All Forum Posts by: Jason Farmer

@Account Closed It amazes me how you speak about a company you've never done business with. Someone needs to hold some of these BLOGGERS accountable for the misinformed info they spread about companies they have no clue about.....

@Account Closed I can speak from experience about this company...I dont work for them, ive never mentioned them in any post. But ive done several deals with this company...The owner of this company has bought literally all my wholesale deals, ive bought several properties from them and they have funded some deals right here in CA for me...One part of their business is asset liquidation, they simply liquidate properties for hedge funds and banks, and they sell them as is with no warranty. Its just a small part of what they do. Last year this company liquidated more than 4 thousands properties worldwide. Yes some were trashy but they have tons of great deals, thats just what liquidation is. I can personally tell you they dont have alot of inventory left, there down to the bottom of the barrel so your looking at the stuff everybody passed up so keep that in mind.... Speaking form someone who has bought a nice amount of them. And yes they do finance some of them. Just keep searching if your working with a budget they will eventually have something that fits you...You live in a total different market than anyone who left a post..Do your due diligence in full...They are not a Hedge Fund, they are a full brokerage company from real estate to mortgage. And they also liquidate assets, and they do pool private investors funds too.

They have been in business since the 80s'...Great reputationt. I apologize for this long post, theres not much that gets under my skin especially online because we know anyone can say they know about real estate and pretend to be a sucessfull investor...But throwing a company i work with under bus to potientially destroy their name that dosent sit well with me....smh

@Chavis Atkins

Run run run...LOL

Seriously though, i see your from Merrillville and if that property is in that city your looking at a project that is going too drian your pockets..I invest in Merillville and Gary and i see these properties all the tiime. Whats happening to you is you see the potiental and whats growing in you is the emotional attraction. your best bet it to go look at this house stand outside for a few hours have a moment of silence and never look back again. If this house were here in LA, id say go for it, but be careful. Merillvillle resell market dosent exsist right now. Not too many houses are being sold at full market vaule. Mostly investors buying up and renting out...

However i dont want to diiscourage you because Merillville is a great place to invest and its fairly cheap...and also i love to connect with you, its rare i see anyone on here from Merrillville Area...

Ive used Homepath 3 times, renovation loans, and as an actual buyer, not an opinionist. It depends on what lender you use. Follow the guidlines and dont try to pull a fast one "not owner occupied but claiming owner occupied" you wont have much to worry about. They seem to move fast on the properties that have been listed for a while. Easy offer process. And go through all the lenders, there are actually a couple of lenders, that offer 10% down for investors...

The process itself can be a little longer than regaular bank financing, but the renovation loan is great for an investor...

@Jasmine Wilkes

What your doing is exactly how i started...The first thing you should is stop and take a deep breath and smile...You bought a property all cash..that something most people on here have never done or never will do...Congrats on that....

Your next move should be a refi cash out...But first as everyones telling you get your credit right, thats what everyhthing will rely on...It might take you a few months but do it, that move can change your entire life. The next thing is to nail that what your ARV of that property is so you can detetermine how much you can actually even take out...If you nail that ARV you might be able to get enough cash out do small reparis on the current property or even out right buy another property all cash..I bought my frst property for $6800 from a tax sale, i put 10k into it and was able to get my AVR at 85k...i pulled out 40k....I paid myself back, and i bought another rental...I repeated that process 9 times...Of course each time was slightly different but the concept is the same...I buy cheap properties out of state so this method rocks for me...

My personal advice would be to stay away from private money or HML....get conventional financing...the rates are way better, i have two 40k mortgages out and i pay less than $185 a month for each on 30 yr term... And i have one cash out mortgage for 70k and i pay $323 a month...also 30 yr terms....My other properties are paid off...By using this strategy...I used the cash out method to pay cash for the next property all cash...And it only takes one of my rentals to pay all mmy mortgages out the rest after PM, taxes, insurance etc...is net cash to me...

Your on the right track...Fix that credit and nail down your ARV and your investing career can take off from here..Congrates and good luck...And look at the positive here stop focusing on the negative, you did a good thing...

@Jameson Wildwood There's a lot of mathematical ways to look at this. You can throw numbers and % around left and right, You can transfer debt here and there to lower interest rates, but the reality of it, your closed to tapped out on your debt to income ratio. Nobody going to give you money with that much debt attached to you.

Sometimes REI is strategic and you make moves leveraging debt or properties etc...But a lot of times REI is just good ole common sense...You have a good stream of income (between your job and business) coming in PAY OFF AS MUCH DEBT AS YOU CAN...The most important thing is peace of mind. what happens if you get laided off? You get hurt? The market dips again? You a very bright guy imagine what you could do debt free....

@Zoran M. Id appreciate if you didnt let the cat out the bag about the midwest, its my breeding ground...LOL

@Barshay Graves Whenever this topic gets brought up it all stirs up debate. And to be honest its all about you and where you feel comfortable. And the fact of the matter your money may only let you invest in those types of area...My personal opion is GO FOR IT...But just use your brain, and calculate numbers, plan ahead, find the right PM company ahead of time...lock down your contractors, tighten up the budget. And jump in..There are good hardworking and honest people in every city in this world. You just have to find those people. It all about tenant placement. Almost all my rentals are in lower income neighborhoods, but tenannt placement is #1 for me. I have wonderful tenants that pay on time, they take care of my properties. To put it all in perspective , one of my buyers in my wholesaling business. Owns over 4k rental properties primarilly in the midwest. Majority of them are in the badder parts of town but he perfected tenat placement. The reality of it is tenants in any kind of neighborhood can make your life a living hell. It just has to be for you, i grew up in the rougher area of Southern...so i get it, i understand where they come from, and why they do the things they do, so it dosent scare..I sa dont let anyone discourage you there are some investors on here who make a killing in those areas...Just my 2cents.

@Dev Horn i agree with your 1st two paragraphs , but you went away from the original posting ..Were talking about an unlicensed party..And rather or not you can charge a referral/finders/or whatever you want to call it fees..

No ones comparing the two transactions. Wholesaling allows you to hide behind contracts, Most of my deals i dont even exsist to the seller... I rarely even speak to the sellers....Ivenever personally put a seller under contract under my business and Ive never assigned a contract,and ive never signed a HUD(on a wholesale deal)

while being a licensed agent everything must be disclosed..Moral conduct id what an agent should live by...

As a business owner im not governed by NAR, NJAR, or a local board. I can call it a "SHOW ME THE MONEY FEE" if i want. I can call it "WHAT YOU TALKIN BUT WILLIS FEE" if want..

I can read most your post and its clear your an educated investor and very experienced, but your giving the wrong advice on this one. Theres a company that allows you to sell your leftover food and they host the app, and get a profit cut once someone agrees to buy your leftover food...LOL...LeftoverSwap

Same concept, same results, different idea...

..

$5800 in Merrilville Indiana

renovated 15k, rents for $1150...its my preciuos baby im never leaving it...LOL

@Shawn Mcenteer

Yea i can see that from an agents perspective...Because whoelsalers get in the way...but not a legal perspective at all...Its all about forming an Corp, LLC, S corp..etc....and giving subtance to protect whatever it is your offering...Consultant firms, Temp agencies, Model & Acting & Entertainment agencies, i could keep going....They all work to bring two people/companies together the will benefit all 3 parties in the end...I mean lets just be honest here, im sure you buy leads, (or maybe you get them free from your broker or title compnay) either way...im sure you dont have a problem using their service, and they are simply a 3rd party working to bring two people together. But it a service thats benefits you so lets sweep it under the rug...looks like "The pot calling the kettle black" to me...

I formed an LLC and i explained exactly what it is i do and what kind of company it is. I get tons of leads from the county buildings, and court houses, when you buy leads their they dig into your company to see what is it you do. I let them know exactly what it is i do. i file my taxes every year indepth i add all my "finders fee" contracts to my file... Its about being open and doing things the legal way. If you follow the rules and guidlines, there is nothing illegal about finders fees, consulting fees, whatever you want to call it...

@Mary B. huh?

@Alexandra King

A finders fee is legal here in CA..And any where else. I have 2 cash buyers, and ive never done an assigment, because i dont like having to explain to a seller whem their signing escrow docs why the sellers names is someone other than me (when ive already have them sign a contract with my name on it...I write a seperate 2 line finders fee contract, that we both sign, and that contract goes into escrow with all the other docs, and when everyone is paid out escrow gives me my money..

My tax lawyer says is perfectly fine, your going to need to show uncle sam where all that bigmoney is coming from anyway...