All Forum Posts by: Joe Butcher

@Shariyf Grevious

Here is the link to the script Jerry uses :

http://www.biggerpockets.com/blogs/1378/blog_posts/28030-youve-done-your-marketing-the-phone-is-ringingnow-what

Here is a discussion with Michael where he gives his "5 questions" script.

Its about halfway down the page but you should read the whole discussion.

http://www.biggerpockets.com/forums/48/topics/105228-buying-houses-at-a-huge-discount

I don't want to hijack @Matthew B. 's thread so feel free to send me a private message if you want to discuss more.

Great to hear you got a deal. Just started my yellow letters 1 month ago.

I outsourced all of it.....the letter, the printing, the mailing. I deferred to the expert (Jerry Puckett) so I wouldn't over-think it.

I have gotten quite a few calls, no deals yet, but considering the amount of calls I am getting, I am confident that a deal is just around the corner.

I am also of the mind that you have to do what works for you.....I have read so many things on how to handle the calls, so I have just taken bits and pieces of advice and made it my own. I have developed a method that is a hybrid between Jerry's technique and Michael Quarles technique, and added a little of my own.

@Shaun Reilly

I ran across this article which is fairly readable...I know it is specific to TX, but still worth a read.

http://www.lonestarlandlaw.com/owner_finance.html

This does a good job of explaining how SAFE and Frankendodd affect investors

I should also mention that I haven't made anyone any kind of offer yet and I'm not married to any strategy/idea.

I perhaps should have presented this as a "what if" scenario?? (Or maybe posted in "creative financing" or "wholesaling")

Since Dodd-Frank may make selling it to an end buyer with bad credit difficult/impossible/complicated, would it be at all reasonable for ME to finance it from the current owner, then use it as a rental?? This was suggested by another investor.

Is this also a bad situation for a new investor? I understand there would be risk, but is there some situation I should be looking for instead where there is less risk?

@Bill Gulley

I went to an REI meeting today where the topic was subject to's. (http://dfwreiclub.com)

The attorney was someone at the meeting, not MY attorney, as I don't claim to have one. Besides, you were the one who suggested it.

The investor I spoke to is Grant Kemp, who is on the forum here.

I'm not claiming to know everything about seller financing, or that some magically appearing investor and attorney just snapped their fingers and made me understand seller financing OR that I can even do the deal. But I have to start somewhere. I know it's a lot more complex than I imagined, and I will be the first to admit I STILL don't understand it 100%. I'm not going to just go through with something if I am not comfortable with it or don't feel like I understand it enough. I will say I am getting a clearer picture of the deal structure and various exit strategies.

I have also been reading quite a few of your posts, like this one here: https://www.biggerpockets.com/forums/50/topics/104311-how-to-structure-a-seller-financing-deal

I don't think I would necessarily categorize myself as "in denial" but people in denial usually don't. : ) You could be right about that. Was there something in particular that you think I am in denial about?

As far as being misinformed, if you could point out specifically what, that would be great.....I know you are probably very busy but if you have a moment I am 100% open to your thoughts.

I am new to a lot of this and am trying to put the pieces of the puzzle together....if you think I am getting too far ahead of myself, you may be right.

Thanks.

Hey guys, I actually spoke with a wholesaler who does a lot of seller financing and sub2's, as well as an RE attorney. There is definitely a possible deal there, I just needed to understand the deal structure and exit strategy.

Sorry if I didn't explain it well!

Appreciate the comments though.

Thanks!

@Shaun Reilly

There are several ways to wholesale a property. I think you probably understand how a cash wholesale works.

The other two ways that I KNOW OF would be to wholesale a lease option or to wholesale a seller finance deal. A land trust is another but being that I am still trying to understand LO and SF I don't want to make my head explode.

NONE of these things involve rehabbing a property.

So lets say I get the seller to agree to a SF @125k. I then find a buyer who, in a perfect world, would have a couple dings on their credit, but they make really good money. In todays market it would be hard for them to get a loan. But not with seller financing because the seller IS the bank.

Now just like in a cash wholesale, I am going to get the property under contract but for a SF, NOT for cash. Just like in cash wholesaling, I find a buyer. And just like in cash wholesaling, I charge a fee.

So while the seller has agreed to sell for 125K, I would sell it to the end buyer for, lets say 130K. (5K=my fee)

The question I have is about STRUCTURING the deal. In an SF deal, you can actually give the seller what he wants, BUT not without a compromise. If he wants 145k for the property, even though its really only worth 135K, well, thats fine because thats the price that someone who can't get a loan otherwise has to pay. Or maybe he wants 150K for the house.......great, but there will have to be some honey in the deal, like no money down, or principal only loan.

At some point, the END BUYER is going to refinance into a conventional loan

So the offer a wholesaler can make to a seller is "do you need the money NOW" (cash deal) or "are you ok with getting the money over time" (SF, LO, or Land Trust)

This is a funny thread because I have wound up answering questions when I was actually looking for answers. That has actually made me dig a little deeper to find out the answers for myself. I have learned more about the different types of wholesaling in the last 24 hours than I have in the last 30 days!

Rock on, people.

@Shane Woods

Ok now we are getting somewhere. What are the closing costs associated with SF? I mean is it anything like bank financing?

Do I even HAVE a deal here?

@Shane Woods I could actually give them about 5K down, if necessary.

No urgent incentive. They just want to get rid of the house. I think their daughter lived there but has since moved out. I am guessing they dont want to be landlords.