FAQ: Answers To The Most Asked Questions - Start Here

Like myself and many others with poor credit and no money, you would be best to look at pre-foreclosure properties or REO, tax sales or search for run-down homes that can be fixed up fairly cheaply and easily, then sold or rented out at a profit, to get your feet wet in REI.

I am concentrating on finding a foreclosre or pre-foreclosure at this time or a good tax sale. I am looking to the least expensive option that can make a profit in rental until the market improves enough to sell it for a profit.

Are you reading the book 'Be a Real Estate Millionaire?
In this book Dean shows you so many ways to go about it with no money and no credit and you can be very creative.

Stay in touch.

Hello Every One,

As A New Member Only 21 Years Old & Just Tryen To Understand How All This Works.I Am Having Trouble Understanding One Issue.I Have Not yet Completed Reading Dean's Book Due To Only Having it For 2days As Of Today & Have Only Just Made To Chapter 4.My Question To All U Is How Do I Go About & Try To Buy A REO Home With No Money Down,Have just Started To build My Credit With Out Having The Bank Laugh Or Tryen To Take Advantage Of Me For Beign New At This?? If Some One Could Help Me Understand This problem I Would Really Appreciate It.
Thank You All,
GIO

I'm a mortgage broker and off the top of my head I cant think of any lender I work with that does not require 6mths to 24 mts seasoning. I have a web site I use when I have a client with unusual requirements, it my be of use to you, go to www.mortgagegrapevine.com this site is free with Loan officers and lender reps from all over the US that my answer your posting and give you some direction. Hope it helps.

Hi everyone. I always want to clarify that I live in Pasadena, California. My desire is to buy a foreclosed property in this area where I already live in the coming months. I am fortunate to live in a pretty nice area and neighborhood. Should I be surprised that the foreclosed homes already REOs are still quite high in price (in my city)? Does anyone have information or news when those home prices will become more affordable?
Thank you.
Linda (7/25/08 @1:45pm)

How do we find out which bank have properties on the books for months? Who do we ask? Where can we find the information?

It appears that some things are changing a little with these and I beleive that the new ruling on helping people avoid the foreclosure may be doing this. But, the thing to keep in mind when looking at these homes is that you can often make a much lower offer to the bank/lending authority no matter what they ask, so long as you justify your lower offer with facts about what will need to be done to make this place viable.

If you go to a bank with this 'justified' offer and let it rest; it will often come back to you in a win situation.
The reason for this is:

1. the bank does not want to have a property on their books since they don't want to deal in real estate.

2. they have to pay a lot of money each time this house goes to auction. They tend to deal with someone prior to auction if they can afford the cost of the auction and get the property off their books.

It is a balancing act and we are the ones who have to balance it clearly for them.
Keep on keeping on!

hi there ya thats agood point on the forclosures , i saw alittle about the bill for, what i heard on the news is that there will be grants given out to rehabb houses in hard hit areas to people , i like to find out more on that ,
mike
alaska

I really want to join I am new and Kevin Trudeau gave me your name to help me get started in being a real estate millionaire

As a licensed realtor and purchasing property as an investor, It's my fiduciary duty to let the seller and realtor know my position. Will this hurt me as a investor? Should I become inactive?

ck

My wife and I found a foreclosed property we are interested in purchasing as a primary, but our debt to income ratio is too high to do so without selling property. We have four cash flowing rentals with leases up next June, and our current home. Don't think many investors would be interested in the rentals as a package or singly (as we'd want to get market rate), but we would be interested in selling some or all of them to purchase this property. Also, don't know if the bank would go on a contingency that we sell other property. I wouldn't want to ask renters to leave prior to their term being up, either. So that really isn't an option.

My brain is mush right now from working on this all day, so I know I am leaving out info, but if anyone is interested in a dialog, I could sure use as much information as I can get at this point, and can provide additional info.

I don't think it will hurt you to let them know, but you never know what a seller is thinking. I have always liked to sell property to an agent, the transaction usually goes smoother. I think that even if you are inactive, you would still need to let them know that you are licensed. I am an agent in Arizona.

Al

Thanks Anita,

I am new at this. I have just finished reading deans book, and now I am getting started. I have already found some great deals, locked one of them up, but I can't find the funds. I have horrible credit due to an illness a couple of years ago, and I can't finance at a bank. I have tried to find hard money loans but they want to use my credit as well. I have called every investor I can find to flip the properties, but noone is interested. I know the deals are great. I am at a stand still until I can find funds. If anyone has any idea what I need to do next please help.

I am not sure if I am in the right place to get advice but here I am. My husband and I have 7 children and are currently struggling to pay our 11% mortgage payment. We are 30 days behind and are living in poverty just to get enough money together to pay a mortgage payment. We have put our house on the market in the hopes to sell it before we get further into dept. Our credit scores are not perfect but we have been working hard to increase our scores.

Yesterday we purchased Dean's book with our last $40.00 after watching Dean on television. We were so inspired by him that we decided to give this a try. We are determined to find financial freedom and believe that we have taken a first step towards it.

My question is where do we begin? We have no money (at all) just dean's book and hope. How can I save my own house? Now that we are 30 days late (and counting) on our mortgage will we be able to buy another house. We have found a bank owned property in a nice neighborhood that needs work however we must sell our house before we can purchase another. This house would save us a substantial amount of money per month and my husband is a contractor and able to fix it up.

Can anyone help to guide us in what to do?

Hi their!

I have a quick question is anyone out their practicing what Dean is teaching in North Carolina, and if so where abouts. I'm interested to see how its going for you with the way the market is now.

Thanks
Twright

Hello everyone,

My husband and I have just purchased Dean's book and though it hasn't arrived yet I have been learning allot from this site.

In my neighborhood there are houses for sale everywhere. I counted 42 for sale signs on one street. Also there are at least 4 signs posted at every intersection that say "I buy houses", " stop foreclosure" etc.. There are also handwritten signs that say "For sale by owner" and " rent to own" or "need to sell"

With so much real estate action going on in my own back yard and being new at this I don't know where to begin. I know now is the time to move on it but where do I start?

I look out my back window like a fisherman watching the fish go by and doing nothing to catch them.

It sounds like you have motivated sellers and investors alike posting signs in your area. This could be a great opportunity for you! Especially since you LIVE there and can speak to the homeowners as a neighbor. You can lock up houses at great discounts and then sell to the investors. Do you know when you'll be receiving Dean's book? You will get an understanding of this strategy when you read it. But in the meantime, you might want to start looking at these properties and getting some comparables on them. And as far as for your own house, it wouldn't hurt to call those same investors to see what they have to offer if you feel you REALLY won't be able to keep your home. And for selling it on your own, search for some of the great marketing techniques talked about on this site, and think about some creative financing that could be appealing to a buyer and hurry the sale for you, also possibly giving enough upfront to catch up on your payments. Make sure you talk to the bank about working with you, maybe delaying a couple of payments or refinancing to a lower interest rate. Do what you can. Don't just stand by and let it slip away, OK? We are rooting for you Carol!!!!

Rina

Thank you for your reply Rina.

"You can lock up houses at great discounts and then sell to the investors."

If foreclosures are owned by the bank, how can you lock it up with a seller?
Once you lock up a house what is the process to sell to investor? I mean couldn't the investor just go and purchase from the seller to get a better price than I give him for the same property?

What does a purchase order consist of? Where can I find a standard purchase order?
I know that I have to wait for the book but I am anxious to get started and try to help out our financial situation.

Do you know anything about the new bail out program that has just been signed by Bush? I think this will help me in my present situation with my own home.

Sorry about all of the questions but you are the first person that has actually responded to me. Even the live support was bust and asked me to try again later.

Look at the FSBOs and "need to sell" ads first. They might be people in the process of foreclosure and would be very motivated to work something out with you. And yes, the investors COULD just go get the deals themselves if you don't lock them up. That is why you would not want to discuss any specifics with another investor about a property until you actually have it "locked up". Locking them up means getting a purchase agreement (also called offer to purchase) signed with the owner so that YOU have the sole right to purchase the property. THEN you hand them over to the investor for a fee. Do you know yet about assigning properties?
I wish your book was there like yesterday , but until it comes, spend a ton of time reading and researching these forums and listening to anything Dean has on the site. I know it's a lot of work, but it will be invaluable to you. Start walking through those properties and getting comps to get to know the properties in your area. You don't HAVE to make any offers right now. Just start doing the homework.
btw, there is a standard purchase agreement in the forms and docs, along with other forms that you might need. Depending on your state, you can also use a standard state-approved form from an office supply store or your realtor. Start getting to know the forms as well. like I said, lots of homework, but it will pay off BIG time.

Good luck, Carol.

Talk to you soon.

Rina

"THEN you hand them over to the investor for a fee." Do you mean hand over the purchase agreement? Is there another form used for transactions between the investor and myself?

"Do you know yet about assigning properties?" Not sure, please explain.

I have found allot of pre foreclosed properties in the MLS list that my realtor sent me but don't investors have the same access that I do (the MLS)to find these properties themselves? Why would they pay a finder fee if they can find them?

Sorry for all the questions but again... I don't have the book yet.

I am currently contacting all of the investor ads that I have found to see what their looking for and if they pay a finder's fee. I will then begin to go out and look at properties. Am I doing this right?

I think it would be good for you to go through the forums and read about assigning. Check out the links that dgadmin has at the beginning of this thread. Also, Anita has a great one about birddogging http://www.deangraziosi.com/node/3783
and Elena one about wholesaling, http://www.deangraziosi.com/node/5585
which are very similar.

An investor will pay you to find them great deals because YOU are doing the work and putting your time in instead of them, and they will still benefit BIG time. They could find the deals themselves, but they are willing to pay someone else to do the work. The "Assignment of Contract" under forms & docs is the contract you and the investor would use.

You will see things much more clearly once you read the book.

Hope this helps. And remember, everything you learn, be willing to pass it on to someone else. Just having to research and come up with the correct answer for someone helps you grow too.

God bless,

Rina

Hi Anita, that was a very helpful link for that poster and I was wondering if there is a group like that on here for folks in Nor Cal? I finally get the jist of this site and I am doing well at finding all the info I need that pertains to what I am doing, except finding appropriate investors in my area. I might be just a bit scared still as well I just want more info I suppose. Cant get enough!

Beth

I found a REO that is selling for 209 and the fair market value is going for 341 to 424. I have been doing alot of research. Iam just starting to put what I haved learned to use.
I don't have the money to put down and my credit is fair, so I am looking to do some short sells to build up some working capital
Can I assign this to another Buyer,should I look for another investor.

Hi

If you cannot find a group on here for northern cali then create one. look to the left of the page for GROUPS and create one there. I am sure you will have a llot of interest and members will flock to it.

I kept asking that over and over but I decided to start in the forums section while I kept saying, where do I start? I suggest to all newbies you just start reading the sections that catch your eye and continue reading because eventually it all sorta comes together without your actual knowledge If you have one of Deans book, keep reading that as well. Its like putting a puzzle together, a difficult one but fun to do and you feel awesome when you finaaly figure it out, oh yeah your confidence will rise and some of your fears will disapate just upon reading and educating yourselves.....SO TAKE ACTION

Beth

So true. We ALL were new here just in the last few months. You'll be SO surprised at how fast you grow!

Thanks, Beth!

Rina

I haven't received my book yet but I have been learning allot while I have been waiting for it.

I have been teaching my 21 year old son the things that I have been learning on this site and asked him to keep an eye out for vacant properties etc...

My son visited his friend last night and turns out his grandfather wants to sell his property. My son spoke to the grandfather and he told my son that all he wants is $50,000.00 for a house and 12 acres of land. he purchased the house back when it was $1,000.00 an acre and wants to sell it. The house needs some work but they are currently living in it. The area is a good area with top schools.

My question is... would this be a good investment to do an assignment contract or would someone suggest another investment idea? What kind of profit should I expect to make? I have not spoke to the man personally yet because I wanted to get some advice first.

Because I have not received my book yet I am taking this lead solely on what I have learned here. Can anyone guide me in what to do?

Get some more info on the property. Sounds like it could be a winner!
Possibly assignment, but being in a good area with good schools, possibly a rental. I'll PM you.

Rina

I'm tring to make my first finders fee deal but I'am haveing trouble in finding the Market value. What would be the fastest way in finding the Market Value in my are?(texas) Thanks for your help.

i was wandering if someone can clearify subprime lending .And thanks in advance for the info.And thank you every one for the confidence and suport i read these forums every day.