All Forum Posts by: Account Closed

I strongly suggest you play it safe an hire an attorney. I've had bad experiences with generic contract that I've found on the internet and then had to pay a lawyer to rectify the situation. The worse part is that the money I paid the lawyer was much more than what I would of paid him if I hired him instead of using the generic internet contracts.

The way that has worked out for me the most was to gain access to a Lis Pendens site which will give you access to homeowners who are in the beginning of the foreclosure process. Once you find these homeowners who are in preforeclosure you can then approach them and offer to do a short sale and save their credit. I've found that direct marketing like this workout a lot more than direct mailing because these homeowners are flooded with related junk mail so they rarely read the letter.

Definitely go to school. After you go to school and get a job you can start out your real estate investing career part-time. An education can always be your contingency plan in case things doing workout with your real estate goals. I know real estate investors that have an unrelated 9-5 and make more money investing part-time than their 9-5. The only reason they still keep their 9-5 is because of the benefits and security.

If you're interested in wholesaling short sales what you can do is gain access to a lis pendens site in your area. This site will give you access to properties in your area whose owners are behind on their mortgage. Filing a lis pendens is the first step in the foreclosure process. Using this site you can browse which homes in your area whose owners are behind on their mortgage and fit your investment criteria. One can also gain this information for free by going to the county's clerk's office.

You can then approach the homeowner and offer to save them from foreclosure by doing a short sale. Once you gain their approval you can the start the process of negotiating the short with the bank. Once the bank approves a sale price you can then flip it to an end buyer using transactional funding and a double closing. Some transactional funding companies even offer down payment assistance for the end buyer.

I prefer this strategy because it takes less time and capital to wholesale. Also, the house is less likely to need much repair work done. If the house does need repair work that can be an added benefit to you the investor because that will bring the BPO down.

The seasoning requirement for FHA loans have been suspended for 2010. So if you buy the house with a FHA loan you can flip it. There are no seasoning requirements for conventional loans. http://reitips.com/fha-flip-rule-seasoning-waiver/

Hi Gio,

Historically, NY has always been a hard market relative to the rest of the country. If Bush & Obama didn't bail out wall street you would the NY market would of fell a lot more than it did. Compared to the rest of the country NY wasn't really as badly expected. I definitely would look into wholesaling outside of NY. I don't think you should spend too much time with NJ because NJ is pretty much a suburb of NY. Right now the hot markets are CA, Vegas, Phoenix, and TX.

Hi Fred,

Welcome to BP!!! From my experience this is the best real estate social networking site. What exactly is your problem trying to obtain financing?

Hey Belinda,

Welcome to BP. If you think about it there are horror stories with every type of real estate investment so I wouldn't let that intimidate you from short sales. They're a very good investment which I've profited a lot from with no money invested. You can wholesale short sales and use a transactional funding source to flip it. There are some funding companies that even provide down payment assistance for the third party you sell the house to. What you can do is gain access to a Lis Pendens site and approach homeowners who are behind on their mortgage and offer to sell their house short and save their credit. It would be easier & quicker if you found an end buyer first before you approached them.

Hi Devera,

Welcome to BP!! I promise you will be very pleased with this site. From my research it seems BP is the best real estate social networking sites. There are so many things you can learn from this site and so many people you can network with. If you have any specific questions please feel free to ask.

I like that fact that you're a man of your word. In a business like this relationships are the key to success. I would apporach the owner with a friendly attitude and inform them you have more than one buyer who is interested in a their house. Let them know how quick you can close on the sale. Also, advise them of all their options. If the owner is late I suggest you research the foreclosure process in your area and teach them how it works. After you verbally inform them of the foreclosure process and where they stand in that process give them a print out of the foreclosure process on your letter head so they have something to reference. I would come off as very understanding by conveying them you are there to help not necessarily to make a profit. If they're distressed make sure you explain to them in great detail their different options they have that doesn't include a sale by you. Good luck and please post your results.