Beginner with bad credit and little money? Join me here!

Good afternoon beginners,

I am a beginner with bad credit and little money as well. Many here don't know how to start off in this business if they're having the same problem as me (bad credit, no money).

Get a loan from a bank? No way! You have bad credit and nothing to put down.

Borrow money from a family member? Yeah right! My family is just as broke as I am!

Use credit lines on your credit card? You don't have any credit cards, right?

Soooo what do you do? How can you get started? The answer is simple...wholesaling properties! But not through Realtor's who want a $500 - $1,000 binder deposit and proof of funds (that's the way Realtors weed us newbies out!). Buy vacate abandon properties from owners who walked away from their properties...or should I say, put them under contract and assign it to another investor. This is the best way for newbies with bad credit and no money can get started in this business. Owners who walked away from their properties are alot easier to negotiate with then owners with 4 sale signs and realtors. I'm working on 2 potential deals where one owner agreed to $2,000 and another for $4,000. You turn around and assign those contracts to another investor for $5,000 (investors pay you $5,000 for contract and then pay the balance owed to the seller after your binder deposit). Even if the investor talks you down to $2,500 for the contract (I won't take less than that) is that better than what you are making at your current job?

So how do newbies find these walk away owners? 2 ways...you can either drive up and down blocks of poor neighborhoods and write down the addresses of boarded up houses and lookup the address on the city's taxroll website (if the tax bill is sent to a different address, you have a winner!). Or, you can put a "I buy houses" ad in the local paper (like I did) and the desperate owners will call you (the 2 pending deals are from walkaway owners who called my ad).

I talked to lawyers in my state (PA) and some said it was ILLEGAL to assign contracts because you're acting as an agent without a license. HOGWASH!!! 1 lawyer said that I would not have an issue as long as there's full disclosure like putting on the contract, "buy reserves the right to assign contract to a 3rd party". So I stated "and/or assigns" after my name and stated on the back of contract that I reserve the right to assign this contract. Walkaway owners will not question this where realtors and FSBO's would.

I gave a walkaway owner a $10 binder deposit and advised him that the closing would be within 60 days and he had no issue with that. If you explain it correctly a walkaway owner won't give you to much problems with this.

Anyway, I just came to terms with walkaway owner No.1 yesterday, so I will check the title Monday or Tuesday and if comes back with no mortgage lien (because he said there wasn't a loan on it) then I can run a "handyman special" ad and get this ball rounding!!!

That's my story...what's yours? I would like some feedback from newbies because we can work together to better our current situations because I have no positive support group here in Philly Sad and I would like to receive advise and give some too. I'm tired of reading about people being successful and getting pats on the back but giving you nothing in regards to steps they took to close a deal. I'm not hating on those people, I'm just saying. I came here to learn, not to be a cheerleader for someone else's glory.

So I will keep you updated on my progress through this first deal with walkaway owner #1 and owner #2 wants to meet me next weekend to sign a contract for $4,000. If I make a mistake, point it out. If you have an opinion, let's hear it. If you want to know how to get started and you're a newbie with the same issue that I had (see top of post) then be a active participate here because I can give you some useful advise. Maybe if we are successful together, we can use that new found money to attend one of DG's conferences and have a ball...would that be great? Smiling

Title Company

After getting my contract signed by the owner with a $10 deposit. I can't seem to get a Title company to return my phone calls. I guess my message spooked them off. I called 4 companies and left a message and not one of them called me back.

There was a company that did the search for me a few years ago in Chestnut hill. I'll have to find their number and call them. I'm not leaving anymore messages. Either I speak to them directly or I call back later.

I have until 6-6 to buy so I have plenty of time but I must get a title search done this week so that I can move forward with the ad for investors to buy my contract.

Moving forward...

Ok, after not getting anyone to call me back from the Title Companies, I decided to walk into a realtor's office and ask them who do they use for their title search. Low and behold, this realtor office does title work with a partnering company and I was able to get my title search done through them. They first said that it would take 2 weeks and I told them that I needed the search within 3 days so they were able to hook me up. Now that I have the search report in hand I'm to take the next step and that's place the ad for investors to call me.

Starting this Monday, I will run a "Handy Man Special" ad and field calls from investors while calling "I buy houses" ads and contractor who fix houses up and rent them out.

That's where I'm at now...I will make another entry after the outcome of my one week ad.

B. Pryor

Learning the hard way

Well that worked out great. I have a property under contract but after pulling the title search also known as the M/J (Mortgage and Judgement search) I find out that the property had a $9,000 loan on it and 3 city liens on top of the back taxes of 6,000. The liens were 2,000, 400 and 200 dollars. I tried to call contracters about the property but no one will bite on it. Neither would the investors who are using the info as I am. Even though I only have $10 in this deal and the balance is 1990.00. I may have to walk on this one because I can't pass the contract. If I had the money to finance the rehab then I would just buy the deed and deal with the liens by getting them released. But my goal now is to generate cash and since I can't pass this contract, I'm going to have to let it go.

Maybe I can birddog the other leads and recoup the cost in advertising and search fees while I look towards lease options to generate income. I know it's a numbers game but if I can get over the rejection part I think I'll be ok.

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