Getting Started

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Getting Started

Jeff Parkerson
Involved In Real Estate · Dallas/Ft Worth, TX · Member since 2010 · 4 posts · 0 votes

I've been reading posts for a while and I'm wanting to get started with my new career in REI. I was about to purchase the $15k course from Renatus, but I've read on here that it may be a scam.

Some of the investors I do know only want to pay me referral fees and not help me learn the trade. So if anybody can help me in the areas I'm currently working, please contact me.

Here's my two scenarios:

1) Huntington Beach, CA ~ I have a friend that has a $1mil beautiful house. She owes $541k on it and just won the home in a divorce. She can't afford the $4400mo house payment so she just filed to short sell it.

2) Kansas City, KS ~ a friend's $380k house is about to be foreclosed on. He has two mortgages on it and is willing to do anything to avoid foreclosure.

If anybody can help me with these two cases, please respond. I'm wanting to learn as much as possible. I'm okay with getting referral fees, but I need to learn in the process so that I can start working these cases myself.

Thanks,
Jeff

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Mike G.
Rehabber / Flipper · Simi Valley, CA · Member since 2010 · 597 posts · 259 votes
15y

First, spending $15,000 on a course seems crazy to me.

As for the scenarios:
1) If she owes $541k and needs to do a short sale, then the house is not worth $1 million, it's worth less than $541k. If you are thinking there might be a deal there, it doesn't sound like it. She'll probably sell for market value or it will go into foreclosure. (Also, if she has to do a short sale, then what she "won" in the divorce is debt.)

2) Not enough info to give advice here. If he is underwater, he can try a short sale. If he's not underwater, he may be able to sell to an investor (or even via an agent). Depending on the value of the two mortgages, maybe an investor can buy one of the notes cheap and pay off the other note to get the house at a discount?

Generally, I'd suggest joining a local Real Estate investors group and reading up here on BP before you consider giving $15k to the toilet, I mean to the guru.

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  • Mike G.
    Rehabber / Flipper · Simi Valley, CA · Member since 2010 · 597 posts · 259 votes
    15y

    First, spending $15,000 on a course seems crazy to me.

    As for the scenarios:
    1) If she owes $541k and needs to do a short sale, then the house is not worth $1 million, it's worth less than $541k. If you are thinking there might be a deal there, it doesn't sound like it. She'll probably sell for market value or it will go into foreclosure. (Also, if she has to do a short sale, then what she "won" in the divorce is debt.)

    2) Not enough info to give advice here. If he is underwater, he can try a short sale. If he's not underwater, he may be able to sell to an investor (or even via an agent). Depending on the value of the two mortgages, maybe an investor can buy one of the notes cheap and pay off the other note to get the house at a discount?

    Generally, I'd suggest joining a local Real Estate investors group and reading up here on BP before you consider giving $15k to the toilet, I mean to the guru.

    4Reply
  • Nick J.
    Residential Real Estate Broker · Payson, AZ · Member since 2009 · 3k+ posts · 1k+ votes
    15y

    It would seem that the CA property would/should be easy enough to unload in a standard wholesale transaction simply based on the #'s provided.

    btw, I sent you a message

    0Reply
  • Aaron Mazzrillo
    Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes
    15y
    Originally posted by Jeff Parkerson:

    1) Huntington Beach, CA ~ I have a friend that has a $1mil beautiful house. She owes $541k on it and just won the home in a divorce. She can't afford the $4400mo house payment so she just filed to short sell it.

    2) Kansas City, KS ~ a friend's $380k house is about to be foreclosed on. He has two mortgages on it and is willing to do anything to avoid foreclosure.

    1. sounds more like it is worth $541K and owes close to $1M on it and therefore she is doing the short sale. You can't short sale a loan if there is equity.

    2. The only way to 'avoid' foreclosure is to pay the mortgage. Your friend can do a short sale on it, but it is still going to wreck his credit.

    There is a monthly meeting in Ontario. Content driven and no sales pitches allowed. They meet the 2nd Thurs of every month at the Radisson Ontario Airport Hotel at 6PM. www dot socalreia dot com.

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  • Rob Gillespie
    Specialist · Cleveland, OH · Member since 2011 · 1k+ posts · 852 votes
    15y

    Hi Jeff,
    First off, do not pay anyone a bunch of money to teach you the biz, there is a ton of free info out here that only requires massive action with a little tech support.
    No on to the deals. those are both great deals to put together a lease option on. You can lock them up, and sell your agreement to an end user. This will put a lot of coin in your pocket quickly without using any of your own cash or credit. Good luck!!!

    P.S. Make sure they are still current on their mortgages first. Then get some payment details and bring them back for us to analyze.

    0Reply
  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    15y

    It depends on the market as to whether or not there is any deal there. The first property might be sold to a qualifying buyer willing to move up. The KC property, based on the market might fall in the same boat, but it will be tougher. Times are good for luxury homes, your first property does not really fall upwards to that market. The KC property certainly is'nt. Money is cheap opening doors to higher priced homes, subsidies and govt. programs allow you to move the lower first time owner properties. These are not in either favorable market.

    Guru for 15K.....LMAO!

    You have not given enough inforamtion on either property to determine oif there is anything to make these a deal under any startegy!

    Suggest you read some more and simply ask more questions.....good luck!

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  • Jeff Parkerson
    OP
    Involved In Real Estate · Dallas/Ft Worth, TX · Member since 2010 · 4 posts · 0 votes
    15y

    Follow up on the Huntington Beach property. Zillow shows that its worth $1 million even. She owes $541k on it total, but owes back payments worth $17,000. She stopped making payments and tried to get a loan mod, but wasn't approved. If she was paying monthly payments, they would be about $2800 plus $700 in property tax.

    If she sells the house, she is supposed to pay her ex husband $350k or 70% of the equity, so she's not too concerned about the equity at this point. She said she would be willing to deed the house over to get out from under it.

    So does CA allow "Subject-To" deeds? And Does anybody have access to private lenders that would be able to provide for the back payments?

    0Reply
  • Mike G.
    Rehabber / Flipper · Simi Valley, CA · Member since 2010 · 597 posts · 259 votes
    15y

    If you take the property subject-to the mortgage, I'm guessing the husband will still want his $350k. Or are you saying that you would offer her $541k, subject to the mortgage, and the husband would be cool with getting nothing? That doesn't seem likely.

    Be careful here, because if the husband ends up wanting $350k, you really have to look at the numbers. $541k purchase + $3k purchase closing costs + $17k back payments + $14k holding costs (estimated at only $3500 X 4 months) + $75k in sale closing costs + $350k husband payment = $1m, meaning there is no profit for you, and that's assuming the zillow estimate of $1m is correct (probably isn't).

    0Reply
  • Account Closed
    Landlord · Seattle, WA · Member since 2010 · 3k+ posts · 1k+ votes
    15y

    I would certainly put little weight on a Zillow estimate. Much better to pull your own comps to get a good estimate of value.

    0Reply
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