All Forum Posts by: Dennis Pinero

Got a rental I'd like to sell via owner financing that I took sub 2 a few years ago. I've always heard that 10% down was the minumum for taking this kind of risk but thinking that with an asking price of $389 that finding someone with $39K under the mattress might be a stretch right now. But....with all the displaced x-homeowners who lost their homes to foreclosures over the past few years there may be people with good cash flow and money to put down. Also, what's the best way to find these people? I've thought about contacting mortgage brokers who've turned down people for new loans that had $$$ to put down but coudln't qualify for a loan because of the tight credit markets right now. I'm also wondering if Owner financing might be the wave of the next REI boom. What do you guys think? Thanks. Dennis

Originally posted by Michael Rossi:

I would suggest getting out of the house and meeting people!!! That's where the best deals are found. Join your local REIA and make friends with the SUCCESSFUL investors in your area. A lot of deals are passed between these successful investors.

Good Luck,

Mike

You must have a much more "altruistic" group of successful REIs at your club meetings than I do. All the really sucessful REIs I know got that way by keeping the best deals for themselves and selling the dogs to newbie REIs for an assigment fee. Sounds like you're lucky enough to rub shoulders with a lot of "Mother Theresas" wearing polo shirts!!

If it were business as usual I'd say "yes." IE, with RE doubbling in value every 11 years on average for the past 80 years or so that would definately work. But we're at the tail end of, maybe just the butt depending on who you talk to, of a 20 year RE boom that's correcting itself. Buying today and buying in 1995 are two completely different animials in my book. It's like looking at th stock market in early 2000...and looking at it as of yesterday. Very different place to visit.

According to Case/schills it looks like Q2 of 2006 was a peak for much of the country.