bigdaddy2 Wrote:@Stiffler: Thanks for this share!
I used to kick ASS in real estate, then the market turned to shit, the laws changed (BIG TIME!...and are still changing),
and - well, we all know what happened.
However, when things change (such as the real estate market), a winner will tell you that
that just creates more opportunity. And the market right now is no exception.
It used to be that the hot things in real estate were: wholesaling, short sales, rehabbing, and the occasional option.
And of course, the related "Get the Deed" system, where you take over existing houses 'subject to' the existing mortgage.
While those still certainly work, they've definitely changed.
One example of how those changes have happened is: Who would want to get the deed on a property
that's declining in value faster than a stripper slides down a pole (I've heard it's fast!)??
Not me! I didn't want to take on those payments, and in those cases, I certainly didn't want the deed.
But now, we have a new strategy, where you simply step in and line up the deal between the seller and buyer.
Then, you just assign it to your buyer for the downpayment cash, and step aside.
No fuss, no muss... and no d*** tenants and all their shit to deal with!
Of course, the market is slowly turning around - especially in certain markets.
And there may still be times where the seller is happy to give the deed to you
where there's still equity to be had. In those cases, it would be desirable to get the deed,
so that you can sell that property and get as much of that equity as possible so that you make more $$$.
But I tell you - scraigwake is absolutely right when he says that - in real estate, if something can go wrong, it will!!
This business is not for the faint of heart, I tell you!
If you're too nice and don't do what you've gotta do to protect your ass, you're gonna get fucked... trust me.
I've successfully mentored many, many people. I've taught them how to go from a total real estate dumb-ass to a successful investor,
doing deals and making money.
So I'll say this: If you still want to get going in real estate, here's what you should do:
Put your big-boy pants on and get started.
Do deals that don't involve you putting up much - or ANY - of your own money.
Don't personally guarantee debt: EVER!
Don't make promises you can't keep.
Always ask yourself: "What's the worst that could happen? And how can I avoid that?"
Start off with deals that DON'T involve you fixing up a house. Please.
I know it's tempting, but you MUST avoid those type deals - at least for the first 6-12 months.
If you come across a house that needs rehab, WHOLESALE that bitch!!
Make your money, then watch how they do it. Learn from someone else's mistakes.
The BEST deals to do right now, in my opinion, are the ones that I believe are covered in this course
and ones like it:
1. Find a motivated seller with a pretty house (that doesn't need much work) in a nice neighborhood.
These houses typically have around the same amount of loan balance owed on the house as its worth.
2. Get it under contract to buy for the lowest price possible - in this case, it's pretty common to have the seller
sell you the house for what they owe on it. This is good for them, because they don't have to wait to sell it,
and they don't have to come out of pocket much at all to get it sold. So you offer them that, and if they're truly
motivated, they'll jump at the offer.
3. You put out marketing to find someone who wants to eventually BUY their own nice house,
but don't have great credit yet. You're looking for someone who has a good chunk of money to put down,
and can afford the monthly mortgage payments (at least).
4. You line up the deal so that the seller sells it to the buyer on a lease purchase, aka 'rent-to-own' basis.
5. The tenant-buyer pays you the downpayment cash as an assignment fee. If the seller absolutely needs cash to make
the deal happen, you can negotiate his payment out of this amount.
6. The tenant-buyer pays rent while he lives in the property and gets his credit fixed up.
7. As soon as he's able to get new financing AND the property value has come back up enough,
he can get his new loan and actually buy the house.
End result: Seller gets peace of mind, because he gets his monthly payments taken care of
and there's someone who loves the property and will eventually buy it living in the house.
The buyer loves it, because he has a nice place he feels is his own and he can take care of it.
And you love it, because you got PAID and got out of the deal...WITHOUT having to fix up anything,
put up any money (except a few bucks for marketing, optionally), and some other cool benefits.
WHEW!!! I hope that makes sense
d***, I really didn't mean to write a book here. But now that I've written this, I think I'm going to use it
as an article. There's a chance I might get recognized, but so be it.
Oh, and for what it's worth, I found a way to get in to this course without have to either pay or register.
Here's an initial access page that will give you access to the whole thing.
At least, the few pages I checked worked perfectly for me.
Keep this on the down-low, because we don't know how long this will stay open...