All Forum Posts by: Account Closed

Steve Vaughan anyone can do this if they are serious !

Susan Knight keep telling people . I can't believe the amount of people that will work 50 hours a week for a boss but say they would never take a call at 2am for a rental !

Rick S. so she wants the full amount within 10 years so that is a balloon payment . A lot of commercial loans have this . So the loan looks like this 20 year amortization (I pay as if the loan lasted 20 years ) 10 year term 10 year rate lock and no pre payment penalty . I have done this before and most likely in a few years I will refinance pull some equity and pay the loan !

Important to note I would be comfortable listing each duplex for 60 k on the MLS and would expect them to sell pretty quickly .

Frank Yang thanks ! It's a lot to take in but I'm seeing the results from letting the world know I invest ! It's much more effective then brainstorming and planning!

similar post on a deal I made this way here :https://www.biggerpockets.com/forums/50/topics/446014-how-i-got-3-deals-for-5-k-down

Hey all,

I just closed on a deal I am very excited about ! 3 separate - 2 unit properties in great/solid condition FULLY RENTED for 105,000 total price 35k each building and only 5 K DOWN !  This deal brings in 3500 in income per month and the mortgage is only 507$ A MONTH for the three properties.  

I have done this a couple times and the recipe is the same !  I got out and let everyone I talk to know what I am looking for.  We do not realize the power of people and the power of connections.  One quick conversation can lead to a DEAL ! 

 In this scenario about 6 months ago I had mentioned to a friend that I was eagerly looking for my next deal.  He knew someone with 3 properties but didn't think she was willing to sell.   I told him to keep me in mind and fit me into a conversation with her if the opportunity ever arose.  About 4 months later he called me and said " She seems fed up with the rental business ..... now is the time to approach her."  That night we all spoke and I found out what her motivations were and made an owner finance offer based on these motivations.  I used those things she told me were important to her (guaranteed monthly return, no more tenants rent collections etc., a lump sum in 5 to 10 years) and used this as leverage to make and offer that fit these needs but allowed me to give very little cash down.  

These deals are out there and you need to go find them  ! 

see my related post on "creative financing" at https://www.biggerpockets.com/forums/12/topics/446004-how-to-avoid-the-creative-financing-trap

Hey all,

This post is an opinion and I just hope to shed light on "Creative Financing".  I am by no means a Guru or expert just an observation.  -  I recommend Brandon Turners book on little to no money investing over my advice any day ! 

I see a ton of post about not having enough money to start investing so they need creative financing tips.  So many beginners do not act because they are spending time figuring out how to finance with little to no money down.  This is a shame and as you will read on this site many seasoned investors give the proper advice but it seems no one listens!  I am sure you have heard experts say things like:

- Tell everyone what you are doing and what types of properties you are looking for, Do not be embarrassed or shy about REI.

- Take action and look at properties and get out there, do not plan your life away and hide behind "the planning stage".

- Someday needs to be today. etc. etc

The general idea here is that you need to get out and let the world know what you are doing and the world will respond and THEN and only THEN you will have opportunities arise that can be closed on in creative methods.  For someone starting off I think the three easiest and most obtainable ways to creatively finance are

- low down payment owner financing

- finding a partner that will be active in the business with you

- find a 1st series of investors (friends family) who will be silent partners

We waste so much time taking creative financing and trying to figure out 10231490123 ways that we can creatively finance and take NO action.  People ask " which form of creative financing do you like better ?" THEY DON'T EVEN HAVE A DEAL LINED UP!  This blows my mind and is simply a waste of time and energy !  take the simple list of three ways I just listed(low down payment, partner , friends and family investments) and keep that list in mind.  Then start talking to people and have people spread the word, some people will want to partner with you, some people will have a house to sell you, some people will know someone looking to get out of a property, and someone will want to invest in you.  once you get to enough people with light commitments you should have enough pieces to the puzzle to put a deal together. 

THIS WORKS 5 of my last 6 deals have all been "creative" financing.  All I have done is make what I am doing public and have become the guy who keeps buying real estate.  I have people who connect me with people looking to move on from properties etc and I have also had people with properties call me themselves.  I have multiple people who say they want to do a deal with me and multiple people who have said they would invest with me.  Granted many of these leads may end up a dead end its a start and you just have to keep chugging along and working these leads once you create this brand for yourself. 

Rant over ! lol

Bryant

Hey all, I am currently an investor and have a solid portfolio . I also work in corporate America . Today I am considering pulling the trigger on a luxury vehicle . I currently drive a Kia and my tenants see me quite often . I operate in a class C area. I am concerned that the luxury vehicle will upset some tenants. Can anyone that has been through this in a class c area share their experiences. Wrote this in a rush - apologize for any grammatical errors!

Originally posted by @Jomaira Diplan:

Hi, I have very limited funds and bad credit due to a short sale I had to do with my properties. I tried investing with my own credit, money, got taken advantage of by realtors and mortgage brokers back in 2006 and lost everything I had. Also because I was new and my lack of knowledge in real estate.

I've recently been learning about creative/owner financing and would love to become an owner/investor once again. I was wondering if it's uncommon or even possible or do 100% owner financing deals here in New York especially in my area of Queens, New York?

Thanks!

 I do not know queens well but upstate New York I have 5 fully owner financed properties . I know it's a bit more competitive down in your area so I would expand your target market.  Also make sure you are always talking about what you do and what you are looking for .  All my owner financed deals have come through networking .