All Forum Posts by: Vincent Polisi

@Jon Q.

Here's the difference in me and many of the strutting peacock braggadocios blowhards on BP and Facebook (not referring to you):

I can back up everything I say with documentation and recorded calls. 

I have a private Facebook Group with over 7000 members as well as paid coaching clients and JVPs, and membership subscribers and everything I do is done with total transparency and documented proof. 

My PBX records all calls and I post them for people to hear so they can hear actual deals done and I post wires received. I've got two calls you'd appreciate.

One is with a Major League Baseball player on his $1.7MM house and the other is with his financial advisor who you will hear tell me he understands I'm going to make over $100k on the deal and has no issue with it because I deserve to be paid. 

Anyway, the purpose of this forum is to learn and hopefully I can inspire you and others to think outside the box and consider some new ideas because having an arsenal full of weaponry is how you survive and thrive in the ever changing arena of REI.

@Jon Q. You're entitled to your opinions but understand that they're your opinions, not fact. 

And herein lies the issue with forums like this. People want to decree something as fact and regurgitate the standard party line when there's no basis in fact whatsoever. 

As a result, each new person is propagandized with the same incorrect information. 

With no capital at risk, there's nothing to lose but time. You're commenting on deals you don't understand presumably having never done one and want to act as an expert. 

Investing in no money down deals doesn't lose trust or reputation and it doesn't use credit at all so there's zero impact to credit, hence, no money down owner finance. 

Finding attractive deals in quality locations, with attractive owner financing with zero down is a non-issue and I've done it many times in your home state and in fact, your metro. They tend to be fantastic deals where you are because the price points are generally a mil plus which creates six figure down payments, great cash flow and huge upside on the backend. 

The answer to your question, which isn't the right question, is, I'm willing to risk my time. That's it. I don't need to risk money. 

The right question is: why risk money when it's not necessary when you can generate immediate income, cash flow and backside profit?

Newbies don't need cash, credit, or equity partners. They need education which is sorely lacking in these forums because mob rule to protect and defend the status quo ensues. 

And, again, I don't know where you come up with this stuff because HNW private investors are everywhere without requiring skin in the game. I personally raised over a million dollars in liquid, unsecured capital wired directly to my personal bank account for the opportunity to participate in a deal with me. My investment or skin in the game? My experience and time. In fact, I did a call with an RIA last week with $20MM to invest and he couldn't care less whether I have skin in the game or not. His only concern is getting a reasonable rate of return that outperforms the market with a secured and collateralized cash flowing commercial property. 

If I can make a suggestion and I say this with all due respect, you're selling to your own ideals, not discussing reality. I've seen this many times where people have to defend their method because they put money down and want to try to act as if that puts them in some position of propriety over people who they mistakenly believe can't or need to. Putting money down doesn't make you a better investor with greater integrity. It puts you at risk unnecessarily. 

Any investment you can do with cash down I can outperform on an investment with no cash down based on velocity, cash on cash return, ROI, IRR, EBITDA, cash flow, tax benefits, NOI, any metric you want. The math doesn't lie.

Like I said, you're entitled to your opinion and I'm not looking for a holy war but consider the possibility that there might be another way and another way that may be better than what you're doing. 

@Jon Q.

Capital gains has nothing to do with equity and down payments. Capital gains is based off your basis in the property. You can argue that cash flow does have something to do with equity and down payments but the first rule of investing is don't lose money. With no capital at risk, there's nothing to lose. I've never put money down on any deal in 25 years and wouldn't. It's simply not necessary. I've got a friend with more than $2MM in equity that was on the verge of bankruptcy in 2008 because you can't eat or spend equity. 

Equity is the enemy of investors. It's nothing other than an insurance policy for banks. It does absolutely nothing for investors except tie up liquid assets in a vehicle where the funds can be lost overnight as everyone saw in California, Nevada, Arizona, and Florida in 2008-9, create a negative rate of return and increase tax liability. 

And, your experience is your experience. If you go to my website, you can see properties up to $2MM, none of which have anything wrong with them. I don't deal in rat traps. 

I don't look at anything under $300k.

Doing a no money down deal doesn't mean the seller is desperate. It means you've created a value proposition that makes sense. I don't do vulture investing where I'm trying to beat up some poor sucker on a $30k house who's in desperate need of cash. 

@Jeremiah H.

If you're dealing with the "tenants and toilets terror" for no cash flow (not sure I understand no cash flow given the equity position and interest rate, but..), I'd dump it and move to greener pastures. 

@Jacob Dame

You don't need money to buy properties. Every deal I do is no money down and I've contracted on as much as $40MM in real estate in 8 weeks. 

You could have 10 properties this month with nothing but a few phone calls. I do it all the time. You can get cash flowing properties without ever spending dime one. You simply have to get educated, provide greater value and solve someone's problem. 

You never want cash in a deal. Equity is the enemy of investors because it's illiquid, creates a negative rate of return, and increases tax liability. At your age, instead of thinking about how you can acquire cash to bury into properties, I'd begin getting educating on how not to use cash at all because you could contract on your first home today with no more delay. 

I've got recorded calls I post for my members demonstrating how I've done it in as little as 25 minutes with one phone call to then create instant cash via down payments of no less than $10k, cash flow, and back end profit when the buyer refinances and the total cost of the deal is $10 for good and valuable consideration so I have a legal and binding contract, 25 minutes to several hours on the phone negotiating the deal with the seller and the monthly cost of Docusign or Rightsignature so I can get the docs signed electronically because I do these deals all over the U.S. and never see any home or meet anyone. 

Without any attempt at condescension, I'll give you the same advice I give my sons, "Think differently and don't follow the herd."

If you don't want to do that and insist on putting money in deals, leverage OPM. Joint venture with someone with cash or credit and you locate the deals and let them stroke the dough.  

@Jon Q.

Completely agree. I only mentioned selling it because that's what the OP mentioned when he referred to the 1031. Not sure what kind of HELOC or HELOAN he's going to get on a NOO Cash Out Refi but I'd get as much as I could get and STOP creating equity in properties.

I never want equity in any property and I don't put cash down on deals. Everything is no money down. Value and price are irrelevant if I can get the terms I want. 

In REI, cash is king, credit is queen, and equity is the enemy.

@Zamir Kazi, the only thing I've found that will work for my business(Es) after testing more than 30 CRMs/project management software programs is...........Podio.

And, I hated Podio with a purple passion until I got so disgusted with all other software that I spent two solid days educating myself and implementing it.

There's nothing better for what you're doing if, and it's a big if, you'll take the few hours to understand it and integrate it with GlobiFlow so everything you do is automated and you get reports created so you can manage by report. 

If you have any development background, you'll love it. I hated it vehemently and now I love it because I can bend it to my will and make it do everything I want it to do. 

@Jeremiah H., if you owned and lived in the home as a primary residence 2 of the last 5 years, you have a capital gain exclusion of $250k (gain) if you're single and $500k (gain) if you're married filing jointly on combined lien amounts up to $1.2MM on a primary and secondary residence. 

So, it would appear that you have no capital gains issue since its tax free. So, a 1031 isn't necessary and worrying about a 2.99% interest rate is ridiculous. What's the cash flow? 

You can sell the house and, it appears, take 100% of the profit tax free. Or, if you want a long term hold, refi it and cash flow like a banshee. 

Equity is the absolute worst enemy of investors so stop worrying about it and the interest rate. 

Equity doesn't buy groceries. Cash flow does. 

Analyze the cash flow and make your decision.

@Robert Shorey, you're in the wrong forum. That's not wholesaling. That's contract assignments.

Wholesaling requires you to close on the property and sell to another investor. 

It has nothing to do with assigning contracts. 

What you're referring to when contracting on properties like this with a purchase and sale agreement with the intent no to close and without disclosing your intent to assign is known as fraud in the inducement and fraud in the factum. 

When you don't find the assignee, you've breached the contract and can be sued for breach of contract and specific performance, in addition to fraud in the inducement, fraud in the factum and probably false advertising depending on your lead generation methods if they involve marketing yourself as someone who buys homes but has neither the cash, credit, legitimate identified partners with cash or credit, or intent of closing on the property yourself. 

The answer is simple: get educated on contract assignments, over disclose and be totally transparent. That eliminates 99.999% of issues you'll ever run across with sellers you've contracted with. 

@Brian Gibbons

Apparently, the forum rules only allow one to post someone else's link and not their own even if there's nothing sold or pitched. 

The mod deleted my prior links to non-sales websites. 

If you go to Academy dot Virtual Real Estate Investor dot org and scroll to the bottom of the page there's a blog post titled, "Closing With An Attorney Is A Waste Of Time And Money". 

In that blog post, there's a link to the Hot Seat Webinar where you can see/hear it live as I forensically audit his lease option agreements and in the subsequent webinar, he does the same for two hours on my contract for deed and methodology. 

On the webinar are myself, the real estate attorney, a CPA and professional investor, another professional investor who got owned in court on a lease option deal by the Attorney General and another real estate investor. The purpose was a candid and professional discussion on lease options, disguised sales, and Dodd-Frank compliance and/or avoidance. 

So, it's not scripted, nor is it one sided. You'll get to hear everyone's opinion. On some things we agreed, on others we didn't, and there are explanations why so you can draw your own conclusions.