All Forum Posts by: Mike Bryant

After I posted this question, I went to a similar forum post and discovered J Scott's form in his file share. EXACTLY what I was looking for!! Thanks all.

Hello BPers: We are preparing to use a local "handyman" for a light rehab project; he is not a licensed contractor - just a guy who can help with painting, demo, etc. It is mostly "unskilled" labor. Does anyone use any kind of agreement that spells out things such as liability, taxes, workmans comp, etc. Mostly we just want to acknowledge in writing that he is not an employee of ours. Any advice woudl be appreciated. Thanks,

Mike

The "Standard" contracts that we use have a section for Financing: Section 2A is "new financing" (Bank loan, private lender, etc.), 2B is "Seller Financing", and 2C is "Existing Financing" (i.e. Subject-to). In each section, you can enter the details of each applicable Note. Before you get into contract details, though, you should have a basic framework of agreement with your seller; i.e. how much down payment and how much is the seller carry-back note, at what terms and monthly payment? Once you have an agreement, then you can fill in the contract with details. PM me and I can send you our agreement which is written for Missouri transactions, and you can have a local attorney modify it for North Carolina if needed.

hi @Gary Threadgill , sounds like you might want to brush up on the basics. Did you review the ultimate beginners guide on this site? You will want to use a standard contract (ie purchase and sale agreement) that is legal in your state. Earnest money is completely negotiable between you and the seller. We've put as little as $25 as deposit, but we normally use $100 today, just seems better accepted. Typically, all contracts are assignable unless stated otherwise. You would then use an assignment of contract form to assign your interest to your cash buyer. This second contract would spell out your assignment fee. Alternatively, you can actually close on the purchase, then re-sell to your buyer, but in my state (Missouri), that is frowned upon, at least according to the title companies I've used. There are LOTS of details you will want to review in your own state. Do you have a cash buyer already identified? That is a great sign!!

The old adage that I've heard (and lived by) is this: The easier it is to "find", the less of a deal you can get. This is true for lists (i.e. Pre-foreclosure NOD's), or killer deals on property (i.e. listed on the MLS). It may depend on your area, but most GREAT deals that are "public" won't last long, so it would be a matter of timing to get one, such as waking up and pulling up a brand new listing and getting an offer in before thousands of other investors get involved.

A better way for most investors I know is to target market to motivated sellers. Again, the easier the list to get, the more competition you will have. But you might be alone in an area or in a smaller town and you can have the market to yourself. In any case, know your market and run your numbers, and who knows? Maybe you can find those gems online!

We have exclusively used direct mail in our marketing for the past three + years. We use Click2Mail to mail merge a 2-sided printed postcard, yellow green or white stock, cost is .46 each for printing AND postage. They are sent first class so we get any returns (i.e. Undeliverable). We merge a probate list and an absentee owner list. We have found that if there is even a little motivation on the part of the receipient, they will call. We don't believe that a flashier or "higher quality" piece will impact the motivation. We prefer to minimize our calls from "I'm just curious what's this all about?" callers, we find them to be time wasters. (At first, we were excited to just have our phone ring, but now we measure only quality leads.) You are "Mailing for Motivation": Get your message in the hands of motivated sellers and you will receive opportunities to do deals!

In Kansas City area? Join us for our inaugural Meetup of investors, flippers, lenders, and contractors . We will have open networking, then we will study the best practices of successful real estate entrepreneurs both locally and nationally. We will use BP, philosophy of no sales pitches, we will never sell a course in our meetings. Hope to meet you there!

What is the Cap rate on the 4plexes today, even with the poor management? As @Michael Seeker suggests, you could sell at retail and then use the proceeds to fund first position liens for investors in the Boston area - I'm guessing you could make returns of at least 8% and more like 12% pretty safely - and most every investor is looking for funding of deals. I would stay away from the stock market myself., but I am not a financial planner. The great part about investing in Notes is, you get the benefit of the collateral, and a set return on your investment with little risk (if you do homework and know/trust the Note holder), without the headaches of managing tenants, toilets and trash.

That's a great point @J Scott - right on. The Franchise model really isn't a good analogy. I want to also re-iterate that I don't condone the "salesy" gurus who are only selling their programs without regard to the student's success rate. If you are wanting to learn: Find someone who is successful in your market, and take them to lunch; network in your local REIA, network and explore topics on BP, and if you decide to buy someone's coaching or apprenticeship program, CHECK OUT REFERENCES FIRST. A good place to do that is here!

Wow! What a fabulous forum this is!! Touching nerves on all sides! One thing I have experienced is, the RE Investing business is so vast, and there are so many niches and strategies, it is overwhelming to anyone who is a novice. Just getting on BP, you can certainly get questions answered, however there are 1000's of opinions of what to do and/or how to do it. And other than legal and ethical concerns, there is no real "right answer: to many of the questions. Every podcast I listen to I get inspired, every deal I do I learn several new things. I have purchased several home study courses and have also purchased "coaching", and this education spending was not wasted, because I DID WHAT THEY TAUGHT.

I think the main issue with the so-called "gurus" is that they appeal to the Get Rich Quick crowd, and even if the material is valid, most of this crowd wants an easy path, "roll out of bed and make a million dollars" type program. I believe that if the pitch is to make $50,000 a month in your spare time with none of your own money, then BUYER BEWARE!!!! RUN!!!!!!!

Another point is, every credible interview on BP Podcasts encourages newbies to "find a mentor". I agree. However, if there's no "mentor" in your inner circle that is willing to teach you the ins-and-outs of this business just because they like you, you will have to pay for this mentoring. An earlier post referenced the restaurant business. If you buy a McDonald's, guess what, you pay HUGE BUCKS (unsure of amount) to hold a license to operate a McD's. and its worth it, because you don't have to try to figure it out - the system is already PROVEN. A good "guru" is active in the business, and has a PROVEN system that they are willing to share, but most will not GIVE that knowledge away. A good mentor or coach will allow a newbie to learn by DOING, be there to help them through any rough spots, and get paid out of the profits he/she help the newbie earn.

I am thankful that I did attend a seminar, bought some courses on topics I wanted to learn, and was fortunate that I didn't waste that money because I took action. And I love BP for its open forums, great topics, and lively personalities!