Posted by matt on January 09, 2002 at 12:36:47:
Nathan,
Thanks for the info. I appreciate it. I will look into courses. But like you said, at this point I don’t know if buying an expensive course is the way to go. I think I could probably get the info at the library.
I’ll look for your email.
Regards,
Matt
Seller Walks, Wants No Money? - Posted by matt
Posted by matt on January 09, 2002 at 01:36:51:
I found the following in the “How to Articles” group. The name of the article is “Get Out of Your Comfort Zone: Make REAL Money.” I’m really baffled about how these examples are possible. Below are two examples from that article that I’m having a problem understanding:
“Here’s a brief re-cap of a few more deals presently in the works with students. A $300,000 house in lovely shape with a $145,000 mortgage that’s $17,000 behind. The seller has deeded it to us. We won’t put up a dime. You figure the profit.”
My question is, why would someone just hand you a deed to their house without taking a dime? I’m very new to this but my understanding is that when someone sells their house, they are going to want something for it. They aren’t going to give it to you. What is that seller going to use for a down payment on his next house or apartment if he dosen’t get a dime for his house? Obviously, I’m missing a major point here. Please explain it to me.
The next example is:
“A house worth $180,000 with a balance of $135,000 that’s current. Seller is deeding and will wait until we sell it for her. She’ll net $10,000 which was previously agreed upon.”
Again, I find it hard to belive that a stranger is going to just hand over a deed. And on top of that wait and trust that she will get paid. What is she going to use for a down payment for her next residence until the house is sold? Why would she hand it over to someone else to sell? Why didn’t she use a broker like most people do?
If someone could help me to understand these examples, I would greatly appreciate it.
Regards,
Matt
Re: Seller Walks, Wants No Money? - Posted by Jay
Posted by Jay on January 23, 2002 at 09:00:05:
How common are these seller financing deals? Is it just luck to find a motivated seller or are the deals just sitting in the Sunday’s real estate section? I’ve been trying to get my first deal for a little while now and it seems like most of the properties in the MLS are just the leftovers that no one seems to want (some are just over priced and I’m waiting for it to come down). My main approach has been trying to find a property fix it and sell it but the real good ones seem like they are hard to come by. Are the seller financing deals more abundant than the fix up properties? And if so, what are some good ways to locate motivated sellers?
Re: Seller Walks, Wants No Money? - Posted by Dennis
Posted by Dennis on January 09, 2002 at 16:04:38:
matt, you are over complicating this issue…you are asking logical questions in an illogical world. Do you ever stop to ask yourself how does that little electrical cord bring in a picture to your 61" TV screen? Or do you ever ask why when you turn the key to an S600 why the large engine roars? Some things just are because they are! People are strange…period! Don’t look a gifted horse in the mouth. I have done several deeds for $1.00, at first i was somewhat curious like yourself, but once i flipped one of those $1 homes for a 21K profit, the why of it all lost its meaning! Just do the deal man, before a shark like myself takes it from you.
Re: Seller Walks, Wants No Money? - Posted by Nathan(oh)
Posted by Nathan(oh) on January 09, 2002 at 08:54:45:
In the first deal, since the seller is behind on several payments totaling 17k, they are obviously in a situation where they are having problems and just want the house to go away. They can’t afford the payments, so they are totally willing to deed the house just to be done with it. Happens all the time.
On the second one, the seller is obviously motivated to get rid of the house. i.e. job transfer, job loss, wants to move, building new house, spouse passed, etc. There are millions of reasons why people just don’t want the house anymore, the key is finding those people.
Re: Seller Walks, Wants No Money? - Posted by Talia (NY)
Posted by Talia (NY) on January 09, 2002 at 08:25:59:
Hi Matt:
I don’t know about the first deal. I’m new at this. But with the second deal, it can probably be leased optioned or bought outright and double closed with another party. Just my opinion. Let us see what someone more experienced has to say.
-TAP
Re: Seller Walks, Wants No Money? - Posted by matt
Posted by matt on January 09, 2002 at 16:35:39:
Dennis,
That’s pretty impressive a house for $1.00. How did you do that deal?
What books would you reccomend for a beginner such as myself?
Re: Seller Walks, Wants No Money? - Posted by Vivian
Posted by Vivian on January 09, 2002 at 13:44:50:
In the 1st case, wouldn’t the owner be entitled to at least part of their equity after the foreclosure auction?
I always assumed that once the lender, and any junior liens are paid off, the balance goes to the owner… is that not the case?
Thnx!
Re: Seller Walks, Wants No Money? - Posted by matt
Posted by matt on January 09, 2002 at 09:48:33:
Ok, but it still dosen’t sound logical to me. In the first deal, how is the seller going to put a down payment on his next house or security for rent if he dosen’t get a dime for his house. He is just going to throw is equity away? That just doesn’t make sense. Who would be stupid enough to do that? I mean I would be embarrassed even to walk up to a motivated seller and say something like, “Hey Mr. Seller, so you want to get rid of your house because you’re having financial difficulties, let me help you out of your problem. Oh, by the way, would you give me your house for nothing?” That doesn’t make sense! What am I missing here?
Lets say it’s a foreclosure, the seller is broke, what is he going to do? Not take a dime and walk the streets? There is something not right here. Maybe I’m not understanding what “deed the house” means. I assumed it meant to give ownership to someone else. Is that right?
Please let me know if my reasoning is off about the first deal? The second deal makes a bit more sense. How would you find these motivated sellers?
Perhaps you could reccomend a book for a beginner like myself to read that would explain examples like those above in more detail?
Thank you for your patience.
Regards,
Matt
Re: Seller Walks, Wants No Money? - Posted by matt
Posted by matt on January 09, 2002 at 08:49:28:
Thanks for the feed back. Did you get my message about meeting this Friday with Ron to discuss starting an REA club?
Re: Seller Walks, Wants No Money? - Posted by Nathan(oh)
Posted by Nathan(oh) on January 09, 2002 at 15:09:51:
I didn’t read the article, but if the seller deeds the prop. before any foreclosure, then there is no auction. I imagine that is the case here. If it does go to auction, then the highest bidder wins, so there may be no equity left to pay the seller with.
Re: Seller Walks, Wants No Money? - Posted by Nathan(oh)
Posted by Nathan(oh) on January 09, 2002 at 11:14:19:
Well, the seller usually has something lined up, like parents, friends, etc. Either that or they have just enough money to move somewhere else. Sometimes they will need money to move and you can either write them a check or pay them when you find a buyer. Their bottom line is that the house is a problem for them and they want out. usually they just feel overwhelmed and can’t figure out how to solve the problem. David alexander does a lot of sub2’s and only takes them with at least 20k in equity. I usually can average at least 10k.
All you have to do to find these sellers is advertise for them. There are several how to articles on this site on finding motivated sellers, I suggest reading all of them. I use bandit signs, newspaper ads, flyers, door hangers, biz cards, etc. to attract calls. I never look for deals, they look for me.
I haven’t read a lot of books on RE, mostly courses, but I can recommend Robert Allen’s Nothing Down for the 90’s. Go to the library and search for Real Estate and just read all you can. Also, when you can afford it, look into a course. I have several and am always learning.
Hope that helps
Nathan
Re: Seller Walks, Wants No Money? - Posted by Talia (NY)
Posted by Talia (NY) on January 09, 2002 at 09:30:05:
Matt, I just got your e-mail…I will respond privately to you.
Thanks,
-TAP
Re: Seller Walks, Wants No Money? - Posted by matt
Posted by matt on January 09, 2002 at 11:39:10:
Ok, that makes more sense now.
I will look into that book.
what course would you recommend for a newbie?
Re: Seller Walks, Wants No Money? - Posted by mangarola(NY)
Posted by mangarola(NY) on January 09, 2002 at 11:50:11:
So where in NY are you guys and where are you setting up this REI club?
Thanks,
Mike
Re: Seller Walks, Wants No Money? - Posted by Nathan(oh)
Posted by Nathan(oh) on January 09, 2002 at 11:47:19:
Depends on what type of deals you want. For a newbie I recommend starting w/ Lease Options or Flips. Bill Bronchick has good courses, but they are a little expensive for a lot of new folks, Steve Cook has a good flipping course. All of those are on this site.
I’ll also email you with some more.
Re: Seller Walks, Wants No Money? - Posted by Matt
Posted by Matt on January 09, 2002 at 12:47:17:
Mike,
We are located in Nassau County.
We are just beginning this club. For now I’m meeting with one gentlemen at a local diner this Friday. I spoke with him on the phone last night and it seems that we are on the same page. We will discuss our goals and what we want to do in more detail on Friday. If more people join than we will have to look into meeting at a more suitable place.
If you have any more questions or if you want to meet with us, let me know.
Regards,
Matt