| Original message
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Replies:
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| | joe
   |  "Re(2):investor( to be) needs some advice..."
, Wed 16 Aug 11:15 
thanks for your response al.what i have is one guy just wants someone to take over payments because his girl friend lost her job and they are behind in payments for the past two months.around $2,000.his loan i believe is 5 years old.his home is worth around $100,000 and needs paint and carpet.his mortgage payment is about $900 month.what id like to do is get someone to lease option the home for $5,000 down and maybe $1,000-$1,100 month with $100 credit to purchase price,and a sale price of around $115,000 due in two years and take the property "subject to".this is along the lines of what my friend does,but im not sure if thats exactly right.what interest rate would i charge?how do i transfer tittle?how do i write the offer?this is just one situation.
then there is this other guy who is upside down by $15,000.his home is close by the first guy that i just told you about.his hose is worth $100,000 also.he owes $115,000.his home dropped in value and is starting to come up now.he is behind in payments of close to $5,000.what would you do?my guess would be to lease option for $5,000 down to make up back payments(thank god he doesnt need any carpet but he does needs paint)with a monthly payment $100-$200 over the mortgage payments which i think is $1000,sell for $125,000(?) i can sell the house for more than its worth cant i because theres no bank involved?oh-yeah id have the tenants pay me and i would send a cashiers check to the bank to avoid the due on sale clause.still id have to come up with cash for paint on this one.this is all i know about buying props this way, and im not even sure if im correct.i have more leads other than this but i dont want to slam you with questions all at once.like i said i have no clue how to transfer tittle or write the offer.one other problem i have is presenting the idea of taking the prop "subject to" to the sellers.i have been lucky that these people for what ever reason show an interest in my idea.how would you present this to a potential seller?im sorry this is so long.i truely do thank you for your support.am i all confused or what?
joe
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| | dealmaker
Moderator
|  "Love me or hate me.. I'm here to help"
, Wed 16 Aug 17:38
quote:
i have is one guy just wants someone to take over payments because his girl friend lost her job and they are behind in payments for the past two months.around $2,000.his loan i believe is 5 years old.his home is worth around $100,000 and needs paint and carpet.his mortgage payment is about $900 month.what id like to do is get someone to lease option the home for $5,000 down and maybe $1,000-$1,100 month with $100 credit to purchase price,and a sale price of around $115,000 due in two years and take the property "subject to".this is along the lines of what my friend does,but im not sure if thats exactly right.what interest rate would i charge?how do i transfer tittle?how do i write the offer?this is just one situation.
Joe:
You give us nothing definite. You state:
"behind in payments around $2000"
"I believe the house is 5 years old"
"it's worth around $100,000"
Have you met this seller in person and sat down with him????
Why don't you know more definite numbers?
You've stated in your first post you've been reading books and taking course for 2 YEARS!
What courses did you take? What books have you read??
Joe, I not busting your chops here but you QUIT your job to go fulltime without having ever completing a deal. Joe, we need to talk.
I do NOT want to discourage you; I want to you re-evaluate where YOU are at and what you're capable of.. You can become a success and complete a deal with the first couple of months. However, you have very little capital. That will NOT work. You need capital for closing costs, paying the seller to move, make up back payments, etc...
FIRST Get a full time job.
SECOND Swallow your pride and keep posting here. We will help you!!
THIRD Be realistic about what you can accomplish.
FOURTH Learn the strategies and start MARKETING!!
There are several on this board that have only purchase ONE course and they have completed SEVERAL deals in the last 4 to 6 months.
YOU MUST have some capital and know what you're doing.
You have posted all over the internet for a mentor. I have emailed you my telephone number twice and you have yet to call.
Others have responded to you as well and you only post vague information without verifying any numbers and expect us to tell you what to do.
I'm being strong and direct to let you know that you can do this but you MUST be the one to decide if that's a deal for you and your market... not us!
I would encourage you to keep posting and learn all you can about real estate. However, we can hold your hand over this message board and do the deal for you.
You can take this post several ways.. I'm offering it as a direction for you to take. I've have mentored others on this board and I have never stated it's "my way or nothing". I believe you can learn from several different sources. However, beware of the "book experts" these guys/gals have studied like you for years however, they wouldn't know deal if it bit them. These same "book experts" are offering advice all over the message boards and mentoring others.
Okay Joe.. Your serve. What 'cha going to do?
Dealmaker
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| wgreau
| "Re(1):investor( to be) needs some advice..." , Tue 15 Aug 21:04:
Joe: Do you know how to write an offer? You mentioned people were interested in selling. Write them an offer and ask them how soon they are willing to close, how soon would they vacate the property for someone to move in? If they accept your offer (which should have the contingency that you may put a sign in the yard and begin advertising for a buyer ... that you can show the property one day a week or whatever, etc). I suspect you have the basic knowledge down and aren't sure how to begin applying it. You need to be able to write an offer, negotiate it and have one or two other offers to make if they don't accept the first one. You then need to know how to complete the paperwork that would follow, this got me bogged down for awhile and I had to seek help on it. Have you made numerous copies of all the forms you will need, or have the ability to do so quickly?
Step one: Get leads and follow-up on them making an offer every chance you get. Like Dealmaker says - do you have a game plan for acquiring more leads? It takes about ten leads to get a potential deal, according to Ron LeGrand.
Step two: Have your paperwork (forms) ready so you can use them immediately upon the need. When you are unable to make an offer quickly you stand to lose. Get a form for asking questions via the telephone if you are running a newspaper ad...so you don't forget anything that may be important.
The more offers you make the faster you will learn what TO do and what NOT to do, what works and what doesn't. It's the best learning method known to man ... Experiential learning - or -
learning from experience versus reading and listening. If someone took you by the hand and led you through one deal you would be amazed at how little of the process you could remember.
No one likes learning the hard way (trial and error) because their ego fears embarrassment but it is the best teacher.
If you have enough money to carry you for three months you should be okay. You will need some cash (maybe) for earnest money, or a down payment or some other unexpected cost and if you don't you need to know where to get it. You want to find motivated sellers that are willing to give up their equity in the property just to get out from under, structure your offer to allow you to find a buyer and make up the sellers back payments from the down payment you collect. What if you can't find a buyer with enough down payment in the time frame you structured, can you cover it with cash until you do?
There's no doubt you and anyone else can accomplish it if they have a plan and work it and have enough cash to pay their bills, etc. in the meantime. Lack of cash creates stress and that could be a deterrent to some people. Best wishes for your success. 
**Bill, I edited your post to fix your smiley face! (dealmaker)
William Columbus OH
[this message was edited by Dealmaker on Tue 15 Aug 21:27] |
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