All Forum Posts by: Sierrah Fanth

Thank you!!!

I have recently met some families who are looking to buy on contract for deeds and rent to owns. Does it matter whether I find the seller through an agent who is selling off the MLS or investor who is selling an investment property? i.e. Will the families care whether they buy through an investor or agent? Because from what I understand, commission is paid by the seller anyhow, correct??

Also, If I do find a property that would fit this family's criteria, it would have to be through an investor in order to receive a referral fee, correct?

Thanks in advance

If I find a tenant buyer looking for a c/d (Aka guy looking to buy on a cd and claims has 10k to put down)-How can I get a referral fee from this?

Does the property have to be being sold by an investor or private owner for me to get a fee (am not licensed.)

When do I get paid? i.e. after the tenant buyer signs the agreement and pays the down payment?

In different terms, how would you go about facilitating this-getting a referral fee out of providing somebody with a tenant buyer.

Hi Todd,

One thing I wish somebody would have told me in the beginning is take advice from only people who are actually successful at what they claim to be successful at. I have found that there are so many people in this business who claim to be very successful, and to have done a certain number of transactions, only to find out a year or two later that they are not nearly as successful as they say they are.

How do you find out if they are or not? Ask around, don't be afraid to ask questions about an investor's, or business' reputation, or if an investor would do business with a certain investor. Or, you could even ask the investor himself, "How often they buy or complete transactions?" (I'm not sure I would say how many deals have you done). Also- you will be surprised at the things you hear. There is a lot of bad business out there. The more information you gain, the more you should be able to put 2 and 2 together.

There are two main types of "talkers" out there, ones with big egos who like to tell stories and give bad advice, and ones who want to take your money disguising as Real Estate group leaders and "mentors." Many of these people are much more interested in your money than actually investing. But don't let this discourage you, I've found bad information is still information, and it's called a "people" business for a reason...

Cheers!

As far as buy and hold properties, I've found that all investors (experienced ones at least) will care about is the total cost of rehab and purchase price, which they most likely will not rely on you for that value.

If there is anything you can emphasize, it would probably be the amount of SF the property has and how prime the location is (as far as rentability.)

I've found the only thing a wholesaler should be concerned about is making sure the deal is actually a deal and getting word out there to as many investors as you can because in the end, sophisticated investors have their own criteria for buying and do not need to be "sold." It's all based on numbers.

I am looking to work with agents to obtain seller leads to do Sandwhich Lease Options.

Is it possible to directly negotiate with the seller after they have accepted my proposal?

And since it is a buyer's market, and I am searching for houses that aren't selling, I am thinking to pay the agent a flat commission and then take over the deal. What do you all think?

I was apprehensive to post this, because I SHOULD understand the answer by now. :roll:

In a sandwhich lease option, the tenants down payment and rent credits are non-refundable, but are applied towards their mortgage. If this money is profit for the investor and/or used for leverage in the deal...

Where does the money come from for their down payment at closing?

If they do not bring anything to closing, where does the down payment actually come from???

Is it just a matter of telling the bank "They've applied this much towards their mortgage?"

I believe it has to do with coming off of the selling price of the property, but how is that money applied, if they have not yet qualified for the loan??

Thanks in advance :wink:

My education in war zones is that theres a difference between "rough" neighbohoods that many investors happily deal in, and neighborhoods that are filled with gangs and drugs, where investors will never actually see a profit because of vandalism, tenant, gang and drug problems etc.

One of the main problems I see in this topic is when a neighborhood looks fine to invest in, only to find that there are many vacant properties due to people not wanting to live there, and is much less safe to invest in than had originally thought.
The two best pieces of advice I have recieved are check out past police reports on the property, and check properties around the potential investment to see if they are actually occupied or not. Minneapolis, like many cities, has many different neighborhoods, S. Minneapolis differentiates block by block. One Lawyer that I know who happily invests in areas that other investors wouldn't usually touch had the problem of gangs expanding in the neighborhood. The vandalism was moving towards his block and eventually hitting his properites...he sold right away and was able to recoup his money through taxes...

Not to sound doom and gloom however....Many people invest in "rough" neighborhoods and life becomes much easier when you can figure between 5 and 8 percent of NOI for a solid property management company Who has experience managing in these areas, and very knowledgeable on current tenant landlord laws.

Hi Greg,

Most of the accomplished investors that I meet in the TC say that the main objective should be to transfer SFH and Small multi-units into large commercial properties asap. There is a lot of talk in regards to 1031's. I found recently that there is a local RE Exchangers club. That sounds like an excellent go-to source. I've learned the reason why commercial is so preferred is because you have a solid property management company handle all of the operations, and in the meantime, the property's value rises while increasing income and decreasing the expenses. I've also heard incredible "flip" scenarios in regards to commercial properties...

Your question is not clearly defined in terms of "race." Are you referring to best ROI as far as being lucrative with the least risk, or in terms of fastest ROI?

If your talking about in terms of being lucrative with the least risk, I'm picturing a hedge fund and apartment buildings...