All Forum Posts by: Brandon Krieg

Hi Jason,

This kind of deal is definitely doable. As a side consideration, consider 'wholesaling' it to an end buyer as well. Plenty of people are looking for owner financed homes, so the demand is likely there.

One of the keys is transparency. No one likes surprises, so everyone involved should know what's happening. It seems like you've got it already, but it is very important.

Another key is finding a good end buyer. If it's not an investor, work hard to find a good candidate - your reputation is on the line.

** I am not a lawyer, so please do not take this as legal advice.**

With this kind of deal, two seller objections come up almost every time. First, what if they can't make their payments? Explain to them two of the options, either a foreclosure on a deed-in-lieu (preferably a deed-in-lieu) will allow them to get the house back. At that point, if that were to happen, they can contact you again and you can find another buyer. They want to know they're not alone in the process. If you have questions about the differences and specifics between deed-in-lieu payments and foreclosures, contact an attorney in your state, as I don't know about the specifics in Florida.

The second biggest objection is 'what if they trash the place?' First, it's good to remind them that this is a home buyer, not a renter. The buyer is responsible for all taxes, maintenance, and upkeep, so it is mostly on the buyer. You can also suggest alternative insurances if they are worried about damage.

There's more info (and objections) too, but that's a good jumping off point.

I think you have the basics right on the contract. Just make sure that you're doing everything legally (and ethically) for your state. Good luck!

Hi Allan,

It's good to see you. I'm in Ann Arbor now, and will be moving a bit further west in a couple of months. In terms of getting started, I think once you research a bit more and get a feel for the different types of investing, some will pop out to you. Different people have different styles, and there are plenty of niches... a little something for everyone.

Good luck, and drop me a line if you need to talk through anything!

Brandon

Strat V. I also used to use a script regularly, but found I had more success 'off script.' The key for me when I talk to sellers is to have a real conversation, with the house being your main focus.

I like to ask a lot of questions about the house itself, and go with the flow of the conversation. Some people are very business-like, others are chatty, etcetera. You can always add a question like 'so why did you give me a call today?' or 'are you looking to sell in a certain timeframe?' Something like that. More often than not, you can determine motivation over the course of the conversation based on tone, response time, and answers to questions regarding timing.

Also, listen really well. If the person is trying to 'sell' you on the house, they want to get it sold. If they're just responding to your questions without a whole lot of extra, they're often just responding to your paper and seeing what they can get (in my experience).

Bill Horton This is a great topic, and a very important one!

This has been a long process with my wife and I. I would rather her be happy than me be rich, so it has taken some time. She also comes from a family which values job security and pensions over the possibility of financial freedom, and has told me multiple times that before she met me, she never seriously thought of another way to live.

Because of this, and because I started when I had very little cash and a limited credit history (not bad, just not much there), I began by researching methods that didn't require a large cash outlay. Things like lease options, subject-to, equity partnerships, wholesaling, etcetera. Over a long period of time (months and years), I would explain little bits of it here and there. I think by taking it slowly, it helped the ideas to sink in more.

When I started becoming more active, I would tell her about what I was doing. Making calls, what kind of places I was looking for, etcetera. I believe that also helped.

But I think the real kicker is when I had a change within myself. I really pushed ALL the way in, and worked on things every day (almost). I was constantly making calls, visiting houses, making offers, and telling her about this the whole time. She told me that seeing that change made a huge difference for her, and that it helped her be more confident in these efforts.

Finally, once we pulled the first deal together (with no money out of pocket and a good return), she was largely on board. This is an ongoing process that needs a lot of communication, but if you show dedication, and don't risk more than she's comfortable with, I believe you will get there eventually. Perhaps start with no or very little money down strategies, and build from there - it worked for me.

I hope that helps, and I wish you a lot of luck... this is an important one!

Hello!

There are a lot of good resources on here, so please don't stop at my response to answer your question. To respond directly to your questions:

1. You can sustain yourself with it. However, it is not easy, and you need to find VERY good deals and know many buyers.

2. You can replace your job with it... but you have to do it right. You'll need a lot of marketing to pull in a lot of leads, and you'll need to learn how to analyze properties and figure out how good of a deal it is. You also should know a few things about negotiating, because sellers may try to bully you a bit.

I would say that wholesaling is more of it's own business than a springboard. I know that a lot of 'guru' types talk about wholesaling as a good starting point, and it can be. I take issue with the idea that it is easy. It is simple, but not easy. It takes a lot of skill.

But yes, you can make it work as a career. Just put in the time, learn the skills, and never quit!

John A. - I really recommend looking at the surrounding area rather than the city itself. I believe Tom A. and Joe Delia have it right, as I've seen similar things. But check out the areas that are close by the city, and you can get very good returns with less risk.

Annette Hibbler - I also love the city, and really enjoy visiting there. I think a lot of parts of Michigan are very strong as well. However, as a little more conservative with safety issues, I tend to stay out of that area. I don't want to say bad things about the city, because parts of it are very nice. However, I believe my investment dollars can be better spent in areas NEAR the city rather than IN it.

I think a lot of people in this thread have the right idea... it seems like good advice.

Also, know that you're going to get kicked in the teeth a few times. Scratch that... a lot of times. Know that the problems are coming, and eat them for breakfast. Also, I believe that the only way to have long term success is to fully commit to your investing efforts. Just don't let anything stop you, and commit to never quitting until you reach your goals.

This is definitely doable with a day job... it'll just be long nights and weekends for you. Good luck!

Hi Ivan,

I haven't done multi-family, so that is a question for someone else. However, I got my start by reading, researching, etcetera. Then I made a few tentative calls, saw a few places. Then, putting out a few offers... so all in all a pretty slow buildup.

BUT the big key for me was fully committing (with both logic and emotion) that I would do this no matter what. After that, I hit it hard, and started learning really fast through the 'fire' of being out there.

So I'd say learn some of the basics, and then GO. Your first offers won't be perfect, and your 20th won't be either. Just act (thoughtfully), and the knowledge you need for success will come. Good luck!

It's nice when the real world meets the digital... It's good to see you on here Mubasher Riaz and Joe Delia!

I'd recommend following Ned's advice. Keyword search things like 'michigan' 'ann arbor,' etc. From there, you'll get updates on posts around your area, and you'll see people that work around here. Good luck!

Just a comment for Mike H. - Some areas of the state are excellent for RE, and doing well right now for cash flow. The whole state gets painted in a negative light by the national media, which is a shame for those of us that live here. While I wouldn't jump for joy at $200/mo, that's not the only game in town by any means.

Around here, beating the 2% rule isn't too tough, and that's nice in comparison to other areas.

Sorry... I have to stick up for the state sometimes.