beginner

[twilliamsen 0]

Ok, my dad and I are thinking of REI in all aspects of its glory, and we are going to go in full bore without no stone unturned...

 

Our plans are to get a real estate license for one. Main reason is to have access to realtor's coveted resources. Another is to still market properties and not pay commission fees. Or another option, is to get a broker's license and do both. Corner the market?

 

Now, a business plan is in the works.

 

Good things, dad has a lot of cash at his disposal and lots of time, so is that good? Yes, as long it isn't Bass Pro Shops or Circuit City(he spends a lot then gets in trouble with mom)

 

Next thing is where to go from here. We have about 4 books on REI, some the author's need to go back to school and learn proper grammar, some are good.

 

But ultimately the biggest question I have is and what the books do not tell you is... If you do a L/P or CA, how do you get the deed in your name off the bat and have the original owner still hold the mortgage? That to me, sounds illegal and impossible.

 

Anyways, to give you guys some background on us. My dad a 30+ year project manager in the telecom industry, now currently umeployed do to IT screw ups and other things.

 

Me, I am a network systems engineer that designs, architects, supports large computer infrastructure, along with web programming and databases as well.

 

For us, we could have a leg up with our technology background, because we can use the Internet to our advantage, which I would suggest to everyone.

 

We could design our own website with our properties listed or anyone elses'. Now, we can extend this to anyone, I still love to do the computer work and will continue to do so, so if any of you need a website or even an application to keep track of you properties and investments, let me know!

 

So are we headed in the right direction?

[MichaelC 160]

Hello Williamsen's, and welcome to The Naked Investor. Glad you found us and hope to be hearing from you often. Especially since I detect a rather sharp bite to that sense of humor of yours .

Our plans are to get a real estate license for one. Main reason is to have access to realtor's coveted resources. Another is to still market properties and not pay commission fees. Or another option, is to get a broker's license and do both. Corner the market?

That's a personal preference. It isn't necessary, but it isn't hurtful to have a Realtor's or Broker's license, either.

Good things, dad has a lot of cash at his disposal and lots of time, so is that good? Yes, as long it isn't Bass Pro Shops or Circuit City(he spends a lot then gets in trouble with mom)

It could be worse. With a pocket full of cash and too much time on his hands, the possibilities are endless. Tell mom to count her blessings that her honey prefers fish and hard drives to floozies and hard liquor .

Next thing is where to go from here. We have about 4 books on REI, some the author's need to go back to school and learn proper grammar, some are good.

wat due u meen sum awthurs need two goe back too skewl? Iz that a shot at meye book??

But ultimately the biggest question I have is and what the books do not tell you is... If you do a L/P or CA, how do you get the deed in your name off the bat and have the original owner still hold the mortgage? That to me, sounds illegal and impossible.

The answer to your question is you don't get the deed or title in your name when you do a lease purchase deal. It doesn't matter if you do a sandwich lease, or a Cooperative Assignment. The title remains in the homeowner's name until that option to purchase is exercised. In fact, that is one of the selling points made to the homeowner: they retain all the benefits of home ownership because they are still the owners. However, what we do receive is control of the property. And that ain't no small thing!

Finally, as for your high tech background, you have piqued my interest. I am decidely low tech and have, on occasion, a need for those brighter than I in this vast area. You'll be hearing from me, I'm sure.

[twilliamsen 0]

nah, I haven't even read your book, but I like you already.

 

What I noticed most of these so called REI know-it-alls just give you a glimpse at what you can make, and then you won't hear from them again *cough* carlton sheets *cough*... sorry had a frog on my finger tips..

 

Anyways, I like your style, and I am eager to learn new things. I don't know if its an advantage or not, but I use to sell cars and worked for a wholesaler of vehicles. I would guess it is the same game, but a bit more advanced and different, but I would assume the same principals would apply.

 

I am good at finding deals, granted I have about as much money as you have lint in your pocket, so that sucks.

 

Dad has money, but he is slow on the deals and next thing you know *POOF* its gone. Right now my knowledge on REI is at level DANGEROUS, just enough to cause trouble.

 

My credit kinda sucks (650 FICO), so I am trying to improve that to keep my other REI options open, like rehabs, flipping, etc.

 

So should I invest the $100 on your book? Or should I invite you to hold my hand?

 

Anyways, your plan sounds good, the mentor program, sure I would split profits with you as long as you can put money in my pocket. I would rather make $1 than spend $1.

 

I am in a prime area, actually my neighbor is renting his house out for $2300/mo in a $400k neighborhood. He is living overseas in Europe somewhere and when he returns I think his plan is to kick out the renters and live back in there. I doubt he has a L/P working on it.

 

House values in this neighborhood have gone up a whopping 23% in 4 years. It will continue to grow at that rate for a few years then crash, I can feel it!

 

Anyways, we will be moving to the Tampa area in a month. Should I wait to start when I get down there or start doing it now?

[-Tony- 0]

twilliamsen,

 

Anyways, we will be moving to the Tampa area in a month. Should I wait to start when I get down there or start doing it now?

 

Do you live in Florida now?

 

If so, here are some things you could do before you move.

 

1. If so I would get some type of plan together i.e.

 

2. Get an entity LLC or Corp

 

3. Get a marketing plan together (bandit signs, flyers, news ad, biz card ect.)

 

4. Start calling fsbo's for practice (if you find someone interested *BONUS* if not you have practice for when your marketing kicks in)

 

5. Attend rei club (network)

 

6. Start talking to brokers tell them what you are doing. See if the will do credit checks on your t/b's and let you know which would qual. the easiest...

 

7. Get in contact with an accountant

 

 

Because, most marketing takes 1-2 even 3 month before it starts to pay off, I don't think you should market till you move. Just do some practice cold calls and you will be ready to hit the road.

 

P.S. Mr. Twilliamsen I understand you are moving next month and you may not have the time to sell your home. This I understand. So you must have a realtor? Wow, good thing you have the equity in your home to give your realtor almost 30k. You know what!! I own a property management company and I just might be able to help you out at no cost to you. Now I am not promising anything, your house may not even qualify for one of our programs but, if you could give 15 min. on Tues @7:30pm or Wed @8:00 I will explain our programs and prequal your house. (Now for in a little Finkel and Conti) Or, maybe not.... lol

[twilliamsen 0]

good point...

 

I went fishing tonight and on the way to the lake I saw 3 FSBO signs, not only that I saw $$$ signs as well, I guess it is getting to me already.

 

Anyways, I was going to cruise by the houses and take a look at the homes and give the owner's a call, you know for practice. I don't know if I should persuit buying them now. Just the small talk.

 

If you are giving me an example, or you trying to buy my house, you wouldn't want it anyways, we got 1% under asking price and it is under contract

 

I am going to do some research on it and get some comps. Yes, I know a broker that is ready to help out, he also our realtor in florida. Anyone else need a broker to help them out in florida?

 

This guy is awesome, no b.s, and will bend over backwards to get the deal done! Great guy!

[-Tony- 0]

This guy is awesome, no b.s, and will bend over backwards to get the deal done! Great guy!

sounds like you already got a start getting your "Team" together....

[-Tony- 0]

oh yeah

 

If you are giving me an example, or you trying to buy my house, you wouldn't want it anyways, we got 1% under asking price and it is under contract

 

well I thought it was funny.... maybe my wife is right no one but me gets my humor!

[MichaelC 160]

I am good at finding deals, granted I have about as much money as you have lint in your pocket, so that sucks.

Dad has money, but he is slow on the deals and next thing you know *POOF* its gone. Right now my knowledge on REI is at level DANGEROUS, just enough to cause trouble.

Sounds like you two make a good team, then. Dad's holding the cash, you've got the get up and go. Now, you need to make dad aware that good deals aren't sitting and waiting for him to ponder. Once unearthed, that offer needs to be made immediately. Otherwise, why are we even involved in this biz in the first place?

My credit kinda sucks (650 FICO), so I am trying to improve that to keep my other REI options open, like rehabs, flipping, etc.

A FICO of 650, while not AAA, ain't yesterday's fish, either. I've seen worse, much worse. Truth is, though, your personal credit in creative real estate is not a factor. At least, it needn't be, if you do things correctly. On the other hand, having primo credit is something to aim for because it does make life easier.

So should I invest the $100 on your book?

Haven't you already read four real estate books? If you think you need another to explain the details and intricacies of lease purchasing, then The Naked Investor is a good choice, if I do say so myself . Whether or not you need it is up to you, amigo. Either way, you are welcome here amidst the members of this vast pool of knowledge and love .

Or should I invite you to hold my hand?

? I'm not that kind of guy. I'm married to the oft bikini clad, and very jealous Mrs. C. But, I'm flattered, Todd.

Anyways, we will be moving to the Tampa area in a month. Should I wait to start when I get down there or start doing it now?

Moving from where? If the move is from an entirely different geographic location, you're probably better off waiting. I mean, why begin marketing yourself in Area A, when you'll be picking up and moving to Area B in thirty days? When a homeowner tries to call you from one of the flyers you have skillfully placed about town, what will they hear? A recording that tells them the number has been disconnected? On the other hand, if the move is more local, it's never too soon to begin marketing! Tony's reply and advice in this matter is right on.

I went fishing tonight and on the way to the lake I saw 3 FSBO signs, not only that I saw $$$ signs as well, I guess it is getting to me already.

You're beginning to see through the eyes of an investor. One small step........

Anyways, I was going to cruise by the houses and take a look at the homes and give the owner's a call, you know for practice. I don't know if I should persuit buying them now. Just the small talk.

I suggest you call them first. There is no need to be looking at houses first. That's what Realtor's do. You are not a Realtor. You're an investor and you need to make better use of your time than to be looking at pretty kitchens and fruit trees. Call the homeowners first. If they are flat out opposed to any kind of creative thinking or dealing, there is no need to look at their house. Save yourself valuable time and loads of frustration, and move on to the next homeowner.

[twilliamsen 0]

I will be moving from chicago area to Tampa. Actually july 24th is closing on this house and will be living in Venice, florida for a few weeks at my dad's friends house. The house in Tampa is still being built and the builders ETA on the closing is the middle of August. So it could be the end of august before finally in Tampa. But, once I hit Venice, I could start marketing and hit the streets, since Tampa is only an hour away.

 

Who knows, I may end up staying here till August with my girlfriend till my parent's house is finished. I still haven't made that decision yet. It is tough when the economy sucks and you cannot find a regular job to get income, so right now I am screwed

[twilliamsen 0]

Also, about my dad. Since he is an "old school" project manager he needs things explained to him about 5 times before he understands it and give him the paperwork on it, like LTV, comps, title research, and anything else unnecessary. LTVs and comps in the area are a necessity anyways, but other stuff is just unnecessary. I think he thinks that I am too quick with judgements. But, I am quicker than he is on computing(he does call me a math wiz) potentials.

 

For example...

 

Find a house asking $80k, average comp for a comparable house is $120k, and needs $5k in repairs, it would take me about a day or even a couple of hours to get this data and compute the breakdown, it would take him a week to do it.

 

I figured since I have the quick wit and can think fast, why don't I put the packages together and submit it to him, give him a day to look at it (or them) and we can pick the ones out and get the ball rolling

[MichaelC 160]

I figured since I have the quick wit and can think fast, why don't I put the packages together and submit it to him, give him a day to look at it (or them) and we can pick the ones out and get the ball rolling.

That's fine. But, why not help dad along by doing a deal? You don't need a partner to do a lease purchase deal, for example. Done the way we typically do them, it is a true nothing down real estate transaction. So, the money man isn't needed. Show one completed deal to dad, how it was done, and the profits in it, and you will grab his attention. Much more so than some numbers on a page.

[NickC 0]

twilliamsen,

 

First off, I'd recommend picking up a course. You'll learn how to do these deals from beginning to end, as well as give you all the proper paperwork.

 

After you move, make sure you get them to a local attorney for local compliance.

 

Contrary to MC suggestion, I would recommend getting some reserves saved up first. There are some costs you'll have to cover, the biggest is your marketing campaign.

 

If you can get some from your dad, great! Pick up a course and take action!

 

Nick

[twilliamsen 0]

any recommendations on which course? The books are fine for reference, but could use some interaction

[NickC 0]

Well, I here MichaelC's got a great course right here! Check it out, pretty good value too if you check around.

 

Any questions you have, MC's right here to fire back his wise words, along with the rest of us!

 

Just keep reading, learning, and then the key word; applying! It's a business, and you have to treat it like one. Persistance is key!

 

Good luck

Nick

[twilliamsen 0]

I do run my own computer biz, but that isn't doing hot since no one trust the computer industry anymore