All Forum Posts by: Jamaal Johnson

Florida is definitely a hot market but the competition is fierce as well. I strongly recommend starting off in a neutral market and scaling your way up to FL and other highly competitive areas. I read somewhere that in Miami alone cash buyers outweigh individuals seeking bank financing 2/1.

@Dan Roma I have actually worked in the RM field in the past. The way that it works is they are daily interest loans, generally have no payment requirements during the life of the loan, however the equity of the property gets ate up every day. the bank is probably not going to ask them to leave the property when equity position is upside down. short sale is usually an option via arms length transaction, or payments can generally be made for loan paydown and eventual refi once get loan to a more favorable LTV. feel free to PM if you have questions!

Doron, if he is going to be 100% hands off then in my opinion this should be structured as 50/50 partnership. Yes, his money is @ the mercy of your experience however without a partner who has "skin in the game" his investment would be far riskier than going the safer route through you.

Virtual wholesaling (if done with a team in place) that being, an investor friendly realtor who can link you up with a contractor to give a rough breakdown on the level of rehab needed.. can be very lucrative. The fact that you aren't there to view the property is simply just an obstacle that can be easily jumped over. One thing that is beautiful about real estate is not only can you utilize other people's money, but also other people's time (in this case the realtor or a bird dog). Just have someone do a walk through video of the property and make them hit all the major areas you need to view to make a decision.. have your realtor run comps so you know what you are working with and in return when you lock up contract make it to where end buyer must close with the realtor who is helping you through the process. Rinse and repeat. 

Let me know if this makes sense!

Tom, 

I have definitely been looking into seller financing in in DSM. There are some decent opportunities in older multi res buildings here that I intend on capitalizing off of. What is your advice for someone looking to start out in that niche?

Thanks 

Rich,

I will definitely be looking forward to you coming up this summer! Dinner for both you and your wife is on me. Des Moines is a great city with a lot of potential. The best part is you don't have to wait for 45 minutes to check out at the local walmart (I was just down in Florida I know how it gets!) I will keep in touch anxiously awaiting our sit down.

God bless

@Rasheen Johnson Having an attorney opinion based on your state law is always the best choice to ensure everything is kosher. If the realtor is a relative and that's why she is involved what is her role exactly? Does she think she can make a quick buck just because she knows the seller? It is best that she just oversees the process and doesn't represent anybody, if she is adamant on getting cash simply because the seller is someone she knows then you may be able to work around that but I don't see why she is trying to represent them without the property even being listed.

@Rasheen Johnson My personal opinion is to keep realtors out of the deal if at all possible. How did you find this property? In order to get it under contract if a realtor was already representing the seller to begin with that would be a NO NO. It is best to pursue off market deals or structure the agreement to where the realtor represents the buyer as well. Also be aware that if your end buyer isn't using all cash or hard money loan it is likely that you will be cut out of the deal entirely.

Good Luck

@Rich Weese I love it! The idea of adding secondary note to properties for broker commission is brilliant thanks for sharing. What was the one idea you stuck with that produced your fortune over time? I know to each their own but I've always been fascinated on the insight of successful individuals when they reflect on where they came from. I will be purchasing your book as well!

@Janelle Groenhout You and your husbands story is great, I love seeing power couples in real estate may many blessings come to you guys!

Good afternoon BP!

I am curious to know about some of the stories you guys have when it comes to how you got started. What was your "AHA" moment and how did you use that epiphany to get started on your real estate investing?