All Forum Posts by: Brandon Diaz

I think legally you are ok. It only becomes "hard" when you have the assignment of contract signed. At that time, you are already set to make money so I would take on the risk if the profits were still there. I didnt understand the question "Would I just market this property for my desired cost minus the earnest money?", so here is how I will answer it... Just make sure however much you put down is covered in your sell side and that you are actually profitable and the end of it. If you put $500 down, than your buyer needs to be giving you $2,000 down that is non refundable if they back out. 

The seller is smart I will say, and is giving you permission to assign the contract but is making sure they are getting paid. lol

Happy investing

Many different answers that can be given here. Ill give my advise to you. 

Two things that make this business up. Marketing and Communication. 

Focus on marketing (laundry list on how to do this) to motivated sellers (laundry list of people that you can target). Do some research to figure out what your DNA is and what you want to do. 

After marketing a "lead" will call you about their house and situation. Communicate with that lead on how you can help them by purchasing their house as an investment. 

Short answer and there are plenty of other ways.

I think you have already done it. You need to focus on other properties till this person contacts you and than you go start digging in deeper at that time. Go find 100 more like this "up" you odds of getting your first deal. They are called Abandon Properties but my team has started calling them "bando" houses. Bando houses are a lot of work but are great leads.

I can certainly tell you how to do it for cheaper than that. (Hell, I will undercut it for $100). I will say though that for $297 is not a bad price at all though. IF they know what they are doing and just didnt watch some videos and create some junk. I might buy it just to see what they are talking about. If its terrible I would request my money back immediately.

Sub everything out. Contractors are going to sub out all the work to someone else. You will quickly find out that contractors (IMO) are worthless for the most part (generally speaking). 

If you do not have any construction background and have some time on your hands get your hands dirty so you can get an understanding of the work to help you and your business so no one can take advantage of you. You dont want to do this but I have and still do so I am always understanding.

Happy investing

I am not an attorney. I am answering the post for entertainment purposes only and this is not constructed to legal advise. Make sure you talk to attorney about ANY legalities with this strategy. 

Let's just think of this as a case study and theory only.

Before I answer this... I personally use sub-2s for "short term financing" (To fix up and flip) OR if the sellers know 100% that I have to rent the property out for a long period of time before I sell it and they are cool with it and I want to make sure that I have communicated with the owners everything. I would rather them say no than flip a lid later. This has actually built good relationships with the seller if you are a good communicator, which I am.

Also understand there is a large group of "haters" on here that are going to bite everyones ear off and talk about the disadvantages of "sub-2s" and tripping Article 14 in the loan called "Due on Sale" clause. Which talks about calling the mortgage due (pay off the mortgage or we will foreclose) if you transfer the deed into another persons name but the mortgage stays in the original borrowers name. 

Study and understand a federal law called "Garn St. Germain Institution Depositor Act of 1982" and learn about Land Trusts. (I will not talk about this here AT ALL)

First off: Even though you are not on the mortgage...Treat it as you are. That means you need every document that they have about the mortgage and the house. OVERKILL is what I would do. Its better to have it and not need it than need it and not have it. 

But you at least need the account number, bank the loan is with, payment amount. Also, see how the payments are broken down. Are the payments also with taxes and insurance or separate? 

You may need:

"authorization to release information"= Gives you permission to talk to the bank on their behalf. 

"limited power of attorney"= extra just in case you need it... you have it. 

" disclosure check list"= getting them to sign saying that they understand what you are doing. 

"A smart title company"= This is were title companies meet amateur vs professionals. (MUST or NO GO) 

If you are seriously consider this... Make sure you know what you are doing on properties and are some flunky trying to make some money and just throwing crap on the walls and hoping something sticks. Go in with a real plan. I dont know you so thats real talk from one to another and am assuming you actually know something about property and investing or I would just skip answering this question. 

I hope this is at least a helpful to you.

Easy answer: Go on this forum and study different marketing techniques. Break that $1,000 into a budget and spend it on marketing. You would obviously be doing wholesaling so you need to be studying Wholesale (Double Closing and Assignment of Contracts), Creative Financing (Lease Options, Subject to's, and How to make creative financing offers).

As far as finding investors... Go to local REIAs (google your location). This is a great place to start. 

I remember seeing a book years ago that some investor wrote and it literally was every product he put into his rental properties. He had an exact product number and procedure to how his house was going to be fixed up so that his management knew exactly what to do when something broke. It was in depth. No stories. Strictly on the rental property and what was in every single one of his house. Does ANYONE know what I am talking about????? 

Need a little more information. Mobile Homes are a bit tricky and not a whole lot of people have accurate information about mobile homes. If you're going to move it, you will need to get permits and a lot of your questions on age restriction will be there. Some parks have age restrictions for their park. However, the city/county will give you answers. Every area is different. I can tell you from experience try and stay away from moving those 60's model homes. The tongue to the homes sometimes FALL OFF! LOL Moving the home is always a bit stressful. How do you plan in flipping this thing cash, bank financing, seller financing? What kind of mobile home are we talking about? Clayton? Fleet wood? How are determining value?