All Forum Posts by: Rick Stein

also try to have a First Right of Fefusal in the note so if they try to sell the note prior to maturity, you can match any offer they get. If you are able to negotiate a low rate on the  note, they would have difficulty selling the note with that rate. The only way for the purchaser of the note to get a better return would be to buy the note at a discount. You would have the right to match that offer and then own the property free and clear and, effectively, have gotten a discount off the original purchase price. I have that clause in every one of my seller held notes.

ask if there is a mortgage in the property. If they say they own it free and clear, ask them the following: " if I could show you how I could purchase the property and you could have a monthly income on the property, would that be of interest to you?" They will ask you what you mean, tell them. If they take call cash , they might put the money in a CD or a money market and get next to nothing. If you offer them 5 or 6% they are doing well. In addition they are not paying capital gains on the loan amount. If you can structure the deal with seller financing, try to do it so there is no " due in sale" clause so that thou can sell the property and offer seller financing to your buyer.  If you can charge more than the interest rate you are paying, you can make money in the margin. 

I don't know which state you are in. I can only speak for New Jersey. I have been a landlord for over twenty years and I love Section 8 tenants. Just because they are low income does not mean they are not responsible. I have had some section 8 tenants for years. They take care of the home and pay their portion of the rent on time. Of course, you must screen them as you would screen anybody else. True, the process takes longer because Section 8 must perform their inspection, but I know that I will get a check from the state around the 1st of the month, every month and on time. It is a beautiful thing!

He is in a short sale position. You can make an offer on the property for an amount that you feel appropriate. The lender will not speak to you without the owner signing a third party authorization allowing you to do so. The lender will also want to see that the property is listed in the local MLS and exposed to the market so he it knows or at least believes it is getting market value. It is a long, complicated and often frustrating process. It can take many months for the lender to make a decision and that decision may be "no!". The owner should not have waited so long.

Hi, Evan and congrats on saving $90K. That takes discipline!. When I first started out in investing some 30 years ago I had NO money to invest. But I knew people who did. So, my first flip involved my finding the property and bringing in a partner who happened to be a friend of mine and a general contractor. We used his money, We did the rehab together which was educational by itself and we split the profits. If memory serves me correctly, I made about $20K on that deal. To this day,I much prefer using seller financing, hard money, private money and unsecured lines of business credit to finance my deals. This increases my ability to buy more properties and increases my cash on cash return. The long and short of it is, you don't need to use your money although having some "skin in the game" helps. I wish you the best of luck!

they are correct. You don't hire anybody until you need them. However, a good team would include a real estate attorney who is familiar with local ordinances, a good accountant, an experienced real estate agent who is familiar with investing and has access to foreclosures. You will also need a good general contractor. If you can get a few bird dogs on the street to give you leads, that would be helpful as well. I would definitely join your local REIA and ask who those members use. That's a good start. Good luck!

I am looking forward to finally having a major presence in central NJ. CANT. WAIT,

I do a great deal of biz in Trenton. I am also a landlord. What do you have?

hello, Julio,

 I strongly recommend you look into joining South Jersey Real Estate Investment Association. It is the largest real eaten networking group in Souther NJ. The benefit from networking  and education derived from membership is invaluable. I suggest you go tho our website: SJREIA.ORG and check us out. Our next main meeting will be. Week from Tuesday. Take a look at the calendar 

Good luck

it seems you have already done quite a bit of homework. When you say "turn key", I assume you mean the homes are rented and need little or no repairs.What are the rents and the expenses? Have you seen the lease?. Do the rents reflect the market? What is the NOI and what would be your debt? What is left is your cash flow. The caveat is, don't take the owners word for anything. Look at his schedule C.

I hope that helps.