Posted by bob on February 18, 2004 at 11:33:57:
There are many ways to “avoid” it. You can find plenty on this site. I just wanted to stress that you can’t forget about this.
I personally don’t like using those legal “tricks” to avoid the due on sale clause. I’m not saying it’s illegal, or unethical, it just gives me a bad feeling. I would only seller finance if I owned the property free and clear.
Help! My phone is ringing! - Posted by Jennifer in NC
Posted by Jennifer in NC on February 18, 2004 at 09:50:17:
LOL…I just placed my first ad in the paper, it came out yesterday. I’ve had three calls already, and I’m so excited I don’t know whether to do flips, or vomit. Now I’ve gotten past the first hurdle of actually TALKING to strangers on the phone giggle, I don’t really know what to do next. I’d like to receive some comments to just get my brain back on the right path.
A 90-year-old man with 18 houses to sell. He owns them all free and clear, and has them all on agreement for deed to tenant/buyers, so basically he is selling the paper. He said he would sell them for half of what the tenants owe on them. I’m going to meet with him today to get specifics about some of the properties. If I get a contract on several of these, can I flip them?
A well-known area broker/investor called and said he had 36 properties for sale. He didn’t come right out and say he wouldn’t be flexible on the terms, but he kind of danced around my questions, so I think he’s wanting to get close to retail price in cash. I won’t waste my time on this one.
A lady who is “80% sure” that she’s moving back to Florida, has a 2 bedroom house in a great area for rentals, she’s asking $25000 for it and owes $12000 on it. She said she is possibly open to a L/O. Before you ask, I don’t know if her loan is assumable…I was so nervous I forgot to ask. Her payments are $330 a month and even though I haven’t seen the house yet, knowing what I know about the area I could probably rent it out for $450, or a little more if I L/O it out. She says it’s worth about $35K.
Ok, now that I’ve written this all out, I realize that I don’t know near enough about any of these properties, and my best bet is to just go follow up and get more information before I come on here asking for comments. Right?
same here, except - Posted by Philip
Posted by Philip on February 24, 2004 at 10:44:28:
I was running ads about REI and only receiving a few calls.
The ad that got my phone lit up was giving away 2 noisy beagles!
Maybe I need to give a beagle away with each deal?
Philip
Re: Help! My phone is ringing! - Posted by Wayne-NC
Posted by Wayne-NC on February 18, 2004 at 10:21:40:
WOW, What a market. Where are you in North Carolina? I wish that would happen in my neck of the woods (or beach in my case).
Re: Help! My phone is ringing! - Posted by JCR
Posted by JCR on February 18, 2004 at 10:14:23:
Congratulations!! It is very exciting to read this type of post.
At the very least, you can give these leads to other, more experienced real estate investors in exchange for a small fee and the opportunity to watch them work through your deals.
What did your newspaper ad say? What type of newspaper is it?
Best of luck,
JCR
Re: Help! My phone is ringing! - Posted by bob
Posted by bob on February 18, 2004 at 10:09:13:
First of all, congratulations!
I’m curious, what did your ad say?
Also, something doesn’t seem right with the 80% sure lady. $330 per month for payments on a house in that range seems high. Make sure she only owes $12k!!!
Even if her loan is assumable (which is probably unlikely) $450 minus the $330 won’t leave much for taxes, insurance, and whatever other costs you may have. Not to mention, PROFIT!
Good Luck.
bob
Well duh, why didn’t I think of that? sheesh - Posted by Jennifer
Posted by Jennifer on February 19, 2004 at 14:47:43:
NT
Re: Help! My phone is ringing! - Posted by Jennifer NC
Posted by Jennifer NC on February 18, 2004 at 10:30:53:
I’m in Roanoke Rapids, Wayne. The rental market is huge here, because most people can’t afford to buy. A few landlords own a good majority of the low price range properties. At which beach are you located? I’m a big Outer Banks fanatic. 
Jennifer
Re: Help! My phone is ringing! - Posted by Jennifer Foltz
Posted by Jennifer Foltz on February 18, 2004 at 10:22:27:
My ad said “I’ll buy or lease your home, any area, any price range. 555-5555”
This is our town’s “main” daily newspaper. Actually, the only one.
There is an investor’s club, sort of. The guy who organizes it calls it a “landlords group”. I’m planning on going to their meeting next week. What would be the best way to broach the subject of someone possibly paying for my leads?
Thanks for your feedback!
Jennifer
Re: Help! My phone is ringing! - Posted by Jennifer
Posted by Jennifer on February 18, 2004 at 10:27:23:
My ad said, “I’ll buy or lease your house, any area, any price range.”
Yeah, I thought the payment seemed kind of high too. If I offer her a straight out $22K cash on it, put 10% down, and can get a 7% loan, my payments will be $132. That would leave a lot more room for positive cash flow. Then I could seller finance it to someone, collect a down payment (to regain what I put down on it), and sell it for $40K at 8%. Does that sound right?
Jennifer
Re: Help! My phone is ringing! - Posted by Laurie NC
Posted by Laurie NC on February 18, 2004 at 19:36:22:
Hi Jennifer, I live in Greensboro. I’ve thought about doing the same thing in Warrenton, my hometown. It’s small, but could be alot of room for great investing. Good Luck!
Laurie, NCHomeGirl
Re: Help! My phone is ringing! - Posted by Wayne-NC
Posted by Wayne-NC on February 18, 2004 at 11:20:08:
I live (and invest) in Kill Devil Hills. My market is huge as well but the prices went up so fast that the rental rates couldn’t keep up. Consequently, I can’t buy properties and rent it with any cash flow. My strategy now is to improve what I have using my HELOC’s. We have a very usual market here mostly because we are resort towns with a substantial amount of year round residents that also compete for housing that is too expensive for them to buy. There is also a shortage of year round rentals because of the summer rental market which is putting upward pressure on those rental rates which many cannot afford as well. Translation, affordable housing needed for the workforce. This is a problem with no good solutions. We don’t want a bunch of low income housing due to the problems they carry. Catch-22 situation. Any ideas? Anyone?
Re: Help! My phone is ringing! - Posted by JCR
Posted by JCR on February 18, 2004 at 12:42:13:
Just come right out and ask for it. You could say you are speaking with several investors and you want - maybe 3% finder’s fee to hand over the entire package. If it turns out to be a good deal, its a win-win for everyone.
Did you take out an actual advertisement or was it a classified?
JCR
Re: Help! My phone is ringing! - Posted by bob
Posted by bob on February 18, 2004 at 11:18:40:
It could work. But you have to cross all your t’s and dot your i’s when it comes to your due on sale clause.
Did you think about holding a note for your prospective buyer’s down payment? For example, if you get a mortgage for 19,800 (22k-10%). Sell for $30K to a buyer. Hold a note for $10k and pay off your mortgage for $19800. Walk away with 200 bucks and a steady monthly income for a couple years.
good luck
Re: Help! My phone is ringing! - Posted by Cedric
Posted by Cedric on February 23, 2004 at 07:58:57:
Wayne, I’m in NC too just north of Raleigh/Durham.
Email me and maybe I have an idea or two where we could both benefit?
Re: Help! My phone is ringing! - Posted by Jennifer
Posted by Jennifer on February 18, 2004 at 14:24:43:
It was a classified. Our classified section is not all that big, and mine is the only “I buy houses” ad in there right now.
Grate idea! Can you explain more? - Posted by PW
Posted by PW on February 18, 2004 at 13:46:20:
Can you explain the process and documents used in “holding a note for your prospective buyer’s down payment”
Re: Help! My phone is ringing! - Posted by Jennifer Foltz
Posted by Jennifer Foltz on February 18, 2004 at 11:29:18:
Thanks for your suggestions. Can’t I avoid the due on sale clause by using an agreement for deed, rather than signing the deed over to my buyer?
I always listen - Posted by Wayne-NC
Posted by Wayne-NC on February 24, 2004 at 07:45:01:
My market is very different here which most investors do not understand. Also, keep in mind that we are not near anything. That makes it nice as well and I like it. In spite of that, I still have managed to invest successfully. I live about 5 hours from Raleigh. I am open to all ideas on investing here and I would be a fool to be closed mined. I am also a realist. I have a sober approach to investing and I am somewhat conservative by nature. Tell me your investment situation in central NC.