All Forum Posts by: Rick Pozos

Find a generic contract online if you need one.  Just get something in writing that says that you are the buyer, seller is Mr. X, the price you are paying, the terms of the agreement, etc.

The attorneys make the whole contract thing WAY TOO COMPLICATED.  It is not. Like @Rocky V. said above, just put it down on paper and both of you sign it. YES, it really is that easy.

There are several podcasts that deal directly with marketing here on biggerpockets that answer those questions directly. 

My opinion: Do all that you mentioned. I do. I drive for dollars at least once a month to add some names and addresses to my list. I send out postcards every month. I have sent letters. 

The first thing I would do starting off, market yourself to all your friends, family, neighbors and anybody who will listen to you. Leave your business card with a good tip everytime you eat out. Let everybody that you come into contact with know that you are looking for people who are behind on their mortgage, taxes, inherited a home, tired landlord, or anybody who needs to get out of their house quick.  And that you can help them by buying their home.  This, of course, would be in addition to sending out postcards, letters, etc.

The phone should start ringing very soon.

Very smart move if you can get the money out at a decent interest rate and if you can find a good deal on a property to purchase.

A 40k house that rents for $950 per month??? I would definitely check rentals in the area as well as values. 

 If that is the case, hell of a deal.  Where is the house located??

you said several times "out of their profit". Are they staying in the deal??

If they are 15k behind, they should get several thousand and be out. When I do a sub to, they know that they are about to lose their home and they take a little moving money and they sign everything over to me.  They do not get to share in MY profit.

Having to come up with that much cash to close the deal, i would just offer them a cash price. They will probably take less if they can get paid off immediately. 

You can always partner with someone who has the money. You do have to split it 50/50 or whatever agreement you will have,  but it will show a lender that you CAN complete a rehab and sell a property. Also, you will not have any monthly payments to worry about during your rehab and the time that the property is for sale. So many different ways to do it.

Get to know the person. Talk with him/her about your plans, your thoughts, your ideas. Make sure yours and his/hers are lined up. Talk about all of the what-ifs. Just know who you are dealing with and let them know also. Any uncertainties should be discussed. If you are not comfortable with the person, dont do it.

I would list them with a local Realtor. They will get you the top dollar if they are in good condition. An investor is going to want to buy them at a discounted price, but they can usually close quite quickly. It is a tradeoff.

In California, if you can find a property that even cash flows a few 100 per month, that sounds like a deal.  You know the appreciation is crazy. Maybe in a couple of years you might have 50k or even 100k in equity. Refi out or keep it longer for the 200k.

Me, personally, I would keep it.

It sounds like a hell of a deal!!! If you can get a few of those, you are ready to retire.