All Forum Posts by: Lucinda Hamre

3. When I close with large established buyers, they do most of the underwriting, order title, and BPO. When they need documents or questions arise - all communication to the seller is through me. Therefore I can ask questions and learn from very experienced buyers.

4. Over time, and after wholesaling quite a few deals, I felt comfortable buying seller-financed notes for my portfolio.

5. I've developed strong relationships with my wholesale buyers. I know I can bounce questions off them related to my asset purchases.

As a get-rich-slowly strategy, wholesaling seller-financed notes works well for me. It plays to my likes and the lifestyle I want at this stage (career #3!) of my life.

@Marco Bario, what an interesting perspective that is probably not considered by people who want to begin investing. I can see that there are some interesting challenges to making money in brokering, but how about the individual investor that, instead of a fix and flip, converts their value-add property to ongoing revenue? I would never have previously considered doing that, and I can foresee that there are going to be far less tax advantages than a buy-and-hold strategy. Who is the ideal purchaser of your notes? Thanks so much, all of you, for sharing information!

The ideal buyer depends on the note.

When I can, I work with banks such as First National Acceptance Company (a division of First National Bank of America) or Grand Bank. If a note isn't a fit for those buyers, I reach out to others who might have an appetite for that specific asset. In some ways, I'm a matchmaker.

Important for me is working with partners who know the business, specifically buying seller-financed notes, and who I enjoy working with.

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Charlotte, North Carolina

Quote from @Marco Bario:

@Lucinda Hamre -

I wholesale seller financed notes (I prefer the term over broker). In reality, I wholesale some of the deals I close and buy the rest.

Wholesaling has made me a better note investor because:

1. I see more deals, and I'm involved in more closings

2. When I submit assets to large established buyers, I learn how they price and keep a finger on market pricing

4. Over time, and after wholesaling quite a few deals, I felt comfortable buying seller-financed notes for my portfolio.

5. I've developed strong relationships with my wholesale buyers. I know I can bounce questions off them related to my asset purchases.

As a get-rich-slowly strategy, wholesaling seller-financed notes works well for me. It plays to my likes and the lifestyle I want at this stage (career #3!) of my life.

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Charlotte, North Carolina

Quote from @Chris Seveney:

@Chad Martinson

Before spending money on attorneys I would get more familiar with note investing in general. Make sure it’s something that interests you as 9/10 people I speak with who are gung ho on note investing are gone within 6 months

Forgive my ignorance, but what are some of the reasons that people decide this is right, or not right, for their investing needs? Chris, is this your primary means of investing? I haven't found many credible "experts."

When I was younger, I never would have considered selling my house on seller financing. Now that I'm close to retirement and have a husband with health issues, it looks better all the time. In fact, as we step down from this huge house to a smaller one, I want to buy a fixer-upper and seller finance that one as well. The only real issues for me are:

1. What are the tax implications?

2. How does this create legacy wealth for my heirs?

Thanks!!

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Charlotte, North Carolina

Pace, first, THANK YOU! You are wicked-smart and share so much with us. So, I have 2 questions:

1. Your students LOVE you and are your best advertisement! (Many of us who aren't students yet do, too!) I have learned the hard way that I should have had a mentor when I started out, but instead paid for training materials. I believe your mentorship is worthwhile, but don't know how I can fit it around existing commitments and work contracts. How does this work for your students? Do I have to rearrange my time or is it somewhat flexible?

2. I have a personal acquaintance that owns a house jointly with a partner, not spouse. They have had a painful split and she knows she probably has little equity and big headaches ahead. What steps are needed to do a creative finance deal? This is becoming a pretty common problem for which I would love to provide a win-win solution.

Thanks again!

2 Votes

Quote from @Tim Olsen:

When I keep a house for myself I spend a lot more time with the preparations. Meaning, the point at which you separate the plumbing and heating and electrical can cost you a LOT more. There is a ton to separate and it is real easy to run through with a sledge hammer and sawzall and cut way too much. Where it was built in 2000 most of your wiring should be up to code but may need a few AFCIs and GFCIs added. Some counties/ cities will allow Certain parts or the house that are existing no to be brought up to modern code. The worst one is usually insulation. As a lot of older homes are 2by4 framing and depending what part of the country you are in may need R19 which is very difficult without removing the siding. Also, I have had some inspectors make me change windows simply because they weren’t labeled to ensure they met modern code. If plumbing is galvanized we just convert to pex. If you don’t want to hurt your shower. Just get as close as you can and put an adapter on, you will still pressure test to the shower valve. We usually separate the sewer lines so we can just add some couplers and put it right back. Take some time with the HVAC as we usually leave all the ductwork down the middle and put it right back up when we get there since it already fits the house. Most of your costs will be getting all your utilities to the house at the new location. Of course permits and excavation but also just the cost of the hookups if you are on city water and sewer+ the contractors to hook them up. We have had our electrical cost shoot up pretty high for a few reasons like maybe the transformer in the area wasn’t enough to handle another service or maybe they had to bring it over or under the street so be sure to get as firm of a number from the electrical company that you can. The best advice I can give is to remember. You have a house from 2000 not from 2018. I guess that applies to any flip but the guys that do moved houses regularly just put them back together and remember that is the house they bought so why treat it apart and haul most of it to the dump. Sounds like you finance them the way we finance them. HML and either sell or refinance. Other parts of the country may be different but we have always been able to get full value at resale. It is similar to people that buy a house with a foundation repair. Some worry and some don’t so just disclose it up front and that way you will get a serious buyer a lot faster. If you get a buyer on the fence just have them call the mover and if they are a good house mover they will have no problems letting them know the houses don’t have any structural damage. I have moved HUNDREDS of buildings and none of them have had the structure compromised. You should expect a few small cracks mostly above the doors and windows. They may even go along the support walls after it is set and level up your doors if needed. Hope this helps, let me know if I missed anything or if you have anymore questions.

Great information, Tim! In your experience, do most housemovers do the foundation and then work with other tradesmen? How do they make certain that the foundation is a perfect fit?

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Very impressive, Shawn! Great job! How long did the rehab take, especially when you are doing so much of the work yourself?

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I don't have an AirBNB, but stay at them most of the time when we travel. Our favorite guest, Renae from Mesa, AZ, always prepares notebooks with local interests, arranges discounts at restaurants and leaves personal notes for things that are going on in the area. She has a book where guests also share information with the next one staying there for tips about the area, including historical sites, etc.

Having a basket of snacks on hand is really nice when guests arrive and haven't yet had time to shop. Consider simple condiments and spices. It's a PITA to make another run to the grocer because you don't have ketchup or black pepper.

Last, please make sure you have awesome internet connections because most of us have to work even while on "vacation." Renae bought a cheap printer for me during one stay because I had training while there and needed to print forms. Because she asks about special needs we might have, she was prepared and made our stay much more enjoyable (even if the pool unexpected closed, bummer).

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And don't forget that you will still have higher-than average cleaning, repair and replacement costs. Check with the municipality as well, because more of them are putting restrictions in place. Where I am, 30 days is just a rental, with all the rights and obligations attached. STRs pay a surcharge to the city just like a hotel and it's steep.

Is it possible to sublease to a corporate account that then allows travellers to stay as part of their employment package? Some medical companies are known to do this.

Just one lousy short-term renter can eat up your "profit" that was projected for the whole year. And then trying to locate a traveller is obnoxious to outright impossible. I spent 6 months trying to track down a traveller. It was impossible since she had divorced and "moved on" (hahah). You just have to keep your sense of humor or you will fail!

Love people, not your stuff. If the numbers don't work, there better be some really compelling reason for buying. Emotional pull should be the very last reason you buy an investment, not the first. This is like dating a psycho -- might be fun and exciting for a very little while, then will suck the life right out of you.

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We are preparing to sell our first investment property, which is a large handicap-accessible lodging house (8 BD/2 bath plus 2 extra ensuites, workout room, etc.) The house could also be used as a large SF dwelling or for several commercial uses. I've been told that a broker's opinion will give us a good starting point to discuss options and where to best spend money in order to get maximum return under various use scenarios. For example, some commercial uses might require a stainless steel kitchen vs. corian countertops.

1. How do you decide on the best broker that has the widest reach and what are they likely to charge?

2. What are the benefits over just having a good real-estate agent come through?

3. If they propose that we sell as a pocket listing, how do you know you're getting the optimal return?

4. What other things should I be considering?

Many thanks to those who help us newbies!!

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Quote from @John Mocker:

Edgar,

If you do set up the ownership as you mentioned make sure that all parties that could be sued are properly insured. Have a conversation with your Attorney and Insurance agent and determine who should be listed on the policy to enable defense costs to be covered in a lawsuit.

Wow, John, good advice from someone who works in the field! I would not have considered this aspect. Thanks again!

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All Forum Posts by: Lucinda Hamre

Lucinda Hamre has started 2 posts and replied 20 times.

Post: I’m looking for regulations/licensing requirements for brokering notes.

Post: I’m looking for regulations/licensing requirements for brokering notes.

Post: I’m looking for regulations/licensing requirements for brokering notes.

Post: Ask Me Anything! Pace Morby’s Takeover

Post: Moving a house??

Post: Unlivable dump to cash cow cashflow!

Post: Best ways to draw more interest in my STR

Post: 30 Day Minimum Only STR, Bad idea?

Post: Choosing a Broker to Pay for "Broker's Opinion"

Post: Land Trust Question