All Forum Posts by: Dante Nava

Lot's of GREAT information here guys. Thank you SO much!

Here's what I've gotten from these (though with more detail of course), if I choose to "chase" these down, please correct me if I'm wrong:

• Get it with favorable loan terms
• There should be a spread between payment and rent
• Resale of these must also be done with favorable terms
• It's not worth the risk unless it's being done for $5K or more
• In an ideal situation you're controlling the property instead of owning it, and are able to do things to it to drive up the appreciation ("creating equity)
• Seller Financing should be in place (to buy and sell the property), probably with some kind of exit strategy involving a Lease Option.
• It's primarily a cash flow strategy
• The risk factor is pretty high, so it's best not to cut your teeth on it

Thanks again guys!

Thanks for all of the responses @Simon Campbell , @Brian Gibbons , @k.

@Account Closed !

The question comes from some (almost everything) of the stuff I've seen and read where when looking for a property ideally you're looking to pay 70% minus Repairs of the ARV, so anyone looking for that passes on anything without any equity. From what you guys are saying there are ways to profit from a lead where someone if just bought a house, then soon after were transferred elsewhere and would rather not be a landlord, but they owe about market value, especially after a 5% - 6% Realtor commission might even have pay out of pocket. This would increase the number of potential deals then right? Can you guys give an example of either where you would, or have, done this sort of thing and made it work? Thanks in advance! My question is already doing significantly better than I had originally expected.

So, stupid question... Is there EVER a time when it would make sense to buy when there is no equity in a property? For example, a house is in very good condition, and the seller is motivated, but has no equity. Would even a subject to be a bad idea with you selling using a lease option?

Hi @michael pham,

Welcome to Bigger Pockets! I've been thinking the same thing about crowdsourcing and its role in REI, but I haven't figured out a good way to structure a Kickstarter (yet) if you have, I'm all ears and would be very interested in hearing your thoughts, maybe even partnering up. Let me know.

@Vanessa Blais Thanks for the heads up on the CL ads though too. And @Dev Horn , being honest is my intent. Integrity goes a long way...

@Joe Butcher I haven't put them up yet... The area I'm trying to farm is kind of uppity and doesn't even let McDonald's have their golden arc signs out on display. So I'm still doing research. There are other parts of town though where you can pretty much put whatever you want an no one cares.

One strategy that I will definitely be employing is to put them in places that it's not easy to just pull over and pull it. If it's up for a few days or shows up again later, a motivated buyer will make sure to call, plus it should stay up longer.

@James Wise There are places where bandit signs are legal. There are also places where you can get permits for them, just like all of the political posters that are up for weeks at a time and other signs that you see.

I wasn't talking about doing things that are unethical, please be careful about the fingers you point in a public forum.

I was about to look it up and saw this thread, how does someone effectively (and ethically) leverage Craigslist if you are wholesaling? Just like the bandit signs, do you put them up where people are looking to buy and rent and hope they aren't flagged too quickly? Or is there a better spot? Like W4M personals in prep for the divorce? I'm serious here. Maybe I should test it out...

-Dante

As an aspiring Mr. Whizbang, I really appreciate your post @Bill Gulley. Some of those are definitely aspects you don't think about when making your grand plans for the future. When your intent is to make money with the added bonus of genuinely helping people, not knowing what you don't know but learning as you go is the only those of us "without two nickles to rub together" is what we have to go by. Are Wholesalers typically crappy people that give this "profession" a bad name and anyone in it is tainted, or is it the actual act of being the middle man that's looked down upon?

My understanding of it is that in some markets wholesalers are one of the best ways for finding good deals and are helping sellers out of homes they would have otherwise lost or not known what to do with.

So am I a bad guy? If not, other than honesty (which is my intent) can I do to not be seen as a bad guy?

How long has it been on the market now by the way?