draegarfrog

CONGRATULATIONS!!! that is F%$&^N' awesome!!!!

Hello to all. Can someone explain how an 80/20 loan works. Advantages, disadvantages etc. Thanks.

Hey Craig, I have a sub2 deal in the works and I'm looking to assign the contract. Do you know any investors in the Southbridge area? Thanks, Mike

I'd like to find out about some areas in Mass. Thanks.

Check this site out. I believe it was just launched recently. www.Zillow.com

Hello everyone, I'm writing this because I'm a new investor and hopefully this will help other new investors. This is some of the growing pains I've encountered. Hopefully this will help you. I just want you to know I started by reading MC's manual and that has inspired me to read and learn more about creative investing. 1. Learn enough to get started. Pay very close attention to the part that says LEARN YOUR MARKET. This is extremely important. There are alot of motivated sellers out there but if you don't know the basics like what areas to look for property, rental market rate, price for a certain type or area, you will waste alot of time because you will be trying very hard to get your first deal done. When I first started I had 6 CA's signed up within 2 weeks. I ended up giving them back. The problem was the monthly payments were too high or they were in an undesirable area. What I learned? Learn the market, the neighborhood etc. Don't be a motivated buyer. 2. Market to get sellers calling you. I started out like everyone else, cold calling, and I still do once in a while but it's alot better when sellers call you. Even when your phone is ringing not every caller will be a good deal. I got alot of callers that were fishing to see who could give them the best offer. What I do is I ask them 1. Why are you selling? 2. When do you need to sell? 3. What are you trying to accomplish by selling? Then I listen. I don't use a script anymore because I found while they were talking I was reading my next question (in my head) and really wasn't listening. At first I would try to get creative and figure out how to make every call work. Now, I present a solution and if it doesn't work I move on. What I learned? Even if sellers are calling you, most of them will not be good deals. Listen to the seller. I was able to negotiate a 0% owner financing on a 3/2 house in a nice area because of what the seller was saying. 3. Only deal with highly motivated sellers. I mean sellers that need to do something NOW. Remember, not every caller will be highly motivated. What I learned? Out of 20 callers, one may work for you. There are ways to make some of the other ones work but you'll need cash. 4. Don't get discouraged. Some days the phone rings, some days it's silent. On the days that it's silent, I take a break, continue educating myself, and figure out other ways to market. What I learned? If you want your phone to ring you have to market. Stay focussed. IMHO you have to have a reason for doing what you do. There is no one that will wake you up in the morning and hold your hand. You have to have the will power to get up and do it again, no matter what anyone else says or thinks. 5. Don't get emotionally attached to a deal. I know we want to create a win-win situation for all, but bottom line it has to work for you. Present your solution and if it doesn't work for you for whatever reason politely walk away. What I learned? Again, no matter how sweet a deal it may not work for you because of your current situation, lack of funds. I am currently negotiating with a motivated seller who has a triplex. He is an older gentleman who is tired of being a landlord and wants to move back to the Philipines. The numbers and location are good (about 25-30K equity) The problem is he wanted 30k down and then sub2. I don't have 30k. Well this has been going on since last Nov. He called again and dropped his price 7k. (now 23k down) If he drops it 13k I'll do it which means I'll put 10k down and sub2 his loan (150k, $1500mo.) 6. Don't over analyze. If it's a good deal and you can afford it DO IT. A lady called me and was willing to let me sub2 her 3/2 condo. She was getting a divorce and was behind 2 payments. It was in a nice area and the monthly payments were good. I was hesitant and wanted to get into this deal w/no money even though I could afford to get her monthly payments current. I ran a RENT TO OWN ad and got some serious tenant/buyers with the down payment I wanted. Well when I called her back she said that her husband is letting his cousin take over the payments, OUCH! Now that hurt!! What I learned? Do your research, if it's a good deal and you can afford it, DO IT! More later..........

An elderly couple visits McDonalds. He orders one hamburger, one order of French fries and one drink. The old man unwraps the plain hamburger and carefully cuts it in half. He places one half in front of his wife. He then carefully counts out the French fries, dividing them into two piles and neatly placing one pile in front of his wife. He takes a sip of the drink; his wife takes a sip and then sets the cup down between them. As he begins to eat his few bites of hamburger, the people around them keep looking over and whispering. You could tell they were thinking, "That poor old couple -- all they can afford is one meal for the two of them. "As the man begins to eat his fries a young man comes to the table. He politely offers to buy another meal for the old couple. The old man says they are just fine -- they are used to sharing everything. The surrounding people notice the little old lady hasn't eaten a bite. She sits there watching her husband eat and occasionally takes turns sipping the drink. Again the young man comes over and begs them to let him buy another meal for them. This time the old woman says "No, thank you, we are used to sharing everything." As the old man finishes and is wiping his face neatly with the napkin, the young man again comes over to the little old lady who has yet to eat a single bite of food and asks "What is it you are waiting for?" She answers...."THE TEETH."

NEWS FLASH! She is now posting on Craigslist in Personals/Casual Encounters

Sorry guys. I didn't mean to offend anyone with my post, but you gadda admit it was pretty funny and yes, disgusting..........

Thanks, I think I'm starting to figure it out. The 6 CA's that I had were all bad deals that I had to give back. The sellers were not motivated or they were in areas that were hard to sell. Lesson's learned. When I close the loop on this one I plan on writing a "What I did wrong and how I fixed it" piece. :xwink:

Very nice! Cost?

I'm finding out right now, I've been in contact with a title company on Guam and the lady seems very helpful. According to her they will handle the recording of the option at land management (Guam doesn't have a county courthouse) She says I have to open escrow. MC, by the way I'm still in Okinawa, I negotiated this deal over the phone. I had a buddy who is a rehabber take a look at the property and send me digitals.

Ok, your right 1 year at a time. This way at the end of the year I have the option to extend or cancel. $2500-$3000 is low, but this is Guam. When I first started I was asking $5k and couldn't get anyone. $3k is manageble for most hardworking, middleclass folks. He may have a problem with bank financing but that's ok. I'll work out an owner financing option when and if he has a bigger downpayment. I would rather do that then have him cash me out. Remember this is a $600 a month interest free loan. Anyways, I have alot of options with this property. Now do I go to a title company and record a memorandum and have them hold the deed?

Thanks MC! What do you think of this plan? I have a tenant/buyer who has terrible credit due to bankrupty. His wife took him to the cleaners when they divorced. He's renting now and is wants to own. He only has $2500-$3000 option money. He says he can afford $1200 a month. I'm thinking of doing a rent to own for 1-2 years and letting him know when he's ready to buy I'll need $7k to convert it to owner financing. I'll keep the payments the same and give him 9% interest. That's $1200 a month for 30 years. The house will be paid up in 20 years at $600 a month, sooner if I pay more. I locked the house up with a Residetial Lease w/ Option to purchase this way I can close later and save some money for closing. It's going to cost around $3-$4k to close. Plus I'm not sure how to do this (close) I know I can go to a title company and they can handle everything. Would I just bring the contract to them?

Signed the contract today $600 a month, $150k.