All Forum Posts by: John Slater

@Billy Farley For sure its about picking your lead source. We'd all love to have deals come across our desk, unless you building a "we buy houses" website and spending a ton on marketing it doesn't quite happen. Good wholesalers are great, bad wholesalers are bad... FSBO is a good suggestion, but if you are looking to buy under market to flip, then you need to find sellers who have a motivation to sell at a discount, and people in foreclosure have been my best lead source for 10 years.

@Elizabeth Ruiz Hi, it really depends..  

what type of investing are you planning to do?  and which state? 

@Matthew Martin - I'd suggest thinking of it more like this.... Wholesaling, Flips, rentals, there all exit strategies and how you're going to get paid.  

First thing is to focus on a specific type of lead source and learn how to find them and the likely conversation with the owner.  For example, Vacant houses with out of state owners... seems a fairly obvious conversation with the owner.  Probate, you're dealing with heirs (Tampa is good for probate, older people and vacation houses etc), Pre-foreclosures, someone is losing their home because they can't afford it, or simply distressed properties that need work that you might get at a discount.  I'd take the time now to learn the lead(s) source that make sense for you. (Some people don't like the "Hi, are you interested in selling your deceased dad's house" for example...  Once you pick lead sources, research them, learn everything about them, and start to practice creating offers.  This involves "how much you think the property will sell for once rehabbed, back in to your numbers, rehab budget etc, costs, to get the offer you'd make."  Same numbers apply for wholesale and fix n flips... rentals are much much different as now you're looking at longer term returns.  Hope that helps.  

@Frederick Gilpin Are you in Wyoming? if so, then at some point it will make sense to create an entity... I have both LLC's and S Corps depending on the investment.

If you aren't in Wyoming and just heard the idea of a "Wyoming" entity because the tax is lower than your own state, definitely get the advice from a real estate tax person.  KKOS lawyers are who I used for everything.  My understanding is you pay taxes in whichever state you transact business.

 Congrats on your 5000 post!  Yes, Filing for BK is always an option but a last last last resort.  It's bad enough to have been hit on their credit with all the default etc, but then a bk hitting them too is a double whammy.

Hi, Do they have equity in the house?

It seems like she doesn't seem to care much about it the house, but now she owns the house herself, while she might not be caring to pay the mortgage, or can't pay, if she has equity maybe she'd be interested in selling to save her equity.... and if she sold it, your brother would be relieved of the mortgage responsibility.  Do you know an agent that knows about foreclosure who might reach out?.. just a thought.

For 10 years I've worked used pre-foreclosures to build my business.  I've taken my knowledge and experience using this lead source both as an investor and a realtor and created an online training that covers pretty much every aspect you can imagine.  It says Riverside CA in the location, but it covers the judicial and non-judicial foreclosure process which covers every state.

The link below offers a free 1hr training as a pre-cursor to the Masterclass I also offer, but even though the first hour is free, it's still packed with a lot of great information to learn about pre-foreclosure leads.

Feel free to reach out to me if you have any questions about pre-foreclosures or the course. 

https://www.preforeclosuresmasterclass.com/register?utm_source=bigger_pockets&utm_medium=organic_post&utm_campaign=webinar+

John

@Faye R. You should be closing / recording in the exact same way you would purchase any other property. 

The sale needs to be recorded so you own the property, title insurance etc as long as lender is getting paid they don't usually seem to care about due on sale clause (they could, but I haven't had to deal with it)

@Jason Brown  Yes there is...  it's communication with the seller (and you) and the lender.

It's in the sellers interest to sell, he/she (and you) should be on the phone with the lender, I send them a purchase contract and proof of funds to show the property is under contract and that the lender is getting paid in full and then we are begging them not to foreclosure and let the property sell. 

Whether judicial or non-judicial state, you know when the next court hearing is, or the sale date being posted, potentially postponed by the trustee so communication with the lender/trustee is key.

Now... while you're concerned about what if from your perspective.. consider the what if from the seller perspective.  I'm hesitant teaching wholesaling foreclosures because "what if you have the property under contract, your contract says "I agree to buy, you agree to sell"..... but really you're trying to wholesale the property, what if you can't find a buyer? will you perform and Buy like the contact said?  and what if you can't find a buyer and then the bank foreclosures and the seller says "wait, how come you didn't fund and close and now I lost money when the house was sold at auction, oh and its your fault..."  (I'm in california so everyone's looking for a chance to sue someone)

There are a lot of things to consider when getting into pre-foreclosures, great lead source, but, know your stuff.

@Whitney Breedlove

Hi. I’ve coached newbie investors and newbie agents so seen a lot of successes and failures.

I cringe reading posts saying quit tomorrow…. 80% of realtors quit in their first year with most never closing a transaction.

I quit my jobs to become FT in real estate with a years salary saved, but I also had 2years experience under my belt when I did. But I found it hard at first.

Knowledge is one thing, but being ok cold calling, door knocking, being a sales person didn’t come naturally for me, which is why I got more experience before jumping in full time. If I were single, sure, why not take a chance, but I’d do it part time to get experience and make sure it’s what I want.