All Forum Posts by: Barbara Riley

Hi Andrey,

I think you meant that the loan balance is $50,000? If the "equity" (simplified, the value of the house less the amount owed) is $50,000, then the lender is still owed $150,000. Ex: Orig. purchase price $200,000, and $50,000 was put down, equity is $50,000 and balance owed is $150,000. Increase in value and mortgage payments made over time also create equity. In a wholesale deal where you assign your purchase contract to an end buyer, the bank gets paid by the end buyer.

Hi, Doniece! Welcome to BP!

I admire your spunk. That said, i feel the need to raise a caution. I, too, am new to REI, so keep that in mind as you read my comments. I am concerned about the number of seeming unknowns here. I assume your research on comps reflects actual sold prices, not listed prices, that they are true comparables (sq. ft., number of bedrooms/ baths, garages, etc.), and that the lender (why does seller not know who that is?) has already agreed to accept $45,000.

Wholesaling short sales, pre foreclosures, and REOs, from all I've read, is rife with potential pitfalls, financial and legal. I believe, just as an example, that banks (and we don't even know that the lender is a bank) will not allow an assignment of contract. That leaves out wholesaling unless you can afford a double closing. Even if you can manage that, I think there are minimum resale time frames, so you would have to be able to hold the property the required length of time, all the while paying holding costs. If the ARV is $60,000 conservatively, there is only a $15,000 spread which, if the seller is not estimating repair costs correctly (and they don't) could virtually eliminate any profit.

As I said, I admire your effort to take action, I just think you need more information before going further. I'm sure there will be far more educated responses than mine, and that if I'm wrong, they will teach me as well. I'll keep watching this post.

Good luck, and let BP guide you. There are some awesome resources here!

Hi Jose,

I was able to significantly raise my credit score with the help of a book titled "Guaranteed Credit" by Arnold S. Goldstein, J.D., Ph.D. You didn't mention whether you have credit negatives other than the BK and foreclosure. This book is very helpful with typical credit problems including sample letters to the credit bureaus and creditors. Discussion on rights and strategies that actually work. He does also address BK and foreclosures. My copy is the 1995 edition and is available at Half.Com for less than $5 including shipping. (At least it was.) I think there is a newer edition, but even the 1995 version is very enlightening. Just thought I'd pass that along since it helped me a LOT! And, the price is right. lol. Good luck!

Hi Nick,

I'm new. My last investment property was bought and sold In the 1980's, so I'm starting over as a wholesaler. I can tell you that my rule is to never wholesale a property that I would not buy myself if I had the means. Ultimately I want to have a few cash flowing SFRs or small apt bldgs. I will be looking for myself, and wholesaling until I accumulate the funds to buy for my own portfolio. I am not into exploiting other people, period! I'm sure I'm not alone in holding these principles. I hate it that others operate in the manner you described. Ultimately, they will fail as their reputation gets spread among investors. Can't happen soon enough!

Try a re-contact. I would love to hear that you got a response, and a deal! It could still happen!

Hi Andrea,

I probably shouldn't be expressing an opinion on this...but I will. lol. I've been to dozens of the seminars at hotels and on-line. All pitch expensive workshops and most will offer "partnering" and some kind of funding. I have never opted for that, so I can't speak to whether they follow thru. That said, I question the ethics of a company that offers a 50% discount to someone who wants to cancel while charging others the full amount. Seems unethical to me and I would not want to do business with someone whose ethics I questioned. Just my take. BP offers a LOT of information, and great contacts!

Looking forward! I'm scheduled to work that night, but might be able to get off. If not, I'll stay as long as I can.

Thanks, Steve!

Barb

Welcome, Edward!

I'm new, too. Sorry to hear about your job. You didn't say if you are eligible for unemployment, or have any other resource for paying the bills. If not, I agree with others that if you can, you should find some source of income...especially something that exposes you to investors, or any aspect of real estate. You will need time to learn thoroughly at least one strategy for making money in real estate. There in a whole lot to know! Even bird dogging takes some knowledge, gas for your car, and someone to pay you for your leads.

If you can find another job, any job, it will buy you time for studying, learning from others here, and you can also begin working on your credit. A lot can be done without money. It takes persistence, primarily. I'll pass along the title of a book I used to repair my own credit. The title is: "Guaranteed Credit" by Arnold S. Goldstein. I have the 1995 edition which you can find at Half.Com for less than $5 including shipping. I think there is a newer edition. Not sure. The older edition will still be of enormous help. It has numerous sample letters to the credit bureaus and to creditors, and cautions about doing things. that "common sense" would suggest are good, but that can actually make your situation much worse. It's true that you can make money in real estate with poor credit, but the time will come when you find a deal that you will need good credit to take advantage of. (In the meantime you could go on line and read The Fair Credit Reporting Act, if you haven't already. Very enlightening!

Good luck!

LOL! A drink will do nicely! Next time you are in Columbus I'll take you up on that!

Hi Michael,

There is an astounding amount of information here at BP as I'm sure you've discovered. I also found some helpful word-for-word "scripts" to use with both sellers and absentee buyers at Flip2Freedom.com (Sean Terry). Here's a link to a webinar he did on the subject: http://webinarjam.net/webinar/go/replay/1056/140a023c34/accessok/

This link is to a replay which might not be available any longer, but he will likely do it again. He is on Twitter (@Sean Terry Flip2Freedom) and he posts his upcoming webinars there. After you type in your name and email address, there is a pretty slow load, so be patient.

I'm new, too, so I find scripts help in the confidence department. lol I would caution about trying to present as knowledgable if you're not, tho. Better to take the time to become as knowledgeable as possible. There is a lot to know! For myself, I'm trying to learn all I can about only wholesaling to start because that alone is a steep enough learning curve for me. Also the risks, while still present, are fewer than with many of the other strategies.

Welcome, and good luck to you!