All Forum Posts by: Nathan Brooks

@Jared Caplinger 

Here is my two cents.  I've bought properties without inspection ... probably 10 of them.  And I would say each of those 10 cost me more in things I didn't realize than the actual cost of the inspection.

Unless you are an amazing detector of all things necessary in an inspection, I fully recommend this as your second step to buying.  One, deal works on paper.  Second, deal works as expected with inspection.

I work with an inspector who does the full inspection but doesn't do a written report, $150.  Best money I have ever spent.

And I can write a book on the deals I have not spent the money on and gotten completely screwed.

Seriously.  Unless you are as good as the inspector, spend the money.  I've never, not once, regretted it.

@Brian Gibbons ... when you write the contract sub2, if you want to use their underlying mortgage and you get the benefit of the house continuing to have principal paid off, what do you write the contract for price wise? Or is it must usual for the seller to have a "price" and then whatever it closes for down the road gets them a profit.

@Ned Carey For sale by owner contract ...

It was my understanding that in a subject to property you would continue getting the benefit of the underlying mortgage getting paid off.  That would not be the case if we agreed on a set price.

@Jon Holdman is clear and concise.

And the thing to remember, cash out on a property is great, just make sure you haven't over leveraged yourself.  AND, make sure you have changed your reserves to make up for your new larger payment.  

We are in the process right now of refinancing one of our properties and getting cash out, start to finish in about 2 weeks ... it's always easier to work with a local/community bank where you can talk with people who make decisions.  

Be creative in the deal, and leave the structure to the renovation.

I used to sell homes as a realtor in Naples, FL ... and I sold one particular rehabbers homes 2-3 times in one year because I knew it was his flip from the front picture. I could tell you the kind of granite, the type of tile floors, and the fact they did an awesome job.  And I could sell my client on the house before we even walked in.  They were just a bit nicer than most of the other rehabs ... and priced will for the market, and fit perfectly for what almost any buyer wanted.

I also love Zillow, and I use it a lot.  Easy to navigate, look at the properties from the street and from the maps.  Easy to view nearby properties.  Yes, the zestimate isn't very good, but as several others said the rents ARE what people are asking (look up other rentals in the neighborhood) and then the rent estimates are usually pretty close.

Like anything else, you just have to do your homework, and look at different resources.  Once I find a property I am interested in, I check the county, I chat with my realtor, and I do my due diligence.  

I have bought houses from Hubzu, houses found on Zillow, houses bought off Craigslist, and postings on facebook .. there are leads everywhere, you just have to turn them into deals.

Hi all!

I will be going to buy my first subject to (sub2) deal tomorrow ... I have a few contract questions I am trying to figure out.

1. When you write the offer are you writing it with a FSBO sales contract? And if so, what are you writing in as the sales price?

2. When you close, do you contract the lender and ask them to be sending you the mortgage info w/ a third party authorization?

3. What else am I missing? 

I will most likely be holding it as a rental for a few years and then selling. Any other thoughts, experiences, whatever you have ... thanks for your time!

@Ashley Pittman 

I think one of the things to consider here, although buying with no money down is exciting and awesome, it's also more dangerous.  Keep in mind you need reserves, you need to be able to pay the mortgage, and you need to be able to sleep at night.

Don't be afraid to keep doing homework, looking at properties you will buy, and saving a few more bucks.  I have worked with the same private lender for almost 4 years now.  I was turned down by so many people for funding before I found this one.  But it made me hungrier ... It made me want it more, and it made me keep working.

Keep your head up, work through more and more deals, and keep asking for people to fund deals. They can always say no, but they can also say yes.  Have a reason for them not to turn you down! :) Good luck!

@Terry Hershberger  is on the money ... here is my thought:

Alyssa, start saving.  Whatever your rent is, figure you can have a nicer or equal place for what you are paying in rent.  Like Terry said, go start talking with community banks, and most importantly (community or not), banks that do their loan underwriting IN HOUSE.  This is vital.  You go several months chatting with bankers while you are saving like a mad woman.  Once you find the right fit you explain to the highest person in charge (and I would suggest dressing in your best professional outfit and setting a meeting with the highest person at the bank) and explain that you are a real estate investor, currently working with other investors, but looking to group your business.

Next, you explain you have $2, or $3, or $5k, (this is important) to put into the bank, and its part of your current money. The banker will say they appreciate having all people, and yes, its nice you have deposits.  You explain you will have thousands more as you grow your salon business, as well as your real estate business.

Step Three, buy a house/duplex. Make sure the bank does FHA loans, or something similar, unless you want to be prepared to do 20% down ... make sure you understand exactly how they structure their loans, and be ready to make a move once you have the funds to do it. If you get a duplex, get the best renter possible, and pay your rent just as you were, paying yourself, and letting the tenant pay your mortgage/utilities.

Now you own a property, you have established a relationship with the bank ... and you have your first "deal" under your belt... 

Go get em!

Thanks @Account Closed and @Curt Davis ... definitely want it to be scaleable.