#1 Creative Real Estate Financing ContributorPosted Someone asked for more detail on Creative Finance. I always look at the exit strategy for the property to determine which kind of Creative Finance I would use. Sometimes I actually walk away from the deal - Not All Creative Financing Deals Make Sense.
I use a spreadsheet I developed to determine my entry costs, carrying costs, cash flow, tax write offs, appreciation and exit costs. I can tell in five minutes if it's a deal or not. Don't waste a lot of time analyzing. Make offers, then when someone says they will consider Creative Finance, that's when you make the suggestion. But, know what you want to accomplish beforehand.
Creative Finance is a great way to buy properties when done properly and lawfully.
Some types of Creative Financing include: Seller/Owner Financing, Land Contract, Wrap, Assumption, Subto, Lease Option, Contract for Deed. There are a couple of others less commonly used.
My humble advice to anyone attempting to do creative finance is:
Creative finance is for experienced investors who have access to capital if anything goes wrong.
And yes, there is much more. You can learn these things over time.
#1 Creative Real Estate Financing ContributorPosted I took the average $4,000,000 house in Pacific Palisades CA and it shows a monthly tax payment of $4,167 for a total of $50,004 a year. (That would buy two houses in Ohio). :-)
Now, the average length of ownership is 7 years (for normal people) a longer time if you have no where else to go "UP". After 10, years they have paid $500,040 in just property taxes.
And the city "forgets" to turn on the water to the hydrants?, during fire season?
Can somebody please explain how investing in the area makes sense?
I am not smart enough to figure this one out.
Somebody mentioned they have access to the ocean. Well at 6 trips a year, that's $8,334 a trip. I can fly to Greece and enjoy the ocean there for less. And eat great food.
The Homeless are at the beach all day long - everyday, and don't have to pay property taxes. In fact, lunch is delivered to them.
"Oh, but we have easy access from Pacific Palisades", and the accompanying statement "yes, now we also have to hurdle over our neighbor's smoldering ruins to get there, but we still get to go to the beach."
Does nobody else see the irony, malfeasance?
So do you understand, read, speak, and write Greek? Have you ever worked on Greece? Dealt with Greek institutions, business practices, and customs? What do you know about homelessness as an institution in Greece? When the bus stops in traffic and the driver announces, <>, can you plug that right into Google Translate and get a good answer to what that means?
Sure, Greece has its moments, but spend a few years there and you might feel it's not quite the Valley of Shangri-La.
.
Nah was just talking about visiting, not living. Long live Baklava.
Ο Ιησούς Χριστός είναι ο αληθινός και ζωντανός Θεός. Η αγάπη Του σε σώζει από τον χωρισμό από Αυτόν, αν θα επιστρέψεις την αγάπη.
#1 Creative Real Estate Financing ContributorPosted I continue making the underlying mortgage payment myself (autopay) and get reimbursed from the borrowers payment. I use a loan servicer who processes the borrowers payment and then sends to me. If they stop paying, I foreclose, but still keep making my payment to the underlying lender. I get made whole by the down payment from the next buyer.
#1 Creative Real Estate Financing ContributorPosted In my search for private money , I have heard there people use SDIRAs to fund real estate investments and be in the first position.
I wanted to know what are the pros and cons of using SDIRAs for fund Real estate?
#1 Creative Real Estate Financing ContributorPosted Do a wrap. Include balloon payment after 5 years. Get a big downpayment so that the buyer doesn't end up in the same situation 5 years from now. I'm in San Antonio. I've done lots of subtos and wraps. I've also been in a similar situation in the past and solved it with a wrap. Either way, run your proposed solution through an attorney. Happy to chat more if it would help.
#1 Creative Real Estate Financing ContributorPosted I have a single family house in Detroit (I'm out of state) for past few years. This october the tenant left without warning and house went vacant. Repairs were needed and were finished by early december. Now the house has been sitting vacant for over one month despite PM putting it on zillow and other sites.
I'm curious, at what point does this reflect poorly on PM and suggest I should get antoher PM? On that note, any good PMs anyone would recommend in Detroit area?
Also concerning, I just looked at zillow post and the pictures are very grainy and unflattering, even though they should have access to the nicer photos (I have had these for years, see below)..
I've also been getting lots of calls form companies wanting me to sell my house. Anyone familiar with PMs who collude with house-hunting companys to purposefully make me more inclined to sell?
The picture they have on Zillow vs one of the several I have with the same view:
#1 Creative Real Estate Financing ContributorPosted Not trolling but just trying to provide some context about why states and other countries like CA have such stringent earth quake codes that keep getting updated.
I will never really understand the power of a Cat4 or Cat5 hurricane until I experience one. I have been in a 6.8 and 6.9 earthquake in WA and CA respectively. The 6.8 was some 65 miles south of me, I was on the 2nd floor of an office building that shook so hard for a minute that people were having problems staying standing up. A 7.0 releases some 32 times the amount of energy as the atomic bomb used on Hiroshima.
I am fully aware and well versed.
I have been a Building Contractor for over 30yrs. Master Journey Carpenter, Journey Mason, Journey HVAC. My last remodeling co. was a specialty Design Build firm. I had been scouted more times than I can recount to come to CA to apply my skills because the standards I came up in exceed that of CA and most places.
Building for seismic zones is actually not all that difficult. Wind and water, those are tricky ones, especially wind. Wind is an exerted force in many more ways than just the direct most think of. And hydraulic is a force that's very extreme.
Point is, the predominant production method of housing in the US is rather lack luster. The framing lumber popularly used is pathetic. And there is a lot of superior options out there in both product and methodology.
If you want a good CA home, do timber balloon frame, mortise and tenon joinery with masonry facade. Slate roof or even Spanish tile. Now you have seismic resilient with fire preventative.
Rockwool insulation...... I mean, your doing $1m+ for a property, why not get one built like it's a $1m+ home????
No, I'm hearing reports of shake roofs being predominant in a FIRE ZONE.... I'm sorry but anyone doing that is literally begging for it.
You tempt the Devil, bad things happen.
That helps to make a lot more sense. The fire prevention policies were different, more aggressive, so far less imperative reasons to sway away from a then amply supplied and I imagine price adjusted material of shake vs fire resilient material.
I saw news other day of those winds and just clouds of embers and that, holly-cow with shake roof's, wow, that's literally an impossible fire to fight as it could jump homes and blocks in a blink, with every ember filled gust.
It drives me nuts seeing the lions share of blame being placed on weather in main stream media (talking as an aggregate whole not going to cherry pick individual ones of differing messaging) when I see a laundry list of obvious human caused contributing factors.
Because next thing, without a doubt, will be all about taking Federal funds to pay for all this. And that means YOU, me, WE paying the bill for what was in fair-share a CA person-made catastrophe via there idiotic actions.
FL can't do a dang thing to stop a hurricane, but they at least try to put in place mitigation items to lesson impact.
CA, stopping doing fire breaks because it messes with a mouse..... How's that mouse doing now? Crispy fried right....
Or not topping off reservoirs in advance of a known annual heightened fire risk season.
I am not saying it would have been 100% prevented if hadn't done these dumb actions, but with 100% certainty the scale of it all would have been different, lessor.
People died because of this, and thus there needs to be a criminal inquiry. Criminal negligence, that's a thing. And this, what I am hearing, wreaks of criminal negligence. Accountability must be demanded by Californians, and the nation as a whole.
But let me guess, Biden will issue pardons for entire CA political class...... Retroactive for any crimes known or unknown for the last however many years......
I always heard the fire risk season was tied to Santa Ana winds, Sept. - May..
No thanks, I'm way too Norwegian for that noise. Put me on a boat with 10' swells and I'm happy as a pig in slop but in air getting thrown.... I'm the guy turning 3 shades of green with the verps. Lol.
Without doubt a brilliant and fierce women she is, SKOAL!
.
I took the average $4,000,000 house in Pacific Palisades CA and it shows a monthly tax payment of $4,167 for a total of $50,004 a year. (That would buy two houses in Ohio). :-)
Now, the average length of ownership is 7 years (for normal people) a longer time if you have no where else to go "UP". After 10, years they have paid $500,040 in just property taxes.
And the city "forgets" to turn on the water to the hydrants?, during fire season?
Can somebody please explain how investing in the area makes sense?
I am not smart enough to figure this one out.
Somebody mentioned they have access to the ocean. Well at 6 trips a year, that's $8,334 a trip. I can fly to Greece and enjoy the ocean there for less. And eat great food.
The Homeless are at the beach all day long - everyday, and don't have to pay property taxes. In fact, lunch is delivered to them.
"Oh, but we have easy access from Pacific Palisades", and the accompanying statement "yes, now we also have to hurdle over our neighbor's smoldering ruins to get there, but we still get to go to the beach."
Does nobody else see the irony, malfeasance?
#1 Creative Real Estate Financing ContributorPosted Mortgage Foreclosure Prospecting
Saturday, December 7, 2024
Breakfast Included!!!
In person AND Online! - Zoom Meeting Access Info will be sent in a Registration Confirmation email.
As we continue to see Real Estate turn from a sellers’ market to a buyers’ market, foreclosures will undoubtedly continue to accelerate. How does the foreclosure process work? What are the best places to search for properties in foreclosure? What are the best foreclosure marketing methods? How do you communicate with someone in foreclosure? What documents are needed? At this meeting, Jason McDougall, a Successful Real Estate Investor with years of experience, will cover all this and more. Don’t miss this meeting!
I look forward to meeting you there. Say hi to me at the registration table, or chat with me online and let me know you saw us on Bigger Pockets!
~ Cindy
COST to ATTEND:
PRE-REGISTER ONLINE: $20
AT THE DOOR : $25
LOCATION:
The meeting will be held at 6850 Manhattan Blvd, Ste. 205, Fort Worth, Tx 76120. For the convenience of our guests, we are providing the option for ZOOM access as well.
TO REGISTER:
Please check www.dfwreiclub.com home page where you'll find a link to the meeting registration for more details.
:: N O T E :: For our IN-PERSON meetings, we do have limited seating, so it is best (...and it saves you $5) to [REGISTER ahead online] to help insure that we have enough seats for everyone.
For virtual meeting attendees, you will receive a link at the email address you provided to our ZOOM meeting once you register.
You can reach Robin at 817-300-1132 if you have any questions.
TARRANT COUNTY
Fort Worth Arlington
Grand Prairie Flower Mound
North Richland Hills Keller
Burleson Haltom City
Hurst Southlake
Colleyville Watauga
Benbrook Saginaw
White Settlement Crowley
Forest Hill Trophy Club
Azle
DALLAS COUNTY
Addison Balch Springs
Carrollton Cedar Hill
Coppell Dallas
Desoto Duncanville
Garland Grand Prairie
Hutchin Irving
Lancaster Mesquite
Richardson Rowlett
Sachse Seagoville
Sunnyvale
DENTON COUNTY
Argyle Aubrey
Carrollton Denton
Flower Mound Frisco
Justin Krum
Lake Dallas Lewisville
Little Elm Pilot Point
Ponder Roanoke
Sanger The Colony
.
You might want to cover this while you are at it:
https://www.biggerpockets.com/forums/311/topics/1225896-shor...
#1 Creative Real Estate Financing ContributorPosted Mortgage Foreclosure Prospecting
Saturday, December 7, 2024
Breakfast Included!!!
In person AND Online! - Zoom Meeting Access Info will be sent in a Registration Confirmation email.
As we continue to see Real Estate turn from a sellers’ market to a buyers’ market, foreclosures will undoubtedly continue to accelerate. How does the foreclosure process work? What are the best places to search for properties in foreclosure? What are the best foreclosure marketing methods? How do you communicate with someone in foreclosure? What documents are needed? At this meeting, Jason McDougall, a Successful Real Estate Investor with years of experience, will cover all this and more. Don’t miss this meeting!
I look forward to meeting you there. Say hi to me at the registration table, or chat with me online and let me know you saw us on Bigger Pockets!
~ Cindy
COST to ATTEND:
PRE-REGISTER ONLINE: $20
AT THE DOOR : $25
LOCATION:
The meeting will be held at 6850 Manhattan Blvd, Ste. 205, Fort Worth, Tx 76120. For the convenience of our guests, we are providing the option for ZOOM access as well.
TO REGISTER:
Please check www.dfwreiclub.com home page where you'll find a link to the meeting registration for more details.
:: N O T E :: For our IN-PERSON meetings, we do have limited seating, so it is best (...and it saves you $5) to [REGISTER ahead online] to help insure that we have enough seats for everyone.
For virtual meeting attendees, you will receive a link at the email address you provided to our ZOOM meeting once you register.
You can reach Robin at 817-300-1132 if you have any questions.
TARRANT COUNTY
Fort Worth Arlington
Grand Prairie Flower Mound
North Richland Hills Keller
Burleson Haltom City
Hurst Southlake
Colleyville Watauga
Benbrook Saginaw
White Settlement Crowley
Forest Hill Trophy Club
Azle
DALLAS COUNTY
Addison Balch Springs
Carrollton Cedar Hill
Coppell Dallas
Desoto Duncanville
Garland Grand Prairie
Hutchin Irving
Lancaster Mesquite
Richardson Rowlett
Sachse Seagoville
Sunnyvale
DENTON COUNTY
Argyle Aubrey
Carrollton Denton
Flower Mound Frisco
Justin Krum
Lake Dallas Lewisville
Little Elm Pilot Point
Ponder Roanoke
Sanger The Colony
#1 Creative Real Estate Financing ContributorPosted 
Tuesday, December 3, 2024
For Immediate ReleaseU.S. Attorney's Office, Eastern District of Texas
Nicole Espinosa, also known as Short Sale Queen, 35, of Plano; Stephanie Smith, also known as Stephanie Parks, 44, of Midlothian; and Selena Baltazar-Hill, 28, of Dallas, were indicted by a federal grand jury on November 20, 2024, and charged with federal violations related to a mortgage fraud scheme in the Eastern District of Texas. The two-count indictment charges them with conspiracy to commit wire fraud affecting a financial institution and conspiracy to submit false statements to a federally insured financial institution. The defendants have been arrested and are scheduled to appear before U.S. Magistrate Judge Aileen Goldman Durrett on December 4, 2024.
According to information presented in court, beginning in 2017, Espinosa, Smith, and Baltazar, along with others, are alleged to have operated a mortgage fraud scheme using various companies, including Short Sale Queen, L.L.C. The defendants researched and located properties that were in the pre-foreclosure short sale process more:
https://www.justice.gov/usao-edtx/pr/self-proclaimed-short-s...
18 U.S.C. § 1344 – Bank Fraud
18 U.S.C. Section 1014 criminalizes the act of making false statements to a financial institution. If convicted of bank fraud you may be facing large fines of up to $1,000,000 and/or imprisonment of up to thirty years.
Posted without comment.
Okay, so one comment:
Just because someone in your community says it's okay to do, better clear it with the feds first, or you may be talking with them later.