All Forum Posts by: Brian Gibbons

@Jacob Casarez

Jacob, can your mother not yell at you if you do not take out the garbage?

Sorry but your question is on the same vibe.

Banks do not HAVE to call the loan due.  but they COULD.

Banks want performing assets.  So pay the PIT mortgage bill on time.

Banks want insured assets.  So make sure the insurance is never in default.

Do those 2 things, and have a cooperative owner of original loan that works with you, then the odds are good.

Hi @Austin Chastain

1. Wholesaling big equity, property needs alot of work, get cash buyers.   For sellers, Start with bandit signs, get up to direct mail.

2. Lease option assignments, sub 2 and wrap purchases, start with your title company.  Google "lease option purchase sub2 wrap Brian Gibbons" you find plenty!

3. JV with home sellers with light rehab -

https://www.biggerpockets.com/forums/79/topics/158...

4. Go to REIA meetings and hand out a I Buy Houses Indy bus card. Collect names addresses and emails.

Good luck!

Brian

you're in Texas and you have to find out what the real estate laws mean In Texas regarding executory contracts

Executory means  something that will happen in the future, like contract for deed or a lease with option 

That does not mean they can't be done, but I highly recommend if you want to get into the "lease to own business" in Texas you get your license, and you have sellers sell on terms, whether it be a lease with an option, a lease with the right of first refusal,  lease purchase,  contract for deed, wraparound mortgage, etc. 

 There's a great book for $20 that goes through the laws in Texas that's on my bookshelf 

Pm me 

@Matt Geerts

??

I am talking about annual rent to FMV (fair market value)

10.8K ann rent to 20,000 FMV SFR

vs

24K ann rent to $500,000 FMV

vs

36K ann rent to $800K FMV

It is a concept of yield on the money.

My buddy in Cleveland has not overpaid for these 100+  properties, and has held them for over 10 years.

I think cash flow is king. I know someone in Cleveland Ohio that has over 100 properties valued between 20,000 and 40,000 running out between $700 and $900 a month

All section 8

@Andrew Hildebrand

@Jordan Freeman

commercial lease options are done all the time, there is no Dodd Frank w commercial properties

You can either do a master lease where you lease from the seller And sublease to a tenant

Or you can do a lease with option and then have master tenants rights

 Most of these are done with apartment buildings

A strong lease and a "right of first refusal" will secure the rights of the tenant to buy the house

as long as the tenant pays on time he has a right to buy the house at current appraisal as long as the tenant Lives in the house he has a right to buy the house

@Kelly Moffat

Best resource is @Steve Vaughan in Wash State.

1. Go to REIAs, get a bus card, "I buy houses, any condition" www.Vistaprint.com $10

2. Learn Rehabs, how to price the repairs, see @J Scotts book

3. Learn sub2s, lease option assignments, wraps on pretty houses. Learn a presentation for Pretty Houses Low Equity. Offer the seller a sub2, wrap and/or lease option assignment solution. Your best ally is your creative real estate attorney. Easiest to learn is lease option assignment. Best to have a real estate license, but not mandatory. Marketing is cheap with MLS (expired listings, cancelled listings)

3. Learn how to flip: transactional funding is easiest. You buy with transactional funding, pay 2% for the money, get on title, resell fast to a cash buyer. You must buy cheap and price your ARVs and repairs well, leave room for surprises, say 10% of ARV. Hard money loans need skin in the game. JV parners for down payment money and rehab money need a track record of successful deals.

 You are in Texas, watch out for Lease w Options.

See www.LoneStarLandLaw.com

Think of a lease with Right of First Refusal in TX (ROFR).

Sub2 on the purchase side needs to be done well and communicated to the sellers that their loan will still be in place for a period of time, and the bank has the right to call the loan due. The purchaser on sub2 needs to have the ability, if the loan is called, to rectify the call of the loan, either with all cash or new financing. The lender may allow you to "assume" the terms of the existing financing with proper qualifying.

I have said over and over that an exit strategy on sub2 purchase is not a wrap or lease purchase or lease option or contract for deed.

Either rent it out or fix and resell.

Thanks for the article @Dion DePaoli

I personally know of one Texas investor that has bought over 1000 properties and wrapped them. I believe he bought most with private first position IRA loans (no due on sale with full disclosure to private lender), not purchasing on sub2.