All Forum Posts by: Scott Sloan

You mentioned that once in the foreclosure process, the borrower's credit was trashed and that the foreclosure sale itself didn't make much difference. I am not certain about how much the credit goes down during certain steps of the process (I'll defer to your years of experience), but I do know that a foreclosure sale stays on your credit record for 7 years.  So I think the benefit in avoiding the sale is the ability to rehabilitate your credit score. Notwithstanding, your point about profit being the primary driver behind seeking pre-foreclosure deals is well taken.

Quote from @Account Closed:

Quote from @Hamlet J.:

@Mike Hern

@Patty C.

Learning is important, but taking actions is more important

And taking action with "incomplete" information in Creative Finance is disastrous. Does his mentorship cover the following?

Okay, you've just taken over a loan Subject To, the seller won't move out. What are you going to do?

You start an eviction to get them out and learn that their sister is a real estate agent who claims you have ripped them off.
What are you going to do?

There is a lot of equity in the property and the real estate sister gets an attorney involved and you are charged with equity skimming. What are you going to do?

In the process you learn that the seller is under her sisters care because of mental issues. What are you going to do?

You got into this with no money down and don't have the money to hire an attorney to fight the "false" allegations. What are you going to do?

You use someone else's money and the deal falls apart. How do you pay them back before they sue you? What are you going to do?

The seller is frantic and calls their lender to tell them you have stolen their house. The lender calls the note due. What are you going to do?

You've read all of this and either don't understand it or don't care or have been falsely told "this never happens" what are you going to do?

You fall gently into the cliff. xiǎoxīn shuāi dǎo 小心摔倒

Couldn't you just get some hard money to pay off the lender and get a new loan? Then you could just sell it and let someone else evict, or just evict the tenant yourself. You still have legal title to the property--the deed is in your name. If you're worried about a lawsuit, someone can always file a frivolous suit, so you accept that risk by conducting any business. 

The other thing to consider is if you employ creative strategies a lot, you're also playing a numbers game. As I understand it, this hypothetical would be extremely rare. So even if you encountered this issue 1/500 deals, the risk-reward would be acceptable. Of course you should understand the potential consequences of your actions, but if you make decisions based on  avoiding the unlikely scenarios, progress is a lot more difficult. It's a risk-reward continuum.   

I am investigating renting out my 3-2 SF house in Paris, Texas to traveling nurses. I've believe Furnished Finder is the best mechanism to accomplish this. Unfortunately, when I look at the map, there are 0 listing in Paris that are not hotels (and one "room" in a house). Not sure if this is good or bad--but leaning bad lol. I thought perhaps the Paris Regional Health center would have a decent draw to the area, but it's hard for me to believe that with the 0 listings 

1. How much do you spend on furnishing a 1,600 SF 3-bed house for nurses?

2. Does anyone have any insight into traveling nurse demand in Paris?

3. Would it be smart to use the three bed to rent to 3 different nurses? Anyone have experience with how this works out? Personally this doesn't sound like something I'd enjoy living in, but I hear too much about "rent-by-the-room" to ignore?

Any input appreciated!

Try Lawyer's Title! I've got a deal in escrow with them. They seem to know the ropes when it comes to wholesale deals.

Cash Buyers, this is a great investment opportunity to buy in 75220! Nice deep lot (125' x 60'), perfect for new construction!

Current residents will remain until September 31, 2023 - Closing is March 30, 2023, so you can close and begin filing for your permits right after Closing so that you can get started on construction or renovations immediately when tenants vacate.

Please no wholesalers. Cash buyers only. [Pictures coming soon!]

@Christian Staum I recently ordered a batch of skips from Propstream and have not had good results. The majority of numbers I dial are non-working numbers. Is there a way anyone knows about to scrub non-working numbers from your data??

Also, regarding the DNC list, I’ve read that since wholesalers are offering to buy something, this is not a prohibited activity according to the federal rules regarding the DNC list. I’m inclined to call the list anyway since I don’t want all those numbers I paid for to go to waste—but wanted to get other peoples thoughts/experience on this!

I am new to wholesaling and was hoping to get some advice on some specific questions, see below (answer one or all, and thanks in advance for any input!):

1. My understanding is that deal machine/prop stream are better used for generating lists (as opposed to skip tracing and direct mail) since they are more expensive. I have decided to use Propstream (because during my dealmachine trial I was unable to access the website on a desktop for three consecutive days...), and would like to know suggestions on good skip tracing service and direct mail service.

2. When negotiating with potential sellers, do you always say you will be closing "in cash"? What if you are not sure what buyer you will be linking up with and they want to use a HML? Perhaps in the residential space, enough people colloquially recognize HML as "cash"? I don't want to advertise something that is incorrect.

3. If you are doing a novation, and the property needs a slight touch-up, say $5k, is this something you pay out of pocket for (or try to get someone to do the labor and get paid at closing)? If this is the case this seems like an unacceptable risk without legal title to the property. Is there another way to get this done, or if the house needs work done, it just shouldn't be a candidate for novation?

4. Bonus Question: Any tips on how to convert an upset caller (who says "stop calling me") into a sale??

I have been searching for a new home for my family (need a little more room), and I think I have found an off-market deal that might work for us. My plan is to do a cosmetic overhaul to force some serious appreciation, then move into this new house after it is renovated (while keeping and renting my current house). Things are still in flux, but I hope to get a purchase price of $420k and am considering two different renovations plans, one at $90k and one at $150k. The ARV could be as high as 700k with the 90k renovation. I am attempting to persuade the owners into some kind of great owner-financing deal, but they're a little hesitant, so I am not holding my breath.

When I'd originally begun this search (Feb 2022), I had found a local bank that would issue a construction loan for the Purchase + renovation costs, requiring 15% down and charging 3.95%, interest only for a year. I thought this would be great in the low-interest environment, where I could cash-out refi at a good rate after the renovation was done. I am now pretty concerned that this is a risky proposition, as rates could continue to climb in 6 months/1 yr during my renovation. I have found another lender who will do a one-time close, purchase plus construction, where I pay 10% down on the purchase price. This seems attractive because I would like to lock in a rate now, mitigating risk of rate increases

Two questions:

1. My ultimate goal is to be paying at or below $2,500/mo for the mortgage payments. Are there any creative finance methods y'all would suggest I explore? 

2. Does the one-time close option referenced above (with the 90k renovation option pasted below) seem reasonable/a good option? To me it seemed like the rates and closing costs were significantly higher than expected.

Thank you for all these responses. These are very helpful!!

very helpful @Chris Mason, thank you. when you say "DSCR lenders" do you mean commercial lenders?