Posted by JoeKaiser on July 16, 2001 at 14:13:37:
No, I’m certainly not the lease option king, although I’ve put together more than a few. My lease option course is in the online catalog right here.
Joe
how? - Posted by Christina
Posted by Christina on July 13, 2001 at 14:44:18:
How in the world is someone already with a mortgage, credit card debt and no assets supposed to believe a bank or other resource will give you money? We personally had to get a u.s.d.a. guaranteed loan for our house, yes there was no money down, but how is a lender going to give us more money to buy another property when we already owe on the present one? (plus, car debts, credit card debt!?)I just don’t see how this can be profitable for someone with no experience in real estate and no money to spend.
Re: how? - Posted by JoeKaiser
Posted by JoeKaiser on July 14, 2001 at 09:52:23:
Someone with no investment experience probably thinks that buying real estate means looking at properties with realtors, and making (almost full price) offers that require the buyer to put 20% down and go out and get a new bank loan. If that’s all you know, that’s all you deserve to get.
I think buying real estate means something completely different. To me it means discovering an empty house that someone has already abandoned, tracking them down halfway across the country and getting them to sign a deed for a hundred bucks and having me just take over payments.
It may mean someone calling on my ad who just wants out or who will accept a huge discount on his equity if I can pay cash within a couple days.
I may mean someone in foreclosure calling who loses his house tomorrow. Think he’d be willing to sell at a deep discount? You bet.
Now, in any of these circumstances, do you see where it matters if I already have a mortgage, credit car debt, or car payments? How does any of that even come into play?
What I do have is an educated brain, and that’s not something unique to me. Get educated, learn some good stuff, and it will quickly make sense.
Joe
Options - Posted by Sean
Posted by Sean on July 14, 2001 at 09:41:04:
One of the best ways to make money in real estate is through purchasing options. For a few hundred dollars you can buy the right to purchase a property at a preset price. Then if the property value goes up you can sell your option and make money and if the property value does not go up you forfeit your option and lose the money you paid to buy it.
This involves no banks or other financial institutions. There is no need to convince anyone to lend you great sums of money. No credit checks are required. No one cares about your debt-to-income ratio.
You say you already own a house. What would happen if you moved out and rented that house? Perhaps you could rent your house out for $1200 (just throwing out numbers) and rent another place yourself that wouldn’t be as nice, but would fully meet your needs for $900 a month. Aren’t you going to have an extra $300 a month to pay down/off those credit cards?
Or couldn’t you negotiate with a Seller to buy a new house for yourself? Or perhaps just control it with a lease-option agreement where you rent it, but also gain the right to purchase it at today’s prices? Most likely you could.
Of course there is no guarantee that your spouse or children will be happy with or go along with this idea. Perhaps the idea of living in their nice house is much more important to them than striving towards financial independence. Perhaps the thought of buying who-knows-what on credit cards is more important than establishing better financial solvency.
We can’t run your life for you. All we can say is we’ve found something that works for us and if you’re interested we’ll take some time to explain it to you.
We’re not Jehovah’s Witnesses. We’re not trying to convert you.
Re: how? - Posted by Ronald * Starr
Posted by Ronald * Starr on July 13, 2001 at 21:51:28:
Christina-----------
Nobody is born knowing how to invest in real estate.
You don’t know how to do something until you study it.
I’ve studied it. I make a lot of money with real estate. But I can’t study it for you.
It is not easy. But real estate investing is probably the easiest way for the average person to become financially independent. But you have to work at it. You have to study it so you know what to do. You have to get out and try to do it.
Will you be successful? I don’t know. You were successful in getting to own your own home. You own a car. You have a lot of credit card debt? Then you have credit available to you. Just pay down the credit car debt. Stop using it to pay for comsumer goods. When you get it paid down, use the credit to buy assets that will provide you with income or you can sell for more than you paid for them. Pay off the cars and do not buy another car for 10 years. The money that you would have paid for that can be used to invest in real estate. Not instant wealth. But a chance to move toward wealth.
The people that loaned you the money for your house have to foreclose on a lot of people. They end up owning the homes. Sometimes they will resell those homes for 60% of market value, especially when they are rundown. Could you buy one? If you don’t try, no. If you do try? Maybe.
You are surrounded by opportunity. You are in control of your lives. Why are you where you are? Do you want to stay where you are? Do you have a plan, any plan to get out of where you are? If not, why not? Who is going to do it for you? If so, great. If it includes real estate you can become financially independent. If you stick it out long enough to do so. Real Estate is not rocket science. You are not rocket scientists. Do you see a match between you and real estate?
Good InvestingRon Starr
Re: how? - Posted by David H
Posted by David H on July 13, 2001 at 14:48:56:
if you are talking about investing then you want to stay away from banks as much as possible. Look to the sellers for as much of the money as possible.
Good Luck
Re: how? - Posted by Robert Gary
Posted by Robert Gary on July 15, 2001 at 04:23:29:
The first scenario described here is exactly what happened to me. I found an empty house and called the agent listed on the sign in the yard. The listing agent answered the phone and told me the owner had split with his fiancee’ and badly wanted away from the payment on the house. He all but told me that I could structure my own deal so that is exactly what I did. The house needed what I estimated at about $3000 worth of rehab to make it like new. I am going to move in it and L/O my present home. The rehab was closer to $5000 but it turned out VERY well. I did not cut any corners. The bottom line is that I did a contract for deed and paid NOTHING down. I left the closing table after paying the title co. $132.00 for the title work AND typing the contract for me. I then assumed a 6 1/2% fixed mortgage and I am paying $695 per mo.PITI. I even had the owner deed the property to me! Believe me, IT CAN BE DONE! If you think that it can’t, I am proof that it can. I was skeptical at first but not now. I bought the Sheets program about 1 1/2 years ago and finally did my first deal. They are correct when they say the first is the most difficult. It was for me too but now I am in the process of moving into my new house and I can’t wait to do the next deal…Bobby G
Re: how? Real estate is not for everyone - Posted by ren
Posted by ren on July 13, 2001 at 19:03:01:
Real Estate is not for everyone. Some people are alergic to gold as well.
Leave the investing to us who want to take a risk on had work, and future income.
Re: How? - Posted by Richie
Posted by Richie on July 15, 2001 at 20:07:25:
I was just wondering how you managed to structure this deal in such a way that the Real Estate Agent was able to obtain their commission?
Congratulations on your first deal!
Richie
Challenge . . . - Posted by JoeKaiser
Posted by JoeKaiser on July 15, 2001 at 05:58:51:
Sometimes we spend lots of time learning about all kinds of fancy real estate techniques. No problems there, until, that is, we forget that nothing really happens here until we’re talking face to face with a motivated seller.
Challenge . . . for the next week, get in front of motivated sellers at every possible instance. Don’t just call, make appointments and talk turkey.
Happens to me too. I start thinking about some nifty new angle and lose my focus and all of a sudden, no new deals are coming together. Focus on shaking hands with the fellow across the table who can make your dreams reality.
For a solid week, as often as humanly possible, get in there and make something good happen. Me, I’ll commit to it here and now. Come Monday, nothing gets by either of us . . . agreed? You get a whiff of a deal, you’re in there mixing it up, just like Bobby here.
Remember, it’s highly likely that Bobby wasn’t the only one to notice the place. Heck, we all notice those sorts of houses. Bobby was smart enough to actually do something about it, and that’s very cool. Who’s with me?
Joe
Sweet! - Posted by JoeKaiser
Posted by JoeKaiser on July 15, 2001 at 05:47:26:
So how did you find the house, Bobby G?
Re: how? Real estate is not for everyone - Posted by David H
Posted by David H on July 13, 2001 at 19:08:45:
I agree with you 100%
Re: Challenge . . . - Posted by Rob
Posted by Rob on July 16, 2001 at 24:05:56:
I with you, Joe. I’m Old, and Veeerrry Hungry!!!
Rob
Re: Challenge . . . - Posted by Todd Tripp
Posted by Todd Tripp on July 15, 2001 at 22:34:40:
Im with you Joe! Im young and Im Hungry!!!
Re: Sweet! - Posted by Robert Gary
Posted by Robert Gary on July 16, 2001 at 03:09:21:
Hi!, I was looking at a foreclosure in my present neighborhood and noticed a house sitting next to the foreclosure with a sign in the front yard. I thought it looked interesting so I called about it. It just so happened that the listing agent (and broker) answered the phone. He was up front and told me the whole scoop on the house. I tried to assume the mortgage through the mortgage company but was turned down because I am self employed and could not prove enough income. I knew that that would probably happen so I had a back up plan all along which was to just offer the owner a CFD with me only assuming the exsisting loan with nothing down. The agent had already volunteered that the owner might even give up some money just to get out of the house. I told him instead of making the owner give up cash, we could just do a nothing down deal with me assuming the mortgage and the owner readily agreed. 6 1/2% fixed mortgage and a payment of 695.00 PITI. This house will probably appraise at around 96,000 or so. It was that simple. I have a $6000 credit line at Lowes so I used that to rehab the property (6 month same as cash) so I am out of pocket $132.00 for the title search and the typing of the CFD and the closing itself. Pretty nifty for the first deal, huh? I did not get a steal on the property, but I did get a really good deal on the terms so I think I am way ahead. I am looking for the next one and I don’t want to forget to thank everyone at creonline for the help…To one guy in particular, Stacy Orth from Phoenix. He helped tremendously! Good luck to all…Bobby G
Re: Lease Option - Posted by Amy
Posted by Amy on July 15, 2001 at 23:16:07:
Joe, I heard you are the lease option ‘king’ can you advise, or forward info on how to obtain info??
Re: Sweet! - Posted by Pete
Posted by Pete on July 16, 2001 at 05:42:16:
Congrats Bobby. I am wondering if it works financially for a rental/investment house on a deal like this if this is not one, or how you plans are for the payments. The reason I am wondering is in Southern California, you just can not buy a house and rent it out and still come out ahead using Charlton Sheets strategy after doing the calculations, or even for the same house you just bought in your areas probably! If you rent it out with going rate in your area, can you net in cash or how much cash do you have to pay into it monthly?
Pete