All Forum Posts by: Rick Pozos

Message him back again on facebook and ask him for his wife's name or information. Get with them individually and get them to deed you the house.

First listen to Grant Cardone's podcast #108. He will get you pumped up. Then stop using a realtor to find you deals. They will rarely find you deals at this point in the market cycle. You will have to market on your own. Drive for $$. Send out postcards or letters to divorced people, estates, whatever lists that you can get ahold of. Network with other investors in your area and ask them what they are doing to find deals. I bet they are NOT going through realtors if they are doing rehabs or wholesaling and making $$$. 

I do not mean to offend realtors by any means. Realtors are basically in the retail market and you need to be in the wholesale market. It is kinda like going to a car dealer and asking them to sell you a car for what they paid for it so that you could sell it retail. Not going to happen. Off market deals is the way to go.

Let him know that is what it costs whether you buy the house or someone else does. It can usually get taken out of his proceeds. It does not have to be paid up front. Also, you can split it with him. I am sure that 1250 is not going to brake the deal.

Why would you want to close on the buy or sell side without using a title company or escrow company?? I want to be guaranteed by a third party that I have good title to the property.

If you have not lent money to others before, I would wait just a little before you do it with your retirement money. I have lent money to others, but it was always someone that I know personally. Someone that I know and trust, who has experience, who can walk me through his/her deal intelligently, AND MOST IMPORTANTLY there is a 1st lien deed of trust on the property with MY NAME on it. Title policy with a lenders policy in my name. NO PROMISSORY NOTES.

You really have to protect yourself. Ask some people locally who have lent money what they do. There are a bunch of custodians, but they can not give you legal advice. You have to be the expert.

I bet San Diego has a bunch of real estate groups. Let others know what you are doing and the money will find you. I bet someone would be willing to do a 2nd with a 12-15% interest rate. Its high, but it beats splitting profits 50/50?? Network. 

Worst case scenario and you can not find anyone to lend you the money, wholesale one and rehab the other. Networking in person is key either way. 

I think what most people mean is that they are getting a HELOC on THEIR OWN HOME to fix up another property. They are pulling their equity from their homestead property or from another property that they own free and clear. It is not from the home that they are fixing up.

BTW 200k in repairs sounds like way too much for a home that is worth 420k. Is it really worth 420k?? Where is this property?? I would not take on a 200k rehab as one of my first flips. Too much room for things to go sideways. If it really is a good deal, wholesale it. Make a few bucks and go on to the next one.

It sounds like you need to learn other ways to make money in real estate. Buy and owner finance is not the only way to make money. Just so you know, you should be charging more than 2pts above what you are borrowing the money for. It should be 3 or 4pts higher as long as it is not usurious rates. Also, the price of the property that you are selling should be 20k to 30k higher than what you bought it at. This way you can make several hundred $$ spread.

Look into flipping, getting owner fiancing from the seller and then owner financing the property with a wrap loan, or wholesaling.

You probably need to talk with a real private lender. Someone who is actually lending their money and not on someone else's behalf. You can let them know about your experience. That is what the real risk is on a loan. Can the borrower fix the house and sell it and get me my money back. Maybe even someone who has money will want to partner with you. You can let them put up the money and you do the managing. Split profit. 

But your question: stated income for hard money loans? They probably do not exist anymore. I think lenders really know what stated means, LIES. Dont lie about your income. Rely on your experience.

Hey Tony,

Welcome and look around at all the podcasts and articles. Lots of great info here.

There are a few BIG groups in town that charge about $150 per year for meetings. Great networking and more knowledge to gain. There are a few smaller free meetings around town that are great. I host one also. All the info is on my profile.

Good luck and if you need any help or questions answered just call.