Posted by Patrick on May 04, 1999 at 15:05:36:
Thanks. Nationwide does try its best and has been partnering with hundreds of new investors for over 10 years. They are out of Fort Meyers Florida and have an excellent record.
Should I partner with stranger - Posted by Newbie
Posted by Newbie on May 03, 1999 at 01:00:43:
I was sent an email by someone claiming to be looking for five associates to work with. I do not have the details and wonder if you might give me some questions to ask (this person) or if I should just forget about it. (This person) is looking for someone to find property at 75-85% below appraised value. Offer the seller cash and find a motivated buyer or someone who cannot qualify but has 10% down. (This person) finances (or somebody finances) the balance of full price. The note taken is then bought by his investment group at 91 cents on the dollar, the seller is paid, and I pocket the difference.
Ex:
Bought 75,000 or 75% of appraised value
-Cash
Sold 100,000
-10,000 down
-90,000 note
Note sold to whoever for 91% or 81,900
Seller is paid 75,000
I’m paid diff between 91,900 and 75,000 = 16,900
(This person) said he does not take a nickel he is paid by his investment group/funding source. Sounds too good to be true.
While we’re on the subject, what do you think of Offers to Puchase subject to a final contract by someone else? I’m guessing this is the way this person operates. Am I badly volnerable?
No Need To Partner The Way…(LONG). - Posted by David Alexander
Posted by David Alexander on May 04, 1999 at 10:56:13:
Your thinking about it. Your really not partnering but, just becoming a bird dog. He is just the only note source you’ve come across so far.
The details of the kind of deal your talking require No Money(at least of your own), except for necessities, gas expenses etc.
In fact most of the stuff talked about on this web site will teach you how to accomplish such a deal.
First, if the deal is good enough to begin with you will be able to get the money.
Here are the basic steps and you will see why you can do this own your own.
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Find a MOTIVATED SELLER, SITUATION.
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Find out the reasons for the motivation.
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Solve their problem
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Solving their problem will include you getting a property under contract.
A
. I personally focus on two kinds of deals, people motivated to sell for all cash at a great reduction. (not all people can do this because of a mortgage still in place).
B. The people that still have mortgages but want out I focus on getting the deed and taking over payments. -
Once you have a property under contract, make sure your contract says you have the right to market and VACANT properties are better.
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You would then market the property for sell as Owner Financing if you were selling the Note, and as easy Qulifying if you are willing to carry some of the paper and have your buyer work with a mortgage broker.
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Always prequalify your people before letting them put a contract on your house.
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You have a buyer, you close either through a Note buyer, or a mortgage broker.
The differences in my opinion. When doing originations it is better and more profitable to use a Mortgage broker. When dealing with a seasoned Note, it is better to sell or borrow against the Note.
Now why you don’t need a partner the way you think.
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Your dealing with a Note Broker, go direct to the source. Check out the cash flow forum, we had a recent posting of some of the direct funding institutions.
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In the deal you mentioned your giving up all your profit because of lack of knowledge, nothing else.
Read everything, and every post on this sight it will sink in quick. Decide what area is best for you and start buying courses.
Good Luck
David Alexander
Re: Should I partner with stranger - Posted by JPiper
Posted by JPiper on May 04, 1999 at 08:44:23:
It sounds to me like you’ve been contacted by a notebroker?..one of many who exist out there.
You make an all cash offer to the seller, with a contingency so that you can walk away, and with enough time to find a buyer and sell a note. Next you run an owner finance ad for a buyer, getting 10 % down, let’s say an 85% first mortgage, and a 5% second. Next you contact a notebuyer who makes a bid for the note. Finally, all of these transactions close simultaneously, giving the seller his cash, the notebuyer his note, and you some cash and a second mortgage.
You can do that with this guy, or with a variety of other people around. But?.it has it’s complications, especially for someone new. My suggestion to you would be to get some experience prior to trying to balance and close several different transactions simultaneously.
The way your contact is being compensated is through a portion of the discount that the note is purchased at?.you’ll observe they aren’t paying 100% of the value for the note.
JPiper
Re: Should I partner with stranger - Posted by Irwin
Posted by Irwin on May 04, 1999 at 07:56:34:
Most, if not all of the things that come to you by unsolicited e-mail are scams. Accept nothing at face value,.i.e. don’t believe a word they say. Make them prove it. My guess is that sooner or later, probably sooner, you will be asked to pay for something. Training sessions, books, tapes or the like. At that point, drop it like the proverbial hot potato. You’re not experienced in real estate. So ask yourself, why did they pick you?
Ask to see a written agreement of what they propose to do and have it reveiwed by an attorney. Just a suggestion.
Re: Should I partner with stranger - Posted by Redline
Posted by Redline on May 03, 1999 at 12:32:35:
Two things come to mind here:
- If “they” can put together deals like this … why do they need you?
“To find deals” - you say?
- If you can find deals like this, why do you need “them”?
RL
Re: Should I partner with stranger - Posted by Newbie
Posted by Newbie on May 03, 1999 at 12:46:35:
I can’t offer all cash or can I? I guess you’re saying eliminate (this person) as middleman and find the funds myself. Well, I’m kind of new to this and if he’s got the cash and he’s not keeping more than his fair share I don’t see anything wrong???
You guys and gals are the best. Thanks! - Posted by Newbie
Posted by Newbie on May 04, 1999 at 13:22:38:
Thank-you