I buy Sub2...that's what I do. - Posted by $Cash$

import · July 18, 2002, 9:10pm

Re: I buy Sub2…that’s what I do. - Posted by $Cash$

Posted by $Cash$ on July 18, 2002 at 21:10:42:

Eric,

Am I making any money, I wish I had all the money from what I have spent on wheel barrow tires, they keep wearing out.

I usually add three percentage points onto the existing mortgage rate. Makes me about $300 extra a month.

If your sellers have good credit, they just say and show they have sold their property with the paperwork I use. Some mortgage brokers even do phony leases because they want their commission money from the lender.

Get the first deal the rest come easy.

$Cash$

import · July 16, 2002, 12:55pm

Re: to clarify… - Posted by Marcos

Posted by Marcos on July 16, 2002 at 12:55:06:

I’m with Ken on this one. I don’t know how many buyers you’re attracting with $12k to put down. But I would have to go through about 100 potential buyers before I found even one who had that type of cash. It’s like pulling teeth to find one who has $3k much less $5k or more.

To even sell homes I’m having to pay for buyer’s closing costs, and use programs like Ameridream. If I used your ad. $12k down. No Qualifying… I would be lucky to get a handful of calls. The truth is the competition in my town sells with $1,000 down. Now, I think that’s idiotic, but that’s what they do. And so it becomes very difficult to sell a home in my area with any respectable amount of money down. There are too many other options where they can get in for a much lower cash figure. As you say, people don’t care what they’re paying for the homes. So, sure the other investor gets them into the home for $1,000 down, but it’s $30,000 over priced, and the interest rate is usually pretty high. But, all they can think is that they get to move in with very little down.

Just my take,

Marcos

import · July 16, 2002, 2:31pm

Re: to clarify… - Posted by $Cash$

Posted by $Cash$ on July 16, 2002 at 14:31:27:

Marcos,

See my response to Leon below.

$Cash$

import · July 16, 2002, 8:09pm

Re: to clarify… - Posted by Marcos

Posted by Marcos on July 16, 2002 at 20:09:28:

I read your response to Leon. And my objection still remains. $12k is VERY difficult to get out of a buyer. Especially for a $100k house. If you’ve found otherwise, I applaud you. But, I have not had that experience, and believe me I have asked.

I also see issues that you will encounter WHEN one of these deals goes bad. It’s not a matter of if, it’s a matter of when. If you have cash socked away to handle it, that may be fine. Otherwise you’re going to be in a rough position.

Marcos

import · July 16, 2002, 8:53pm

Re: to clarify… - Posted by $Cash$

Posted by $Cash$ on July 16, 2002 at 20:53:37:

Marcos,

Tell me what the $100K house looks like and what you gave for it. Tell me what city it is in. What method of real estate investing did you use to buy the house.

What do you mean by when the deal goes bad.

You are using generalities, who have you asked, have you experienced this yourself or what someone told you.

$Cash$