Southern California purchasing Subject to and selling with a wrap

[James Clayton]

I am new to the forum and the real estate investing world. I am looking for someone in my area (Hemet California or Southern California) that purchases properties Subject to. 

Any help would be greatly appreciated. 

[Aaron Mazzrillo]

I used to run monthly and weekly real estate clubs here in SoCal. I've spoken at just about every other club in the state... At least the good ones. The most successful investors I know buy low and hold LONG term or get out quick and rip equity. A combination of both will get you very far. I have never met anyone in this state who said they are doing what you want to do successfully who also didn't have some educational opportunities for sale. It is too much work for not enough profit. 

A friend of mine bought 10 houses a few months ago just from driving around writing down addresses and mailing letters to those property owners. That's 10 wholesale checks in one month versus being stuck in the middle of some toxic mess for who knows how many years. 

Unless you are the party with the house you want to unload, I suggest looking for easier fish to fry. From my experience, and I've heard this exact question asked many times over the years, you think you have a deal because some burnt-out property owner is willing to give you the time of day. What he is really trying to do is have you replace him in the quicksand while you spin your wheels trying to figure out how to create a profit out of thin air. He wants to step on your head as he gets out. What you should be doing is looking for owners in the quicksand and offering to get them out by grabbing onto your magical equity stick. And that magical equity stick has the ability to cash them out of their mess and convert that equity into real money. It should also cost a premium to for them to grab it. 

The key here though is that the property needs to actually have equity for them to even qualify to talk to you. Yes there are ways to make money even with houses that are upside down, but those "deals" are not worth chasing. It is only when I come across them while looking for something else that I might put one togetther. In other words, if I see a shiny quarter on the ground, I'll pick it up, but I'm much happier stepping over it to get to the wrinkled hundred dollar bill.

Never replace them in the quicksand.