All Forum Posts by: Dustin Mathenia

@Matthew Irish-Jones

You're not losing money over a 30 year period, just investing more than you wanted to. Brrrs are overhyped on BP I'll give you that. Also you didn't mention you have to be quite bankable to pull it off.

Sub2 in Forbearance

This may not be the strangest real estate deal in existence but it was certainly a different one for me. 

I'm not sure about everyone else but 2020 was great for business here in DFW. So, I found this deal from a wholesaler who I've purchase properties from before. The house was in forbearance and no payments due until the end of January. I found it in September and the wholesaler worked out the sub2 with the seller. The owner was leaving the country and facing foreclosure so he basically gave the guy the keys to save his credit. The wholesaler then assigned the property to me for 10K and I closed on it with my good friend, @MartinGarcia, at Fidelity Title. My original plan was to wrap the underlying lien of 157K and sell it OF for 225K with 25K+ down. The house was a 1776 sq ft with a detached shop and garage sitting on 1.7 acres near the Oklahoma border. I thought this would be simple even though the house needed a little work. I was wrong. After several months and a few potential buyers fell through, I eventually found someone interested and I closed the deal immediately. Buyer paid 13K down and split the closing cost. He also traded two properties in Oklahoma--one was a vacant lot next to a lot with a shop with a mobile home spot. So, in short, I broke even on the cash I had in the deal and walked away with two free and clear lots that are in a nice, gated community which I will sell, rent or owner finance to someone. I never had to make a payment or bring the loan current and everyone in the transaction was happy...a win for all.

@Christian Walker

If you have other investors willing to split 50/50 and they're putting up all the money, Then do that and maybe offer your dad a good return on his money like 12% in first lien and do some flips. I don't think 50/50 is fair or unfair but I do believe if you're begging for money right now when it's basically free you're doing something wrong lol. Help your dad and run your business you can have more than 1 partner.

@Cleotha Euwins

The hardest part is finding private money! You did that now the most important part is keeping them happy. They get paid first and on time everytime ! You lose money they don't hear about it and get paid no matter what!

@Cleotha Euwins

If he is funding the majority of the property all you need to do is talk to a title company/closing attorney and have them put him as primary lien holder or first position lien on the property and you get put on title. It's very simple not much different than a big bank or hard money. They will need the terms you both agreed to right now I'm paying my lenders 8-12% depnding on length of loan but if you can get better great. If there is a balloon, points, rehab money etc all that needs to be in writing and sent to title but any decent title company can put the papers together you both sign, done deal!

@Jerryll Noorden

So I've seen your post for years always saying SEO is the greatest and backing it up with your leads. I've seen you on BP on FB all over. My question is do you offer your services to help build or rank sites or are you just showing that you have found the secret sauce? If you offer services I'd love to talk .. I know you say it's easy but I don't even open my 10 yr old laptop unless I have to and I really dont want to learn how to rank a website.. I'd love to chat sometime

@Charlie MacPherson @Jonathan Hasan

Not every wholesaler is screwing over the seller. Case in point true story : went to look at a house owner said "I just closed on a note expensive property and just want to sell this one. I know it's worth more and I dont care I just want to close in 7 days." I said how much he said 115k and I said sure! In this unique situation he also paid his agent who wasn't really involved in this deal since it was still off market. Now I could have wholesaled that deal but I ended up closing on it and just listing it for 180 sold very quickly without repairs.. obviously a rare find but that's where wholesalers operate in unique situations. Rarely on the MLS.

I would suggest getting to a point where you can close on deals if you cant find a buyer. The deals should be good enough to keep. Honestly if you can't find a buyer it's probably not a great deal.

@Rod Lambe

I've got something you could do ..it's free and it's easy and I doubt anyone here has tried this (would love to know if anyone has).. so I'm a flipper I've never wholesaled a property, not the biggest fan of wholesaling. That being said I know the importance of a buyers list. So I already follow every REI/deals/FSBO/wholesaling page on FB looking for deals. Well when someone post a deal 10 people will drop their emails in the comments. I was like "that's not even a good deal and theres 10 potential buyers for it. I could find a crappy deal like that!" So I started screen shotting all of the email addresses took a month or so but I ended up with close to 500 email addresses of potential buyers. I had to put them in excelle then I was off. I told one of my wholesaling friends I built a buyers list asked if he had something he couldn't sell. He did. I put it out to my list got 3 or 4 interested parties and sold it in 1 day . I only made 2k bucks but all I did is forward an email. Just an idea. I should have found the buyer then negotiated the wholeseller down would have made 5k but hey easy money either way

@Evelyn Castillo

Hard money loans are are short term interest only loans and are made for short term now you can use them and the same lender can give you a long term loan as a refinance around 7% and if you find a good enough deal you could still cashflow. I would suggest learning and looking for private money should be easy to find in the near future .

@Evelyn Castillo

With no credit or experience with little money in the bank you will have a hard time getting hard money. If you don't have anything negative on your credit report go to your bank ask for a secure credit card. I started this way with no credit after being debt free for 4 years. I got denied for a Target card had to pay $500 for a secured credit card (you get the money back after 12 months) put it to use paid it off and in a month I was approved for a 150k fha loan and bought my first house with 7k out of pocket. Some hard money will cost more than that in fees.

I have used 3 HM loans this year to buy good deals and this is what I had to bring to closing

115 purchase 18k to closing

117 purchase 22k to closing

60 purchase 9k to closing

It cost money to play this game doesn't have to be your money but people who say get in for free are full of it !