How to start? - Posted by Rodney Mullins


#1

Posted by hk CA on November 11, 1998 at 13:04:11:

Good advice. By the way, Pat. I used to love your records. Still have some around someplace.


#2

How to start? - Posted by Rodney Mullins

Posted by Rodney Mullins on November 10, 1998 at 21:18:45:

Hi, everyone. I’ve been following this group for awhile, and have learned much. I’m another Carleton Sheets graduate, and I’ve found a very active local “buyers broker” to work with. However, I’ve only got about $2000 cash and about $20,000 equity in my home. I need to get started. I am really attracted to multi-family dwellings, especially 4-plexes and up, as well as Lonnie Scruggs mobile home deals (my broker HATES that concept - not too hard to figure out why). Anyways…what can I do to get this thing off the ground? Second mortgage? Home equity loan? I’m not afraid to get in debt to get moving, but I don’t want to be stupid, either. Suggestions, anyone?

Thanks,

Rodney (in Arizona)


#3

Re: How to start? - Posted by mike

Posted by mike on November 11, 1998 at 18:36:43:

leave your money at home and go find a deal. you will have to find the money somewhere. use opm if you can. joe used to say… dont use money when you can use paper. draft a note against your equity as part of the deal. recording costs only. find a deal first. then come back here.


#4

Re: How to start? - Posted by doris shanks

Posted by doris shanks on November 11, 1998 at 17:09:07:

Hi Rodney - I am in the same boat. No real credit due to a business loss. No cash on hand. But determined to make a start. I have a chance to pick up a Lonnie deal (a mobile home) from the owner who is a friend of the family and is being transferred by the Military. Good condition - not too old - in a top level park convenient to everything. If a possible buyer can’t get financing - I have offered to take over the $7500.00 balance owed to her father but on condition that I have 90 days with no payments except the lot rent of$210.00 after she moves to give me time to find a buyer. The manager who is a friend and knows her house told me it is worth about 12K. Even if I sell for 10K I think I can make a good profit. To my surprise - she said we might be able to do that if she has no luck selling. I figured I might even renegotiate the payments to her father from $235.00 down to $175.00 for a longer term. This is like a lease option but she calls it a land contract which is confusing to me but I went along. I can find a buyer - take a modest down payment up front to cover my holding costs (lot rent) hold the paper myself and arrange for payments high enough to cover the orig. loan payment to her father and provide a small cash flow for me. The tenant/buyer would pay the lot rent - cover repairs and upkeep. Of course if I find a buyer who can get financing - I could pay off the orig. loan and get a quick profit up front. Does this sound like a worthwhile deal? Any opinion would be appreciated. ds


#5

Re: How to start? - Posted by PBoone

Posted by PBoone on November 10, 1998 at 22:52:35:

Glad to see you ready to start. The best way I can think of is to look ONLY for motivated sellers. Use other peoples money as much as you can. Keep your cash readily available to scoop up the GREAT deals.
Great deals include a property at half price. Always remember we are Wholesalers of real estate not buyers of one house every 2-4 years.
Pat