All Forum Posts by: Rick Pozos

I have never invested in an area where I dont live.  I like to be able to see what is happening with only a short drive. This forum should be able to help with information about the market and you can probably meet some people who know Houston.

The idea sounds good, but there are a few things to consider.  Do you want to live right next to your tenants?? Are they going to wake you up with little problems in the middle of the night since you are right next door??

Regarding the price, yes, you have to find a property that makes sense.  Find a seller who is motivated to sell.  What does that mean?? If its a $400k property, the seller should be willing to sell it to you for 250k or 225k or even 200k. One will do this if the property needs a little work and they have no money to fix. Or they have some other "issues" that they need the money to go about their business and are wiling to take less than fair market value in return for getting some cash now.

Look in the forums about finding motivated sellers. Also, try your local REI clubs to network with others who are looking for the same type of properties.

Good Luck!!!

WOW Bill, I thought I was the cynic.  Yes, the meetings are to give some superficial knowledge and then promote the organizer's own program or seminar for only $99 if you sign up right now. BUT there are usually 50 or 100 people there at the meetings.  I dont pay for the weekend seminar or the other junk that is pitched.  I have met lots of people who are doing the same thing as me.  

In a big city you are not competition with each other.  I find buyers, lenders, wholesalers who are just trying to find other investors who they can network with.  As long as you go in knowing that some people will be trying to "sell you" on some product it will help you steer clear of them and you can get some networking done.

It all should end up being networking.  Just remember that.  Dont take your credit cards with you to the meeting.

You should have the contract with the seller and have the buyer sign an assignment of contract with you.  This will let the buyer "take your place" at closing.  Get the assignment contract to the attorney or title company and they will do all the rest.  At closing they will cut a check for you in the amount of your assignment amount.

Me personally, I let everyone in the transaction know what is going on so that there are no surprises at closing. I dont tell the seller how much more the buyer is paying, just let them know that someone else will be closing for you.

First remember, he is just a guy like you.  He just happens to have some cash or lines of credit that you would like to tap into.  Call him up and let him know what you do, what you have done and what you want to do.  Ask if he would be interested in lending you some money that would be secured by a 1st lien.  See what he says.  If for some reason, you really goof it up, dont worry, we are all human.  Try again with somebody else.

Are we trying to be creative??  Credit card advance, loan from 401k, retirement, parents, friend, cousin, old neighbors, someone, anyone.  You should be able to find someone to lend you the 5% and you give them a 2nd on the property. 

If you are part of a REIA in your area, someone might be willing to do the same. If its a great deal, dont walk away because you need a little more down payment.