Posted by Nathan on November 04, 2000 at 14:07:07:
Is your deal DEAD? Or, do you still have communications with the person whom you where doing the deal with? If you still can talk to the seller, you can salvage the deal.
When your seller is scared, put them at ease. Now, go to the part of C/S Course where it explains about “Land Contract”. Explain to the seller that, you can limit their RISK, and they will not have any hassle at all taking back the property in the case of Default, because in a “land Contract” the seller keeps the TITLE, until the last payment is made. This way when you and your husband make the final payment, they (sellers) deed you the property.
Always Remember “Land Contracts” work in your favor in both buying and selling situations.
I’m no GURU, just someone who invests from time to time. It may be to your advantage to research this stubbling block further, and just take time to look at it from a Different Angle.
ME AND MY HUSBAND BOUGHT THE COURSE IN AUGUST. I IMMEDIATLY STARTED WORKING ON IT. WE FOUND 13 RENTAL HOUSES FOR SALE BY ONE OWNER. WE DON’T HAVE VERY GOOD CREDIT SO I FOUND A PRIVATE LENDER WHO BUYS NOTES AT A DISCOUNT. WE WORKED ON THIS FOR 3 MONTHS AND EVERYTHING WAS GOING GOOD , WE MET WITH HER TWICE AND WAS CONVIENCED THAT WE WOULD HAVE A CONTRACT SIGNED AND WOULD CLOSE BY THE END OF NOVEMBER, AND AT THE LAST MINUTE SHE BACKED OUT. SAYING THAT IF WE DEFAULTED THAT SHE WOULD HAVE TO PAY OUR NOTE BACK AT A HIGH INTREST RATE AND THAT SCARED HER . NOW MY HUSBAND DOSEN’T EVEN WANT TO DO IT ANYMORE BECAUSE OF THIS HE WORKS 7 DAYS A WEEK AND WE HARDLY EVER SEE EACH OTHER AND HE HARDLY GET TO SEE THE KIDS. SO IT IS LEFT UP TO ME , I’M A STAY AT HOME MOM AND WANT TO GET THIS STARTED SO BAD. BUT TO GET HELP FROM THE EXPERTS YOU NEED $2400.OO CAN SOMEONE TELL ME HOW YOU ARE SUPPOSE TO GET THAT MONEY IF THERES NO WAY YOU CAN. I WOULD LIKE SOME HELP OR ADVICE FROM ANYONE
PLEASE HELP
THANK YOU FOR YOUR TIME,
FARRAH BIG POND
Much like you I am just getting into REI. I have not done any deals yet but I would like to give you a little advice. I have read many RE books including CS course.
I highly recommend that you read Lonnie Scruggs “Deals on wheels.” It is a great book. It gives you great info on how to buy and re-sale used Mobile homes. I personally am going to start out doing Lonnie Deals, you can get started buying MH for around $2000- $3000. The $ amount at risk is far less if you do get into a bad deal. It also allows you to have a monthly income of money without being a landlord.
The book is only $20 dollars and I guarantee you won’t be able to put the book down until you have finished reading it. The book can be purchased on this website. You can also get more info on MH investing and Lonnie on the mobile homes section of this site.
Again I am not an experienced investor, but I see Lonnie’s material as an excellent way to get your foot in the REI world with little money at risk and decide if it’s really for you.
I am sorry, do you mean that the seller had second thoughts, or was it the private lender. If you still have contact with the seller,(as Nathan said) then a pretty good bet would be to go with a land contract. If this seller has 13 homes, then they also must have done some real estate investing, and hopefully is open to creative financing. You probably will not get the seller to finance for the entire 20 or 30 year term, but if you can get them to carry the entire loan, amortized over 25 or 30 years, with a balloon payment in 7 to 10 years . . . then you would have substantial equity, or better credit to obtain a bank loan. The other plus to a land contract is that if you present it right to the seller, you may get a better interest rate than what you could have gotten at the bank. You just need to show the seller that even with a low interest rate, they (seller) are probably making just as much money monthly in interest as they were in positive cash flow when they rented in out. I have rental properties, and recently purchased 3 additional duplexes in the last couple of months from 2 different sellers, and believe it or not, I have negotiated a rate of 6% interest. It is all in how you present it.
As far as the C.S. course for $2,400.00 that is a tough call. I was contacted by them sometime ago for the course. I find it irritating that they put you through a song and dance, trying to convince you that you are “Lucky caller number 10!” or something. I think that their tutoring program would be more acceptable if they were just straight forward with the “student”.
That’s it for now, I hope that it works out for your family.