All Forum Posts by: Brian Wall

It has been my experience when they say CASH ONLY, basically they don't care how you pay, but they will not allow for a loan contingency, meaning you better be prepared to close else lose your deposit.

I have signed contract on a 3/2 house in La Mirada, CA, that is a bank owned.

Value is $420k after (minimal-paint & carpet) repairs

I am looking to borrow $290k ($275k for purchase and $15k for repairs).

Time frame is 3-6 months.

That area supports conventional (non-FHA) homebuyers, so no need to have title seasoning.

Let me know what else you need to know.

I am open to paying straight pts & interest, or share in equity, or even some of each! I would rather make some of something, rather than 100% of nothing.

I would like to have approval by tomorrow, as the we have to open escrow by tomorrow 5pm, or we lose the deal. I don't want to open escrow, and put 10k deposit, without having a good committment from a lender.

Congratulations on taking the first step.

What you might want to do is to offer up something in exchange for the knowledge.

I would tell a prospective mentor why it is that he should spend his time working with you.

What added value do you bring to the table?

It could be something as basic as "I work the xyz area, and know that area like the back of my hand" If any potential mentors are interested in acquiring properties in that area, you would peak their interest.

Just my two cents.....

Great Idea Ryan! Thanks.

I will have to try that.

Darren,
where are you located?
What are you looking to do? flip or hold

You can buddy up to a real estate agent, and they should be able to set you up with an automated email through the mls.

For my area (Southern Cal) there is no charge for this, and takes just a few minutes to setup.

I would offer (and be sincere) the agent the opportunity to relist the property, once you resell.

Brian

I was in your position a year or so ago.

the 8k fee up front is incredible.

IF I were to do this, I would personally speak to several of their clients. They should provide you with references, most likely they will give you some B.S. about client confidentiality or something.

There is another website (PM me for website) that walks you through building your own credit lines. they charge $400 for the info, and will coach you through (for up to one year). It can take up to 4 months.

They also have an additional program, that, they claim, can build $150k LOC within 8 weeks (I think thats the time), they only charge you once LOC are in place. I think for the 150k they charge 5k.

Again, 8k is alot of money. If they can do what they say they can do, then there is really no reason to charge any upfront money.

Thank you both, for your input.

H, your right, it is not worth that much, but it is worth something.

James, thanks for sharing what you do, that is exactly what I wanted to know. What is a "typical" profit that they would get 10% of? I am trying to determine what % the 525 is of future profit.

Here is an interesting question for those short sale flippers out there?

What is a short sale flip worth, upfront cash?

If I was able to provide not just a lead, but an actual homeowner that is ready to sign paperwork, etc. How much would you pay me, right now, to be able to step in my place? Assume that all necessary paperwork was provided, and all docs signed & properly executed, recorded, etc. Prior to you paying any money.

Very similar to a bird dog, that gets a house under contract, then sells the contract. I realize its not the same, but similar.

You would have the opportunity to review 100% of the details prior to signing.

I have not done this before, but just thinking that if I needed to generate some quick cash is there a market for it.

I realize the answer would be "it depends", what would it depend on? What would have to be in place to first say Yes, then to get the max amount?

I imagine the lender on the short sale, would be a factor, as well as how many liens.

I assume it would be a small percentage of the expected future gains (basic formula that net present value is less than future value).

I am looking for any and all constructive criticism.

I am not just looking as a "provider" of deals, but also, if I were to approach realtors, what could/should I offer them, as cash up front, to bring me a deal.

For all you cash flow gurus out there....

In the context of doing a short sale flip....

I have the cash to buy one or two short sales, at a decent discount 65-70% of market value.

I was thinking that I would offer the property for sale, using owner financing (after fixing up a little), doing an 80-10-10 structure, and following all other suggestions, described here: http://www.biggerpockets.com/blogs/241 (thanks Mark!)

What is the realistic price that I could get for the 80% 1st?

My thinking is that if I buy for 65-70%, I could sell the 80% first, and at least recover my initial investment, then take the 10% cash downpayment as profit, as well as, the 10% second, and just hang on to the 2nd, as a small stream of income.

Assuming I following the recommendations described above, is it realistic for me to think I could get back my original investment from selling the 1st? I would prefer to do this in escrow (selling to end buyer) or shortly thereafter.

Any advice or other suggestions would be appreciated.

In the transactions I have been involved with, we offer the existing listing agent, 4% commission. Basically, giving up the buyer side commission, and giving it all to listing agent.

For relisting, we pay a $1000 flat listing fee. Typically, we list properties slightly below market, so usually putting on MLS is good enough to generate some activity.
The we offer the buyers agent (on the relisting) 2.5%.