All Forum Posts by: Joe Butcher

@Justin Williams

Yes, I agree, it is a numbers game. I have no problem with failing or making mistakes......bring it on, I say.

I stay away from gurus and unrealistic success stories.

To be honest I am pretty happy with the number of calls I am getting, and it's great practice for me to dial in my phone skills.

@Bill Ham @Will Barnard

Can one of you tell me how an RMLO and/or attorney functions in a SF situation?

More to the point, what services do they provide for an owner finance?

Would I be enlisting the help of these people or would the seller?

Thanks again to both of you for participating in this discussion.

@Bill Ham

@Bill Ham

@Bill Ham

If the seller doesn't accept my cash offer, I would like to have this property as a buy and hold for myself. There is a long term tenant in place already who does not want to move.

The property is owned free and clear.

I have come up with several offers as a sort of practice scenario.

I am trying to work backwards, i.e. come up with a cash flow that works for me and structure the offer in reverse from there.

@Justin Williams No problem.

Keep in mind I just started this a month ago

I am sending out about 500 mailers a month.

I pay Jerry Puckett to do all the printing, envelope stuffing and mailing and offer advice along the way.

I don't know what the price per call is.

My response rate is close to 3%

The way I determine my offer depends on what type of property. If it is a good candidate for a fix and flip, then it is by the standard 70% of ARV-repairs-my fee.

If it is a good candidate for a buy and hold, then it's just a matter of the numbers working enough to cash flow sufficiently for an investor to be interested in it, and for me to make a little on top.

Being that I am new at this game, I am fine with keeping my fee on the low side so as to build relationships with investors.

Does that help? Let me know if I left anything out.

Hello @Justin Williams and thank you for your reply.

My first offer will be cash. His motivation doesn't seem to warrant the acceptance an excessively low offer.....which is why I brought up the topic of motivation, but we will know for sure come this weekend.

Seller financing seems to be an advanced tactic, and I would truly prefer to get my feet wet with a cash offer. That being said, I really want to understand SF so that I have it as another option. I have been reading quite a bit about how Dodd-Frank and SAFE affect SF and it is somewhat daunting, nonetheless interesting.

If a SF deal were to come to fruition, I would most definitely involve an RMLO and an RE attorney, as one of the more "sticky" aspects of it is that it is not only an RE transaction, but a finance transaction as well.

Thanks again.

Welcome and be sure to attend the Bigger Pockets DFW meet up.

We are skipping it for this month but there will be one on December 5th at Champs in Las Colinas.

@Will Barnard Thanks again.

One more question: If I structured this so it can cash flow, would I be looking to refinance with a conventional loan after a certain period?

Would that time period be something I would put in the contract?

@Will Barnard thanks for the response.

Not to change the topic but how do I make owner finance work for me?

Say I get him to agree to an OF....now what? What are the options?

(The property is owned free and clear, btw)

Could I structure it so I own the property, cash flow from the tenant and pay the seller? Or would I be looking to put an end buyer in there?

(Keep in mind that lease options are all but dead in TX as are balloon notes)

Thanks in advance!

Spoke with 4 people who responded to my yellow letters, which I consider a success in itself just because of the response rate I am getting and it is great practice.

One was slightly irritated and wants off the list.

2 spoke really poor english and were very hard to even figure out what street the property was on or who I was speaking to....one wants off the list and one wants 20k more than the property will ever be worth.

One actually seems motivated and the call went really well......I asked the right questions and got the right answers......I go see the property this weekend.

I also listened to 2 podcasts, re-read an article about Dodd-Frank and the SAFE act which made me decide that lease options aren't anything I want to do (or even can do) in Texas.

Have been getting lots of calls since starting my yellow letter campaign. No deals so far, as the sellers (or potential sellers) haven't seemed that motivated to me.

Maybe it's my expectations? Maybe I was expecting the seller to say "PLEASE take my house at 30% of market value!!" or something.

Maybe I'm unsure just what "motivated" is. A gentleman I spoke with today said he wants to sell his rental property, and is sick and tired of being a landlord as he lives 30 miles away. To me that sounds motivated, BUT is it motivated enough to let me have the property at a good enough discount to make it a deal? If he already has it rented out, what would be the benefit of a possible owner finance as an alternative to a cash deal?

Sometimes I feel that I may be letting potential deals pass me by because I am not sure what kind of deal matches what level of motivation.

Anyone else face a similar situation as a beginning wholesaler?

Thanks.