REO & Multi Family Investing

[Michael Williams]

There is a program out there by Sue Nelson (essentially $2000, which i cant afford) in which she explains how she picks up Notes on multi-family properties from local banks and then whole-sells or flips the property to an investort. I know here on BP people believe not to buy programs, so I was wondering does anyone have knowledge on this topic? I personally dont really have much interest in whole-selling but it seems that its a place where most people start in order to build capitol.

Please get back to me,
Thanks

[Jon Holdman]

If you buy a note from a bank, you now own the note. Not the property. If the borrower isn't paying, you can foreclose and take the property. If the borrower is (or starts) paying, you get the payments, not the property. When you buy the note, you're bound by the terms of the note.

Its not impossible to buy a note from a bank. They buy and sell each others notes all the time. But its not easy. And you will have to actually have the money to buy it.

I don't believe "most people" start out wholesaling to build capital. I believe most people have some job they work (which, in a few cases, is wholesaling), they save their money and then invest in real estate. But out of all the people who invest in real estate (i.e., buy income producing property) I think its very rare that their source of income is wholesaling.

Wholesaling is held out, especially by gurus teaching wholesaling, as a quick and easy way to earn money. Its a job. If you work at it, invest your time and no small amount of money, you can earn an income. But I've seen no evidence it either a quick or an easy way to earn an income.

This business is full of people selling get rich quick schemes. They always sound easy. They always sound like some great secret. None are easy. None have any secrets. Some may have some good information presented in an organized way that makes it easier for you to get started. Many, though, will charge you $2000 and then hound you to "take the next step" and sign up for a more expensive program.