All Forum Posts by: Joshua H.

@Kate Lastrapes Woah! Hold on there killer, not so fast! 

First: You need all the numbers and everything in order. You really need to find individuals who have motivation to sell that might not need all the money up front for it to be worthwhile. After building repor you need to then focus the conversation on building long term wealth. You should make an amoritization spreadsheet to show the owner on a tablet(you can get them for like $25 now) what his return looks like. You need to explain that in an event you miss payment by X days that he retains the property and can then sell to get even more money on top of the downpayment(if applicable) and that this is something that you would do. 

You also need to understand and identify all the numbers if you haven't thoroughly done this: mortgage, taxes, insurance, CAPX, rent, turnover, repairs, title insurance, future closing costs, etc. For me when I evaluate this niche, if there isn't much profit after all these calculations, it's not a deal. 

I think this is an excellent strategy to sell myself, so I fully understand the benefits to seller financing. Your packet should include and disclose as much information as you can. Start with a simple example and build from there.

@Account Closed Interestingly enough and perhaps this may be of interest... There are non-profits that will pay the whole security deposit. They require the tenant go through a finance workshop and require an approved lease with section 8. At least in Pennsylvania, you can charge up to 2x the rent amount for a security deposit.

That is all on you @Kathy Pinho I personally do it. It is a process. I wouldn't do it in a good area but for cheaper properties you will get higher rent if you go on your cities section 8 website by zipcode. 

If you aren't good at seeing though people, I would suggest not doing it. If you can't afford 3 months for section 8 to approve your property via inspection and receive a rental agreement, I wouldn't do it. In my city S8 tenants stay much longer than 1 year (according to the website) Something like 80% stay longer than a year and around %20 actually stay longer than 5 years or so. Tenants treat property the same as anyone else, you just have to find the right people.

Management company... No lol. I do not recommend (at least larger) management companies. They operate like a machine and don't put the right person in. First in first out strategy. My suggestion is that you go to management companies that specialize in your area and act like you are a renter (dressing appropriately)... Doing this, I found that they do not care for their properties in control of and charge as if they were... This is my experience and yours in your market may be different. 

@Nancy Curran I usually answer this quite differently, I agree with you. I think it is not there business,. As a veteran I get asked some disgusting questions about my previous profession even by executives interviewing me so I have found ways to get around them.

When I get asked how many I own, I respond with a humors "enough to keep me busy" and laugh it off. I have had one press forward with it and I use the same response with how I respond to other personal questions... "Since were asking personal questions, how much money do you make a year?". 

@Amber Gray

Just say no. Amber you will not learn anything, especially if thats what you're there for. Here is how the three days is broken down... And I will make a post on this as well:

Whole Sale: 15 minutes, no substance

Preparing you for their $50,000 course, 50 minutes

Lease Option, 15 minutes, no substance and unreasonable

Preparing you for their $50,000 course, 50 minutes

Credit Repair, 15 minutes (was nice knowledge but nothing google cant give you)

Credit repair to prep you for their $50,000 course... they make people under a fico score of 640 to sign up for credit cards and above to sign up for peer to peer lending for $50,000 loans.... disgusting, over an hour

Dod frank act, 15 minutes

Preping you for the course, 45 minutes

WASH, RINSE, REPEAT for 2.5 days.

@Amber Gray  They didn't like me because I didn't provide them with my personal information and said no. They didn't like me because I already know about real estate and have experience. There was a woman there named XXX, she bought the $50,000 course with her husband. He quit the mentorship program and she went back to this simple basic course. We asked them if why is she here and hasn't even completed one deal and they changed the subject really quick. There are many more tactics they used that are absolutely disgusting. I found the silver lining in the 3 day shop, mainly with networking with others there that have some sort of experience. I learned nothing related to investing in this course. 

@Aaron Smith Hello Aaron! I used to live close to your area (Finleyville and Monongahella). I live closer to downtown now after being out of state for a few years. I'm sure your exerience working as an attorney will be of great use to you for your investing endeavors. I am looking at that general location you're in to decide the ROI there. I have a few properties in Pittsburgh. If you're ever in the area or want to meet up for coffee send me a message!

@Joe Threats What is the tax on the property? Is that 1500/month + tenant pays utilities? 

Owner financing is my niche. 

PROS: Negotiate every detail in the financing. IE down payment(if any), deffer payment (if you agree), no tax paid until the last payment is made. You negotiate interest (if any), contingency clauses such as missed payment, death/medical note transfer, etc.

CONS: The title isn't in your name until the last payment is made or unless you structure it a specific way. The seller can still take out a line of credit if they have the property in their name. The water company still will have the original owner and you have to sign a tenant-landlord agreement to have the bill forwarded to you. The seller could file for bankruptcy as well.

SOLUTION: You have to do your homework to determine if the seller is in a stable position as he/she is likely to do to determine if you are able to make payments. You can also put in clauses in the contract that restrict the owner from taking out liens on the property, but that isn't a for sure thing.

If you get a traditional loan for the property as a personal loan? Interest is going to be higher most likely and the term may be too short. If you mean a FHA, VA, or other home loan then of course an extensive inspection on the home and your personal information. If I missed something guys please let me know! But these are the basics and you should do your own research as well on the property: taxes, title, leins, history, repairs, etc. There are a lot of moving parts and sounds like a lot but it isn't that complicated really.

@Account Closed Did you find a property manager?