All Forum Posts by: Waylon Gates

@Jen Allen  Easy Peasy...    find a buyer who has a need to purchase an owner carry house.  Think self employed productive individual that is responsible and has cashflow but is not what the banks call a qualified borrower.  That person leases the house for XX.xx  payments every month.  That buyer also purchases an option for $20,000 to purchase the house for $105,000 (this would require some specific math to get exact) within the next 2 - 5 years.    The lease payments are paying on the mortgage, the sellers have their money to pay the $10k plus $10k to go RVing.

I could get that deal done in no time.  and I live across the country..  If you are looking to make money on it you could be the buyer and rent it out for cashflow.  There are so many options here.  I love when I find those cause I know that I will be making money and solving a few peoples problems.  I call it a win win win win win.   5 winners!!  the seller, the buyer, the bank, the neighborhood, and the agent or investor (if one is involved and get compensated.

@Par Attaran First of all you are doing the right first steps, asking questions and seeking advice from others.  I also agree with the other post about not sharing the info about the amount of money that you have to a public forum.  

Do you have some timeframe that you would like to achieve that goal within?  I will repeat a quote that I have heard, "A goal that isn't set with a deadline is called a dream." 

Over all I would say that you are trying to do something that is not easy to do and will likely involve you in some risky deals.  Normally the return on any investment follows the amount of risk that is involved.  Maybe you can share your timeframe and I could offer some opinions of which way you could go.

@Par Attaran I honestly didn't even read your post just the headline and I am going to say this and then read the rest of the post and follow up.     

YES

REO is a term that loosely identifies foreclosed property that is owned by the 'bank' or in other words a house that was foreclosed on. Think outside of the box a little and don't look for reasons to not write offers.

an example:  if the foreclosing 'bank' is actually a small investment group they may be willing to just sell the house with another mortgage and start their cashflow again.  No one dictates to this level of specificity what can be marked as REO.  So it could be literally anyone.

Again I would say just write the offer,  even if that includes asking for financing.  Maybe a seller didn't think they wanted to provide financing, but once they see your terms maybe it would be perfect for them.  

Remember what the answer is if you don't ask...   N O.    If you ask the worst that could happen is the same as not asking at all, or on the other hand it could land you an amazing deal.  

@Emily Reynolds Hi Emily,  I checked out your fitness trainer site and read the about me page.  You definitely have the drive and persistence to make this all work great.  Congrats on all of your accomplishments this far in life.

Here is what I tell everyone that is trying to find the place to get that elusive great deal.  Just start talking to people, making offers and generally dive in and go for it.  You will find more deals by just making offers than you will by researching who owns the house and what you think they might take.  The banks that own houses can be every bit a firm on price as an owner occupant.  Especially in a hot market.  What I would do is let everyone that you run into know that you are looking for a property and be sure to tell them that you don't mind something that is in need of a little help.   After doing 100's of deals I can tell you with out a doubt that my best deals were referrals from people that knew that I could help someone who needed to get out of there house.  

In the MLS you will find every type of description of houses, for example; estate, foreclosed, vacant, motivated seller, institutional seller, REO, bank-owned, divorce forces sale, etc.. I think you get the point. For each one of those descriptions I could come up with a strong argument for at least one reason why it could be a very difficult one to get below market.

Now, if you haven't gotten sick of my wordy post to this point that is good because you have make it to the most important part.   The super (not so) secret of how to get amazing deals.  Make Offers!  it is truly that simple.  Of course you can be more choosy about what you want to offer on, and maybe find properties that at least look like they need some updating, but most importantly make a lot of offers.  I have found great deals by just making an offer.  

Now there are obviously many other ways to find deals and if you want a more detailed approach feel free to PM me and I will give you a more specific ideas based on your more detailed picture of what you want to do. 

Most of all, start getting the work out that you want (not only REO but) any house that you can purchase at a discount, and start writing offers.

I would say that you need to partner with someone that has money.  You find the deal and then have a partner fund the deal.   Depending on who does what work the proceeds could be divided differently.  When you are doing the first deal remember that part of something is better than all of nothing. 

@Brian Pleshek There are countless options.  I can think of a handful that you didn't cover, but it would largely depend on the entire situation.  Why aren't they paying on the mortgage, do they have other assets, is there truly equity, are there other problems that just aren't of record, is the ownership of the house not even in her name..  on and on there are specifics that could be making all the difference.  I once bought a house that was being foreclosed on and there was nothing that could fix it as the borrower had died, which was ultimately why they used the acceleration clause.  The only option was to pay off the loan. In that situation I made the heirs an offer and they refused it at first..  as the looming foreclosure auction got closer I reminded them that my offer put a little cash in their pocket and that foreclosure would net them nothing.  On the surface this deal that you are dealing with is one that I would generally be able to make work one way or another.  

@Mark Davis That is exactly what I would try to do.  I have been the bridge loan in the past in that equation.  Also keep in mind that you can shop lenders, and I recommend that if you don't feel you are getting the help /answers that you want.  

If I were in this position I would expect that the Title company would step up and fix this or give you your money back.  You may need to lean on the title company a little to get them working on your behalf.

@Michael Oldani I have done 100s of these.   Here is what I would say, it depends.   I have flipped a property in a few days up to over 2 years.  Can you give more details or be more specific on what information your trying to find.    If just general idea I would say that we average 60 days from acquisition to having back on the market.  Most of our flips have been fairly extensive and we pride ourselves on putting out a very nice product, we average around $25k to $30k per rehab.