Foreclosures or Contract Assigns?????????

Yes, I think you've got it - as long as you can put together the financing, I believe there's more money to be made in foreclosure deals. Assignments seem to be a bit easier, lower risk, and little or no money is required. I'm a buy and hold (and rent) investor myself and it's worked for me. That's what's so great about RE investing - there are lots of different approaches that all work. Best of luck to you!

- Tom

Thanks Tom! Yeah I suppose the hard part is getting the financing over and over again and either getting tenants or a buyer before you run out of money paying mortgages! I would really like to do a couple buy and holds to get some monthly cash flow and such. I guess we shall see! Thanks again

is one issues i can't get, but I'm keep pushing until I find a solution to my problem. There are an abundance of foreclosures on market and more yet to come sad to say. If you can get buyers and/or renters you'll have a nice monthly cash flow. You just have to decide whether you need a small monthly cash flow or large sum of money as Jeff put in Phone Conference last week. http://www.zilpy.com/ and www.rentometer.com are two good sites to check area rental rates in areas where you're considering canvasing for rental properties. Assignments you're going to have to endure until you find a bank that's willing to accept AOC. You can still make out.

It's just a matter of determining whether your in need of immediate cash or not Assignments are great if you want to make money quickly. Foreclosures will give you more of a profit margin but is a longer process to do. There is the option of working with a FSBO and doing a double closing that can give you a greater profit margin than doing assignments. For example a person who wants to sell because they want to retire and move out of state and they own their property straight out. They are just looking to get out. Just things to consider. Much success to you..........Lubertha

Okay:
you must take into consideration that if you are purchasing the home in your and your wife's names, that can be limiting for you down the road. Look at this site for discussions re how many homes you can now own under FannieMae/Freddy Mac guidelines (they're not dead - just in receivership, in effect). I believe they raised it this year from 4 homes to 8 homes.

This is why you should consider forming an LLC and purchasing homes in the corporation's name.

Now, if you're just a little minow right now, don't be scared to purchase under your names. If you're flipping, it won't add up (meaning hitting max of 8 homes), so that's okay. However, if you're going to buy and hold, you've got to consider the LLC approach.

I am trying to do an assignment with a friend through a FSBO but I wanted to know how she can qualify to purchase the home and get the grant. In otherwords, does she need to go through a realtor to get qualified?

Thanks for your help guys!

How does a Revocable trust or Land trust or any of the other various trusts fo that matter helps to protect your investments (assets) if any?

Realtor can't qualify (underwrite) you on a loan unless their a mortgage broker too. Have her shop her options to see what rates & options the local Banks are offering Buyers.

Hi T:
you didn't mention if your friend plans to live in the property or flip it. If your friend plans on flipping it, then tell her to use Coastal-Funding to get a proof of funds letter and let them fund it. If she uses a HML like Coastal, then she'll have to pay interest only on the loan until she sells it.

If she wants to live in it, then just hook her up with a mortgage BROKER - not just 1 lender. If her FICO is over 620, can put 3% down, steady employment and at least 2 years away from a BK filing, then she'll qualify for an FHA loan, which any mortgage broker can underwrite for you.

Good luck!

Congratulations on your deal! If you are assigning a home from a FSBO that you have on lock up. Your friend the end buyer the person you are planning on flipping it to needs to go through a mortgage broker. I say broker becuase a broker will shop for the best rate for her. Verses going with an agent who follows the guide lines of a company. A realtor or agent will not be in a position to do a mortgage unless they are a mortgage rep also. Keep us posted. Much success to you............Lubertha

Thank you all for the input! Every little bit helps. We really dont have a need for fast cash, just thought we needed to build a bit of savings for different home purchases down the road. Forming an LLC is def something we will have to do in the future if we plan on holding a lot of properties. So there is a different route of financing if you plan on re-selling quickly as opposed to buying and holding? You will have to pardon my lack of knowledge, but I am learning everyday!!!!!! This is fun stuff!

Your welcome! Glad to be able to help. That's whats great about this site. There is always a learning process going on, no matter how much you think you know. There is always something new you can learn here. Tremendous amount of opportunities are given through these techniques! Much success to you always......Lubertha

I have learned more by just reading these forums than anything else in the last month! The book is great but getting on here and reading about real life situations and deals helps tremendously. For some reason I am much more interested in actually purchasing properties i.e. foreclosures/short sales/FSBO than I am in doing contract assigns. But I guess I have to learn how to walk before I can run right?

-Brent

Isn't the forum Amazing? Either choice is a great one. It's just about finding out what technique motivates you to move forth! Your choice gives you greater profits. Re-reading the book is great to do because sometimes we can complicate things and then you go back and re-read the strategy in the book and then it becomes so clear. All the best to you.....Lubertha

Thats a great point. I guess we will just see what kinds of deals our finances allow us to do. Thanks again for all of your guidance!

Your welcome! Look foward to your support as well!