All Forum Posts by: Jonathan Marcus

Speak to Hard Money Lenders in your area and they can work with you. Just be sure to shop around to get the best deal (ie. rates & points).

@ Adam MCGee An option will not trigger the DOS on the mortgage.

"A due-on-sale clause is a clause in a loan or promissory note that stipulates that the full balance of the loan may be called due (repaid in full) upon sale or transfer of ownership of the property used to secure the note. The lender has the right, but not the obligation, to call the note due in such a circumstance."

An option gives you the right to buy but not the obligation. You're not transferring ownership. Should you exercise your right to buy, the option agreement is then replaced with a purchase and sale contract. When you apply for a loan, it will be a Non-Owner Occupied loan (investment loan) and if you meet the banks lending criteria, you should be able to obtain the loan.

On a Sub2, you don't have an option; the deed is transferred to a new entity (you or your company) and the bank has the right to call the note due. However, if the note is not delinquent rarely will they exercise their right per the DOS clause.

Yup that is one tiny house. However, there is a possible deal but not at $90k.

Find out everything you can about the property/land and try to confirm if it is really in a flood zone. Visit the zoning dept of the township to determine what the land is zoned for (1-family, multi-family, etc...) You're looking to determine what the highest and best use is for the land. Check if there are new development in the area; if there are any newly built homes and how much they sold for because if there are, your play could be to flip this land to small home builders.

Austin has a pretty big REI club -- austinrenc.com

Should be worth checking out and network with seasoned investors.

If you're brand new and have never invested before, you need to obtain some knowledge first and foremost. Then put together a plan based on your goals. What do you want to achieve from your real estate endeavor? Someone told me a long time ago, people don't plan to fail, they just fail to plan. So put together a simple, doable business plan.

Now, a big part of the business plan is your marketing plan. If you want to build a sustainable real estate investment business, marketing is key. How do you intend to find great deals on a consistent basis?

Once you know this then its a matter of execution and follow thru. So your $100k will be used to fund your real estate investment business and cover education, marketing, operational costs, deposit & maybe even down payment for deals. If your initial plan has you focusing on wholesaling then you don't need to worry about down payments.

Other than the cops, did you get any other response to your direct mail ad? What type of response are they? Positive? Negative?

There may be something in your ad that's coming across the wrong way especially if you are mailing to pre-foreclosure owners or people that gets scared easily. Maybe a slight re-wording of your ad will be more effective and get you targeted leads.

Maybe you can share your ad here so BP members can help you improve it.

NY has reciprocity with 9 States and unfortunately CA is not one of them. So you do have to go through with the 75 hour course and pass the State exam.

http://www.dos.ny.gov/licensing/realestate/re_reciprocity.html

Good job. You don't need to have the deed in escrow. At closing, the deed will transfer to you. You're giving him a note and a mortgage for the $20k which is going to be secured by the condo in first lien position.

Just ask him if he can give his attorney authorization, in case anything happens to him, to be able to sign-off on the mortgage payoff/discharge when you pay it in full in 3 years.

Right now you need to continue to educate yourself more about investing. Looking at properties after reading some blogs and articles is premature. You need to expand your knowledge of the many different acquisition techniques especially if you're leaning towards multifamily investing. Not to mention property analysis, financing & property management to name a few.

I suggest joining your local REIA (real estate investment association), Apartment Owners Association (http://www.aoausa.com/) and the likes. There's a lot of investment groups in CA you can join and meet seasoned investors who can help guide you.

Keep your $25k in the bank and don't be in hurry to spend it on a property. Also if you have not done so, read all of Michael Blank's materials on multifamily investing. Just search for his name here on BP.

The goal is to create a curb appeal that would get people out of their cars. So to that effect...

• Fix the gutters
• Paint the front make it one uniform color
• Paint the railings and posts white
• Paint the cement blocks; put a simple white trellis in front of the blocks; add some shrubbery & plants in front of it.
• Remove about 1 to 2 feet of grass on both sides of the front walk way leading to the stairs
• Flank the walkway with plants and solar lights maybe even box it in with red bricks
• Put some outdoor seating on the porch and some potted plants
• Put in a nice decorative mailbox at the bottom of the stairs
• Add a nice decorative house numbers on the door or next to it
• Add some nice lighting by the front door
• Add some hanging plants by the corner posts

These should greatly improve the look of your house. Good luck.