All Forum Posts by: Chris Jones

thanks for the reply scott it was very straight to the point and knowledgeable, but i must say when i had read your post i had to laugh. the resaon being is because i am currently experiencing the proplem of having a lack funds or proof there of so this deal i've working on is about the slip away

i go in great detail about my problem on another thread, but i will give you a quick over view of my problem

well last week i found a vacant boarded up property in a good neighborhood, i seen a real estate sign out in the front yard, so i call it and got some info on the property (it was 79,9 and was recently reduced to 65), so then i setup a walk through appointment to see just how bad it was inside, so after the walk through i figured i would only be interested in wholesaling/assigning the deal to another experienced investor/rehaber because of the amount of repairs need, the lack of knowledge i have, and the quick money/profit i would receive

so after some negotiation i got them to drop the price down to 55 thousand, but here is my problem becasue there is an agent involved before we can go any farther and get any contracts signed they wanted me to open escrow/earnest money with about 3000 and show proof of funds and etc which i don't have, i was just planning on tieing the property up with a contract and a earnest money deposit between 10-100 dollars but i guess that would be only if i was dealing with the homeowner directly

so i guess it would've been alot easier if i would've first had my funds setup (either through the help of a mortgage broker or hard money lender) to show proof of funds wtih a pre-qual letter, its just that all this reading i've been doing on real estate investing i kept hearing no-money down and etc i just jumped in without thinking about my team members and the funding (((so i guess alot of times when someone says no-money down, there really saying there might not be no-money down from you but the money is coming from someone, OPM))

thanks REI for the reply, its funny because i actually talked to this person today and i told him that there are five large investment clubs through out the state of new jersey making up hundreds if not thousands of investors, and i told him that alot of them wholesale well assign to each other contracts & agreement and etc (and at my investment club there are people from all professions surrounding real estate, lawyers, accountants, mortgage brokers, agents and etc that are also investors)

and then my frinend tells me that they are all doing illegal stuff, and if they know about it they're all scam artist and then NJ real estate comission will catch them ((SO I TOLD HIM THAT ALL OF THESE VERY SKILLED KNOWLEDGEABLE PEOPLE CAN'T ALL BE OPENLY DOING ILLEGAL STUFF THAT CAN GET THEM FINED OR PUT IN JAIL))

well anyway my friend is 25yrs old and has been a real estate agent for pass 2.5yrs now and has a rep for thinking he knows it all, he even told me he spoke with a "real" investor he puts it that he is currently working with, and he says even this investor agreed with him

which i think either the investor doesn't know about wholesaling/assigning of contracts (which i don't believe) or either this investor agreed with him so my friend wouldn't start wholesaling himself and taking deals from him lol

so i guess you're right, never take legal advice from a license RE agent, especially not a veteran agent anyway, and i guess robert kiyosaki was also right when he said never surround yourself with people who tell you you can't do something, but surround yourself with people who can tell how to do something but give you the consequences for both actions

thanks for the response you really answered my question, i guess your right i guess alot of people use that as an excuse to not get started.

hello everyone

well i just got off the phone with friend of mine, which is a real estate agent, and he says real estate wholesaling is illegal here in new jersey

he says its illegal to make profit off of real estate without owning it, so basicly he's saying its illegal to tie a property up and then assign that contract/agreement to another party, and getting pay for it

then he goes on talking about the real estate commission will do this and that (which i thought only really govern real estate agents)

so i was wondering if there are any other investors in here from new jersey and know about this topic

so what should i do? if you were in my shoes and financial situation what would you do to get this deal done.

now i know i'm a beginning investor but in order to even get any sort of a hard money loan right you must first have the property in question under some sort of contract first (to show your interest/control in the property and etc)

this is what puzzles me when people say to first get a pre-qual or pre-approval letter from say a hard money lender, because from my research almost all of them loan on the deal at hand (well the property) that you already have under contract

now a pre-approval letter from a bank you can literally go shopping for different properties within that budget, but like i said from my research on hard money lenders right you must first have the property in question under contract and then seek to see if they'll loan you the money

so once again what should i do, well what would you do in this situation?

my friend doesn't have any money either, its just that he is willing to take the risk & the big reward on the rehabing side of the deal

me i don't want to take the risk on the rehab side of it (especially on this property), i just want to get the property under contract to flip it to him for say 5-to-10 thousand

now the property i believe is'nt owned by a bank, its owned by some corporation which i'm having a hard time finding info on them and how they come to own this particular property, and why their willing to sell this property this cheap and etc (actually after some more digging i think the company is a lawyers office or something, because that is whats coming up as the owners of this property, so i don't know if it really is a bank behind this deal but their using this law firm to dispose of it for them or what)

now i couldn't find the name of this corporation, but the address i got off the tax assessors record, i researched it and the building is nothing but a bunch of law firms and etc

its just that all the stuff i've read on wholesaling nothing really stated anything about having to come up with that much money just to get a contract on a property and etc. i know what earnest money is but most of the stories i here is people using between 10-100 dollars or so just to tie a property up..............now is mine higher because of the real estate agents lack of trust or something

hello everyone, i'm a beginning investor and i was just wondering how do i go about putting my team together (attorney, accountant, title rep, insurance rep, mortage broker, contractors and etc)

like am i suppose to try to put this team together before i try to make deals or am i suppose to already have a property/deal under contract to be even taken seriously from any of these parties

because some times i feel weird of the thought of even contacting these highly busy people and trying to interview them when i don't even have a property under contract or even may need their services at that moment (but i know i will)

(now i know all of these players wont come on my team at the same time) but can someone help me out with the order i should seek to get these players on my team in, and some questions i should ask each individual when talking/interviewing them to make sure i partner/hire a great person

i recently found a local investment club so i'm gonna start there (which i think picking up the phone book is easier some times then doing all this networking to find my team members), but i feel i'll only be successful in bulding my team if i know what questions to ask each person, and if i know what level of importants each one holds and etc

hello everyone, i'm a beginning investor and i need some help/advice on putting this deal together.

well anyway here is my story, just the other day i found a vacant run down boarded up house in a good neighborhood (were the other properties have beening selling kinda high and etc), this propery was listed by this real estate company

so i called the real estate company got the price of the property and setup a walk through to see just how bad it was inside, so the next day we went through the property and man i tell you this property needs alot of work

now at this point i am only interested in wholesaling the property to another investor because i think the rehab will be a little to much for me being a beginner and etc, so i told the agent to make an offer on the property, and after some negotiation the seller said as far as he'll come down on the price is $10,000

so here is my problem, the agent said before we can go any farther i need to show proof of funds ((becuase no bank would give you a mortgage on a property like that, so whoever that'll purchase would need to be a cash buyer)) and open escrow with about $2,000 which i don't have any funds ((i just want to tie this property up/get it under contract so i can sale it to another investor)), plus the agent told me that the listing agent of the property is also a rehaber and said if i dont take it he'll take it, and the only reason he's giving me that opportunity is because he's already rehabing a couple of other properties right now ((which i don't know if this is a tactic to get me to get the property faster or what))

but here is some info about this deal, the property was listed at $79,900 and was reduced to $65,000 about a month ago, then i got them down to $55,000, and the properties in the same neighorhood with the same specs are selling for $142,900 in good condition

so how to i go about tieing this property up especially when working with a real estate agent, oh yeah something i forgot to mention i even have friend that would be interested in buying the property off of me to rehab it, its just that he wants me to find him a hard money lender to work with......SO IF SOMEONE CAN HELP, PLEASE LET ME KNOW WHAT TO DO, ALL OF THESE PEOPLE ARE WAITING ON ME TO MAKE A MOVE

Thank you so much for the reply...................your 100% right, i guess the contracts will vary depending on both the sellers needs as well as my needs (my exit), oh yeah and i will be checking out that book you recommended, THANKS

so i guess its time to get dirty, LOL

Hello everyone, I’m very interested in getting into the real estate investing field, so all I’ve been doing lately is acquiring some basic creative purchasing and financing tactics I could use to help out motivated sellers and myself, it’s a true win/win.

So my questions are:

1- I know this question depends on the seller’s needs and my financial ability, but under what perfect conditions should I try to utilize each creative tactic (subject-to, lease options, contract of deed, straight options, and owner financing)

2- What contracts I must use and have signed when utilizing each creative tactic (subject-to, lease options, contract of deeds, straight options, and owner financing)

3- Once the appropriate contracts are used/signed for each tactic, what are the following steps I must take; now I’m not talking about the complete a-z steps. I just want to know that once I have the contracts signed, do I just hold on to them and start looking for a buyer or renter for the property or do I first record the contracts at my local court house to put a cloud on the seller title (to show my interest/part ownership in the property) and then start looking for a buyer or renter for the property

If any of these questions sound crazy I’m sorry I’m a beginner. I know an entire book can be written on each creative tactic I plan on using but I’m just interested in knowing the basics (the contracts that are involved, and what to do with them after they are signed, and under what prime times should I look to use each tactic), I plan on learning the details through the school of hard knocks, that’s through actually getting out there in the field learning and making mistakes.

another reason why I just want the basics, is because I don't want that whole "paralysis of analysis" thing to happen to me that happens to most beginning investors, its so easy to get overwhelm in this business that’s why most fail and the ones that are somewhat successful take so long to do so.

So if anyone can answer all of my questions or part of them I’ll be so thankful