All Forum Posts by: Chris Dickerson

I recently joined Subto at the end of June, after simultaneously joining the creative finance bootcamp by BP. I`ve learned so much about real estate while networking with so many amazing people in the Subto community, it`s been an awesome experience! What`s everyone`s here take on getting into creative deals with low or no money down?

Thanks @Alex Deacon, agents were going to be my next step

Hey BP,

I`m looking to start wholesaling and need to come up with a buyers list. Where would be the best place to find buyers, or wholesalers?

If there`s anyone here looking to buy as well, I`d be more than happy to add you to my short and growing list.

Not an expert, but have been looking into seller finance myself to get started.

If its listed on an MLS service, there`s always a possibility they could be working with an agent. I don`t see why agents wouldn`t want to work with you seeing as their commissions should still get paid. However, since the transaction can be directly between seller and buyer, an agent isn`t necessary.

When it comes to seller finance, you both need to come to an agreement on terms the same way a bank does a loan. The difference here is, you can negotiate with the seller for numbers that work for both parties. This method can allow you to match the sellers price without lowballing, if the numbers work for you so always do your due diligence.

I have yet to get my first deal, but would highly recommend having an Attorney or Lawyer look over or write your contract to circumvent any possible legal issues you may not be aware of. 

Hope this helps, and good luck.

I`m no expert on Subto as I`ve only recently started studying it as well. The due on sale clause can be triggered by a few different things and can be circumvented by transferring the deed back to the seller and purchasing through a lease option, where the option is the mortgage balance the day of execution. 

The benefit of the seller is they can get from under a mortgage that may be hurting them financially or messing with their Debt to Income ratio if they were looking to by another property. There are third party servicers you can also use that make sure your payments go directly to the seller and everything stays documented, which the seller can also use to have the DTI lowered after a certain amount of time. There`s also a way to provide more security to the seller by getting them back the asset if you happened to default without the negative impact on their credit.

I`m no expert with my fragmented knowledge so take this with a grain of salt and do more research before attempting a deal. Anyone else please feel free to correct me.

Quote from @Caroline Gerardo:

Before you do this make certain you have a loan approval for you doing 203k with hypothetical dollar amount, not just a prequal thumbs up from a lender.

What health and safety code violations does the property have? Send me photos I can give you a list of the items you need to repair or replace. Get the Clue report (past insurance claims), use a title company, a real estate attorney, as you insurance agent if they can insure this property (was roof done with permits etc...) 203k has limited dollar amount for improvements so you need a very accurate estimate before you do the seller financing. 

As I think more about it, I`m looking to get estimates from at least 3 contractors to see if it`s even worth the time, and using Hard Money. I have a friend who  does insurance that I`ll have walk the property and give me a better understanding of the types of coverage I should look into and possibly recommend contractors in the area. There`s a couple attorneys I could get in contact with so less worried there.

Correct me if I`m wrong but, couldn`t I have the title company draw up a sales contract and have the attorney hold the deed in escrow?

@Richard F. I`ll actually be getting first hand experience in this pretty soon (Tenant v LL), so hopefully the attorney knows their stuff and I`ll be making that first connection. 

Greetings BP,

Recently, someone offered to sell me a home after hearing about my research into REI. They inherited a duplex and just want to offload it, as it needs a good bit of renovation. They offered to sell for 68K, which I could purchase through seller financing and come up with a way to finance the rehab, or I could make it my primary residence and use a 203K to cover the rehab.

If I wanted to go the 203K route, would I need an agent? There are creative financing options that don`t require them so I`m curious. I`d mostly like to get some feedback on this strategy just to see if I`m heading in the "right direction" so to speak. I haven`t been out to see the property so this is all theoretical.  

Look into house hacking, it seems to be on of the easiest ways to start with low capital through an FHA loan. Partnering with someone could also be of benefit.

Morning, BP

I`m looking to purchase my first investment property in the late spring, early summer, of next year and wanted to take a stab at landlording myself, before bringing in a PM. Currently I am reading through Every Landlords Legal Guide, to develop a better understanding of what to expect.
As street and book smarts can be very different categories, I wanted to know if anyone had any advice that`s more live and learn, than what I could find reading through other materials.

Any advice is greatly appreciated.