All Forum Posts by: Jamaal Johnson

@Natalie Allen What are the numbers on the deal? Often times what you lack someone else could potentially have. If the numbers make sense you may want to look into a partnership type of situation. If there is ways you can add value through cosmetic work AND negotiate a price to but you in a good position with a fair amount of equity to begin with my opinion would be find another partner to front the remaining amount needed to put the down payment on a HML until property seasoned and then refinance into conventional through bank/credit union.

Good afternoon!

I am reaching out as someone who is fairly new within the market and wanting to see what type of stories you guys have from your experiences with REI in this market. I am eager to connect with you all and hear your stories as well as extend my hand with anything I may be able to assist with.

@Ben Toth, It all depends on the niche you are choosing to pursue.

For wholesaling: Big Buks for Junk Houses by Randy Phillips & If you cant wholesale after this I have nothing for you by Todd Fleming

Lease Options: Turn Key Investing with lease options by Matthew Chan

Owner Financing: My Life & 1,000 Houses: The Art of Owner Financing by Mitch Stephens

General: The Millionaire Real Estate Investor By Gary Keller

These books along with several others give you an idea of what is possible. They can lead to potentially millions of dollars in your future if you take ACTION.

Dajuan, have you approached any banks in regards to refinancing your mortgage? If the loan is seasoned enough I am sure there are other options out there rather than selling the note to another investor. Private money interest rates will likely be far larger than the typical monthly rate from a bank or credit union.

Stacy, Welcome to BP! One thing you guys should pursue is a duplex-quadplex investing as this will give far greater Return on investment. With single family you have one unit supporting one mortgage, With a quadplex that's 4 units supporting the paydown of one mortgage. Not only will this put more money in your pocket, but depending on your goals, you can paydown the debt far faster with this method. Indianapolis & Philadelphia have properties ripe for the picking right now for rentals, and appreciation in those areas may be substantial in the near future.

Good luck

@Ray Minjarez two things here, first BP has tools for both rental property calculations & Rehab estimates. You may want to purchase PRO membership for unlimited access to these tools. Small price to pay for a lot of useful tools. Secondly, with a wholesale transaction you are not drafting another purchase agreement with the end buyer, you are simply using an "assignment of contract". As long as the initial Purchase Agreement specifies "And/Or Assigns" or doesn't specify the purchase agreement as non-assignable you should be fine. With a profit that large on a lower priced property you may want to look into double closing however if that is an option for you. Let me know if I can help with anything else!

God Bless

Paul, one thing you can look into is attending local REIA meetings. Those usually have a few money lenders that may give you more favorable terms. I recently got linked through a private individual from my realtor locally and he is willing to finance 100% of a deal @ 10% interest after only 2 flips. Anything is possible when you are dealing directly with the money source rather than the HML. Finding a private money individual who will fund 100% before having done prior business with you, there is a slim to none chance of that happening, however once you have a few under your belt this may be an option.

God bless.

Jerel, If the end buyer is paying all cash this shouldn't be a problem, however if they are applying for traditional loan to obtain this property 9/10 the lender will not pay for the "assignment fee" portion of the overall price. There are some who look over this portion however most of the big players will not accept this. One option you do have is double closing. Pay for the house upfront with your own cash (credit cards, line of credit etc.) turn around and re-sell it within a few days to your buyer if that is an option at all.

Hope this helps!

Lawrence, are you purchasing with FHA or Conventional loan? Some FHA notes have it to where you must owner occupy properties for a certain amount of time before selling. (60 days)

Moshe, My experience with Direct mail campaigns to Pre-foreclosures is not very good. I have come to the conclusion that this is for a variety of reasons. First, homeowners are concerned about catching up on payments and avoiding court auction so they pay less attention to mail. Second, They may very well have already left the property and are in hiding (I receive roughly 1 out of every 5 letters back as vacant when mailing pre-foreclosure). Third, They don't know the amount of trouble they truly will face when the foreclosure hits their credit report. It is best to track down the owner, have a physical conversation with them if this is possible and see where things go from there. I use been verified to track numbers/email addresses for individuals I market to as well. It has a decent amount of accurate information.

Good luck & God Bless.