Posted by Kristine-CA on November 08, 2002 at 01:29:18:
I think Ron Starr has two really good points here. 1) no shame in buying conventionally if it is the house and price your want, and 2) good idea to take some time in the marriage to learn how to make important decisions together.
I know how important number 2 is. Ask me how I know. Sincerely, Kristine
How do I show my wife the light of creative RE? - Posted by Marques T. Wood
Posted by Marques T. Wood on November 07, 2002 at 21:37:45:
Ok, here goes. I have been researching this board among others for the past few months taking in and learning about all the different methods to start my REI journey. I have been to a couple local RE meetings and have a couple of books. So, in other words, I have the education down, now it?s time to put it to work.
My wife and I were recently married and she now wants to move from our apartment into our first home – she has been chomping at the bit recently. She wants the all-American ?button? house, as she puts it.
The problem that I am facing is that she does not see how we can go about obtaining our first home through creative methods that everyone here is familiar with (sub2?s, l/o, and rehabs). She is all for doing the traditional ?first-time home buyer? program, but after all I have learned about create RE, I am very against going through a bank for a loan.
So, what suggestions could you offer my wife and I to obtain our first home via creative RE? I have not started marketing efforts locally where I live (Tallahassee, FL) because we are going to be moving to the Charlotte, NC next summer around July. I am going to bird-dog and flip locally to get my feet wet before I move, so I am more familiar with entire process and save a little money.
We are planning to visit Charlotte in a couple of weeks for vacation. Does anyone have any suggestions why we are there to become familiar with the market?
Anxious and perplexed,
Marques 
Moving in July 2003… - Posted by JT-IN
Posted by JT-IN on November 08, 2002 at 24:11:17:
Marques:
If you are moving next July to Cahrlotte, then why are you looking to purchase a home now in Talahasse…?
This may prove to be a costly investment… or waste of both time and money. Spoken from the keys of a guy who has had past houses for sale, longer than 9 months before selling. IMHO, rent until you move to Charlotte. I ahve recently heard that there are many good deals in Charlotte as well, due to a downturn in the jobs mkt… May be a good time/place to buy, either conventionally or creatively.
JT-IN
Show her the money! - Posted by Chris
Posted by Chris on November 07, 2002 at 22:55:54:
Marques,
Hi, Im originally from the Charlotte area. There are some very nice areas there, especially the Pineville-Matthews area. It depends on where you get a job, and what commute time you want, but the whole surrounding area is pretty good. Lots of people commute from the Gaston county area as well. Gastonia probably in particular. The thing I like about the whole are is, there is a big city, a few medium sized cities and lots of little towns all in between (sounds like everywhere huh!). Ive since moved to Bosie ID and it just isnt the same… everything is sooo spread apart. LOTS of people=LOTS of motivated sellers=LOTS of deals!
As far as the creative aspect. I think Ron is right, there is no shame in going that route… just remember when its time to sell you have tons of creative ways to get top dollar for your home!
The best way to get your wife to see the light in CREI is to… show her the money, make her believe with a big fat check! If you are planning to get your dream home, you are most likely going to have to have some patience. Although a TON of nice homes are bought creatively, it may take a little time to find the one that is right for you. I mean lets face it, chances are you arent going to get a brand spanking new home/just built, with your creative terms attached. You are going to get a median priced home a few years old that may or may not need some cosmetic work.
My woman isnt too keen on the CRE thing either. Its because she doesnt understand it. A confused mind always says no!! Educate her, dont use terms like Sub2 and lease/option, use “take over an existing loan” or “rent to own”. I mean when you start talking about trusts and deeds and balloon payments and ammortizations, the time value of money… HUH!!! She is just going to be like “Go to the bank, get the money, whats wrong with you, cant you be normal”. Just kidding, but I think you get the point.
Hey good luck and let us know how things go.
chris
Negotiating/finding the best deal possible… - Posted by Marques T. Wood
Posted by Marques T. Wood on November 07, 2002 at 22:12:07:
Ronald * Starr and Rob FL,
Thank you both for the responses. I totally agree that the rates are great at the present. I guess then, the question, that should be asked is, “How can I get the most house for the least amount of money right now due to the low interest rates?”.
We are looking into a 3/2, decent neighborhood, etc. Any thoughts on negotiating the best deal possible?
Thanks again,
Marques 
an answer - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on November 07, 2002 at 22:03:09:
Marques–(FL)--------------
The methods of buying that you mention are mainly for people who do not have the money or credit scores to buy conventionally. If you can buy conventionally, there is no shame to it. Just never mention it here on this forum. Actually, people have done that in the past and I saw no public reaction to it.
And, you don’t have to make the decision now about how to do it. You should not buy until you are where you expect to live for at least three years. The transaction costs of buying a house make it unfeasible to buy a house where you are for such a short period of time until you move.
By the time you make your decision, you may have learned more and maybe you and you spouse will have learned how to come to a mutual decision together.
Good InvestingRon Starr********
Re: How do I show my wife the light of - Posted by Rob FL
Posted by Rob FL on November 07, 2002 at 21:48:07:
Certainly creative financing is a good thing. But one thing to remember is that interest rates are extremely low right now. For any property you hold long-term, unless you can get the seller to hold a mortgage over a long period, you will eventually need to get your own financing. It’s doubtful many sellers will entertain a 7-year lease option, and you certainly don’t want to buy subject-to and hold long-term with the ever-looming “due on sale clause” hanging over your head. Why not take advantage of the low rates now instead of waiting? You sure get a lot more selection of houses if you do it that way. This also helps build your credit. Just my thoughts.
Re: Moving in July 2003… - Posted by Marques T. Wood
Posted by Marques T. Wood on November 08, 2002 at 09:08:35:
JT-IN,
What I am mean is that we will be moving to Charlotte next July, and buying a house probably at that time. I am currently renting in Tallahassee, FL until our move to Charlotte. Sorry for the confusion.
My wife and I just want to get a head start on the whole move to Charlotte.
Marques
Re: Show her the money! - Posted by Marques T. Wood
Posted by Marques T. Wood on November 08, 2002 at 09:15:26:
Chris thanks for your response. You pretty much hit the nail on the head to how my wife thinks of creative RE. I will keep everyone updated.
Thanks!
Marques
Re: Negotiating/finding the best deal possible… - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on November 08, 2002 at 18:57:45:
Marques Wood–(FL)----------------
I’d suggest that the best route is to rent for about 6 months, so that you can get a better feel for where you want to live. No rush in buying a house, in my opinion.
To get the best deal, you have to be patient. What you are doing is approaching a home purchase the same way that one would approach an investment buy. Usually, the two are very different. When I buy an investment property, I don’t really care about the location, layout, size, number of bedrooms, amenities, etc. Only, is it a good price and can I get a high rate of return on my investment.
When you buy your own home all those things I mention come into play. You will be selective. Now, if you go to real estate agents, they will pump you for what you can afford and what type of house will satisfy you. Then they will show you three or four over-priced houses and finally one that is at or very slightly above market value. Instant love. Contract. Ka-Ching, commission in pocket, now on to the next young couple.
If you really want a good price, you need to study the market values in the neighborhoods where you would consider living. Then watch for every possible below-price property coming on the market. And shop like an investor, marketing to owners to sell to you. Read up on marketing and use what makes sense. I remember a buyer of a house in Menlo Park, CA being very happy. They watched the newspaper advertisements every day. Finally a couple doing a for sale by owner put in a property at $30 or $40K below market value. Over that day to look at it. Signed the contract that evening. Bought the house. This is the way to think.
So, you need a place to stay while you wait for a low-priced property to come on the market. That is a rental.
I don’t really think you can accomplish a lot by staying in the area for a week or so. I’d recommend that you not worry about the house buying issues at this time. Enjoy the trip. Maybe accomplish some other things. Save the house-studying and buying until you are living there. If you disagree, then I’d recommend getting good maps. Narrowing down where you might want to live, and starting to get comparable information about the areas. Then, when you get back to home, you can keep in touch with the marketplace by going onto realtor dot com and perhaps even the local listing service directly. Now, this is not to find you a home. This is to educate you about what properties are listed for and, from that, give you a guess as to what they sold for. When you are in the location, you will want to find out what percent of asking price properties usually sell for. Then you can guess what the houses on realtor dot com sold for when they stop showing up. Or you could call the agents and find out what they sold for. The properties in the MLS service or on realtor dot com are not likely to be bargains. And you indicated that that is what you wanted.
The patient investor gets the good deals, if that investor is constantly scanning the market for potential deals and that investor knows a good deal when it is seen. So, this is what you will be doing with your house purchase.
Good Investing**********Ron Starr**************