All Forum Posts by: Zane McLaughlin

I am trying to connect with investors in Fayetteville NC, and other investors in NC. I tried the meet-up group, but I hear that it fell apart. I am thinking about starting my own group, but need to know who to invite. 

Hi @Account Closed,

I too am in buy and hold, and the area that I am in is great for buyers, but it is awful for sellers. I would never flip in my area. It may seem like a great place to buy houses for cheap, but in Fix & Flip, you make the most money by selling the house fast. If the market isn't great for sellers, than it will be hard for you to sell the property you just bought.

There needs to be a happy medium, and I would even venture to say that the market needs to lean more towards the sellers side. You will find the deals that need fixing and be able to buy them for under market value, but if you can turn and burn on those deals fast, they will make you the most money

hey it would be great to work with you @Adam Franco

Welome to BP @David Doheny,

I would say other than those things you have listed, start talking to potential clients. You don't have to buy or close any deals, but you can start getting an idea as to what kind of people you will be dealing with.

Also, start looking at your market. I usually hop on Zillow.com and look at houses in my area, and look at what those types of houses usually go for, and how much rental rates go for in the area. I do this on a regular bases. ESPECIALLY when handling a deal.

Hmmm, Interesting question, and if there is one, I would like to join. I don't know of any, but perhaps we could start our own group.

I do business out of Fayetteville, and I to am interested in getting into MH parks, and Lonnie Deals. Currently, I live in Germany for a few more months, but once I am back in NC, we should get this thing going!

Buy and hold works to creat passive income. You buy, and then hold it to either rent, or sit on it until the home value increases with appreciation, and then sell the home for more than you paid for it. 

Typically the way we do this is by acquiring house with as little out of pocket as possible. A few ways are creative financing deals like: Subject-to, sandwhich lease option, and seller financing. These allow you to obtain a house with little or no money out of pocket to get. 

Another way is to leverage your money by buying a house using a traditional loan from a lender. The goal here is get a mortgage payment that is less than you can get to rent the house. 

Example: you know a house can rent for $800. You would want your monthly mortgage payments (including taxes and insurance) to be $600 or less. This gives you a profit margin of $200+ and thus creating passive income. The goal here is to acquire many different properties to accumulate even more passive income over time. 

I actually I don't do either right now. I am in the buy and hold game, but I plan to do a bit of wholesaling in the future. 

Hi @John Chin great question

So as it turns out, there's really nothing you can do to avoid them calling in the loan. Aside from telling the seller to keep their mouth shut, and not tell the bank what you are up to, its really up to the lender to decide on whether or not to call in the loan once they've learned that the deed has exchanged hands while the loan is still in someone else's name. The lender holds the right to exercise this option, and there isn't anything you can do to stop it.

The lenders however, tend to look the other way on these deals. Foreclosing on a house means that they have to spend large amounts of money in legal, and processing fees, and since the lenders are in the money making business, they tend to ignore that these deals are happening... so long as they are still getting paid.

If you owned a store, and Person A wanted to buy a candy bar from you, but Person B behind them handed you the cash to buy the candy bar for them, would you then pay almost twice as much to keep Person B from making Person A's payment? Certainly not! That's just not good business, and that's the way the lenders tend to look at these deals. As long as the payments are being made, the most lenders wont care who is writing the check.

Now the "due on sale clause" helps not only protect you, but also lets the seller know exactly the risk involved in signing this deal. Its really at the risk of the seller, and his name being reported on credit.

Hope this helps!

You should look for someone that you can get along with, and will add something to the team that you are lacking.

If you've been doing business for more than a few days, you will know which area's you and your current partner are good at, and what you're not so good at.

My brother-in-law is my partner and we are really good at finding deals, and driving the business, but we suck at organization and sticking to one task. My wife, who is our 3rd partner, adds to this area that we are lacking. She keeps us focused and most importantly; organized. Without her, we would fall apart, and end up chasing our tails all day long, wondering why we aren't getting anything done.

I hope this helps!

It depends on your state law really. Where I invest in, if you take a deposite for anything, you have to keep it in an escrow account. You can do a quick check on google, and just search "tenant law in MD" and it should give you the law pretty easily.