All Forum Posts by: Rick Pozos

There are definitely deals in any market, especially in San Antonio. The trick is to buy from a "motivated seller". What exactly does that mean, well, it means different things to different people. To me, the seller is usually behind on the mortgage, taxes, both, or has a property that needs some repairs that they can not take care of because of their financial and/or medical condition.  Or it could be a combination of several of those conditions. It could also be that the sellers inherited a home that they do not or can not fix. Maybe a couple is getting a divorce and neither one can afford it on their own.

Marketing and networking is where you will be able to find deals. 

@Ravi P. that is one of the big groups in town, but they are very "pitchy". They sell their seminars, then you can become the inner circle for an extra amount of $$. I was a member for a year, but did not even go the last several months because of this.

If you see a deal that makes sense, ask someone if they would like it for 2k or 3k more than what you can get it under contract for.  Wholesale it to them.  You can make some money and usually it is larger than commissions if you wholesale deals.

There is always finding other partners as mentioned above.

Network with your local clubs to find more buyers. 

Since you are a landlord already, you probably dont want to be a landlord in your retirement account. You can lend to friends who are investors. Maybe only charge them 12% with no points. Better for them, pretty good return for you.  You might lend a friend some money at 10 or 12% and fund the whole deal AND also keep a 25% equity also. That might work for everybody.

You might find a deal, put in all cash, and owner finance the property for a higher than market interest rate. You can rehab and be all in on a property at 70% or 75% and finance it to an owner occupant at 100% value but at 9% or 10% with 5k or 10k down. Low maintenance/good returns

Hey Doug,

I am down the road in SA. If you are looking at something here in town, let me know. I am pretty familiar with SA. I can give you another set of eyes and another local view. Call or text if you have a question.

For REOs the banks are going to list the property on the MLS. Just wait it out. If it was a small bank or a local bank, you could walk in and talk with someone.

Most people like simple.

Keep it simple for the owner. "If I give you some money, can I take over your payments??"

Half of the people will tell you NO. The other half will get some equity in their hands and you will have half of the deals that you go after.

That is going to be a local question.  Talk with other investors who are closing deals and ask them where they close. Call up the closer and ask them for a couple of minutes of their time. Ask all the questions that you need to know.

You really have to network with people at your local REIA.

Have the homeowner call the bank and ask for a Reinstatement Amount and a Payoff Amount. The payoff will tell you exactly how much is owed on the house and you can make the offer based on how much the owner is going to put in their pocket at closing.  

If you are buying subject-to the mortgage, you want to know how much arrears there are so that you can catch it up and then know how much you need to get the sellers.

The one thing that you really have to look out for are liens and judgements. I am talking about on the property, but also on the sellers themselves.  You will need to have a title company or attorney(depending on what is done in your state) run a title search for you. This way you will know if the seller has IRS liens, liens on the property or child support due or any other items that cause the title to the property to not be CLEAR.

But yes, it is legal and this is a great way to find foreclosures before they become foreclosures.

I think we should be having the meetings every 2nd Wednesday of the month.