All Forum Posts by: David Kilgore

I am a beginning wholesaler and was wanting to begin my marketing campaign to owners of pre-foreclosure properties. As I was doing my research on properties in my area I have found a common name in the trustee section of the properties info. I further researched the name and found that it was a law firm representing the homeowner throughout the foreclosure. I thought to myself if this law firm is getting all of these homeowners business, why not ask the law firm to provide me with leads? I would of course provide some type of payment to the firm. I was just wondering if anyone has experience with going to lawyers or firms that deal with foreclosure cases for their leads?

@ken min

But before going to auction could you not get approved for a mortgage or HML for the bidding price? My thought process would be to

A. Find a potential property and set a price I would be willing to bid.

B. Get pre-approved for the set-price loan from a local bank before the auction. 

C. If I wind up winning the property, make a down-payment on the bidding price and attain a mortgage for the remaining principal.

D. List said property for owner-financing with a 15-year 6-9% int. rate.

E. Collect cash-flow from the spread on the two mortgages. 

Im sure there are a ton of steps that I am missing, but this would just be the general framework for the deal. 

Hello I am thinking about different strategies for passive income this year and came across a low cost hands-off way to generate income while reading Rich Dad Poor Dad. In the book Kiyosaki explains a deal he made at an auction, where he bought a home for half of its price with only a low down payment. He then listed the house for sale at its fair value and financed the deal himself by writing the buyer a 15 year promissory note at 8%. Kiyosaki collected the cash-flow between the two mortgages and never had to worry about any maintenance or repairs to the units. This is very appealing to me because it sounds like a fantastic way to create hands off month to month cash-flow. 

However as I have been researching the nuts and bolts of this type of deal, I am beginning to come across different sources that say this can be extremely risky and even illegal. I'd like to know if anyone within the BP community has ever used this tactic? What are the risk involved? (legally&financially) Lastly, just walk me through the steps of the deal. 

Thanks