All Forum Posts by: David Oldenburg

@Sergey Tkachev 

 Great!  I got your message and responded :-)

@Joe Fairless 

 I already do a lot of real estate investing, wholesaling, flipping, loaning my own money and partnering with others on projects.  I plan on using the money for some of my lower risk deals that have good return.  

@Joe Fairless 

I will give this a listen soon. I have an IRA that I am switching to a self-directed IRA, because I want to invest in real estate with it.

In California, where I do business, whether a contract is assignable has never been an issue. I have changed the buyer many times. Sellers rarely care who buys their home, they just want it sold for as much as they can get, and as quickly as possible.  If i enter into a contract and need to change the buyer later, I just make a phone call, explain the situation, show the proof of funds or approval letter on the new buyer and we move forward.  I am aware of the change to the CAR form here in CA, but I don't think it will impact my business in any way. 

If you don't already know me, I am very experienced and use my own money to wholesale, fix & flip and get involved in many areas of real estate investing /lending.  I have worked the Sacramento market for over 23 years and have made millions in the industry.  I usually turn down deals when my money is tied up, or I borrow money from other investors etc...

I would like to do more partnering with other like-minded investors on projects, as lately I am getting more opportunities to invest.  I would also be putting my own capital into any potential deals.   I would like to have an additional 3-10 investors who I can speak with regularly as deals come up.  I am very conservative and only do deals that have been fully researched and have excellent profit potential with low risk. If you are interested, or want to talk more, let me know :-) I am talking about deals where all investors share the cost and reward equally.  As an example:  Property cost is $250,000, rehab cost is $50,000, after completion value is $400,000. We each put as much as we want into the deal, we are all on title and we each share accordingly in profits.   However, if you are someone who just wants to lend money to a group like this, let me know your terms etc... 

@Steve Veen  I just ran some quick numbers on my search screen and as of this morning, a non-owner cash-out is 4.0% with 1 point and 4.25% with no points.  Your credit, income and assets, the properties value and other factors would determine if you get that rate or a different one.  Good luck!

@Richard Pulido 

Awesome to see that you are trying to wholesale! The deals are out there, but rarely ever in MLS. However, you can get amazing deals in MLS. This is usually by offering much lower than where the home is listed, and focusing on homes that need a lot of work and maybe need a cash buyer. The Realtor can help you here, because they can research liens on a home and see if the seller can accept a lower price. If someone owes $200,000, they aren't going to take $180,000. Why? Because they will have to come into the close with money, and many people will choose to hold or foreclose if they are going to lose money. If you find a home listed at $200,000 and it is owned free and clear, or has a small loan on it, this could have potential. I like deals where the seller has no emotional tie to the home, like a property that has been inherited. These people are often looking for a quick sale, don;t want to fix up the home, and just want their money right away. Good luck!

@Richard Pulido 

Awesome to see that you are trying to wholesale! The deals are out there, but rarely ever in MLS. However, you can get amazing deals in MLS. This is usually by offering much lower than where the home is listed, and focusing on homes that need a lot of work and maybe need a cash buyer. The Realtor can help you here, because they can research liens on a home and see if the seller can accept a lower price. If someone owes $200,000, they aren't going to take $180,000. Why? Because they will have to come into the close with money, and many people will choose to hold or foreclose if they are going to lose money. If you find a home listed at $200,000 and it is owned free and clear, or has a small loan on it, this could have potential. I like deals where the seller has no emotional tie to the home, like a property that has been inherited. These people are often looking for a quick sale, don;t want to fix up the home, and just want their money right away. Good luck!

@James Holsinger 

 Everything sounded good, until you got to the no money down part!  It is all based on risk.  As an example, if someone in my area came to me with a potential wholesale or flip scenario, I would evaluate my risk.  If the property could be purchased for the right price, rehabbed and flipped for a profit, I would gladly put up 100% of the money and partner with the person who brought me the lead. However, I don't know of any regular hard money lenders who will loan 100% based only on the asset. If you find someone, please let us know!!  

@Thomas Haskell 

 (see my strategy below in this reply) Hi, great to see your post!  This is the problem that all investors eventually have, and many of us have this problem all the time.  Murphy's Law-- the moment you have all of your money invested, the greatest deal in the world will suddenly appear.  I continue looking for deals, even when I don;t have any money.  Why? Because of sites like BP and so many opportunities to network with other investors. I am structuring a $750,000 purchase right now, yet most of my money will not be back for another 30 days.  I have other private investors I know and I contacted them and we figured out a way to structure the deal, and I am including myself in the cut. 

If your goal is to buy rental properties for a long term hold, you need to focus on LTV and not on downpayment. Private investors will loan you money if the LTV is good, regardless of whether you have skin in the game. I do it all the time in my area with investors who I know. I have even loaned 100% to a friend, when the after-improved value on a flip would be much higher. These have to be good cash-flowing homes because investors will want higher yields. Here is what I would do and this is a strategy I have taught to many investors! Look for homes that are like flips (ones that need work and you can buy cheap). Partner with investors who will give you all or most of the money based on LTV and knowing your strategy. Do the basic fix up work and rent the home. Within 6-12 months, you can refinance with a fannie mae loan and pay off the private money lender and you now have a good quality loan on your rental :-)