You must have these two ingredients to buy real estate

I needed some motivation today and I always find it here at this site! Thanks CBR!

check us out at:
www.gmventureproperties.com

BUMPP

sometimes it is hard to go back all the incredible older threads like this one, so thanks for bumping this. I think that committment and discipline lead to the confidence to take action.

Judi

I find that the older Bumps are more times than one can imagine needed! They have given me more control of my behavior. Stay the course, don't give up, if i can do it you can, etc...
Awesome
Raymond

and here I sit posting when I should be organizing my offer statuses!
Back to work!!!

-Tina

i want to thank all of you for all your suggestions and vast comments. karla

Very good thoughts,
Jimmy

Hey, I'm new to this community and definitely new to REI..but I must say CB that this was a very motivating speech/comment and I am actually not feeling so afraid of the whole is this real part...I mean, that's the only thing that holds me back! I have the discipline and committment...I just need to make it known to myself that I will committ to this! Meaning that I need to block out any fear of will this help me and my family... and just continue to do the research and figure out if it's for me...then if it is...just say that it will work...

Again, Thanks for that uplifting speech/comment!

Just read this for the first time and the thought that comes to my head is..WOW. That was absolutely amazing and inspiring. I see that it was 5 years ago, but thank you for sharing that. As a beginner, it is extremely helpful in helping to overcome fear when you get to read something like that. Thank you!

Make sure the property has plenty of room between purchase price and re-sale value. You must protect your investment money, avoid risking it on a property priced at or above the market value, it is not worth the risk. True you will be paid well in interest, still if you do NOT want to manage a rental, choose properties that can easily be re-sold.

You must have a clear and concise plan of action and a good attorney!!! Put everything involved in the deal on the loan papers.

If the borrower is required to put a certain amount of the loan into fixing defects on the property, include these requirements on the loan documents and specify the date the work is to be completed. If the borrows fails to complete the work put in the ramifications, a late charge, spike in interest rate, you can even go as far as calling the loan due and payable. If the borrower is not able to come up with the whole amount you can foreclose and take the property back citing specific performance.

Keep excellent track of who is supposed to do what in the transaction, and make very sure it is clear and admissible in court. You want it clear enough you can show a judge and they will understand exactly what was agreed to.

Most homes that can be financed by a traditional mortgage broker or directly from a bank will give you a lower return than financing homes that need work. It’s highly recommend though, doing any large jobs before anyone moves in. For instance if the investment needs a foundation, that is not something that can easily be done later and is required for a traditional mortgage. Make sure and factor that in to the deal.

Don’t let your emotions get in the way! The only numbers that matter are the comparable sales, comparable listings, and the amount of money you are making on the deal. Don’t let attachments to the house or the borrowers get you into financial trouble.

It is NOT worth it for you or them.

Always use an escrow officer!! We can’t stress this enough. For the couple of hundred dollars it will cost you, not only will you have a professional handling the closing of your investment you will have title insurance! Then you can be sure the property you are buying has a clean title, doesn't have past liens or encumbrances, and all the paperwork is structured exactly how you and the borrower have agreed upon. Then there is no confusion.

Always use a neutral party to keep track of payments made. An escrow company usually has the option of having all payments the borrower makes go into an escrow account, then are released to you either on a set schedule or can be accumulated in that fund, which ever you prefer. It is very cheap usually under $5 per month, and it keeps everybody on the same page.

Finally, Make sure you review all of this, even this report with an attorney before making any financial decisions. Laws and restrictions are changing all the time, so make sure you get the latest information with a qualified local attorney.

Rules To Follow When Selecting A Borrower:

Follow these rules to be successful with the person you choose to invest in.

It is true; if the borrower should default you have security because you will then own the property. It is also true repossessing a property is a huge hassle and very time consuming. By using these simple techniques you will stay out of a courtroom, and still make lots and lots of money for you time and investment.

Here are a Few Quick Tips:

1. Know your borrower, at least the basics. What kind of job do they have, how long have they worked there, how long in that field of work. Most private lenders don’t focus too intensely on credit since loans are typically based on asset based but common practice is still to check credit.

2. Know their plans for the property. If it is to be their primary residence they will have a much greater risk than if it is only a rental to them. If they plan on flipping it, get a provision for the borrower to provide you with a detailed plan of how they intend to accomplish this goal. And exactly what they plan to do if after a certain amount of time on market the property does not sell. Are they willing to be landlords? If not how do they intend on paying the mortgage every month?
Those are very important questions to be answered, and if they lack the necessary knowledge to respond to these questions with a well thought out and precise answer it is better not to invest with them. You will end up doing most of the work because they lack the expertise to do so. aslafi

I'm glad I stumbled on this post. It really motivated me. I lost my momentum for the past 4 weeks or so due to not sticking on DG.com.. I made a commitment to my self that I will flip 5 properties in the next 1 month.

I'm glad I got a job that way I could have money for earnest money!

God bless!

see my signature for matts realtor videos

A good one to read and/or reread.

[You've got to find your obstacles
and call them out!
Unsheath the sword, and do battle with
whatever it is that holds you back!]

I agree for finding &
calling out the obstacles...
Sometimes they are hidden
and harder to find, but
they CAN be found, called out,
and HANDLED...!

as always your training is awesome !!!!!

Walt you are something special my friend, you keep bring back what we need.

Thanks Matt and Walt.

Aaron