All Forum Posts by: Steven J.

Val, I'm still a new investor so what I have to say may not mean much but I'll recap what's sticking out from what I've read. It sounds like Sam Parkins does has a good handle on what it takes to get the home. The financing is definitely a possibly hurdle to over come because I understand there are not many lenders willing to lend on investments that indeed depreciate rather than appreciate over the years. The thing I'm not too fond of that Sam says is that it might be a good deal simply because of the distance being an issue, if you live in CO that is.

Now, whether this is a local home for your or not, something you could do for your rentals is include a clause about tenant being responsible for the first $50-100 of any repairs. That's definitely a motivating factor to not ruin the garbage disposal.

And the other idea I've had that doesn't seem to have been brought up is to do a lease option on the property. Not sure what your state laws are regarding L/Os but it could be a possible exit strategy. You're more likely to find a proud homeowner and you're maintenance costs will be non-existent unless of course you need to repair a furnace or roof depending on the case.

Good luck!

So here's an idea I've had recently. I'll be moving within 4 months, new state, new market, new job. I'll be following my significant other and rather than continue in the business I am in I certainly wouldn't mind switching into rehab full-time. Problem is, how do you work this out in the real-world? How do I get loan approval when I don't technically have a job? What about approval for getting into a rental? I anticipate I may buy a property with first time home buyer loan, either a Freddie Mac and Fannie Mae, and live in it while fixing it up. Now, since I'm moving, won't yet have a job how would I go about getting approval for that? Is any bank gonna give me a loan?

Great work so far Kyle B.! I've actually just started my new mailing campaign via listsource as well. I believe I'm doing 50-100% equity, SFR and absentee owner out of state only. I've only been sending postcards so far, even with my follow ups. What have you found is the best way to get sellers contacting you. Do those yellow letters make much of a difference? Can I just keep sending postcards, perhaps slightly different formatting? Or should I really switch it up?

Edward,

I think more than anything you may not be including what is needed to protect you as a wholesaler. That "and/or assigns" allows you in writing to market the contract for the property.

Because you didn't include the "and/or assigns" you'll have to do a simultaneous close, if you plan to wholesale. The problem you run into here is if you don't manage to get a buyer for the property, then you're stuck with it.

I would try to either rewrite the "and/or assigns" into the contract or somehow null and void that contract and get it redone with that added verbage.

A good clause to use in your contract can go as follows, or similar "Contract is deemed acceptable upon buyer's and buyer's partners' approval of inspection within 14 business days." Here you're giving yourself 14 business days to inspect the property, which as a wholesaler you don't really do. But instead you have that time, which is about 3 weeks, to find your buyers, allow them to inspect (although most will themselves), and allow them to get their financing in order, which they'll either have cash or hard money lined up shortly.

Best part of that clause is that the contract is only deemed as a working contract UPON approval. If you don't put in writing in 14 business days you accept the contract, then the contract is null and void. No need to write a disapproval letter like most contracts start with.

Anyone, correct me or improve upon the wording of the clause!

I suggest the market change too as Kelly N. had done. I'm in a very competitive market here and I'm really considering remote wholesaling. I'll be moving eventually and I'm excited to get somewhere new with possibly a better market.

Phil Damjanovic

Great job on your first deal! That's exciting stuff. As my market is heating up over here in CO I'd love to hear you found your deal. I'm looking to locate ways investors are getting the deals right now since competition/speculation is really starting to heat up.

Dev Horn

Great quote! I'll have to remember that one!

Jason Cotner I've got to agree that your second options isn't very solid for a potential buyer.

On the other hand, you may find yourself being able to rent it out or lease-option the home to others. You've already got yourself possible buyer/renters because people with bad credit will LOVE your lease-option deal and its a piece of property they will actually get to own, rather than continue to rent.

Lee Reitzel

Keep up the good attitude and hard work. I'm a wholesaler as well just starting out and I understand the same stuff. Keep reading stuff on investing and especially the books on goal setting is very helpful. I would recommend Goals by Brain Tracy to pick up when you're needing a pick up. I also suggest Rich Dad Poor Dad by Robert Kiyosaki. Both those books talk about the motivation you might need.

As for your friends and family not supporting you yet, I'm sure they will once you start showing some success. And they are trying to protect you more than anything. They are comfortable with what they know and don't want to see you fail. As hard as it may hurt keep going on with out them. That reminds me of the book "Who Moved My Cheese."

I remember a quote in one book that went something like this: "Making money is how you think about it. If you say it takes money to make money, you'll find it will. If you say its hard work to make money, it will be. If you say it will take a long time, it will take a long time. If you say you can make it, you can make it. Its all what you believe in"

Good luck!

Scott,

To locate your downpayment you can partner up with another investor, or find someone will to be a private money lender that you write a note for which guarantees them better return than you can get in the bank.

Perhaps your seller may be willing to take that note of the downpayment and the terms on that note is different than the terms on the rest of the deal.

You might be able to put the title of a car, or RV, or even another property on the table if you don't fulfill the requirements of the note.

If the property needs any repairs you can use your skills, if you have any, to compensate for that down payment with the agreement that the price is negotiated to a better price. Some sellers would rather see the sold price higher in order to keep face about their investing habits...

You could sell your kidneys

I'm sure there are many more suggestions. Good luck!