All Forum Posts by: Ray A Delfi

@Andrea Parsley if the owner wants to walk away then, to put it simply, mortgage stays in their name you make the payments to the mortgage company (set up at escrow). You have title then BRRRR it. If you default on any of the payments the seller gets their property back plus improvements. Here's a few steps, but to get you on the right path but definitely read up on this and consult with a realestate attorney.

-find out what they need to get the Tennant out, if it’s a simple Cash for keys, continue, if it’s an eviction, you may not want to get involved. If your going to do it, approach the Tennant’s with caution, don’t be a hero.

-coordinate with the seller to make a call to the servicing company to confirm the amount to bring him current. Get a copy of the mortgage statement.

-do your due diligence and run the numbers,

-if it’s a good deal you’ll have to get it under contract,

-send a check to the loan company to stop foreclosure,

-assign the contract to an investor that you have met in one of your REI meetings, you know personally, or keep it for yourself.

@Shane Craig install IP cameras to monitor remotely (multi unit properties) use the internet service to provide WiFi to Tennant’s at cost for extra income and pay for your internet service. Will only work if you offer a competitor price per month compared to the local internet service provider. You also need to use wireless access points with the ability to broadcast multiple isolated networks that you can manage remotely and at high enough speeds that will provide tenants with at least 100mps each. Yeah, it’s a bit techy, hire a professional if it’s over your head.

@Jaden Adams you got a ton of great advice here but I too wanted to drop my short 2 cents. Me personally would love to have a degree in architecture. I would love to design home buildings and work with developers to rebuild some of the small cities in my area. I would say don't drop out having that degree will open many doors in the REI scene and will give you a one up on many investors. My landlord is a architect and took a building built in the 1800 and turned them into beautiful loft apartments. He's planning on buying the building next to it and break through the wall to expand the current 8 unit building into 12 and his design includes a gym, garden, and a roof top terrace.

@Andrea Parsley for a quick response; sounds like the only option is a subject to, getting the mortgage current and renting it out again, but you may already know that. What does the seller want to do? What are they asking? Are the current occupants planning on leaving? Do they know or are related to the owner?

@Richard Lema what's your game plan on this deal? Are you honestly going to assign it to your LLC? Do you have a good relationship with investors that will buy properties you have accurately analyzed? If they are providing you a due diligence period before the contract go for it, do your due diligence and if it's a good deal take it down get it under contract and start your investment journey.

And here’s my rant, take no offense, as it’s not directed to you it’s the influx of “Wholesalers” coming from these horrible get rich quick seminars that is really starting to get under my skin. I’m here to help and offer as much business advice as I could offer and sprinkle a Little RE advice based on my personal experience. I’m all about Train, Coach and Mentoring.

I feel (and is thought by almost every “Guru”) the only reason wholesalers may want to consider a “exit clause” is because if they can’t find someone to assign the contract to they have no skin in the game and assume no risk or loss, but would leave the seller hanging with no recourse. It would be honorable to leave a “good faith”/earnest deposit so that the seller would feel comfortable with the deal and is paid regardless if you close. As it’s a matter of fact they will be loosing money and time when they are tied up in contract with the buyer and have to start the process all over again when the deal doesn’t close.

Get creative, run the numbers as if you would take on the deal yourself take it to escrow and make it happen. Assign it if you can but ultimately you want to build your portfolio and your business and wholesale when the the deal or your bandwidth isn’t right for you but is good for someone else. As @John Thedford would say, and I 100% back this up, If you don’t have the capital or the financial disciplines, get your finances right, get your license, work for a property manager or a broker, get out there and earn some income while you learn the realestate industry and meet people like, investors, experienced agents, property managers, and landlords. You need to earn credibility and add value to what or who ever you are involved in. You’ll be surprised on how much you will learn from being in the game rather than sitting in front of a computer trying to find an easy dollar. The new wholesaler with no realestate experience is only creating a job that they suck at and make no money. You may get lucky, but with out a strong foundation and discipline they won’t be able to keep the engine running.

@Wayne Brooks horrible advice

@April Brown what’s your average acre in a property in your market. If everyone has land it’s sometimes not something that is taken into consideration verses the Bed/Bath ratio, however were land is scarce it could be a selling point and opportunity for further development if that property as long as its zoned for what it is intended. However, to answer your question, what research have you done on estimating the properties value? What Comps have you found in the area? How did you determine your MOA?

@David Iniguez Poughkeepsie and Newbugh, NY. Just a quick respond to your question. Look into them and get back to me if you are interested.

@Michael Williams the numbers all look good and the way you detailed your analysis is good.

However the property doesn’t meet the 70% rule.

103k + 10k + 16k + 30k = 149k / 182k = 87%

As a subject to strategy and BRRRR it, cash in would be 46k plus holding costs about 20k for a year total cash in 66k (worse case scenario). To consider refinancing in about a year, we take the 103k + 66k = we are at 169k / 182k we are at over 90% LTV. Rent would have to be at least 1800 a month to make it work. If we sell we are only looking at 13k profit. Would that be a good deal for you? Would $13k be worth taking on a risk and flipping this house?

I may be looking at this at a crazy perspective it’s 430 am I just woke up. Please fact check me here.

Micheal, My only questions would be, what does the market say for rent? I turned down the same scenario we're the seller only wanted 8k to walk away with a 154k mortgage and ARV around $200k. It wasn't a rental market and homes weren't any recent sales. I found myself forcing the comps just because I saw that I could control this property for only 8k, but what then, I can't rent it, can't sell it if I put money into it I would hardly make a profit. Take a step back and look at the deal as if you had $60k in your pocket would you take it down?

@Chris Montalvo look up transactional lenders. Be upfront and honest, I’m not sure what your pitch was, but I’m sure it wasn’t honest. When considering a wholesale deal it has to be something you are able to take down yourself as it is a GREAT deal, isn’t it? Walk us through the deal/numbers, what strategies are you planing to use? What are your exit strategies? what strategies would the buyer able to use? Are you ready to start wholesaling? Give us a bit more background on your situation so that we could give you better advice.