All Forum Posts by: Mitch Stephen

Your =You're

Stupid spell check errors...

No-record = non-recourse
Their = There
There = They're

@Bill Gulley
Really Bill? It sounds like a scam to me that the law makers are making it impossible for middle and lower income America to buy a home. When did it become a scam for a buyer and a seller to make a deal without someone else's approval? When did a no-recorded deal become a scam? People loan "Non-Recourse" when the collateral so far out weighs the risk that you don't need a personal Gurantee or anything. Non-Recourse generally indicated that the BORROWER has everything to lose...not the LENDER. The lender has a HUGE PIECE OF COLLATERAL!

You've insulted me Bill. Don't appreciate one bit!

1,200 deals
NEVER been foreclosed on ...ever!
Never left one payment unpaid...ever!
Been in 3 lawsuits...won 2 settled
Insurance company wanted to settle the other.
My investors have been with me for so long I now make payments to 7 widows in there late 70s to early 80s...and I take care of everything for them cause I promised their late husbands I would...and I do.
I have borrowed and repaid over $80,000,000 in my 18 year career...one house at a time.

Now I know there are people out their that are bigger...but there is no one better.

What is it with some of you guys. You think you can just talk to people you don't even know like you have some kind of superior insight as to who your talking to and what they've done and where they've been. Who do you think you are?

--Mitch Stephen--

@James Hiddle
It's all good James. No worries. It made me get clear.
I've been doing this so long I sometimes forget that without all the tiny details its not clear exactly what I doing. Also, it's hard to get others out of the preconceived ideas about flipping. You don't normally flip for Cash Flow as a general rule...flipping generally means flip for lump sums of cash...you "cash out." I prefer "cash-in" ...for a long time.

I am flipping in the sense that I'm NOT the owner anymore. But unlike traditional flips, I remain a major principle, in the form of the financier, for years potentially.
-Make money when you buy
(Borrow a tad over what you need)

-Make money when you sell
(Keep the down payment)

-Create a monthly cash flow
(Spread btwn what you owe and receive)

-Make lump sums when notes come of age.
(Sell note off if you choose)

--Mitch Stephen--

@James Hiddle
I think we're not on the same page Hiddle.
I don't think buying a house for $50,000 and then selling it for $100,000 is a crappy deal.
Here's an example of a typical deal for me...and I've done this many, many times... over a 1,000 times...using private money and owner financing:

$50,000 acquistion price
I borrow $53,00 from a Private lender @ 8% interest only,5 yrs, none -recourse loan.

My Monthly payment = $353~

$3,000 just went into my LEFT POCKET

I DO NOT FIX UP HOUSES

I owner finace the house for $100,000
5% down.

$5,000 just went into MY RIGHT POCKET

By the way, you don't need an appraisal to owner finance, nor an ispection, nor a credit score. The Seller and the Buyer decide if there is a sale or not.

I finance the $95,000 @10.5% for 30 years

Their payment to me is $869 P&I

The difference between what I owe and what I'm owed = $516/mo.

SUMMERY:
I got paid $8,000 to create a $516/mo positive cash flow.

The new owner begins to repair the house (I took a small down payment because the house needed work...you really couldn't hurt the house much...except to leave it vacant).

When the onwer finished the repairs the house becomes worth more like $120,000

I sell the note for %93,000 cash because the disparity from between the note balance and the owner financed sale price is so great you don't need to take much of a discount. If I sell for $93,000 and I owe $53,000 I will clear $40,000.

I think $40,000 is a long way from crappy.

So...call it a crappy deal..but may I suggest that if you can do this 20 times and you make $160,000 up front and create a cash flow of over %10,000 per month...while you go to work on collecting 20 x $40,000 = $800,000

$10,000/mo gives you cash flow as if you had $1,000,000 in the bank at 12% annual interest. And what active RE investor worth his salt can't earn 12%?

In short...it makes you a millionaire on paper. In fact, your $160,000 collected in down payments + 1 year of collecting payments ($120,000 annual income) added to what you can sell your notes for ($800,000) make you worth right around $1,000,000

I like it!

NOTE TO SELF: How much of my money do I have to have to do these deals? ...ZERO!
So the rate of return is as good as it gets.

Now, not every deal you do has $50,000 srpead. I only used this example $50K$100K because you thought it was "Crappy Deal." I did very well when my deals only averaged $20,000 to $35,000
Spreads.

--Mitch Stephen--

--Mitch Stephen--

Finding private money is the key to real estate investing as far as I'm concerned. In my humble opinion, you find private money from private individuals who need you but don't know it yet. Helping people to understand WHY they need to "Self-Direct their retirement funds and they HOW to self =-direct their retirement funds give you credibility and trust among those with money...money that's being lost in the stock market or waisting away in CDs.

Here's where I see most people making a huge mistake; It's in the way they think about private money.
People think THEY get the money from private lenders. They are WRONG! The DEAL gets the private money.
Find a great deal, papper it up (get it under contract) and the money comes to the deal.

EXAMPLE A: You go out looking for money becasue you want to buy deals. It's a long hard road.

EXAMPLE B: You get a signed contract to buy a house for $50,000 that is worth $100,000. Everyone wants to loan money on that deal.

Don't look for the money first...look for the deal first.

--Mitch Stephen--

I became successful by OWNER FINANCING prpoerties. I hated being a landlord. I morphed into owner fianacing...same cash income with way less liabilities (expenses).

-I buy a house using OPM
-I don't fix it
-I owner finance it "AS IS" for double what I have in it (10.55 for 20 yrs)
-I collect a down payment (and put it in my posket)
-The new owner goes to work fixing up MY COLATERAL
-I collect the spread btween what I owe and what I collect
-I never fix toilets or get calls in the middle of the night
-When I collect a payment...it's MY MONEY.

When was the last time you called your mortagae holder to fix your toilet?

From my experience; RENTER tear up your house and leave...owner fix up your house (colateral) and stay. When the new owners fis up the house enough, I can sell my note with NO DSISCOUNT. Great cash flow with a big BANG at the end!

--Mitch Stephen--

See my recent post replying to a guy about how to build a buyers list

--Mitch Stephen--

PS - it works the same if you're a wholesaler
- but post signs ...example $100,000 house for sale for $50,000
-Capture all calls
-Add the those pone numbers to your "CASH BUYERS TEXT DISTRIBUTION LIST"

-Get a KALL8.com phone number
- put out bandit signs saying "Home For Sale by Owner"
- the calls should reach YOUR recording annnnnd capture the numbers
- Start a "Home buyer TEXT distribution list" on your smat phone
- add all the numbers that call off your sign to the list
-When you have a house for sale...text the entire list in one single move
-it'd be best if you had a link in your text to a page that had pictures and all details about your property
-this works best if you offer 'OWNER FINANCED" houses.

I currently have 5,000 people on my HOME BUYERS TEST DITSRIBUTION LIST...when I go to show a house, I hit that list 2 hours before my showing time. 10 to 20 people are standing in the front yard...in addition to the person I have the appointment with.

I hae 18 years and 1,000 houses under my belt...there's a reason why.
keep upping your came...empliment, adjust, implement again, improve, implement, adjust upward - always!

--Mitch Stephen--