All Forum Posts by: Rick Pozos

Financing. Get to some local meetings. After talking with some folks, you will find someone out there will have a bunch of cash. They will lend you their IRA money.

My friends and family lend me 100% of the purchase price AND rehab money. I usually only have about 2k for closing costs out of pocket. Then I have monthly interest payments until sold. The thing to remember also is that I buy super duper priced houses. If I ever got foreclosed on, my lender would make a bunch of money finishing the house. They would not be upside down.

The key is finding VERY discounted houses.

Dont take the easy way out and sell the house. You will regret it in 10 years when the house has 300k in equity.

Right now, the house probably does NOT have 190k in equity. Probably 100k. Once you pay realtor fees, closing costs, sellers want 10k for points and concessions. AND prices have come down a bit in the last few years.

Get a good grip on your personal spending and CUT BACK on everything for a couple of years. You had some lavish spending for several years, now cut back for several. Once you are in the habit of not spending so much, with no debt in a few years, you will be able to save and invest like crazy!! 

ps Google  'Dave Ramsey' and 'Debt Snowball'

Hey @Vanessa Lozano get out to some meetings and meet some people. See what everyone does and how they do it. You will start to see if you want to do what they do. After you meet enough people you will figure where you want to go. Then focus on meeting more people like them.

Hey @Benjamin Blunt do you have a website that says that you help people with their real estate issues?? Does your Facebook say that too?? Do you have a Facebook business page? What does your LinkedIn page say?

Did you fill out your profile page for BiggerPockets?? The more information that you have out there the easier it is for people to find you, if you want them to find you.

I almost everyday wear my "Rick Buys Houses" shirts with my phone number on it. 

But I guess to answer your question, I find people who are going to foreclosure. Texas is pretty quick to foreclose. That pushes people to make a quick decision. You gotta be quick also. When you help people with their issues, it will help you also.

Hey @Matt Agnew I would get a friend or someone who knows you to lend THEIR IRA money to YOUR IRA. BOOM!!

Your friend's SteveIRA lends to MattIRA 100k. MattIRA buys a property for 100k and puts 30k to 40k into the property. MattIRA sells and owner finances the property for 200k and gets 30k down payment. MattIRA can pay down 30k on the 100k and now owes 70k and has a note for 170k. You borrow for 10 years and lend for 30years. You borrow at 8% or 9% and lend out at 9.9% or 10.9%.

Maybe you can borrow the whole purchase and rehab of the property. This way you still have 50k in your account and you have $200 coming in every month for 10 years, then 1600/mo for the following 20 years.

OR you can lend me the money for 7 to 10 years at 9% and I can do the same as above!!

Mcknight Title Co. is all about the investors. They do assignments, wraps, etc. lots of fun stuff.

I think most investors want to win on more than just the interest rate. In this type of situation, they want low interest rate with low down payment also. But as Chris mentioned, buyer has to own the property, not a contract for deed or something like that. Low down payment AND it cash flows also AND buyer has title.

Maybe I am asking too much, but I don't think so.

Perhaps you just market to homeowners. They will pay a higher mortgage payment because they are not trying to cash flow.

Yes, you are foolish.

At 100% things can not get better and only go wrong. Tenants file bankruptcy, go out of business, stop paying, but stay. 

I dont think it is the gross income that matters. It is what is left after snow removal, cutting the grass, utilities, tenant issues, parking lot issues, property taxes, mortgage payment, etc. that make a difference. What would be left and what happens if 2 or 3 of the tenants move out next year?

There are plenty of people who want to get into a home. YOU just have to market to the right people. Maybe talk with some realtors who have people who cannot get a loan because they are self employed, but have plenty of down payment. Maybe put a sign in the yard and see what happens. Talk to friends and neighbors and ask them who do they know that wants to be in the area.

I think you can find someone to wrap your mortgage to at or just above your loan balance and maybe a point or two higher than your mortgage. Balloons are not allowed to owner occupants, but you can raise the interest rate at 5 years.

You should be able to at least get out clean in Austin. Dont go to the regular retail realtor who only deals with FHA or conventional mortgages like 80%+ of the people. You have to find the less than 20% people and realtors who deal with more difficult situations. Call if you need some help. I am down the road in SA.

If you take the heloc to pay off siblings, I would still offer a big "Cash Now" discount so that they get paid quick. I would definitely sell to an owner occupied resident since that is what the park is telling you. This way you are in compliance.

You will still make money on the arbitrage of the price AND interest rate. You might be able to charge 10% maybe even 12.9% for a mobile home.