All Forum Posts by: Nat Love

Quote from @Nat Love:

Quote from @Allison Wong:

Quote from @Charles Beltran:

Quote from @Jeanna Lichtenberg:

Did anyone sit through the free online "live" webinar? I did this morning. I doubt it was actually live. It was mentioned several times that no one could see the chat, but Pace assured us that he could see all our comments, and he would occasionally comment on the alleged comments. He even asked his assistant if he could get the chat turned on. (Of course, it never worked.) Any comment you made went "To admin only."  But a message from "Team Pace" would come through that said "Pace's team can see your chats, it's due to a tech error but all is working and good!" I made a comment about the earnest money that contradicted what he had said about it. Then when I made another comment that it was convenient for them that no one could see any comments made, my access was immediately terminated. I went back to the webinar through a different device and saw that they had also added a link to access his Gator Method for $2,997. Of course, it's for a limited time only, then they are going to "shut off the Gator Method" for about a year. It all seemed rather sketchy to me.

 05/27/2023 - :) Yeah, it's a recording. The same exact thing was stated in the training that took place just a few minutes ago. There were a few hundred on, and he said that he saw the "thousands" of people on. That confirmed. :)

 Yeah, definitely a recording. I picked up the same things too. I've just watched the "gator method" today. I feel like it's overpriced, but if you do get that value out of the course then it will be worth it.

Is definitely worth it so far IMO. I’ve been a gator for about 2 months now and Pace’s community is amazing. There are definitely ways around the various costs, but you can also learn those thru the community members. If you are new to REI and want to be immersed in it, try it, won’t work for everyone, but worked for me. 

Calling @ Nat Love:)
Your BP colleagues are waiting to hear the specifics as to why you say the course is working for you. A positive word from you could turn things around here where people are beginning to feel the course is a scam. My two cents is that the non-live broadcast is a commonly used marketing tool If it was "live" when it was first broadcast, then it is not a "scam" in my opinion but a rebroadcast that does not disclose that fact (not as professional as it could be). As for the concerns that this method is just a loawn of earnest money to folks that may not pay you back if they don't close, I would agree unless Pace Morby's tean does some type of credit vetting of the people who borrow and in turn will report to credit bureaus unpaid Gator money. In addition, Pace Morby's team could have systems in place to vet the deals for which loans are sought. If Pace's team is vetting the credit of the Gator borrowers, vetting the actual deals of the Gator borrowers, and facilitating reporting of deadbeat Gator borrowers, then I see some real value. Unfortunately, all of this is from my imagination as I have not enquired. I hope @ Nat Love will let us all know:) Holla at us! 

Quote from @Charles Beltran:

Quote from @Jeanna Lichtenberg:

Did anyone sit through the free online "live" webinar? I did this morning. I doubt it was actually live. It was mentioned several times that no one could see the chat, but Pace assured us that he could see all our comments, and he would occasionally comment on the alleged comments. He even asked his assistant if he could get the chat turned on. (Of course, it never worked.) Any comment you made went "To admin only."  But a message from "Team Pace" would come through that said "Pace's team can see your chats, it's due to a tech error but all is working and good!" I made a comment about the earnest money that contradicted what he had said about it. Then when I made another comment that it was convenient for them that no one could see any comments made, my access was immediately terminated. I went back to the webinar through a different device and saw that they had also added a link to access his Gator Method for $2,997. Of course, it's for a limited time only, then they are going to "shut off the Gator Method" for about a year. It all seemed rather sketchy to me.

 05/27/2023 - :) Yeah, it's a recording. The same exact thing was stated in the training that took place just a few minutes ago. There were a few hundred on, and he said that he saw the "thousands" of people on. That confirmed. :)

 Yeah, definitely a recording. I picked up the same things too. I've just watched the "gator method" today. I feel like it's overpriced, but if you do get that value out of the course then it will be worth it.

Seller financing can be complicated to structure especially without a lot of experience like you were saying, as there are literally endless options/scenarios. To take advantage of the opportunity infront of you though I'd recommend teaming up with somebody that understands it really well, somebody you already know that's got lots of investing experience, or a Pace Morby or Jerry Norton student that understands creative finance. If you know what terms a buyer will take you can get a wholesale fee on this and learn a ton in the process to set you up for the future!

Watch Jerry Norton on youtube about structuring creative finance deals so you understand the math and what would generally work and wont work. Everyone in the comments are right saying you aren't understanding the numbers well enough to structure a deal someone else would want to buy from you (wholesale assignment contract) or to do yourself. After you learn how to do this, I could help you fund deals as a hard money broker if you'd like but you need to be correct on your numbers. Hard money works when you structure a deal property and don't have a big private money lender on standby as a first choice. Google search about hard money and private money after you get a deal under contract to show to your potential buyer to make your life easier. Then hit me up on MannyLending.com

Jerry Norton Creative Finance Guide

Quote from @Nat Love:

So I am very new to REI, no experience, and no properties yet, but I just had my first phone call with a seller who may be open to seller financing. She is a very sweet elderly woman, not entirely retired from being a real estate agent. My problem is I am having trouble structuring the deal.

According to her, there is no mortgage on the home. 

The house has been on the market for a few months now. Turnkey. 

Asking price $1,075,000

From my inexperience, I’m not 100% sure, but comps seem to be in the 950K range. 

Rent comps seem to be around $4400

Insurance $12K

She says she owes 300K to the IRS because of a property that she has sold, and she also wants some money to travel with, and she would like to put the remaining monthly payments into a trust for her children. 

Can I find a loan for the 300+K? How can I make this a cash flow positive deal?

Thank you bigger pockets for the help!

Okay, I’m going to be brutally honest - you need A LOT more education before you even THINK about buying a property.
You need to learn and educate yourself on real estate investment and finance.  Not the fancy non sense from gurus and their YouTube “teasers”, not the arsenal of strategies being used  by experienced investors, but the very basics.

Here’s a quick analysis.  You pay $1,000,000 for the property.  You pay $300k down.  Currently, you can invest risk free in Vanguard Federal Money Market Fund and receive more than 5% interest annually.  So, your “opportunity” cost of forgoing that investment to make a down payment is $15k per year.  If you were to borrow against your home at 6%, your cost is even more - $18k., let’s assume interest only payments.  No let’s say you do get the owner finance for $500,000 and the seller takes a 7% note.  Best case scenario it’s amortized over 30 years. That’s payments of $56,000annually.  So principal and interest (mostly interest) is $71,000 - $74,000 per year.  Property taxes vary from about 1% in many states to as much as 3% (of property value) in Texas.  So let’s say $20,000.  Insurance minimum of $2000 if not a coastal area.  So your net outflow is minimum of $92,000 annually.

Now let’s say the property is in excellent, or near excellent condition.  Repairs, maintenance, and necessary capital improvements should be at least $15,000.  Vacancy loss (down time between tenants ) another 5% or $2500.  Lease up say every other year at 6% broker commission or $2000 per.

So, if everything goes well your annual income from rent is $52,800.  Your expenses average $112,000 annually.  Your negative is $60,000 per year.  

I haven’t even discussed that the seller is (according to your figures) asking $125,000 more than the property is worth, indicating she wants a premium for owner financing the property. 

A major mistake and time waster for inexperienced investors is concentrating so hard on a strategy” that if a potential seller seems amenable to that strategy they ignore the more central question of whether or not that property at the price and terms attainable is a good investment.  

@Nat Love

How much money do you have?

You could bring on a partner but I will get a little salty here as there are posts and books about getting all this done with zero down and the realities about it happening are like a shutout in baseball, it happens rarely and on occasion but the amount of time you spend chasing it if you were doing something that paid you money to do you probably could have saved enough for a down payment on another property

The other thing people don’t talk about is zero down is an awful idea because of over leverage and if market tumbles and you get into a cash crunch you are screwed