FAQ’s
FAQ's in REI
Questions from my subscribers:
Rita said…
“I eat, sleep, breath the passion for wanting to flip houses I have done them for several people so they could flip there house and they sold it and made the money they wanted off of my work.”
“My question is, How can I get to the step of just getting the houses I know how to find them, I have a real estate company that emails me houses weekly. How can I buy my first house with someone else money?”
My answer:
I’ve never actually done that but from what your telling me sounds like your getting reo and short sale leads from a realtor as do I and almost every other wholesaler real estate investor. Its your choise to do something with that list.
The way I know of using other people’s money is you find a house that you know you can sell, submit an offer to the realtor and if they accept your offer, you work like crazy to get it sold. People in Tampa do this daily. Buy a house and have it sold in hours. Its all according to who you have on your buyers list. This is why you should always be working to build your buyers list either by bandit signs, marketing etc.
You can’t put REO/ bank owned properties under contract. They’re riskier but they pay off. You have to put either $1,000 or $2,000 down to take it off the market. Really this is saying that the property is going to be purchased. Don’t tell them your trying to flip it. They’ll never take you serious and banks frown on this. Act as if your buyer.
Now to answer your question, the only way your going to be able to use someone elses money is if you have a buyer lined up. You have to have a buyer and the lender will put the money down and buy the house. Unless you get a home worth 100k for 10k, I think you will definitely have to have an end buyer as banks don’t allow assigning contracts.
Short sales are different. You have to wait to get the approval letter to see what the contingencies are. Some will let you assign while other are exactly like bank owned props.
Hope that helps you out a little.
Remember Basically, you have to have an end buyer to use other peoples money.
__________________________________________________
__________________________________________________
Connie asked…
What do i have to know more about real estate investment? thank you
My answer:
There’s a lot to be learned about real estate investing. Basically the best thing about it is you’re on your own and you do what you want. I decided to make my site on my experiences as a new investor. I’m showing people the mistakes I make and how to correct them and hopefully not make them themselves. I update my site with powerful meaningful content that can go from personal to business all in one post do to me writing from the heart. I answer questions as best I can being that I’m actually still kind of new. You have to check out my eBook if you’re looking to know the basics on what we real estate wholesalers do and I’m currently in the process of putting together a 7 day e-course that will break down the stuff I talk about in my eBook a little better. If you’re looking to be a real estate investor, this is the best course of action as everything I’m doing is free to you. Unless you have some phobia of clicking submit buttons, I suggest you subscribe to my blog so I can help you further. Appreciate the question Connie
__________________________________________________
__________________________________________________
Alex asked…
I live in Central California and I was wondering if you had access to wholesaling contracts that are valid in California. I’m specifically referring to a “purchase and sales” contract and an “assignment” contract that can legally be used in California.
If you have access to these contracts, I would really appreciate if you could e-mail them to me as an attachment. If however you do not have access to these contracts its ok.
Regards,
Alex
My answer:
Hi Alex. I’ll look into it. Best way to get contracts and stuff is to hook up with local investors in your area on biggerpockets.com.
__________________________________________________
__________________________________________________
Milton asked…
Hey Mr Marshall where do I start? I don’t have cash or credit. I want to be an investor or wholesaler, but I am clueless on what to do or where to start! Help a brother out!
Thanks. Milton.
My answer:
I wrote a post on just what your asking. Its called “Can I really flip homes with NO MONEY at all?”
__________________________________________________
__________________________________________________
Dallas asked…
This is my first time writting to you, and I am sure it won’t be my last. I want the thank you for all the emails with free tips. Has anybody ever suggested for you do a content only webinar or a conference call on FreeConferenceCall.com or anything like that? I think it would be great if you did, with all the tidbits you have. Maybe once a month call would work, with a questions and answer session.
My answer:
Yea I feel you with all the high prices. The reason they price them so high is, if you pay that much you have to be serious.
You’d be surprised how many people that pay that and still do nothing.
I learned everything I know for free. I got access to ebooks, asked questions here and there and made HUGE mistakes. Only way I’ve made it this far was through positive thinking an extremely strong faith in God.
This is one of the ebooks that I read to get started. Actually, I think this is the first book I read. Its a eye opener. I think this will help you out quite a bit.
Get the ebook I started with.
I got a section in the “real estate investing” tab called “New Investor 101″ that will explain a lot to you. Check it out.
Enjoy
__________________________________________________
__________________________________________________
James asked…
Hi Dennis I think what your doing is awesome and I believe everybody can benefit from your education and know how. My question for you is
“Can I submitted offers to the banks if I dont have the EMD when i make the offer and if I can and they accept my offer how long do I have to come up with the EMD before they move on to the next offer. It would help me out tremendously
Thank you!!!
My answer:
This is a tricky situation. I’m actually doing that now. LOL. You generally have around 5 days to get them an EMD (earnest money deposit). They first ask for a copy of the EMD check. I send that over with the contracts. After about 2 or 3 days, they’ll start asking where’s the deposit. You can tell them you had you assistant overnight it. Anything to create some more time. Word of advise. Agents Frown on this so make sure your getting a prop you know you can move because you don’t want to be blacklisted.
Now you always want to put your offers in at around Weds. It’ll probably get accepted on thursday or Fri and you’ll have the weekend to move it for sure.
Now the BEST way around this period, is to find a cash buyer to work with closely and just go to the bank and get what they want. Tell them you have a relationship with the agents and you can get some pretty good deals. Once you get it under contract, have your buyer put down the 1k deposit, you keep the other 1k (2k non refundable) and they pay the rest at closing. That’s the best way. Now flipping REO’s is extremely tricky but it can be done. Check out this blog po
________________________________________________ __
__________________________________________________
James also asked…
I have another question and it have to do with counters offers “Should i be marketing the property if I am in negotiation with the bank and if yes, what can I say to my end buyers. I dont want to be wasting there time if I dont officially have it under contract but @ the same time I do want to move it as quickly as possible. I have other questions like the 90 day seasonally for reo flips etc.. but the first email really not some of my fears away so thank you again for that.
My answer:
Marketing banks props while not under contract is a no no. As soon as an offer is accepted, you start marketing it. Its better to line up a buyer first. Put out some bandit signs if possible during weekends. What you would be saying to your buyer is that you work closely with agents and will be submitting the offers through your agent to get the properties at a good deal. Most buyers dont want to deal with this process. Thats why they pay us. I had one flat out tell me he doesn’t like dealing with agents and banks. He just wants to go look at homes and purchase them. Those are the types of cash buyers you want on your REI team.
As far as the 90 day thing, I never heard anything about it. One thing I know is that you have to have transactional funding in place to flip REO’s because they really can’t be “flipped”.
__________________________________________________
__________________________________________________
Nancy asked…
I have a question regarding making offers. Do you put it in your personal name or in the LLC name? I have one I want to put an offer on today but not sure how to. Thanks for your time and advice
My answer:
It’s always better to use your business name so if anything was to happen, they can’t go after your personal assets (car, house, bank account)
