Posted by Lazaro on April 09, 2002 at 20:36:16:
I did not mean in any way that you were bashing them. But it seemed like if you were blaming them for YOUR problems. “Think and Grow Rich” (Napolean Hill)
tons of empty homes FSBO - Posted by GG (GA)
Posted by GG (GA) on April 09, 2002 at 11:19:59:
I’ve been riding around my area and there are a LOT of empty houses around, most needing cosmetics. We really enjoy living in one while ‘fixing’ up. We’ve done that with our home for the last three years, a little slow but we both had full time jobs. Our house has appreciated $40,000 since we bought it three years ago. I’m not sure if that is good or bad, but do know that we have only put about $6,000 into fixing up. We would like to start with some of these houses that are in need of TLC, But our financial situation has just changed. I was recently layed off/downsized and my husband has a hard time finding work in his field because of illegal immigrants. My FICO is somewhere around 690, but I consider my credit excellent, no late pays or slow pays. I am REALLY uncomfortable with the Subject-to method. We would like to buy one house at a time and live in for about six months while doing the work on it then sell/lease option, or just rent out. How do I go about finding investors to partner with. We really don’t have a track record to speak of and family is out of the question. My family is still losing money in the stock market and just won’t quit! Any help will be appreciated.
Thanks, Gail
Re: tons of empty homes FSBO - Posted by Steve-Atl
Posted by Steve-Atl on April 10, 2002 at 20:38:55:
If you could live in the house for two years you will get one of the best tax breaks available today. There is no tax whatsoever if you use the house as your principal residence for any two of the last five years. So your $40k in equity becomes tax free money when you sell.
Figure out how much money you would have to make before tax to net $40k after taxes. Its a very powerful strategy to move into a fixer every two years…that is if you can stand it.
If you want to acquire properties to lease option or just rent too, I would take another look at subject to deals. They are really the best way, if handled properly. They are not illegal, unethical, or immoral. You are solving the sellers problem and at the same time providing an opportunity for your buyer. Just act responsibly and do what you say you will do. I was skeptical too in the beginning, but my experience overall has shown that the risks of subject to are very low compared to the benefits.
Re: tons of empty homes FSBO - Posted by DJ
Posted by DJ on April 09, 2002 at 22:53:42:
I’m new to REI so forgive my ignorance, but if there’s TONS of empty homes, are you sure this is where you want to invest? Seems to me I’d want to find out why so many are vacant. I’d hate to get a “good deal” only to find I couldn’t L/O, rent or sell.
Re: tons of empty homes FSBO - Posted by Jim FL
Posted by Jim FL on April 09, 2002 at 12:56:58:
Gail,
I’m just curious, but why are you REALLY uncomfortable with subject to?
Frankly, if it is leaving the loan in the sellers name, I really don’t see a difference in using the existing loan as opposed to using someone elses funds to buy the house with cash.
Surely subject to is cheaper, as far as availability of funds and the fees with getting it closed.
Good luck,
Jim FL
Re: tons of empty homes FSBO - Posted by Tim (Atlanta)
Posted by Tim (Atlanta) on April 09, 2002 at 12:37:05:
Where are you located? If you are anywhere near the Atlanta area, there is a huge investor meeting with the GAREIA. You could very likely find partners there. Or even if you are in one of the more rural counties, you could find a partner around Atlanta.
Re: tons of empty homes FSBO - Posted by Lazaro
Posted by Lazaro on April 09, 2002 at 12:34:52:
Don’t blame the illegal immigrants. They want a better life JUST LIKE YOU. I honestly admire illegal immigrants that put more on the line to give their family a better living. Wouldn’t you do the same thing for your family? I know I would do ANYTHING to help my family. It is just human nature. This is my opinion and I would wish more people saw it this way.
Cordially,
Lazaro
PS I am not an Illegal Immigrant…lol…But have my personal experiences that allow me to make such comments.
Re: tons of empty homes FSBO - Posted by Carey_PA
Posted by Carey_PA on April 09, 2002 at 11:53:19:
690 is a pretty good fico. Why do you want an investor to work with?? Just hang around here, LEARN all you can, and I’m sure you guys can do it yourself.
With a 690 score you can get your own financing, whether from a hard money lender, commercial bank, etc. But as long as you find deals, you’ll find a banker willing to lend you the money, especially with a score like that.
Also, you don’t need money to buy houses. You can start out with lease/options if you like. Just do a little more research and you can be picking up all of those vacant FSBO’S in your area.
good luck,
CAREY
Re: tons of empty homes FSBO - Posted by Steve
Posted by Steve on April 09, 2002 at 11:39:07:
I might be interested in partnering with you. I’m in Atlanta as well. email me with more detail. stephen.nettles@wcom.com
Re: tons of empty homes FSBO - Posted by GG(GA)
Posted by GG(GA) on April 09, 2002 at 12:52:14:
I have no problem with any immigrants. They need places to live just like everyone else and we have sold two mobile homes to them already and ready to sell the third (all of them had over 3,000 for the down payment. All I’m saying is that they will work for less per hour and we have had to rethink our income methods.
Gail