All Forum Posts by: Mark Gallagher

@Dennis L Lewis Jr

What kind of return is your partner requiring? 

If you can buy some cash-flowing units, BRRRR would be your best strategy in my opinion. Build long-term wealth and still be able to pay your partner back.

@Account Closed

I'll give you an answer you weren't looking for.

Take $150 and buy a used lawn mower, weed whacker, and snow shovel. Take $50 and make nice business cards and fliers to promote yourself as a property care taker. 

Look up all of the big real estate agents in your area, and drop them off fliers to promote your lawn and snow services. Someone will end up calling. You start getting an in with the local Realtors as a hustler. They'll call you with work. You'll make money and can slowly learn the trade. Ask the Realtors questions. Save your money. By the time you're 18-20 you can buy your first investment property. 

@Shray Patel

If you said the investor had say a $50,000+/year job waiting for you, I'd probably lean towards leaving school. However.. $8/hr?!?! There's no way you should leave school with 3 semesters left to take a job that pays as much as fast food. On paper it sounds like the developer wants to use and abuse your time and energy. 

How's this.. I don't know you or the developer but I'll pay you $8.25/hr to do the same things he offered you. You could probably find someone who will easily beat my rate too! 

 You can't have a contract for sale before day 91 on the day the deed was recorded. Some underwriters work off of the day the deed was signed by the seller, but I've seen it where it has to go off the day it was recorded. This is why it is very important to make sure the deed is recorded as quickly as possible. 

If your deed was recorded on June 9th, then for an FHA buyer you will need a contract written 91 days after June 9th. Typically if we are listed before day 91, we will take an FHA buyer but we will expect/ask the loan officer to a) make sure they can't go conventional b) start gathering paperwork for the file. Then on day 91 we re-write the contract. A key in this is to make sure the buyer has their home inspection immediately, NOT after they re-write the agreement. If they're going to back out you want them to back out within 10 days, not 30, 40.

@Darin M.

My two cents.. see if you can get a signed deed in lieu from the owner before you buy the note... 

@Jesse Petrillo

For whatever it's worth, if I had a dollar for every time I saw an inspection report that said "get an engineer, re-grade land" I'd be a thousandaire. It's essentially standard verbiage on an inspection report for probably 50% of homes. 

@Edward Dones

I don't understand. You used an FHA loan to buy a home you're not really living in? That's a red flag right there.

Regarding getting the tenant out, my opinion is you should always file paperwork promptly even if you're working something out with them. They could say they're moving in 2 months, and then on day 59 say "oops I'm not out yet" and you're 59 days behind on eviction paperwork. I am leaving after I write this post to go file eviction papers on someone who says they're leaving and we purchased the property on Monday. Better to spend $200 filing paperwork than be month's behind when they don't actually leave. 

I'm fairly certain the tenant is just saying they can't find anything so you cancel the eviction and then they get to stay a few more months. 

Bottom line is file the paperwork, and try to amicably resolve it in the meantime by offering them cash for keys to get out. 

@Jesus Ramirez

There are numerous places in PA where you can find returns such as those in Reading. 

@Stefon Bostick

The problem is most of what you're alluding to is purchasing the note, not a post-foreclosure sale from them. 

ABC Bank with a $100,000 mortgage outstanding on a property worth $75,000 who is willing to sell it for $30-50,000 before foreclosing. Once they foreclose on the property they have many more options, but this is when you would be able to wholesale it. You wouldn't be able to wholesale the note most likely. 

@Stefon Bostick

I've been working on foreclosures for many years now and have no idea what a "phantom foreclosure" is. 

It sounds like you want to find foreclosures that no one else can, and then wholesale them? Most properties post-foreclosure will revert to a "big" bank who will then have their chosen market strategy. Perhaps you're looking to find "small" banks who will allow you to wholesale them. This is more doable, but you're going to have to work in a large market area with lots of small banks. Most small banks actually don't have that many foreclosures, at least in my area.