All Forum Posts by: Account Closed

Jordan Don't overcomplicate this. You give the seller whatever down payment you both agree to. He gives you the deed to the property. You own the same as if you had gone to the bank and begged them to lend you the money. This is about a hundred times better than bank financing. Get title insurance at the title company of YOUR choice. Read this http://www.ronclimer.blogspot.com/2013/04/seven-reasons-why-i-love-owner-financing.html There is no better way to buy than owner financing.

Yes, that was a long winded intro but welcome to Bigger Pockets. There is a lot to learn. This is a cool place to learn it.

Why does the $8000 guru say you need cash buyers? If you buy a house for $100,000 and list it with a Realtor for a price that allowed you to make a acceptable profit, pay some FHA or VA closing costs and a Realtor's commission, would that work? The secret is to buy the property right. You make money when you buy right. Selling is easy if you bought right in the first place. Are you looking at lots of houses for sale? That is how you will get out of your comfort zone. Go look at some houses.
Be careful not to do anything that the attorney general would consider mortgage fraud.

You could give the seller a second mortgage on your home where you live as a down payment. That not very sexy but it would work for me if I were the seller.

I operate a real estate school in Florida. The pass rate for the Florida real estate exam last month was 27%. Why is the pass rate so low? Many people that take their basic course, take in on line from a real estate school that is not in Florida . They teach a bunch of stuff that is NOT on the Florida test.
Here is my advice. Be sure the online school is a California school. You don't need to learn about homestead because you don't have in California. Florida students don't need to learn about community property. We don't have it in Florida. Choose a California school

Call your local Karate school

How about that "call your neighbor" on the airplane that Virgin is doing. Plenty of laughs when that starts being abused.

Glenn
If you have money, it is not hard to find people that own purchase money mortgages secured by real estate they sold a couple of years ago. Better yet, if you can find people that their heirs held a mortgage a few years ago, now you have found a vein of gold.

If you have money, you find an heir that just inherited a $10,000 (current balance) note at $132.15 per month with 120 payments left. You offer the heir $7000 and he says yes. He assigns the mortgage to you. Compute your return on that. If you don't know how to compute your return, you don't need to buying any mortgages.

Most of the retail courses that I have seen try to teach you how to "control" notes so you can sell them at a profit. This is extremly difficult to do in real life. There are too many variables. How do the retail gurus tell you to verify the current balance? Are you going to take the morgagee's word for it? You have to get an estoppel letter from the morgagor. I can tell you what I would do if some stranger contacted me to verify the balance on a purchase money mortgage that I was paying on. I would call the mortgagee and ask him if he was considering selling that mortgage at a discount. If he were, I would outbid any buyer he had. Even if you had an iron clad assignable purchase agreement, the mortgaor is not purchasing the loan. He is paying it off. There are lots of variables that make this sound better from a podium than it is.

If you have money, you make the offer to the heirs. They say yes. You get to closing before anyone has time to think this over.The key word is if you have money. If you don't have money, this is way too difficult. Buying houses with no money is a lot easier than buying notes with no money.

Jordan
Here is the very best explanation that you can find of income ratios [REMOVED] This is me explaining this for the Florida real estate exam. It works the same way in real life that it does on the exam except that the input is "given" in the classroom. Out on the street, you have to get the income, vacancy etc. for yourself. If you are the buyer, be cautious, not ambitious.
Brandon will probably remove my link above since Bigger Pockets does not allow self promotion. This is on my You Tube page. My user name is ClimerSchool. It is not my intent to self promote. I have nothing to sell to you. It is my intent to help you learn. If you don't know how to read a pro forma statement you need to get that info somewhere. The next video is the cash on cash ratios and other performance ratios that you also need to understand if you are working with banks and institutional lenders.

I hope this adds some value for you.

Latham
You don't need to read a book or buy a real estate dictionary. You don't need to know all the lingo. Whenever someone that you are talking to uses a word that you don't know what it means, just ask them what it means.

When Mr. Big Shot investor says," This property will give you a 12% ROI" Just ask him what is ROI? How do you compute that? People love to explain things. As you learn what you need to know, you will, at the same time, cause the people to like you better. It will cause them to believe that they are smarter than you. That is good if you are buying from them. It is a phenomenon. The better they like you, the more likely they are to get the price and terms right for you.

Start looking at houses. Ask the seller or the Realtor anything that you need to know. You will learn fast. My favorite question is how do you know that? When people say things like this house comps out at $100,000 ask them"What does comps out mean?". How do you know what it comps out at?

Just ask questions. Don't worry about looking foolish. You are not applying for a job