep, risk, caring about neighbors cuz it affects your home value, etc.

Foreclosures will kill 60+ people's retirement. They have no more earning years.

I'm not political, but I'd like to see more credit and money education in the schools. Kids learning about compound interest and credit reports and wealth building.

I cant control Washington, but I can work in my back yard. I like RICH KID SMART KID, teaching kids about money and small business. Kiyosaki.

All the best in your property management.

Brian

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Originally posted by Joe Salimao:

So should we as investors begin looking at other investment oppurtuinities other than preforeclosure? Doesn't this completely wipe out the foreclosure market?
Joe

I think unless the property is a REO I would not be interested in getting involved. I anticipate the Govt getting involved with post-foreclosures.

But there are other ways of making money in REI with little risk, like cooperative assignment, where you control with lease option, act as principal, and then assign the deal for a 3-5% fee, some in cash, some in a secured note.

Brian

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This will continue to be a great CRE's buyers market well into 2010 for sub2, land contract, or seller carry Wrap.

You can make cash on selling on lease option. Get the TBers 1st, and get them before May 1st 2009 so you can buy - control 25 houses before Sept 2009.

Keep up the great Obama RE Rescue info!

Brian : :cool:

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Boy, I've been in the RE Game since '86 but have not done a short sale since '98.

Don't get in Short Sales unless you have training and mentoring!!!!!!

I'm printing this out right now..... :roll:

Brian

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This thread should be in parts:

10 Reasons People are Successful in the Property Management Business

10 Reasons People are Successful in the Motivated Seller Business

10 Reasons People are Successful in JV Partner - Private Lender Business

The qualities IMHO are a bit different, different personality styles and temperaments.

E.g. Private Lenders - JVPers need a smooth easy touch with hand holding and frequent communication. Aggressive does not fly.

And that is MHO.

Brian

PS the most important quality in business AND parenting: persistence, hands down.

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Originally posted by Jeff Fairchild:

Ok, so what are the pitfalls to buying a property subject to and then offering owner financing and reselling it right away for a higher price and higher interest rate? Ex.

I have one now w/ $127,000 mortgage, $759/mo 5.875%
I put $10,000 in repairs
then sell for $209,000 w/ $12,000 down from new buyer (to pay for repairs) at 7.75% for $1411 / mo

Would this deal work? What would I need to keep in mind? What happens if the seller demands that I get the mortgage out of his name in 3 years?

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

My mentor back in 1986 used to say:

"Sell on lease option, not installment sale. You have to foreclose to get them out. "

Wash State is a funny Land Trust State.
My notes:
Washington. No land trust statute. The Statute of Uses require some active duties, such as the payment of taxes and distribution of funds to beneficiaries. Townsend v. Ranier National Bank, 751 P .2d 1214 (1988). Washington does not recognize the doctrine of equitable conversion. Estate of Phillips, 874 P.2d 154. Thus, it is not clear whether the court will respect the settlor's intention of creating a personal property interest in the trust.

Check with your REIA about getting the property into a Land Trust.
Using a Sub2 Land Trust is the way I like to do it.

You cant control lending criteria. Dont make promises you cant keep as far as refinancing. If you have the deed, and promise to pay the mortgage, I'd do a Lease Option, market Rent plus and extra bit on monthly option payment.

The key here is to work on the TBer's Credit and get him 3% Down FHA financed.

Summary - Sub2 Land Trust, then LO with rent + monthly option pmt

Brian [REMOVED]

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Private Placement is a way to get capital.

Private Placement Financing

What does â€˜private placementâ€™ mean?

â€œPrivate placementâ€ is the term used in the securities
world to define a non-public offering of an investment vehicle.
Securities regulations allow exemption for selected types of private
placements. The primary classifications for these exemptions are
Rules 501-506 D. Smaller private offerings can be done where there
are less than 35 investors and when the public is not solicited
(e.g., friends and family rounds of financing). The most common
types of private placements are those involving closely-held private
companies. It is estimated that 75% of new businesses formed in
the United States are funded through such private placements.

More..http://reientrepreneur.com/private-financing/private-placement-financing/

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Hi,

If you have a free and clear house, if you want to raise capital in a LLC, get a private loan with a private lender.

Have the private lender set up a entrust or pensco SDIRA, give you 80% LTV loan at 8 - 10% simple interest, paid in full in 60 months.

Make sure you use the money wisely. You might open up a commercial bank and "season" the deposit for 6 months - 1 year, This shows liquidity.

Brian

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All Forum Posts by: Brian Gibbons

Brian Gibbons has started 114 posts and replied 4413 times.

Post: A How To section

Post: Buying subject to then selling on land contract

Post: Loan Modification Plan (Obama)

Post: Loan Modification Plan (Obama)

Post: Loan Modification Plan (Obama)

Post: Avg down pymt for Short Sale?

Post: 10 Reasons People are Successful in Business

Post: Buying subject to then selling on land contract

Post: I can't get bank loans, but I can get credit cards for a purchase... Should I?

Post: I can't get bank loans, but I can get credit cards for a purchase... Should I?