I got a question?? - Posted by Michael_NJ

import · April 20, 2003, 7:44am

Posted by IB (NJ) on April 20, 2003 at 10:26:36:

Sure Michael. You can contact me at lkng4home@hotmail.com. Just put something REI specific in the subject line or I’m bound to think it’s spam.

import · April 20, 2003, 7:44am

Posted by Michael_NJ on April 20, 2003 at 07:44:46:

I’m in the process in doing my first rehab and everything as far as the project itself is doing okay. It’s my partners that isn’t working out. I’m planning on keeping the property and renting it out. I plan on starting to do “subject to’s”, my question is… Since I’m strapped for cash right now , how would I target these motivated sellers. I know how to send postcards but how can I operate cost effectively (for beginers) and still target these motivated sellers or at least one motivated seller.

Thanks,
Mike_NJ

import · April 20, 2003, 12:01pm

Re: I got a question?? - Posted by Clair-MO

Posted by Clair-MO on April 20, 2003 at 12:01:25:

Michael, I would never encourage a beginner to begin “subject tos” until you have cash in the bank. You will find “subject tos” to be more difficult to do than what you think. What if you do something wrong and the lender decides to envoke the due on sale clause? What if you don’t have the cash to pay the back payments of the owner’s monthly payments, where are you going to get the money? I don’t see anything profitable coming from doing subject tos on your part as a beginner but problems and risk of law suit being filed on you. I have 8 years of REInvesting experience and I wouldn’t touch a subject to deal with a 10 feet pole, if you get my draft? Don’t take me wrong if you have the funds to do subject tos go for it but if you don’t be careful! You can get burned!!! My personal opinion.

import · April 20, 2003, 7:54am

Partner problem? - Posted by Donald

Posted by Donald on April 20, 2003 at 07:54:08:

Mike,

What is the problem with your partners?
Donald

import · April 21, 2003, 1:37am

Re: I got a question?? - Posted by Tom (MI)

Posted by Tom (MI) on April 21, 2003 at 01:37:49:

Clair, have you done any sub to deals in which you base your advice on?

import · April 20, 2003, 12:28pm

OOPS! - Posted by Michael_NJ

Posted by Michael_NJ on April 20, 2003 at 12:28:58:

What method would you suggest then if this is not the route I should take?? Please elaborate.

Thanks,
Mike_NJ

import · April 20, 2003, 8:28am

Re: Partner problem? - Posted by Michael_NJ

Posted by Michael_NJ on April 20, 2003 at 08:28:28:

Let put it this way… It’s a limited partnership but everyone wants to be a general partner!!

Thanks,
Mike

import · April 21, 2003, 7:10am

Re: I got a question?? - Posted by Clair-MO

Posted by Clair-MO on April 21, 2003 at 07:10:31:

Tom, If you have read any of my posts you would know that I am strictly lease option/land contract investor but I do have friends who are experience investors who does subject tos and it is their views that I am expressing to beginners. Sometime, I would like to do a subject tos but right now I like what I am doing with lease options/land contracts. Don’t take me wrong Tom, I’m not trying to be a butt-head towards doing subject tos for beginners but feel there are some serious implications a beginner will face with doing subject tos, does this make sense,Tom?

import · April 20, 2003, 2:57pm

Lease Purchase or Land Contract - Posted by Clair-MO

Posted by Clair-MO on April 20, 2003 at 14:57:38:

Mike, I began my REInvesting in lease options because there isn’t necessary a need for credit status but you do need a job for a start. I didn’t have money for option fees but I had to think creatively in how to get the option fees without any of my own money being involved so I used the option fee paid by the tenant buyer to me, then in turn I give the fee to the owner and I get the control of the property for 24 months.

import · April 20, 2003, 9:27am

Re: Partner problem? - Posted by IB (NJ)

Posted by IB (NJ) on April 20, 2003 at 09:27:15:

Try a search on the board for ‘finding motivated sellers’. You’re bound to come up with a ton of marketing ideas. Do your research on how much each method would cost in your market and decides what’s best for you.

Am I reading you correctly that you’re experiencing the ‘too many chiefs and not enough indians’ dilemma? The thing I like about REI is that you can pick up one or two projects and try them out with partners you’re not sure about. If it doesn’t work out, you don’t have to stay ‘married’ to these partners for your next deal. Divorce on certain types of REI projects (i.e. flips and ‘buy and sell’ rehabs) is reletively easy.

import · April 21, 2003, 4:25pm

Re: I got a question?? - Posted by Tom (MI)

Posted by Tom (MI) on April 21, 2003 at 16:25:36:

I just wanted to know what you based your advice on. Thanks for letting me know. I do understand that most people need to invest the way that makes them feel comfortable. I am a new investor and will be working the Subject To route. I am in a good area for that type of investing. I also agree that many people may jump in without knowing the possible pitfalls. I would like to know how many of your investor friends have had a loan called. If they did have a loan called, then what did they do to have the bank call the loan due? There should be an exit strategy just in case they do call the loan due. I also believe that everyone in the transaction should be made aware of the possibility. A CYA letter signed by all parties. There is always risk and you will never be able to plan for every risk possible. Your post does make sense and I appreciate your candor Clair.

import · April 20, 2003, 10:00am

Re: Partner problem? - Posted by Michael_NJ

Posted by Michael_NJ on April 20, 2003 at 10:00:48:

Thanks IB_NJ,

I’ve seen your post a few times, I’m still a beginner but I’m trying. How long have you been doing REI? Is there anyway I can keep in touch with you to get a few advices? I really want to succeed in this business but yet reluctant sometimes?? Would you be willing to assist?

Thanks,
Mike_NJ (Middlesex county)