All Forum Posts by: Account Closed

Why do you need a partner? what does your partner bring to the deal?

Act as if you have no money, practice nothing down creative financing. Let your Mom hold your $40,000, don't blow it, if you can do deals without money, you'll make millions using the little you have, your cash is golden, conserve it! I have been teaching and buying using creative financing for 49 years. oh! don't blow your $$ on useless courses or on mentors who will try to attach themselves to your bread! Be careful telling the world how much you have. be careful of folks here offering you great deals

Look at 50 houses, keep a journal of all the details, listen carefully to the sellers, and agents. look at those house again in 6 months.

 ask questions; 

• .mortgage balance,
• .how much you need above your mortgage,
• .know the potential equity in the deal, negotiate for equity (no equity, no deal!)
• always make offers below market value
• .ask can you help with financing, put request in your offer
• .delay settlement as long as possible'
• .ask for immediate possession
• .use contingencies and assignment clauses
• .Build in a automatic extension (you will always need more time)
• . make sure that "time is not of the essence"
• .use banking days, not calendar days
• .learn how to control and roll while in contract
• .ask for money back at settlement
• .ask seller to pay for home inspection
• . use a skinny contract offer, study and understand contract and creative clauses, they'll be your best friend and will make you millions!
• .beware of agents, they represent themselves!
• .make sure you understand comps
• .don't make an immediate buying decision, think it over get opinions
• .make a statement, "my goal is to earn a reasonable profit!" let seller and agent know that
• .Talk less, listen more, take notes, don't tell on yourself, don't reveal too much.
• .remember Cash  IS KING conserve it.
• .ask sellers to fix stuff before settlement
• . Always ask for more, the furniture, the old car in the garage, money back and all .the lawn equipment.
• . you should be in this business to make a profit, not to make a friend!
• . if you don't like the deal or agent move on, there are many more sellers who will let you have your way.
• .use the 7 words all the time "Is that the best you can do"?
• .Do you need top price or a fast sale?
• .learn "Power prospecting"
• .learn to represent yourself
• .study all expired listings in your area
• .Go to housing court to find motivated landlords
• .attend real estate auctions, take notes, network with other investors.DON'T bid unless  you are sure you can get it wholesale
• .Trust only your Mother
• . be kind, smile and have fun as you learn this business.
• Charlie

They want to give you an option to purchase you property, you need to look at the option, there could be some clauses that are not friendly to you, they want an exclusive right to take your deal off the market and to maybe buy it later or NOT!

You should ask for a non-refundable option deposit and made the option as short as possible, you may want to ask for proof of funds, also check out the optionee make sure he is not a con artist.

Master your game at home first before you go out of town, it ain't worth leaving home.  I am an accomplished negotiator/investor, at 78 years old I realize there are too many pit falls dealing with properties out of my area, it is to easy for sellers and others to misrepresent their position - you don't need that getting started, you need to be HANDS ON if you want to make good decisions.

BE PREPARED: Have and understand your contract offers, you should have your contract form with you at all times, in your office, at home in your car, have all the forms you need to do business, checks, disclosures, addendum, list of references.

Your contract should be PRO you! Every word in it should be to favor you. The clauses in your contract, "right to market and assign, an automatic extension, out contingency, full profit disclosure, possession clause, expiration date and it should be in docusign format." The contract I designed many years ago is golden, we call it the "Skinny" because it is one one page. It has every thing needed to assign and make a profit and it is easy for  sellers to understand.

Stay in touch to let me know how your are doing - OH! practice POWER PROSPECTING for equity packed leads - that's important.

Good luck - Charlie

At 78 years old, I have been training people to invest using high leverage and small amounts of cash for over 40 years, now they call it coaching, mentoring or one-on-one training, I started my RE investing when I was 20 and have trained many. I profited from networking deals with my trainees. 

My response to the question is in NO WAY a commercial or soliciting for  a mentor client! I will give you my thought on this subject only.

If you are going to pay someone to mentor you in the fine art of investing, make sure they have a history of success, TALK IS CHEAP, investigate, look at their portfolio, research their background, get proof that they are what they say they are, there are just too many con-artist out there that will tell you anything to get to your wallet! don't let that happen.

I want my clients to learn the basic first; Power prospecting and negotiating, if you can't negotiate you can't do deals, in my opinion this the best way to have your way with sellers, I go into details of expired listings, For sale by owners, how to do second stage and sometime 3rd stage negotiation, how to make offers and how to make offer often.

Creative financing is a must to learn, lease option Control and Roll and hybrid offers, nothing down, delayed settlements, no money in the deal using "Check Funds", seller financing, how to ask for it, how to get sellers to agree, no interest mortgage, how to offer more and create more equity and ease assignments.

Most importantly "contracts" I use what I call a "skinny contract offer" this is a one page document that has all the creative clauses needed to CONTROL the property with a small down payment.

I want my clients to understand that it is easy to find and control properties, but a needed skill to assign it, get to the settlement table and collect your fee. I go into details about auction method of assignments. Front porch clauses, delayed settlements, split notes and cash back contracts.

If you are considering paying a person to mentor or coach you, ask if they know of the above concepts especially Control and Roll. If they can't show you a success history, move on!

Charlie

Glad to be added to your collections of contacts for Baltimore, I have been buying and auctioning real estate in Baltimore now for over 40 years, own apartment houses and commercial, I use a system called "Control  and Roll" where we assign our contracts for equity profits within a short period of time.

Happy to work with you - call anytime,

Charles, auctioneer

Some lenders are predators, looking to up their fees, points or what ever, asking for documents, leading you on and turning you down! I've had long experience and understand their transparent tactics. I've gotten along OK, with a minimum of conventional financing. 

Your best financing is the Bank of the Seller!, no application, no appraisal cost or JUNK FEE, The seller won't give you money but will let you pay them back on their equity while putting you in a great deal without lots of real money.

Getting the Seller to say YES, "I'll hold a mortgage"

'You can ask, "Mr. Seller. I'd like to buy your house, but I need some seller financing! Well that's a beginning. But if he says NO, I want cash! The negotiating for seller financing is done.

Test sellers reaction first while in the rapport stage of your negotiating, try to get a verbal commitment before asking for financing.

After a period of negotiating and coming to a tentative  agreement of sales price of the building; make the contract (in writing) contingent on the owner holding a mortgage (state the terms, $100,000.00 amortized for 20 years at 6%,  P and I of $860.00 a month with a balloon in 60 months in the amount of $XXXX.  (add up 60 payments to show seller how much he will receive and the interest he will get)

Showing the seller the benefits of the mortgage  will help you get that financing.

PRINCIPAL mortgage (THE BEST), sometimes you can offer more than the seller wants if they agree to give you a principal mortgage. This is a mortgage with no interest, all payments go to liquidate the loan. Clause: Inconsideration of x dollars, seller agrees to accept a principal mortgage  of $100,000 with payments of $1,000 a month until paid in full.

Always make sure your principal mortgage has an assumption clause in it (mortgagee agrees that this mortgage is fully assumable without qualification with release of mortgagor. 

I've written some reports on creative financing - it's really a great way to CONTROL real estate using leverage and little or no cash.

Good luck with Seller Financing.

Lucas,

We have used Apple Plumbing, they just took care of a back up and broken pipe at 2011 N. Charles St. honest folks. My wife usually calls them, (Colleen)

give a call glad to share some Baltimore war stories, been here for 78 years, seen many changes some that ignited some great real estate opportunities.

We have been doing some commercial building in the Charles North area, The Baltimore Eagle, Joe Square pizza and soon to come The Charles Street Market,

Good luck with your investment.

You should not have given up your money until the tenants' butt is out and you have the keys. I am sure you know by now that you made a mistake.

have the utilities turned off, file a rent notice, remover the doors to be painted for two weeks, hold an open house for tenants or for sale, post no trespassing signs on the building. Change the locks, start your renovations while they are there, hang dry wall and sand it, notify all the neighbors to keep an eye out on the property and to call you if they see any issues, make sure the toilet flashes, sometimes something gets stuck in the vent line, like a bird or tennis ball that causes a problem, replace the water lines (this requires no water service until completion).

Sell a "wolf ticket" meaning to sue them, or other threats... 

Good luck, have fun with these suggestions Ha!

Phil, what is your definition of a land contract? What are you trying to accomplish with this document? I have been in the business now for over 40 years, got pretty good at contract engineering, controlling real estate, options, delayed settlement and have done hundreds of assignment, just wondering, why a "land contract"? If I recall, at 78 I forget at times, but I remember they were not really the best creative method to capture equity. 

I am not a lawyer, but I am street wise and know something they don't!

Charles Baltimore