All Forum Posts by: Stuart Birdsong

Generally speaking Hedge Funds, corporations and large capital groups purchase default notes, in bulk, at a discounted percentage of the value of the note. Then either take over servicing the note at the set interest rate, or sell it for profit. In addition, they are not big fans of Single Family properties from a buy and hold perspective. More importantly, they are not flippers. Just a thought!

Congrats, Bill P.! Sounds like a cash flow positive investment. In terms of reserves vs. HELOC, I recommend both. Save some money to make repairs needed, although Condo's have HOA's that cover some of the major expenses associated with Rentals, and pay back HELOC as soon as you can so you can do it again. Cheers!

Stuart

Patrick, Unless the returns are that high, including property management as an expense. I would lease the property out yourself and avoid property management altogether. I imagine many will disagree with my statement, but you will never realize your returns as an investor if you use property management. That is until you have enough properties to justify the service. I realize that you probably live remotely from your new investment, but if you can invest some time in showing the property to some potential tenants and screening them, you should be able to fill the lease and collect rent remotely. Now, I realize it goes well beyond rent, but I am just speaking from the perspective of maximizing your returns. Just a thought! Best of luck!

Stuart

As a Real Estate Broker, you don't need one to one to be a wholesaler. They usually want compensation for the deal and that can cut 3% and much more out of a potential deal. Cheers!

Stuart

Joseph, Welcome to BP! Best of luck in your endeavors! 

Modesta,

   As long as there is profit for the investor on the back end of the deal, there is no reason for them to walk. I highly recommend being as transparent as you can be in the process, as this shouldn't backfire on you in the long run, as it is the ethical thing to do. Both sellers and investors appreciate the honesty and are more likely to do business with you again in the future. I hope you are successful in your endeavors.

Stuart 

Modesta,

      Did you disclose to the buyer what you took the property under contract for prior to assigning the contract?  I don't agree with the buyer backing out of the deal but if you weren't transparent about the contract itself, and your profit, then I can see how an investor would be less than happy. Transparency is critical in your dealings as a wholesaler.. Now if they are balking at you profiting 5,000 off the deal then they aren't a real investor anyway. If you're making a substantial sum above that you should at least disclose the terms of your wholesale, so as to protect yourself from this type ordeal. Just a thought. I hope you work it out. 

Stuart

Charlene, I may have the number wrong, but FHA will lend if your credit score is 620 or better, but not below that. (That number may be 640). Of all the typical loan programs available to buyers' they FHA loans are the most favorable to buyers' with less than great credit.

Philip,

     Unfortunately I am not from Maryland so my recommendation may be more pertinent to Colorado. Go to you City's Planning and Zoning website and search for Land use code, which should be a long document including everything pertaining to the local planning and zoning regs. Look up DBO zoning and what are allowed uses under it. It may state that there are residential uses allowing no more than 5 units per building or something like that. It may also tell you that in order to convert this property into residential with 3 or more units you have to conduct a administrative or neighborhood review and so on....These are just examples. This should at least provide you some basic guidelines for what will be possibilities of the property. Hope this helps!

Stuart

Tom, Nice work!