All Forum Posts by: Guy Gimenez

So many wannabe investors want the easy, quick route. They want it handed to them on a silver platter with not effort on their part to research and investigate investing strategies. When someone wants to "pick my brain", I recommend that great steak restaurant and let them know my wife / business partner will be with me and that we appreciate them offering to pick up the tab. 

Are CFD's legal in Texas? Yes. Would I EVER do one as a seller? Absolutely not. The statutory burdens on the seller are extreme and can be financially devastating if a mistake is made. Would I consider purchasing via CFD? Still no, the pitfalls can be numerous and there is no upside that I can find. There are too many better creative options than to consider a CFD.

@Carolina Lau

Make sure you ask for proof of funds. The vast majority of buyers are not actually buyers at all...they're assignors, meaning they will tie you up in a contract and then try to flip the contract to another investor who actually does buy properties. Asking for proof of funds greater than the amount of the 60% down payment is the starting point to ensure you're not wasting your time. The P.O.F. should be in the form of a bank statement, not just a letter a bank officer stating the buyer is good for the funds. Another step is to ensure any contract you're considering includes "assignment is prohibited" language. And if you're not a savvy contract person, have the contract form reviewed by a seasoned real estate attorney. 

There's a difference between a motivated seller and a potentially motivated seller sometime in the future. Of course follow up is essential. But hunting for deals in the retail pond will provide less than desired results...unless of course the investor wants to pay near retail and bank on appreciate...which of course is fool's gold. 

NAR didn't fail the industry...the industry failed the industry by fighting change and the free market system at every turn. As a broker and investor, I believe the changes will, in the long term, benefit the consumer and make the industry better. Free markets work...let the consumer decide.

I believe the simplest answer is for the VA to make changes to their rules for veterans who are buying. If they truly want to help veterans, they shouldn't put them at a disadvantage in the free market system. I think there will be many changes to come on the loan side of the equation for all types of financing.

 Off market sellers need to find you, not vice versa. 

 1. SEO

2. Pay Per Click

3. Social media ads

4. Relationships with other investors and/or bird-dogs (ie deal finders)

5. Driving for dollars

Assuming the law is righteous, just and will be legally applied is fools gold. I have two attorneys in the family and they know this all too well. I have a good friend who spent two years of her life in litigation as the plaintiff on a no-brainer legal case. Yes, she won, but the toll it took on her emotionally and financially was, in her own words, devastating and not worth it. Trial attorneys donate huge amounts to judge campaigns for a reason...and it's not so they can be ruled against. Look around and you'll see the difference between theory and reality. 

Ultimately, this will level the playing field. Consumers (buyers) can decide if they are willing to pay for a representative or go direct to the seller. I believe most consumers want what they want and will do whatever it takes to get it as long as it doesn't cost them more to do so. I also believe technology and A.I. will play a greater role in this industry, as it should. Time will tell, but I'm hopeful the proposed settlement will cause some creativity in the industry and will allow sellers to have greater control in the sale process while potentially saving a great deal of money.