All Forum Posts by: Paul Neeb

@Brett Winston you're buying their house not just trying to sell it so when I said default I meant default on the loan which is what they are giving you. It's the same a a bank loan if you default on the bank loan the bank takes your house right? It all depends on the sellers motivations. If they have 100k in equity but they are just looking for a quick 30k to move you give them the 30k they give you the house then after you fixit and sell it they get the rest of their money. Strangers do it all the time...

Brett, so it sounds like you're looking for 100% financing on a flip deal. You get all the rewards and the lender takes all the risk. Alexander is right on bringing the 25% for a hard money but have you thought about finding a deal where you can assume the sellers loan or have seller financing? Ultimately you'll be trying to do the rehab in under 30 days then market the property to have it sold in other 30 days so some sellers may be open to getting a delayed payment if they have equity and don't need it right away. That spreads the risk out where if you default they just get the house back and are in the same position they were before they started.

I'm partially cheap but mostly poor so what are some free resources that you recommend for reading books and learning? Already listening to podcasts but what else is out there?

I'm in California but if you have a homesmart there I've heard good things about them. One recommendation i would have for you is that you start at a bigger percentage company with an agent training program before you go to a 100% commission place. Even if you only plan on just representing yourself only you'll learn good habits and can apply a lot of the lessons learned to your investment business.

So here's the deal... It's time for me to start. Issues I'm up against right now are 1) I am poor and have no money 2) I just retired from the Marines and although I've been a real estate agent since 2007 it's now my full time job so can't use that income to qualify as they say lack of job experience. 

The plan: do what they do on TV.... I see deals all the time that will only work all cash and have great returns but without money I can't get them. I know TV is a lot of drama and scripting but the plan is I'll be the agent my buddy will be the contractor (both already have experience) and we hit it. Oddly enough HGTV doesn't want to document or fund this... I've asked already.

2 Ex deal that I just saw and couldn't find a buyer for or the money for: 

Deal 1)Purchase price 795k rehab 200k ARV 1.3-1.4mil. That was an REO SFR in a great area. That's over 200k return after closing costs which to me is a lot. not to mention I would have gotten 3%(another 24k) on the front as the agent purchasing it

Deal 2) Purchase price 275k rehab 30-40k ARV 410-420. Again an REO SFR again another 50k in return which is still a lot to me

The Question: is there any type of loan I can get that's not secured by any particular property? Maybe a business start up loan? Can't do hard money because i don't have the 25% LTV. I've been looking into Veteran business startup loans but those are more for brick and mortar stores than what I'm trying to do.

I'm estimating that I need about 300-350k to do this in my area. Can't move to another area because the wife won't let me and I like SoCal. Can't take out a HELOC (150k in equity) again because the wife wont let me and the income thing discussed earlier. If i get rid of the wife I won't get much of the 150 so that's not an option either..... Subject to doesn't really work down here so that's not an option either.

There has to be a way what am I missing or don't know yet?

Robert, money is cheap right now but what will it cost when you get your next home? I'd say FHA 203k now as mentioned above. Also if you're heading to the LA area 300k is not going to get you much you might want too bump that figure up depending on what area you will live in. I just saw a 3/1 for 700k.... it was nice but only 1200Sqft

I use a mobile notary on most of my deals. They go where my clients are and takes little timeout of their day as possible. As an agent i find it's important to respect their time since i expect them to respect mine as well. After hours signings are also great and the mobile notary will meet them where ever they want to meet.

Chad, Money is cheap right now so why take the 20% out of your home instead of just exploring your lower down payment options? Not sure what your income is but it sounds like it's pretty good so barrow more. As for the private school vs Public.. I tell all my clients that my views on school is you get out of it what you put into it. What I mean by that is if you and your spouse are not also helping them learn then why spend the extra money on private school? Is it so you don't have to get involved? There may be better school districts in the area but school and teaches are tools and should just be part of the bigger learning strategy. What do the teaches know that you can't teach them especially at such a young age? Las Vegas is the worst school system in the nation yet they still have kids that go to college and become Dr's and Lawyers. 

I'm an agent and I would say if you are experienced in what you want to do then why use an agent? With that being your first property of this size you might want to do some research on experienced commercial property people or ask her who a good commercial property person is (keeping in mind if she doesn't know anyone she may just refer you to anyone random person for the referral fee). After you've been through the process once then evaluate what your agent did for you that you couldn't have done yourself.... Agreed that most of the good deals will be unlisted properties and not in the MLS so if there is a certain property you have in mind you may want to just contact the owner directly and see how they would want to handle it. It may be appreciated that you contacted them and saved them the commission....

Marketing is easy, find a top producer in your market and do what they do. If you're just starting off there are a lot of free or low cost ways to get it done. If it's legal in your market partner with a lender and have them split the costs. many of your affiliates will also provide free door hangers to invite neighbors and their friends to open houses. Open house signs have been my most cost effective marketing material, make sure they are branded to you though as generic ones look cheap..... don't neglect online forums via FaceBook and craigslist 

Google Marketing and 4 P's then add the 5th one of persistence!!