All Forum Posts by: Jim Keller

James

The procedure for disposing this type of property is in my opinion no difforent even though the type of sale veries.  Unless you have in writing as to the disposition of the former occupants property you will run the risk of a law suit.  

I understand many people risk it, just be carfull, especially in The Peoples Republic of California.  We had a short sale closing go bad and when the police came out because the seller pulled a gun on the buyer.  The police said "we short sold our own home 2 months ago it's stressful, I can't help you unless I see him point the gun"  If you don't do the right thing with these cars, do it at your own risk.  

Kevin

I know it's cold right now on the east coast, but I know we have done very well dealing "face to face" with clients in defult.  The one thing that it does for you is puts you in front of people that need to sell.  

There is plenty of available how to information on how to service clients in defult.  Use the cold to your benifit, bone up on how to help sellers.  You will be one of the few out in the cold.  You will find people that are behind on there mortgage and have equity.  Become their plan "B", most everyone wants to stay in their home, you just become their move out plan.  

This done right can be alot better than just 10 to 30 k the right opportunity could make you 50 k or more.  I would recommend you look in to the laws in your area for buying homes from people in default.  This most be done lawfully, do the right thing and you will win big.

Good luck

Jim

Bud

This is not ment to be insulting at any level, but either you, the buyer or the seller are wrong about the price.  I would urge you to get a meeting with you the seller and both agents and pound this out.

I have sold home in up and down markets where appraisals killed or made the deal.  Just work it out,Its possable this seller doesn't want to sell and you cant fix that, but find there reason and make this deal happen.

I would also recommend using the appraisal as your biggest tool to lower the price.  I know it's all basics I'm talking about but get your face to face with them and make a deal.

Google the term "boot" in regards to a 1031 exchange and your tax consequences may get clearer.

Good luck

Jim

Gary

I would recommend you use software platform like property radar "the one I use" and search NOD and NTS properties with equity.

Make this simple, your objective is to purchase the owner's equity.  Determine their equity position and your cost invalved with purchasing, rehabilitation, and sale or renting what ever your exit strategy is. Then structure a contract to take over their equity.  

You have options ranging from an outright purchase for cash or a small down payment while taking over their existing financing.  The details are for you and the seller to work out.

In California we have a code called CC1695 it protects none professionals sellers without a deep understanding of real estate, from "dealers" or those of us that operate as a corporation or professional property buyers/sellers.  

Consumer code 1695 has very spicific things that need to take place for a pro to buy a destressed property from a non-represented homeowner.  I would recommend obtaining direction from whoever guides you on such legal compliance maters. 

This code instructs investors as to what type of disclosure is needed so you don't take advantage of an unsufisticated seller.  This is nothing to fear just simply learn how and what to disclose and you will be fine.  It will protect you from a future of lawsuits and make you a better investor.

This is about the only type of property  I ever go after.  There are more available  than my company could ever get to on our own and I know there are hundreds of investors seeking these little gold bars that are hiding in the long uncut grass in neighborhoods all over the country.

Good luck

Jim

 These guys look smart Hannah when will you get your first deal going????

Jim

 I understand that California is a community property state, tell her as long as you get to keep all the PROFITS to yourself you will keep all the LOSES from her as well.  My guess is that after deal 2 or 3 she will come around $100,000 has a way of getting an uncommitted spouses attention.  She will take you as seriously as you take on this endeavor.  Depending on what type of investing you are planning on doing i would recommend getting an entity all set up first.  Tax and estate planning could be a good first step in showing her your commitment.

Good Luck

Jim

Zack,

Make this easy, on a flip.... buy for 75% of ARV minus repair cost and the deals good. On a buy and hold your purchase price needs to cover any debt, expenses "typically 35/50% of income" and some level of cash flow.

Make it simple like this, find a partner/mentor you can send the deals that just "qualify" in your mind and let them test you.  I learned a lot this way.  Make a list of all the things you need to make all of these numbers real and gather the info and exicute.  

When your stuck, less thought and more action can be what leads you to a back through and gets you in your first deal.

Good luck

Jim

Great to hear your working hard to find good deals,

I think you should ask him why he wants 10%, I mean why not 25% or just why has he come up with this "rule".  I would recommend you seek to understand his position better, to understand why is to better offer him what he needs or what you need.  For instance what is the tax ramifications of the outright sale of the 3 properties, and can you come up with a better option. "disclaimer, I'm not a tax advisory" but this information could be very influential in completing this deal.

We have paid 25% and more for an EMD, we even have released portions of the EMD to secure the deal "nothing like green cash on day 1 to sway a seller in our direction". To be clear though the goal is to pay $1.00 for our EMD's on every one of them. Its all about cash flow, the bigger the upside for us the more willing we are to increase the size of the EMD.

The rules are not written down, if you put 10% down on 10 wholesale deals and make 100K you would be a huge success in my eyes. Another option is, If you know you have a buyer, and the seller wants a huge EMD consider an option contract instead. Sellers may like the idea of you buying an option for $1,500 for 2 months, or what ever you can negotiate. This will allow you to leverage your investment nest egg dramatically.

I said earlier 10 deals using 10% down, assuming  $150,000 per contract that's $15,000 tied up for weeks maybe months per deal.  In that time with an option you could do many more deals.  Remember nothing is written down, it's all up to you.  "Your not the decider" The option contract is just one of the alternatives you should offer your sellers.  Liston to them and they will tell you what they want, and that will give you what you want.

Good luck

Jim

Good stuff Stephen, and amazing you have had no comments on it kinda telling.  

Jim 

 Matt

I like your advise, it's correct from my point of veiw.  I started 2015 hopping to do a few deals 2014 was good but just a few deals and that turned in to $100,000's of profit in 2015. 

We chose an S-Corp and I would recommend any person thinking they will do more than one deal in a year to do the same.  This surety will help you succeed and stop negative thoughts from stopping you from acting.

Good luck

Jim