Let me say this first: Read all of Johnboy’s posts in addition to others that interest you. I’ve always enjoyed his comments (no offense to the other fine posters). He gives much insight on finding “motivated sellers.” Why? Because unless the seller is motivated, it will be hard to work creative financing with poor credit. You want a seller that WANTS OUT. That’s a MOTIVATED seller. They are the ones that will work with you on a creative financing deal. Find the motivated seller — not the property. first. Things will fall into place if the seller is motivated enough to accept a creatively structured deal. So, Dawn this is where your Carlton Sheets training will come into play. You make your pitch for the property using a creative technique you’ve learned. If all of your training leaks out at the last minute, then say this to your seller: “Would you consider a lease option?” Now Dawn, if you don’t know about lease options, do a search on this site by typing in those words. You will come up with plenty of info.
I hope to hear of your future successes here on Creonline. Good luck! —Jack
I have purchased the Carlton Sheets program and I still
havent made a purchase do to having to qualify for a
loan or mortgage. Is it possible for someone out there to share how you made your first purchase…with no
money down! thank you
Re: Carlton Sheets Course - Posted by Jeff Mannion
Posted by Jeff Mannion on November 27, 2000 at 24:06:23:
I just bought a 5 unit building that the seller owned free and clear and was asking $170,000. I took out a first mortgage for $50,000, gave the seller $30,000 of it as a down payment, and he took back a second for $140,000…I put $20,000 into my pocket that can be used for money down on other property. The income easily affords me both expenses and debt service on the $190,000. Trust me, it CAN be done. I used Carlton Sheets’ course and read alot on-line.
Tomorrow I am signing a contract on a house with a $53,000 assumable mortgage in which the owner wants his closing costs, and that’s it. I will buy this house with about $600 out of pocket, which I could put on a credit card if I needed to. I can rent it for at least $650/mo, and will have a positive monthly cash flow, after expenses (including a 10% mgmt fee) of $65.
It CAN be done, and don’t let any doubting Thomases tell you differently.
Re: Carlton Sheets Course - Posted by Jack Compton
Posted by Jack Compton on November 13, 2000 at 24:44:36:
Hello Joy. If you can structure a deal where there is enough equity, you can get a private lender, even if your credit is less than acceptable to conventional lenders. Pennie Mae is one one such lenders. The key, is to deal for equity as well as the property. Anyone can go into a deal 100% leveraged; but unless you want to wait for equity build-up, you need to learn this princple of gaining as much equity as possible when you buy the property. —Jack
I am writing from Canada and as far as I know, our mortgage and loan regulations are similar enough to American reg’s (I’m assuming that you live in the USA) that my comments should apply.
Let me ask a couple of questions …
You say you don’t qualify, does this mean that you don’t work or you don’t earn enough for the banks to approve you applications?
If this is so, try to find a seller who will carry the mortgage for you, in this way, you won’t have to qualify. Be careful though that you do due diligence in researching the actual value of the property and be sure that the income generated will cover all expenses.
Another way to do this is to get someone to co-sign for you, that is someone who will act as guarantor for the mortgage, a person who will guarantee payment should you be unable to do so. This could be your spouse, a parent, a relative or close friend.
A third possiblity is to bring in a partner. It may not be so much as you need a partner for the money they bring to the deal, but rather the credit they bring to the deal.
Do you plan on or would you consider living in the house yourself? There are some tax advantages to this and also some alternate strategies that make help make this approach feasible. Under American tax laws, interest payments on tax deductable are tax forms. You can sublet rooms for extra income and not claim the income (bonus - this gives you “before tax” income), or you could run a home based business such as child care or perhaps - elder care.
I need help understanding I guess. I have had C.S. course for a year now and yet have been able to get in the door. I have no money to put down on a property and poor credit. If there was a menter in this area I would love to be their student. I challenged Carlton but had no response. Can it be done? What am I doing wrong? I know that I 2nd guess myself a lot. Any suggestion’s?
Posted by Tom Sprague on November 27, 2000 at 21:34:02:
To whom it may consern, I would like to do what you do but I need help.I’ve seen the Sheets infomertial and was interested.The only problem is that my credit is bad do to my irrasponsable past. Any advise or tips would be great,the E-mail address my be out dated its really my roommates.So if you’d like cal me or write me at 3661 Churn Creek Rd, Redding CA 96002 or call (530)223-1508 or (530)223-6096 thank you very much.