All Forum Posts by: Account Closed

Thanks everyone for your input. I am implementing alot of good suggestions.

Davin,
While having good credit is a much better way to be when investing, you do not need it for some of the more creative buying strategies. You can wholesale, as you said, which involves making offers on properties, and when they are accepted, assigning the contract to another buyer who either pays cash or gets financing. You add an assignment fee to the price you sell it to him for. The assignment fee is negotiable.

You acn also try to get a seller to owner finance, or sell it to you "subject to" the existing mortgage. The loan stays in the sellers name, but you make the payments. You assing the deal to someone else, do a lease purchase with a tenant buyer, or or hold it and rent it until you want to or can refi it.

I would suggest using the BiggerPockets Search feature - enter "Leae Purchase", Subject to" and also check out the wholesaling forum. Good luck! Mike

Hey Carl, welcome! Good luck with the completion of your formal education. Now, time for your "street degree" in REI.

Shaunna,
Sorry I misspelled your name!

Hello Shawna, and welcome to BiggerPockets! We have alot of members that hail from your state. So, are you in the education phase, or have you been able to take any action yet? Good luck , Mike

I think, as Dan said, there would have to be sufficient equity and lower payments to justify doing it.

Yes! I have seen severl situations that this could work in, and was considering trying it. Tom, have you done anything similar?

Sherrill,
I was thinking. What if you:

-joined your local REI club. Make some cheap business cards. Put together a plan to have your owne business, a sole proprietorship. You business model could be "Investor Assistant" or something - you can get creative - and you sell yourself as a person who can help them put together their marketing strategies - do mailers, help to coordinate the sales, some property management, etc. make calls to prospects, alot of which could be done without much physical activity, and fairly flexibly so you could do the work on your good days. You could start out doling the work hourly or by the job (so much per piece for mailers, etc.) and eventually the person would want you so much they would pay you a guranteed $600/mo. So then you would be at your max income.

Step 2: Keep networking with investors, and put together a plan to search for good investor deals. Be a bird dog for your employer and other investors. Find some good deals through pre-foreclosure lists, maybe put out some bandit signs, run ads, etc. but find some good deals. Maybe even make some offers yourself to test the waters. Somewhere along the way you may be convinved that you can make more money doing this and not worry about SS?

But even if you don't want to risk that, I can envision you finding a good deal, like a condo that is in pre-forclosure, making an offer on it, and getting it accepted at say $200K. (or less hopefully) You convince an investor to partner with you 50/50, if he will put up the cash to buy it, and/or pay half the payment for half ownership and half the tax benefits. If the payments were in the $1200 range, you could probably handle half that, and although living on $1400/mo. less your house payment would not be easy, it's at least a start and maybe workable. And maybe if you did other work for him he would barter it by paying the full mortgage in return?

The other idea is that maybe you could eventually work out a plan to work for other investors as I said, but not be paid directly, and instead they pay your expenses, provide services, or give you materials for rehab, etc.

What do you think about the above? Good luck, Mike

Thanks Dan,
So you as the investor would:
-contact the seller, get him to sign a form to allow contact with the lender

-You contact the lender and negotiate a forebearance of something like you mentioned, a certain amount up front (you said 1/5 up front - did you mean 1/2?)
-You get the seller to sell on a sub-to basis
-you do your deal with the lender.

Sorry I wasn't clear. I don't mean you actually have the buyer (your "partner") with you. I just mean that is a story you can tell the seller - that you have a partner. So, you are behaving like the buyer in all ways so the seller will take you seriously. If it turns out to be a good deal, you can then shop it to your buyer(s). The seller won't care in the end if he gets an offer and sells his house. The reason I don't think this is dishonest is that when you are looking at the houses, you may well be the buyer if the deal is good enough and you have the ability to buy it creatively. Good luck, Mike