I’ve heard that purchasing a home after a foreclosure is a 4-7 year wait and rightly so I suppose. I have a foreclosure that just went through. Coincidentally my wife and I have caught the investment bug and have spent the last 3 months educating ourselves on the different investment options and how to go about implementing them. We have a 3 year plan however that we have afraid may turn into a 7-10 year plan seeing that we may have to wait 4-7 just to qualify for our very first investment purchase.
Is there any avenue that we could take to become buy & hold investors sooner that the normal wait? What are our options for getting started sooner rather than late?
There are more then one option that you can use. I personally have not used my credit to purcahse anything in the past 11 years and have made a very nice living for family. I totally shifted what I did when the economy went to crap. And have been having the best 2 years ever. While I would like to write (TYPE) it all here I would be here for a few days. And to be honest I am a little to busy for that right now. If you would like I can email you my plan and how it works when I get a chance to get it done.
No. An installment contract purchase (a/k/a land contract or contract for deed, or just a contract) is simply an owner financed purchase where the agreement is between you and the owner for payments and and an eventual conveyance of the deed up satisfaction.
Many owners of rentals would be idle candidates to sell on contract when they get on in years, because would receive a similar income stream to what they had when the house was a rental, yet the occupant would likely take better care of the house. Usually, you’ll need from 5-10% down, although I used to buy on contract for just a couple grand, or even nothing down (early 80’s, when Reaganomics killed the RE market and everyone was losing their shirt).
Sometimes, contract terms are available even for houses on the MLS, though the down stroke is usually higher because the seller has to cover the commission. I’d go to your local REIA meetings and scout for people who might sell on a contract. The key is that most of the time, your FICO score is much less of a factor with a seller than it is with a lender.
Be aware, however, that should you default on payments, 60 days and you’re out. It’s a good idea to have some cash reserves before you commit to a contract. FWIW.
I bought and sold 234 houses in 05 and never applied for a loan… Learn sub 2 investing and seller financing strategies… Understand private money and youll never have to worry about your FICO score3 again.
Yeah but the market was thriving in 2005 so doing sub2 would make a lot of since. People had more equity in their homes then they knew about. You could sub2 it fix it up for a massive profit. I just don’t think that there are that many homes out there today that have much equity if any at all. I think the wave of the future is short sales.
I think the wave of future is to have a open mind to everything when it comes to Real Estate. The key here is simple some deals are great sub 2s and others are great flips while others are great short sales. And yet others are great Loan Mod Sub2. It all really depends on the deal.
Learning how to Invest in real estate is like learning how to “Play Ball”…
You have to pick which type of ball you want to use to play with before you can do a very good job of it… I bet there isn’t a Major League Baseball player live or dead who could hit a ball out of the park if the ball was football. Bet water polo would be difficult using a beach ball. Imagine dodge ball using a golf ball. Actually that sounds fun… As long as the other team were loss mits.
My point is that there are deals to be done out there subject to if and when you understand how to… in 05 certainly there were more houses with equity however there were more of us trying to grab them… Now that the weak are gone its a great time for everyone…
With that said foreclosure strategies are important to understand… Do you buy pre-foreclosures, REOs, Notes, at Sale, Bulk, … Where do you get the money?
Its when you think you know more then you do you in trouble… That reflection in the water is ugly at times.
I have worked in a Foreclosure department as a Property Acquisition Specialist. Every month, we foreclose a lot of properties in our country. It even came to a point where people rallied in front of our office. I understand that it is really hard for people to have their properties foreclosed. That is why it is really important to pay our dues and be responsible with it.
That is one of those don’t ask don’t tell things. It is very rare that they will even ask for a proff of funds until it gets into the final stages of nego. At that time you should really have a proff of funds and if not then you just did all that work for nothing.