Wholesale Day 7&8

Hello, just wanted to give you a status update. I have an offer wrote up for the luxury property, however I am waiting on my mentor to provide the POF letter. He is a little slow but I understand they are in the middle of 30 rehabs. I'm sure I will get this Monday or Tuesday to submit with the offer. So Ill keep my fingers crossed on that offer, we are hoping to at least get dialogue started with the sellers agent. I figure as long as they respond to the offer we will be in a good position. We believe that if we get a response at an offer 200k below asking this will show their motivation and we will be able to negotiate to get the property at our price. I have notice that as long as you can get a dialogue started then you can negotiate terms and conditions that works out for both parties.

The seller finance deal with the condo, we will be going to view the property on Tuesday to see if its worth moving forward with. I did speak to the seller and her stance is as long as she can get rid of it in 4-5 years she will be pleased. Some of the numbers are not adding up, the property is currently renting for $675, but the 1st mortgage is $768.05, and 2nd 145.56 which equals 913.61 mortgage payment, with the rent of $675 and HOA fees of 139.87 which $814.87, this leaves a -98.74. The seller did state that she was very generous with the rent because she just wanted someone to reside in the property. So we will see if the numbers work out for us. This will be the first seller finance deal, we are looking at doing a big down payment with a 4-5 year balloon payment at the end of the term of the agreement. I am unsure how we will structure the rest of the deal as far as ensuring a monthly percentage gained each month for the owner. I know in some of my reading on seller finance that the owner would receive a sizable down payment along with interest on the loan, and finally a balloon payment at the end of the contract. I am hoping to learn how to structure this deal so I can use this as a tool in the future. I have noticed that seller financing is a great tool to use if the seller is looking for retail pricing if you can't structure a wholesale deal.

Finally, as a newbie it is good to be confident in your business, and confident in being a real estate investor. I was talking to a neighbor about some of the things I am doing and she was very curious, then she started telling me about all the properties in our neighborhood and adjacent neighborhood where the owners have left their property. Some of the owners she had their telephone number so it was extremely easy to contact them and others I had to do a little searching to reach them, but with her leads I am looking at potentially 2 other seller finance deals with great numbers. One of the owners recently got married and she clearly stated that she is never going to move back in the property and she just don't want to have the extra burden of an additional mortgage. I spoke to the other and this lady bought the property for a friend because it was such a great buy during the economic downturn she could not pass it up. To make a long story short she purchased the home and the friend moved in and after a couple of months moved out. She does not want the property or the headache of being a landlord. She have a tenant that is moving out in a couple of weeks and she really don't want to be bothered. She has asked the current tenant to find a new tenant for her (crazy right). These are 2 additional prospects and if I did not have a discussion with my neighbor I would not know any of this information. The first property is 2100 sqft 5bd, 2.5 bath, the other is 2100 sqft 4bd, 2.5bath, both are willing to do seller financing. I may do seller financing on one of the properties for myself as a primary residence. Noisy neighbors are great referral sources.

If you are still thinking about starting, stop thinking and get started. I started with less than $300, action is key. I bought a list from list source, and started mailing, I went to the courthouse steps and met a lot of cash buyers, I went to my local REIA met a mentor to bring some deals to. Every morning before starting I pray, to get direction and motivation and then I'm off and running. As you may know already I am a Christian and one of my motivational passages is Job 8:7 "Though thy beginning was small, yet thy latter end shall greatly increase. Do be afraid of starting small EVERYONE had to at some point in their life.

That was basically my beginning. I have to say you must take action devise a game plan and begin, and stay motivated.

Ill keep you posted on these transactions. "Get to Work"