All Forum Posts by: Dustin Gott

I find it strange that this area of real estate investing is so unclear. Are there no experts who have done this? The only one I know of that directly deals with this is Alan Cowgill. His info seems legit but expensive. I am as guilty as anyone but shouldnt we have some knowledge on this subject since it could greatly enhance all of our businesses?

Anybody used them on the lending or borrowing end? Thoughts? Experiences?

I agree Michael but only if you are able to constantly be buying at 30% discounts (I mean 40 hours a week or more worth of time). Otherwise some of that down time not talking to sellers could be used to sell the property which saves 3-6%. If you could theoretically have enough money and sellers to keep buying from 24/7 then yes making 30% is much smarter just not sure how feasible that is for most people.

With any investment there is positive and negative things to evaluate. Many investors stay away but I have found that especially in auction situations that this creates much bigger discounts than single family houses relative to their value. The HOA fees continue no matter if it is vacant or not but the counter is I believe they are easier to rent out for more money. I feel like we are very efficient at renting our properties quickly so I am not as concerned about vacancies. Our company has been able to clear almost double on our condos and townhouses than with our single family rentals. Part of this admittedly is paying less when buying the property as stated above but a big portion of it is the higher rents. The biggest thing to watch out for is an HOA that will not allow rentals at all or only a percentage of the units. MAKE SURE TO FIND OUT BEFORE BUYING!! I learned this the hard way with one of the first condos I ever bought.

I have had good success with Prosper. Like anything it is about information and execution. Having a defined plan of what you are looking for then sticking to that plan is key. I have owned over 50 loans for most of the last 3 years and have averaged around a 25% return every year. I have read many negative reviews but have not found them to be the case in my experiences.

I know banks wont allow you to seller finance a buyers down payment. Is there anything preventing you from having the buyer put 20% down at closing then after it closes loan them the same amount and put a lien on the property which they pay you interest on? Same exact thing as a piggyback loan but it comes after the closing.

Scenario: family wants to buy home i rehabbed. Grandpa was going to get VA loan to buy for family. He found out he cant do it because it cant be NOO. They dont have enough down payment to go conventional.

Question: Is there anything like the old piggyback loans where I could seller finance the down payment? What other options do you see? I would like to at least cash out a significant portion of the property. Thanks

I am getting lots of calls lately but many are under water or very close. I have been referring many to a short sale agent in the area. What other options are there for someone in this situation? Subject to I suppose but the loans are so much more than they are worth that the good interest rate still doesnt make it worth it to take it over. Thats all I can think of. What else is there?

What is the most important information you guys are looking for when talking to an owner in default for the 1st time?

What about if the bank has the high bid at the auction for 150K when the original mortgage was 200K. If the house sells during the redemption period for 190K how does that money all go to the bank or only the 150K they bid at the courthouse?