All Forum Posts by: Joseph Back

@Joshua Dorkin Thanks for the good read. We recently went through a small capital raising round for a larger apartment complex we purchased. Definitely going to make sure we do things by the book in the future.

@Joel Arndt Yes, you can simply just list all 5 properties on one purchase contract. Did something like this on my first deal actually. Regarding what type of entity to use to purchase it I would recommend creating a LLC, easy to do and provides some protection via not having your personal name associated with properties.

@Dorian Guin I would recommend taking out a HELOC on the properties. Main reasons being is you can access it like a credit card, using parts of it as you needed and only paying interest when you choose to take money out. The problem with taking out mortgages if you have to take it all at once and need to have somewhere to put it all. Also I like the idea of a HELOC because they can be interest only which means a much lower payment than a principal + interest payment that would required with a mortgage.

@Jace Buxton My recommendation would be to sell and use proceeds to to purchase another property in the city you are moving too. Renting for $1,100 with a $760 mortgage isn't going to cash flow much or probably at all so that equity could probably be better used to purchase a higher cash flowing property in your new city where you can also manage yourself to save on expenses.

@Jacob Harbin I had a similar problem. Wanted to purchase duplex to house hack but didn't have income history to qualify by myself. Got my parent to co-sign on the loan and then the loan officer said I could only do conventional 75/25 LTV. Ended up talking to another loan officer at a different bank and he said the other loan officer must have incorrectly handled the application to the underwriter. Haven't purchased property yet but I think you can purchase multi-unit with co-signor using FHA with low down payment, at least according to my loan officer.

@Noah Farley Step 1 is putting the property under contract at the $25k price and making sure to include a 15 day inspection contingency somewhere within the contract. That way in case you can't assign it in the first 10 days you can back out. Next step is to start shopping the property to potential buyers. You are going to want pictures, bed/bath counts, ARV, repair estimate for the property and ideally a key so you can show the property without the seller's presence. Regarding finding buyers I would start by posting deal on Craigslist as well as any real estate investor or landlord FB pages in your area. If you are able to find a cash buyer at your marked up price next step is to simply have them sign assignment contract and get title work started so that you can close ASAP.

@Dave S. The best way to do this is by using an assignment contract that the end buyer will sign that essentially transfers the right to purchase from you to them. The tricky part is making sure the closing attorney writes up the closing statement correctly so that the seller does not know you have assigned at a higher price. Basically you just need to tell the closing attorney or title company to only show your fee on the buyer's side of the statement and have it show as a real estate commission.

@Dylan Barnard We use EZ Texting to market deals under contract to our buyers. Will you be using it to mass blast to potential sellers or for marketing deals to buyers?

@Shannon Phoenix That is definitely a interesting situation. I would say your two best options are to either wait for the listing to expire and then go the traditional wholesaling route. Or you could just put the property under contract with 15 day inspection and try to find a buyer before having to back out. Although, to make the second option work you are going to need to put the property under contract at a low enough price such that you can advertise it buyers at a price below list price or else they will just wait for your contract to expire and buy it through agent. 

@Benjamin Barredo We have had a lot of success with hiring VA cold callers for this type of job on Upwork. In general they are going to have an accent of some sort so just having them call to test for good numbers and then you making the actual cold calls is a good idea. We have found cold calling VAs on Upwork with some real estate calling experience to costs between $4-$7 an hour. Would definitely recommend hiring at least 3 on an hourly rate and see who performs best. Also regarding finding cash buyers, the absolute best way we have found active cash buyers is attending real estate and landlord meetups in our town. Also I would recommend focusing on finding buyers who are doing over 20 deals a year and really developing relationships with them to understand where and what they are looking for. A list of 25 buyers doing 20+ deals a year is way more valuable than a list of 100 buyers that are each doing 1 deal a year.