All Forum Posts by: Eric Gard

I've found people before through a meetup.com meeting, it was a cashflow meetup. We all played cashflow and got to know a couple investors in the area. Plus its a lot of fun. If there isnt a cashflow group in your area, you could pick up the game and start your own. Its not a cheap game, but a great learning tool and a lot of fun.

While your there ask the people running the auction a bunch of questions about the process. Also, talk with people there, network with them, you may find a great deal through someone at the auction.

I would buy 2 or 3 rental houses in the $20-30k range, wholesale, then save the remaining balance for a safety net. I would rent these houses out for $600-$650 each, collecting $300-350 each net per month. Pretty simple +10% ROI, and with no mortgage, you can ride the fluctuations in the market and sell at a later date for a profit.

If I remember right, I think you can get a bulk discount with USPS. But as Neal mentioned, its not email cheap....

Welcome Chris! 

Lots of good information and experience on this forum, I look forward to hearing about your experiences.

Hi Rob, Welcome to the forum! 

Hi everyone,

I'm going to take you step by step through my finding and sealing my first Wholesale Lease Option deal.

A little about me, ever since I moved out at age 18 I have rented out extra rooms where I lived for extra cashflow. I purchased my first house at 19 near the height of the market bubble, then proceeded to loose it during the downturn. I'm constantly reading books, forums, blogs, this forum, etc.. plus I go to cashflow meetups, mastemind groups, etc... Earlier this month I decided its time to get my butt back into real estate. I've got some funds, but I discovered I dont have enough for a good safety net and a down payment. So I did some searching and came across wholesaling, which sounds like a good fit for me as a way to increase my capital reserves and use it to purchase rentals.

The ultimate goal is to do wholesaling deals to build up capital reserves, then use those funds to purchase wholesale deals with cash and turn the properties into a rental, or maybe lease option them where I'm the Landlord/Seller. The goal in any case is to build cashflow.

Over the next few weeks and months I'm going to post in here some updates and ask questions, hopefully pick up a few mentors that can help keep me out of trouble.

This will either be super awesome information for those interested in wholesaling, or a train wreck, either way it should be fun.

~Eric

P.S. Mods I just realized this might be more useful in the lease option forum, you decide.

I havent sold a rental, but I have researched a lot on buying rentals. If it does not have a rent history, then its worth the same as buying any other house.

Thanks, I'm looking for the next one :)

The buyer responded from a craigslist ad.

Save yourself some money and dont actually purchase the home, sign the title to the new buyer with you in the first lien position.

In this deal, on paper and for all purposes, you should be just selling the home for the current owner. Write out an agreement to sign with the current owner stating that you are selling the home for him, he is going to accept $2k for the home and pay you $2k for your services, which is basically just the markup in price.

Then when the home is sold you just sign your name or business as having a lien on the title.

Have the buyer sign a Purchase Agreement, Sales Contract and Promissory Note.

File yourself a receipt for having collected $2k for services and collect your checks. Remember you pay taxes on your profit for selling the home(in this case its just for your services selling the home) the year it is sold, then you have to keep track of how much you earn in interest each year until its paid off. You shouldnt keep track of principal payments because you are taxed when the home is sold for that money. Make sure to talk to a good tax professional.

This is what I would do, but there might be a better way to do this.

BTW, who is paying the lot rent while you try to sell the home? If you are, it could eat away your profits pretty quick.