I’m brand new. Have no background in real estate. I have been watching an acquaintance of mine (in another state) ranting for months about making great cash flow in real estate investing. My life has taken a hard financial turn, so I decided to take his “training.”
I get the gist of what he does…option houses and resell them using a lease option or “subject to” contract for a higher amount. He pockets their down payment (as equity from the spread), puts them in the house and creates monthly cash flow of at least $300/month on the payments until he closes them out. He does this all day long, himself. I have a background in sales and marketing, so I felt confident I could do it to and like working with people and helping them solve their problems.
He does not advertise the price of the home (which is usually high), but focused on the terms and buyers who can’t qualify for a mortgage.
His training lacked all the nitty gritty details–which I assumed would be flowing in as I got rolling or as he saw that I was serious and not just another training junkie who “studies” in lieu of “doing”. So I jumped in with both feet.
It’s been a couple weeks and now I have optioned my first house and have buyers calling me, but don’t have the knowledge to proceed. He is not available to answer my millions of questions and I am always left feeling like a nuisance for having detailed questions.
The owner of the house is upside down, so I optioned it for the balance on the mortgage–figuring even if I didn’t finish the deal, it was a REAL house to advertise to begin building my buyers list and get me rolling. The good news is she would be happy to be out from under the payments and her circumstances do not require her to close out that mortgage anytime soon.
I would be very grateful to hear what my options are for putting a deal together assuming I can find a buyer who is willing to pay a higher price for the opportunity of home ownership as an alternative to renting.
Thank you. I have really gotten myself into a jam, but feel I can enjoy this business once I know the details of what the heck I am doing! There is no risk in taking out an option but I will not proceed further into legal transactions without more knowledge and safety. Please help!