All Forum Posts by: Benjamin Barredo

@Bill Gulley Great information. I've been wondering about refi on sub2 for a few weeks now but no one ever gave me a straight answer on whether or not it can be done. Can you do that with an owner finance as well? Is this possible because I, the buyer, would hold the deed? Also, when you say the 1st year gets past the purchase price, what does that mean? Do you mean the 1st year of mortgage payments creates enough equity to ensure a good refi to meet the purchase price?

@Brian Gibbons How much equity do you shoot for with a sub2? Also, I didn't know you could refi on a sub2. I guess it doesn't matter if you have the original mortgage in your name, as long as you have the deed, right? Also, if you sub2, how to you finance a renovation for resell? Is that out of your pocket?

I got a house in a rural town that has a highly motivated seller. 

I don't think I can flip it to a rehabber but I could talk her into owner financing If I can approach it right. Any advice on how to approach this and since it's in a rural town, what's the fastest way to get a tenant? 

I'm listening to podcast #2 and the guest is sharing her first deal. She got it sub2 bit got the seller to pay her over $9,000. 

How's that work? 

Hello BP Investors,

I have a motivated seller just outside my target area. Considering I have not yet gotten a deal closed and this person is highly motivated (wants to sign papers in a week before she goes back home - out of state) I want to jump on it but I'm trying to be smart about things.

The house is a 3/1 on half an acre. It's a brick house in a rural area of a small town that doesn't seem to have a lot of growth. I got on Redfin to find comps for area (Redfin because I don't have access to the MLS but if there's a realtor out there that wouldn't mind looking this up for me, that'd be awesome). The problem is (or problems are) that:

1. I had to go back 3 months and give zoom out to include the entire county just to get 6 houses that sold.

2. The houses fluctuate from $30k all the way to $130k. WTF!!!!!!!

The seller says the house has 4 bedrooms but the 4th is an addition done by an owner so I'm guessing it is not professional and to be safe I'm going to assume it doesn't meet code and is just another room (or closet). The seller didn't offer up an asking price but when I asked if she'd be open to seller finance she said no (though I think if I actually explained the benefits of a seller finance, she'd say yes). She also says the house rates a "5 condition" on a scale from 1 to 10 on the inside, so I'm guessing it's a gut job (to be conservative).

The don't want to manage renters from out of state, they have to split the money with the other family members, and.....that's all I can think of. What else am I missing?

Um....the TMV off the public records says the home is worth $43.5k.

Can I get some advice?

@ned car

@Jason V. My wife doesn't want to move into a duplex. She wants out of condos, row-houses, apartment type places. I tried to sell her on it but there was a big fat no.

Now, I am talking with a loan officer who is going to explain at a meeting tonight how I might be able to refi on the VA loan within a year and use it again on another property.

I'm looking into FHA, USDA, and other types that I might be able to hustle into something sooner as well.

@Sam Bhullar

Great advice my friend. Thanks a lot. I am working with a BP wholesaler on creating a buyers list. I'm going to the big KnoxREIA tomorrow and networking to find those big players in the area. So that's in the works. I have a list of questions to help create a criteria for the buyer's wants.

As far as looking at a deal through a rehabber/wholesaler POV. Isn't that what I should already be doing? At least that was my approach anyway. However, there's also the renter property investor POV that's going to be different from a rehabber, right? Or approach them all the same? I mean, I figured a rehabber would need a lower LTV ratio than a landlord but you tell me.

Thnx

@John Thedford Honesty and professionalism is what I'm all about. That's why I asked my original question. Now if I worded the question is a way that made me seem like some weasel of a wholesaler than I apologize but that's not me.

I understand all the possible ways to get a home with little money. I'm currently networking and trying to build rapport and relationships with possible JV partners and/or private investors. My family is poor and I don't have a ton of friends because I am quite introverted at heart. But I'm working on that as I cold call and talk to strangers.

Any advice on how to build relationships that can lead to private money, JV, and/or other creative financing methods? As far as Sub2, that's what I'm hoping to find in my wholesaling but I also know that I have to first find that deal.

Hello BP Investors,

Ben Barredo here with another question. I'm full of them.

When is it time to find a lawyer? I'm guessing that it would be a good time to find one as soon as I decide I want to attempt to pursue contracts as a wholesaler, right? I haven't gotten one yet but I am actively mailing and calling leads so I'll have it any day.

To add to that question, what type of questions should I ask. I am the kind of person that tends to go blank for the first couple of minutes until I start to feel comfortable - I guess I suffer from tiny bit of anxiety. So I like to have questions written down before entering into a discussion.

Thanks

Okay @John Thedford and @John Chapman can you tell me what are the restrictions of having a license.

Say I have my realtor's license. Can I still wholesale deals on and off the MLS? Do I have to only sell the deals that my brokering firm (say KW if I work for them) has contracted or can I do side deals? I mean, I know a license gives you all the credibility you need to do things "right" but what are the restrictions?

Truth be told, I was pushed to wholesale by a licensed broker in my town who told me that I would have waaay more flexibility than he or a realtor would. That was a big catalyst on why I decided to move forward with attempting this route instead of waiting until I get my license. The only reason I am not getting my license, say, next week is because so many realtors I've talked said I will have a hard time doing it part-time and before going full-time I need to save several months of income because it'll be that long before I get  paid. I've got the money to sign up for courses now but I don't have enough money to leave my job and go without getting a paycheck for 2, 3, or 6 months.