All Forum Posts by: Barbara Grassey

Also check to see if you have a local REIA (real estate investors association) in your area.

I hear the San Antonio market is doing well. You are in the right place at the right time.

Best of luck to you.

Yikes! Guys, he is 22 and a new investor!

Wheatie is asking some good questions. How is your real estate market? What is average length of time on market before a property sells? Do you know what the property would sell for fixed up? Do you know how much it would cost to fix up? Do you have the skills to do the rehab or will you have to hire someone? How tight is lending in your area? Do you have a good credit record? Do you have contacts for private lending?

This is probably not the project to begin your career with, tho you may be able to joint venture with someone more experienced. I would definitely get a look inside the place and work through all the numbers. It may still be a good deal and you may move forward with it. But do your homework, get comps for the property.

I am a big fan of buying a property with additional land if I can subdivide the land, sell off the lot(s) and use that money to finance the rehab. You may be able to do that, which would be cool.

Sorry to sound like your mom, but I would hate to see anyone crash and burn on their first project and give up on real estate. This may still be a great deal and you may do it, but you need to get a lot of answers before you put any money down.

Feel free to ask questions along the way. I would love to hear more about the property and how you are doing.

Barbara

Check with a real estate lawyer in your state, but remember, a lawyers job is to keep you out of the grey areas. And they are not familiar with creative financing. They are paid to think inside the box.

I have wrapped a mortgage using a contract for deed with no problem. Since the deed isnt passed until all the payments have been made, technically, you havent sold the property so the due on sale isnt triggered. However, the buyers do have an equitable interest in the property. At that point you are splitting legal hairs. In this real estate market, mortgage companies are thrilled to get a regular payment from ANYONE; they arent looking to see whose name is on the check.

A MUCH better way to do it is to do a lease with a separate contract for option. You can work it on the same terms. If the buyers default, you can evict them rather than foreclose which is quicker and cheaper.

Wrapping a mortgage is done all the time, but for someone who if you are kind of new, you might want some legal guidance the first time through.

Good luck to you. You are definitely on the right trail.

Barbara

Hi,
Laws vary state to state. But you need to ask lawyers the right questions, too. Check with a second lawyer and see if there is a minimum to put an Option on the property. You may need 10 percent down to buy but not to option. I have birddogged a few properties in my time, and the best way to protect yourself is to have an equitable interest, i.e., an option. I like to tell sellers upfront that I will probably not be signing the final papers. I say that I work with a group of investors (true) and that I am not sure if we are going to put it in the corporation or under one of their personal names. Your success in doing this depends on three factors: the sellers level of motivation, your rapport with the seller, and the confidence level when you say it. So practice it until you are comfortable with it. Dont ask their permission. Say it flat out and firmly. The attitude is: This is the way I conduct business. Being friendly and professional is key.

Let us know how the deal works out. Good luck.

Barbara