Newbie needs that last push over the hill... - Posted by Wayne

Posted by William, Columbus, OH on December 26, 2000 at 22:44:12:

Wayne: I feel your frustration and can understand why you would have it. Your thinking is your problem, my friend…but it is understandable. I find it hard to believe that your boss (as you call him) would not be interested in a deal that you wholesaled to him here and there, so that you could pick up some working capital for your business. Getting into a property without money isn’t that hard to do, if your mind is open to that reality. You can take it over “subject to” the existing mortgage and need only make up some back payments when that’s the case. Why not consider writing a number of Dentists and Doctors, etc. and letting them know that you are a savvy Realtor that does some creative investing whereby they could use their Roth IRA to invest for a high yield and tax-free.
You could secure them with a partnership in the property and split the profits when you flip (sell) the property with seller financing or conventional.
Your partner could either collect a monthly split with you (seller financing) or a flat rate of simple interest for the use of their money, whichever worked to both your advantages. Just some ideas for you, but the main thing to remember, Wayne, is that you can do anything you really want to do if you don’t limit yourself by your thinking. Remember, that which you think about manifests into reality. You can do it!!
I sincerely wish you and yours a very happy & prosperous New Year. May you be happy & well!

Newbie needs that last push over the hill… - Posted by Wayne

Posted by Wayne on December 26, 2000 at 22:15:33:

I am very knowledgeable about R.E. investing. I have had a real estate license for three years, I work for an investor that buys properties all cash for flipping and some he keeps for rentals. Now here is my situation:I have so-so credit where I owe about $3000 in collections, I havent used my credit in about five years so its hard for me to get no money down financing or hard money. I have contracted a few properties but havent had success as of yet, I was thinking of contracting properties and flipping them to my boss, but then what would he think of me trying to make money that way, afterall he’s paying my salary for finding properties and inspecting them, I also get to make money off commission but ultimately I want to be in business for myself. Any advise on how to handle this situation would be appreciated

Re: Newbie needs that last push over the hill… - Posted by Jim IL

Posted by Jim IL on December 27, 2000 at 01:10:19:

As was mentioned, you did not give your “Boss’” buying criteria.
So, for the sake of this post, lets assume he buys houses wholesale, as in 70% or less of FMV.
With that in mind, if you go out a tie a property up for $.50 on the dollar, do you think your “Boss” would like the deal?
Sure he would.
IF you bring him a good deal, I’m sure he will not care who he buys from.

And if your “Boss” does have a problem buying from you, then find another buyer.
Once you have a true good deal, the money is easy to find.
Good luck,
Jim IL

Re: Newbie needs that last push over the hill… - Posted by Ed Garcia

Posted by Ed Garcia on December 27, 2000 at 24:28:44:


What you haven’t told us is, how you structure your deals? I don’t know how you and your employer structure your average deal. Do you buy at 60%, 70%, etc. ? If your buys have good equity position, then hard money is 65% of market value, not purchase price. Credit, is not a factor. So in essence, you could buy at 100% financing if done right.

Back to deal structuring. Now lets say that your buying a little higher than 65%. Lets say your buying up to 75% of market value. Now you can buy, financing 65% of the deal with seller carry back for the other 10%. The numbers can be played with, it’s the concept that I want you to understand.


In my workshop, I teach that there are at least 9 different ways you can do a deal with poor or bad credit.

Now before I give them to you, I want you to know that I’m really supportive of learning deal structuring. The first thing you need to do is, “investigate your deal” to know what I call( where the bodies lie) another words what is the sellers main objectives or motivation. That allows you to have an idea of what approaches are going to be compatible with the sellers needs, allowing you to do the deal.

Here are the 9 ways that I’ve mentioned.

(1) PARTNERHIP: Find a 50/50 partner. It don’t have to be 50/50, it can be what ever you can negotiate.

(2) FLIP: the best way to flip is to find a potential buyer first and then find a property. You can do this by running an ad on a property to see what kind of action you get. Once you have a potential qualified buyer, you’d be surprised how easy it is to find them a house.

(3) LEASE OPTION: Many times you can buy and sell with a lease option. We call this a “Sandwich Lease Option”. Jim, I’m not going to go into any great detail, you can find this information all over this forum.

(4) SELLER CARRY BACK: This is one of if not my favorite way to buy. Now the best way to utilize this system, is to do a second seller carry back in order to give the seller some cash in the deal. If money doesn’t exchange hands, many times the seller doesn’t feel that they consummated a sale.

(5) HARD MONEY: Hard money, is an equity loan made at approximately 65% LTV, based on the equity of the property only. Credit is not a consideration.

(6) HARD MONEY/SELLER CARRY BACK: Again, You can have the seller carry back a second and refinance the first, giving the seller some money. You can do variations of this system.

(7) SUB PRIME FINANCING: Many National lenders will provide financing at 70% with poor credit and won’t verify money down.

(8) SUB PRIME/ SELLER CARRY BACK: Again this combination can provide money to the seller, rather than ask them to carry the whole thing. Also there are local independent portfolio lenders that will lend as well as mortgage co’s and I always recommend seeking them out. National one’s would be Associates Finance, American General, Beneficial etc.

(9) CREAT YOUR OWN MORTGAGE: In our work shop, Terry Vaughan covers this, and shows you how to discount it and market it.

Wayne, I hope this post is helpful to you and has stimulate your thinking, as will as encourage you to stay with it. The only way you won’t be successful in this business, is when you stop trying.

You’re already making money in this business, now you just have to find a way to keep most of it for you.

Ed Garcia

Re: Newbie needs that last push over the hill… - Posted by mike

Posted by mike on December 26, 2000 at 22:59:49:

you could find a wholesaler in town and flip to them?
bearing in mind of course any conflict of interest issues with your current employer, and your own business ethics.

Just a thought.