All Forum Posts by: Albert Yamoah

Thanks @Lamar Cannon and @Alberto Camacho

Much has changed since this post. Most newbies are wholesalers (not to say that most wholesalers are newbies). The numbers I was given were usually far from actuality. That being said I use the MLS and Investway to find and analyze deals. Thanks for your guidance. I appreciate this.

@Hugh Ayles, let's hope you do. 

@Jacob Michaels, have you done a subject-to deal in Texas? If so, what was the duration of the deal? Was the deal a buy and hold (long term) or buy and sell (short term)? Are you aware that note of homes with subject-to financing are being called all over Texas?

@Brendan Morin - this is wonderful news. 

Are the number of VA loans you can have set in stone?

Will you be able to max out on FHA loans as well or do VAs count towards your FHA loans?

Can civilians get VA loans (if not, "darn" in advance)?

Can the concessions you obtained for the VA loan be obtained for FHA and Traditional loans?

What you have accomplished is spectacular. Don't stop now! We're all rooting for you. Be well. 

AY

So Big Phill and Shenoah Grove are coming through Dallas, TX this evening. I went to their last guru session (which was veiled in the cloak of a REIA meeting). Not only was the session full of misinformation, but when asked about aspects of the business model they were promoting, they (Shenoah specifically) were very defensive. If any of you know of the couple, then you know they are all about "Subject To" financing. My questions are these:

1.) Is anyone in the Dallas/Fort Worth Metroplex actively using "Subject To" financing to aquire real estate?

2.) Are you using "Subject To" financing for flips, holds OR both?

3.) What contingencies are put in place for WHEN (yes, when) notes are called (specialized attorneys; legal documents; contact with banks; etc.)?

I realize the relative benefit of owning the title for a property but not having its debt on your credit report. I also realize the absolute risk of having the note called (no matter how small; I know someone out there will swear by this strategy and say that the note is only called 0.000001% of the time). Thanks in advance for your kind responses and advice; I greatly appreciate them all.

@Jeff Arndt 

That's the best way to do it! Build wealth with none of your own money. Proud of ya, man. Don't stop. 

AY

@Julian Robinson 

I look forward to your forthcoming success. Be well my friend.

AY

@Julian Robinson it's exactly the same with both. Make sure you qualify for both financing tools. Seek conventional financing first (usually qualifying for conventional lending means you are already qualified for hard money). The gains get much bigger with multifamily, especially when doing a value play. Currently, I use this strategy with single family properties and will implement it with multi family as well. With SFs, this strategy allows me to get distressed properties and fix them with very little down. I plan on holding the properties for 5 years before exchanging them for MF real estate. 

If you’re reading this, you’re either wondering what could possibly go wrong when buying real estate investment education or unhappy with real estate investment education you purchased. Attempts at resolving issues with these companies can be complicated, nerve-wracking, and even fruitless. Here’s some advice and suggestions that may be helpful in making your decision and/or getting issues resolved should they arise.

• Read and understand ALL contracts BEFORE you decide to purchase – while this advice seems like common sense, many times these purchases are made in haste and under pressure.
• Ask questions until you fully understand what you are getting – find out what the education includes.
• Know the refund policy BEFORE you purchase – many of these programs cost a significant amount of money. That being said, the refund period for these programs is usually unreasonably short.
• Know your credit card company’s purchase protection policy – Ding! Ding! Yes, you guessed it. Many times this is the only way to resolve issues with these companies. Be cognizant of your credit card company’s purchase protection policy for ANY purchase. This policy provides protection for purchases well out of most merchants’ refund period. Still, even this protection has an expiration date so understand its limitations and deploy at the earliest sign of complications with guru companies.

Be aware! The premise of initial seminars is to get a large group of people to think in a similar fashion regarding a targeted outcome. For example, lets say an imaginary company we’ll call Wealthy Father, Inc. is selling education packages for real estate investors and people wanting to become real estate investors. Wealthy Father may hold an initial free or low cost seminar calling all real estate investors and people wanting to become real estate investors to attend. These companies spend millions in marketing and utilize various techniques to get vulnerable attendees to pull the trigger on purchases of expensive education packages that may fall short of the buyer’s expectations. 

That being said, there are still protections in place (usually unknown) on which consumers can fall back. Take it from a guy whose been “guru”ed! Sites like BiggerPockets provide a plethora of information on real estate investing and (best of all) people (real, live, breathing, typing, etc.) with whom you can interact regarding real estate investing. Isn’t that brilliant, a FaceBook for real estate investors (if only an IPO were being offered)? Articles and blogs can be found on search engines like Google, and media sites like Youtube also provide videos of people teaching real estate investing. I actually found more effective videos on real estate investing strategies on Youtube than the one’s from the company that guru-ed me! 

It’s my hope that each of you reads this BEFORE signing up/purchasing a guru package, which may leave you glum. My advice is simple; learn a bit -> find a great mentor -> take action. If you must spend thousands, spend it on a deal! Add your thoughts, stories, and advice. Thanks.

Go forth, live long, and prosper,

AY

Why wholesaling? Why not actually invest (i.e. buy, hold, cashflow)? Wholesaling is just another job, like "flipping". Check out this simple strategy:

-Hard money lenders will give you up to 75% ARV on a property (including funds for rehab).

-After rehab and with tenant in place, conventional lending will refinance the home for at least 75% of its market value.

1.) Buy a property for 50% ARV,

2.) Rehab it for under 25% ARV,

3.) Find a qualified tenant to rent it,

4.) Refinance 75% of the market value

5.) You now own a cash flow property with little or no money in the deal

6.) Repeat, continuously.

Wholesale if you're looking for a new job; invest if you want to invest.

AY

@Jacob Michaels, there is nothing wrong with what the Groves do, as their business model is to provide a service (REI education) and generate revenue. The cost of getting an education in anything is subjective. That being said, most mentors will not charge for their advice. Assignment of mortgages is certainly a viable strategy in some markets (it's debatable as to it's viability in the Texas market) and in some cases, but it's not something anyone should pay thousands of dollars to learn. The strategy can easily be learned on the internet and/or via a free mentor.