All Forum Posts by: Gary Dezoysa

I am buying a house for $170k in Texas. The wholesaler put down $1k EMD. The HML says they can 100% bridge finance the purchase price because I'm buying it deep enough (280k ARV). I will pay closing costs. The wholesaler told me he wants $5,000 EMD.

1. Should I negotiate EMD? 5k feels high for a 170k house. I'd rather put down $1,700 in case of some issue requiring a refund.

2. Will the EMD amount I put down encourage the lender to put down less than 100%? 5k will probably be more than closing costs

3. If the answer to #2 is no, I guess the excess EMD comes back to me during closing disbursements?

4. I hear some states are "mutual release" (requires both parties to accept EMD release) does anyone know the case with Texas?

@Remington Lyman thanks for mentioning that, I will adjust accordingly. Do you agree that banks and credit unions are not interested in new investors? If so, how did you put together a list of interested potential sellers (loan servicers have been mentioned here)?

Paperstack has 35 1st position NPNs priced fairly high. I will definitely focus on alternative sources if I can put together a plan of who to reach out to, who is a good fit for selling single npn loans.

I've seen numerous posts here that it's slim to nil a lender will directly deal with a private investor with no history. Why "history" matters I don't have a clue since it seems like a straight purchase and sale, maybe their time or information is that precious.

Other posts shine rays of light and say it is possible to find lenders willing to show their inventory with enough outreach.

I'm targeting Ohio and maybe a couple other states depending on how many calls I might need to make. Do you guys think if I make 50 calls a day, I'll find a lender willing to sell direct to me? Or is this a complete moonshot? 

I have no experience. But I do have 50k plus another 5-6k/month to invest. I'm targeting NPN notes on houses around the 50-80k FMV range.

Thanks Chris. I guess it is a bit of a dice roll to see exactly what you're getting then.

Hi all, let's say you find a bank willing to sell to an individual investor and review their spreadsheet for potential deals. I'm a little uncertain of the timing on when to contact the homeowner to see what options are possible for fixing their situation and exiting at a nice return. Ideally I can contact them before buying their mortgage. "Hi, my name is Gary with XYZ LLC and I might be taking over your home loan. Do you have a moment to talk about that? {Then ask a few questions to figure out a good option for them}

Or do investors normally have to buy the note first before being legally allowed to contact the home owner?

If the later, seems like it makes notes much more of a gamble, since you don't really know what exit options are on or off the table.

Thank you @Chris Seveney ! I'm also looking into non-performing notes. Same deal or totally different beast? 

I know it requires tracking down debtholders, reperforming the note, sometimes foreclosing, etc. Seems like something someone with a phone and an attorney could still do remotely though I could be wrong.

US citizen living in Thailand here. Is performing note investing viable for me? If yes, what additional challenges should I be prepared for? 

Thanks!

Hi all,

I'm curious what everyone is doing to learn how to turn out successful direct mail campaigns. Any suggestions

Hi @Michael Magno, i'm just putting in sample numbers for an SFR in my target market.

Hi guys,

The two major RE tax benefits I know of are depreciation and mortgage interest deductions.

I plan to hold my properties in an LLC. I think the tax benefits should pass right through to me, is that correct? Single member LLCs are disregarded so I think the anonymity and asset protection is there and the tax shield is passed through as desired.