All Forum Posts by: David Tower

Hello Tom,

I'm new as well and still completing my business plan but I'll attempt to tackle a few of these based on what I've read, heard, and researched. They say you recall the things you teach right?

3. An "investor friendly" title company needs to be able to complete both double closings and assignments. Some title companys don't understand that a double closing can even be done. They might even say they can do it to get you in the door without knowing what you're talking about. Also, you may be able to get a discount with repeat business as an investor at certain places.

4. As you said there's plenty of people that don't make an earnest money deposit and some that give up to $100. There seems to be mixed feelings about this and some say that in some states a contract is not legally binding without some minimum amount of deposit. I tried to search on the internet for my state (RI) and only found info about purchasing houses retail. A local "guru" here at my REI says in their contract they put something to this effect "$500 earnest money to be held by our attorney" and he says it works fine. Personally I'm not putting more than $10 if I'm going to lose it if I can't find a buyer.

6. It really does depend on your comfort level/preference. It might make sense to ask for a higher amount on a bigger deal but it just comes down to how much security you want to get. Be confident when giving your terms to the buyer. Cash buyers expect to have to put a deposit down, so it's not like you're asking for something extra.

Hope that helps!

Good luck

From what I've read here, you will probably be warned by the post office eventually for using their address and not your PO Box.

good luck!

That practice run idea is great Travis...I think I'm going to try that. I've worked as a manager in a call center for several years and we always do call simulations with our new hires before they get on the phones for real.

This is a great case study thread imo. I'll be following it for updates.

Good Luck!!

Thanks for all the responses so far!

I've been thinking a lot about the idea of a seller financing her house for a couple reasons.

One is the steady income stream of course. The other is that there's lots of new construction near her and her home was built in the 70's. Her master bedroom and master bath are much smaller than today's buyer wants and I think it could really hurt her ability to sell for top dollar. Her plus is that she has pretty much the best lot within a couple mile radius. Set back, cul-de-sac, private with woods and up against a golf course. All the new construction homes are very nice, but they are all McMansions on top of one another.

I think she could command a better price of she financed it, especially with the stringent lending criteria happening right now.

She really likes the idea of a 55+ community. There's one in Florida that she loves, but she doesn't want to move away from my brother and I (Massachusetts). I'm also considering the idea of finding a smaller, distressed property in her town that she can pick up cheap, doing a live-in flip for 2+ years and then maybe she'd be ready to move to Florida

Hello BP,

I was hoping you pros out there might be able to give me a strategy that would help my mom stay in her house.

She owns the house free and clear but the house is very big, the RE taxes are high, the upkeep is high (inground pool) and the value of the house (approx 500k) is the bulk of her net worth. She is also living alone and is 60 years old.

She does not want to sell, but she doesn't really have enough cash to live on for the rest of her life without selling. Her plan is to sell the house and buy a condo which won't have the upkeep or all the yardwork.

Should she look in to a reverse mortgage? Are there any other cost effective options she might have to use the equity in the house to support her living there?

Thanks in advance,

-DT

The idea of purchasing probate and inheritance lists seems like a good way to get prospects....but what's to stop several people from buying the same lists and all sending yellow letters?

Also, where do these companies get the names? Is there a manual way to get the same info?

Thanks!

Thanks for the response Bryan

I definitely appreciate the fact that wholesaling will take time and is not something to be taken lightly. Other than my job, my only time commitments are the gym and my girlfiend who I live with so I'm confident that I'll be able to devote the time.

Having recently read Think and Grow Rich....I'm not really entertaining the idea of not being able to do it :D

Hello BP!,

I'm so happy to have found this site...I knew it had to exist but it took me a little while. I'll do a quick intro and then I'd like to get some opinions on what might be my best course of action.

I'm 33, and have been working at a large investment co. for 10 years. I earn a decent wage but I never set the corporate world on fire because I HATE the politics. My burning desire is now to leave corporate America. I recently read Think and Grow Rich and it changed my life. It finally clicked. Since then I've read Rich Dad Poor Dad, a few flipping books, The Millionaire Real Estate Investor (great book), etc. I also love listening to podcasts and I'll be joining my local REI club this month.

I KNOW that I am now a real estate investor and I've considered all the strategies. My plan is to start wholesaling while keeping my 9-5 until i can move one to rehabbing and quitting my j.o.b. I'll also build up a portfolio of cashflow properties.

That said....I can't shake the notion that the market is so low right now and acquiring some cash flow properties now is probably the best investment anyone could make (yep even better than Apple). I'm considering renting out my house which I bought as a REO April 09 and figuring out a way to buy another, smaller, house that might need some sweat equity to live in while i fix it up.

would a subject-to deal be the only way to buy a new house without a conventional mortgage if i weren't going to unload it? I could come up with a down payment under 10k and I also have about 50k-70k equity in my house but not sure if i can tap in to it.

So, "If you were me" what would you do?

Thanks in advance to all the great BP members. You'll be seeing me around =)

-Dave Tower