cbrpower

Hi you doing sir, my name is Desalegn, and I can’t express how motivated I was after reading your profile, I to share the same story as you. At this moment I am 20yrs old, in college and am working full time getting paid $15 an hour. I am a very un experienced in real estate, but like you I am very driven and motivated, what advise can you give me on how to become a new investor, I have fair credit, and have a real estate agent as a cousin whom I’m close with which he himself has a good friendship with his broker, I reside in Columbus, Ohio, were foreclosure are happening left to right. Do I have the tools I need, were do you suggest I begin, your info would be greatly appreciated.

Motivated new investor

Your first investment should be in yourself. Read Deans book several times. Join the local Real Estate Investors club. Meet people actually investing in real estate and take no advice from people sitting on the sidelines. Real estate is very, very simple to understand and succeed at once you understand the basics. Focus on the foreclosures and make low offers on them. If a property is foreclosed on and is listed for $100,000 then put in an offer for $60,000. Eventually you will get someone to say yes.

Hi there:

My name is Erica. I noticed that you are the top contributor to the site & figured you might be able to help me. I just recently joined deangraziosi.com & have been listening to the recorded conference calls. I just listened to the November 13th, 2007 conference call about Instant Equity Exchange. Have you listened to this past call? They mentioned some forms/documents talked about during the call & am curious to know if you have these forms available. If so, I would appreciate it if you could send them my way. Otherwise, do you know who I can get in touch with to receive these? Is there an email address for Dean's office? I sent an email to the email addresse that they announced on the call, although the response email included a web address that didn't link to the documents talked about. I appreciate your time.

Thank you,
Erica

I will get back to you soon, I am working to get the forms needed.

Thank you! I appreciate your help!

Sorry about your trouble. I appreciate your motivation and determination. What information are you looking for?

I really thank you for asking. Well I have a few deals that fell threw but I have one now where I need some really good info on short sales, title transfers and directly dealing with the lender.

Send me a question.

Hi, I was wondering if you could help me make a decision on something. I have a house for sale with a contract on it and stand to make 65,100.00. What would you do with the profit?Invest it in Duplexes ,triplexes or something else? You seem very intelligent and need some input. I thought of asking my realtor but you know sometimes they are only out for themselves. Thanks so much. Cindy.

Just kidding! The opportunity you have is absolutely amazing! I had to start with next to nothing. With $65K you should be financially free in 2 years.

To answer your question, I need to know what your plan is. What do you want to accomplish?

I would like to know if i should sell my house and make a profit of 65,100.00 rent it out or what. Keep in mind i have a 3 yr balloon that is due april 20010.My mortg broker wants me to keep renewing the balloon every 3 yrs but for what his advantage? He stands to make a killing from me beings my mortg is 1,354.44 only 79.00 is going to my principal. I am already tired of the thought for another 2 yrs of this. What would you do exactly? Thanks so much for responding.

Keep the house for now. You haven't lived there for 2 years and will pay capital gains if you sell too early. First prove to yourself you can do a no money down deal. Once you can prove to yourself that is possible then the flood gates of abundance will open up to you. By the way your mortgage broker is doing anything wrong. Of course he wants to lock you in again, the interest rates are good and he doesn't want you to be adjusting to a higher rate. The 1,354.44 and only 79.00 of that going to the principal is normal. That is the magic of compound interest.

You appear to be very knowledgeable! With that said what do you think about locking-up "Lease Options" with no money down. I'm a newbie with little money however I'm very motivated and have done my due diligence regarding Real Estate strategies. I'm seeking a seasoned mentor to give advice on how to enter the playing field with no money down.

I love lease options. All you have to do is find motivated sellers and lock up a lease option with them (rent to own) and then find a buyer you can lease option the property to for more than you leased it for. This is known as a sandwich lease option and it works great. There is literally no risk.

sounds good, but what if the original owner finds out that you are re renting to own to someone else Wouldn't they know what you are doing? after all you are the one that filled out the lease purchase papers or contract right????????????

Good question, all lease option contracts have the right to sublet (re-rent) unless otherwise stated.

If the contract states you can sublet there is nothing that can stop you. You have control of the property. If the previous owner doesn't like it you may have to explain to them that you would only put someone in the property that you rate an A plus tenant/buyer. Also, it doesn't hurt to tell them what you will be doing with the property up front, if they are truly motivated they won't care as long as they get their monthly payments.

cbrpower, I have a question that i am hoping you can help me with. If you could it would be great. My question is: What is the difference between a contract of sale and a purchase & sale agreement.

i'll defintitely keep you up to date with my DEALS or LACK their of..lol

anita,posted a RE-ASSIGN in another forum and it made absolutely no sense to me... anwser this.. she said that she LOCKED UP a deal on 4/15, then she put an OFFER in for $295,000, how can you put in an offer when she alrady LOCKED IT UP? i thought when you LOCKED a deal up that meant you agreed on a number with a homeowner,wrote up a purchase agreement, and gave a deposit(escrow,ernest) to LOCK IT UP for whatever how many days- 60-90 days, and then ASSIGN to another investor???

houserus - I am not sure how anita LOCKED UP the deal in question. But to lock up a deal is to get a agreement with the seller so they can not sell to another party.
The offer is how much she was willing to pay for property.
The Re-ASSIGN , ASSIGN , is to sell your Purchase Offer to another investor for a small profit , which allow the investor who usally has the cash funds to keep and rent or fix up and sell the property and make a profit.

I have REO deal for assign under
market value (70%) to be assigned because I just don't have money to buy.
Located sacramento area.
Please call 408-313-3627 or e-mail:humiko1946@****
Or I'd like to have equity share partner. I'll provide all info.
Thank you.
Humiko

Good day sir please can you help me in getting a sub prime lender contact in response to the last call on April 9th

thanks

cbr, i actually might have something in the works right now! I'm going to look at this property,hopefully this weekend.Seller asking $275,000,ZONED COMMERCIAL with a 2 tenants still there,up stairs thiers 2,2 bedroom apts and on the first floor thiers enough space to run a successful business like,hair dresser,resturant,etc. but, was thinking of making the down stairs into more apts to rent out for more cash flow,i think it's like a little over 4,000 sq.ft.,i don't have the MLS sheet with me at the moment,let me know what you think? and i can give you some more info on the DEAL...YOUR HERO,SULLY.

Sully,

If it is zoned commercial I would be inclined to find a tenant with a commercial business. There are a lot of advantages to having a business as a tenant. Many times you just have to locate a tenant for commercial. Once you get them there you pretty much put the unit on auto pilot. I think you have a good opportunity on your hands as long as it is in decent shape and is located in a good neighborhood.

Hi CBR,
I was wondering what you think about this situation. I have a contractor who has looked at several properties for me over the past several weeks. He has provided me with free estimates (4)thus far. He very politely has let me know that he will be happy to continue but not for free. Understandable. So he has come up with a figure that will run around $75 for time and running around. What has been your experience with this? The only reason I haven't had him get any work yet is because the REO's I have put bids on have been with multiple offers and I have lost out...frusterating...any advice?

I would say that is a fair price. I don't use a contractor to bid the work anymore. I know enough now to be able to be pretty accurate. I try not to buy the ones that need a lot of work. I am looking for cosmetic repairs. Just keep putting in offers. The deals are so sweet right now. Getting them rented out is a breeze. I have bought 4 properties in the last 3 weeks. All with great cashflow. 2 of them are already rented, one I closed on today, and one I closed on a week ago that is still being rehabed.

When you find a realtor to join your "team" and at first all a person can do is re-assigning (because of bad credit and no money)what is in it for the realtor other that small commissions?
I want to find myself a realtor but be able to show him or her where it would be beneficial for them to find deals for me. I want them to be motivated enough to even take the time to work hard for me.

great question. on a re-assign the realtor still makes full commision.

I am guessing that the realtor will be paid by the seller of the home and not out of my part of the money?

yes. paid for by seller.

Hi CB
I was wondering what your take is on the new bill the senate has passed or are trying to pass? How do you think it will affect us as investors? How soon will it start effecting us? Advice? Thanks.
Sis

I think it will speed up the recovery process on a national basis. Once these lending institutions realize the government will bail them out no matter how careless they are they will open their guidelines to qualify for loans again, it will get easier to get a home loan. That will be the deciding factor for the real estate market in our country. Within about 6-8 months after the bill is signed into action we will really start to see the changes, compounding that with a new president, the changes could happen fairly quickly. My advice for investors.....start buying and keep buying....the window of opportunity could close quickly.

crbpower,

Which form do you utilize when submitting offers on REO's?

Purchase Agreement, Land Contract?

Do the banks typically prefer that you use one of their forms or does it vary by the bank?

Thanks for your input.

Bill

Many times the REO properties are listed with real estate agents. In that case you will just use the purchase contracts the real estate broker supplies. Many times a bank will have an addendum that will need to be signed in addition to the purchase agreement. Land contracts are only used when you want to act as the bank and carry the note. Good luck.

Interesting how in some ways we are very alike yet in others completely opposite!

Can relate to growing up poor/lower middle class where I never stayed in a hotel room (considered it for only the rich) until in my mid-20's...

While I worked in public ed (now higher ed) my motivation to helping students is EXACTLY the same as your thoughts...traditional education does NOT address the needs/wants of today's students...maybe it never did...that's why I am passionate about helping students that REALLY want to learn...and to those who really do NOT want to learn...because they teach ME what I need to do to reach out and help them...

So glad you are part of the DG family and for both your insights and courage...you inspire me! wib

Thank you for all you contibute to this site. You have been an inspiration to MANY, MANY people!

Rina

CBR,
Have a few properties and am looking to take on a property manager for them. What do you look for in a property manager if you have one and if not how do you handle your properties? If you have a property manager anywhere what advice would you give a person looking to hire one for their properties? I would like to grow or expand but would like some advise. Thanks for all your knowledge ahead of time.

Hey CBR,
I am working on two short sales right now and need a bit of advice. I can't find a lender to fund my deals. They all want an adsorbant amount down and it is getting annoying. I have an 820 fico and even a hard money lender I spoke with today told me I needed to come in with $100,000 at closing to do a deal that if they accept my offer will be at 71% LTV. I was trying to do a hard money loan and then do a double closing but $100,000 is out of control. I will continue to call banks but unless I start getting deals that owners can do owner financing it will be tough. Thanks a lot.

I don't know why you are having problems. But I can tell you this:

NEVER,NEVER,NEVER,NEVER,NEVER,NEVER GIVE UP!

Cbr,

Doesn't take a fortune teller to tell that you know what you are talking about in this business. Thanks for the response to my question on the general everything else forum. I would truely appreciate if you can find the time probably to give me a call whenever the time permits (931) 561 2933. I have a question, and I am a better oral learner.

Thanks,

Lyndon

check out the forum i put up called i need help i would appreciate it more the=an the flowers appreciate the sun thanks in advance since i looked at all the post you have put up and think you are some what of an expert thanks in advance and by the way my name is brian and my handle is bexsentico nice to meet you

Hi cbrpower...I read where you said you earned just by refering a property to an investor on a "buyers list". Im about to purchase a Dan G course but i would like to know which course the investors buyers list is in. Thanks for any info.

HEY CBR..I have all of the sudden become really concerned that I am not properly protected and am not sure how to proceed..wondered if you could shed some light.

I have 3 rentals in my name..with 300K in liability that extends to each property from a main policy. It doesn't seem like enough, right? I was convinced 1 week ago after reading these posts that I should set up a LLC. Have talked to more people and then did some legal reseach yesterday. I read that protecting these 3 units (worth about 400K total) by setting up a LLC and quit claiming them could backfire on me. I have mortgages on all three which were obtained when I lived in them as I bought, lived in and fixed up, and rented. It seems I may risk the bank calling the loan if I transfer them (even though I have an exceptionally high credit score and an awesome history with each loan..it would seem banks would want to keep me..) to a LLC.

I have an offer in on another home that I may purchase with a (80K) loan from my mom. (if Fannie Mae ever responds!) NOW, I really want to make sure her investment is protected so I am thinking if I buy this atleast setup a LLC for this new one.

1. Is my train of thought correct?
2. Any suggestions on further protecting those first 3 properties?

Thanks so much!!

Kate

Just call your bank and tell them you are going to move the properties into an LLC. They shouldn't have a problem with it if you personally guarantee the loans. If they say no then offer to personally guarantee the loans. If they still say no then create a land trust then move the property into the land trust instead (which they can not stop you from doing) and add an umbrella policy of 2 million dollars (very cheap) to cover all of your policies.

CBR

You are awesome! It is amazing the confidence you convey. I have been in this game (very part time) since 2000 and am constantly second guessing myself. I know you already know this but I will just reiterate that you really are a role model and an inspiration and I am grateful for your advice as well all the other "givers" on this site and of course, Dean. Thank you.

Hi CBR,
I LOVE the level that you are at!! You are a very inspirational person.
Right now, I'm working with reos and fsbos and in the midst of putting a deal together. I spoke to a reo representative at a bank and she said that they needed 10% along with the property agreement sale. Is that what the DG family refers to as the ernest money? and is it negotiable? One of the investors asked for photos of the properties, should I get them when the agent walks me threw it? 2 more question, at what point in time do I talk to the investor about a contract between him and I as far as my fee goes? If I just want a finder's fee do I just lock-up a price with the seller and hand it over to the investor?

Thank-you sooooooomuch for your time, that I know is very valuable.
I'd say you're blessed because of all the giving you do:)
kellie

CBR,

Just can't get enough or your blogs bud! You're literally an inspiration to us all in the DG family. Quick question: In your profile, you stated that you were financially free by the age of 32. Was that from real estate?

Cory

Yes I am financially free because of real estate. Thanks for the encouraging words.

Hey CBR..I have finally stepped outside my comfort zone (landlord thinking) and made an offer on a house that I am planning to wholesale if I get my price. I am expecting a counter probably tomorrow but know I need to think of adding a clause into the contract.

It is a REO and since the seller typically chooses title company. Do I just write a clause into contract that I choose title company (as I will need one that will do a double close, right?) Will this be a red flag and potential deal killer if the bank figures out my intentions..or even my realtor? My realtor knows I'm a landlord/investor but I haven't told her I plan to wholesale this one if I can get it cheap enough.

Merry Christmas and thanks for all your posts!!!