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Discussion Starter #1
A year ago, I attended a local real estate meeting one night, whos main host went by the name William Tingle. He has a unique investing style that I never herd of before, prior to meeting him. I bought his course, which is very honest and upfront, unlike most courses who promise overnight riches for no work. This guy seems legit, and I want to know if other people have herd, or use his method.

For those that dont know, this is my understanding of how it works...

You have a home owner who is having trouble making their payments, or for whatever reason needs to move quickly and is a highly motivated seller. The investor comes in and says "Hey, I can take that house off your hands quickly" (and possibly save your credit) .

The owner transfers the deed to the investor, practically giving him the house, and the investor gives the seller a few thousand dollars ( the dollar amount is usually pretty small from what ive read). The seller doesn't make much of a profit if anything..the idea is to save the home owner from ruin..i guess.

The investor takes out a 2nd insurance policy on top of the existing policy. This is so the banks dont know the property transfered hands, and triggers the D.O.S caluse.

The investor continues to make the payments, and fixup the property if needed. Once the property is in good condition, he can flip the house (pre recession days) or rent the house out.

Seems like an interesting method that id like to try some day.
 

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Discussion Starter #2
No body?
 

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I have never heard of hiim Go Getter, but I have done many many subject to deals in my real estate career. In fact when I 1st got into the real estate business my wife and I picked up about 30 or so rentals using this method, it does work. Key is the paperwork and usually the deals are hard to find that will allow you to take them subject and still have spread enough to make quick money. Best strategy i have found for them is to hold them for a minute to sell at a later date. You will find your occasional needle in the haystack or blind squirel with a nut situation but for the most part they will be at an LTV that does not support resale immediately.
 

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Discussion Starter #4
but for the most part they will be at an LTV that does not support resale immediately.
^ Why is that? Also is the "subject to" your main form of investing?..what else do you do in real estate?

thanks
 

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Discussion Starter #5
Also what I dont quite understand is, why would a seller work with an investor? If they need out of their house that bad, why not offer the house for sale below market value?

I can see now, during the recession that this probably would be more difficult, but before 2007, wouldnt this have been the first obvious choice?

Are you even allowed to put your home up for sale if your behind on the payments?..whats the law say about that?
 

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I have been buying and selling real estate for over 10 years now;
wholesaling
retailing to end users
renting to tenants
doing rent to own to tenants who cannot yet qualify
and owner financing

The reason a seller would deal with an investor is for timing and desperation on their part. If the LTV is such that they can take a lower offer they would just list it lower and sell it. In fact in the selling boom it was easy to get subject to properties because everyone was taking their time buying because of the amount of inventory that was out there. Now there is even more so it is even better...people are just walking away from houses. As you can imagine it is much harder to make a buck though because of the lending market.

The type of transaction that these are specifically does not support resale...in order for a seller to practically give you a house they have to be hurting and not able to sell for a reasonable amount hence the higher LTV's that you see with these types of properties. Anyone that tells you you can sell houses in this manner.....run away from them fast....they are either shaddy or lieing. Note just because someone sells a subject to house 1 time in 3 years for a profit quickly that does not a business model make.

BTW we were the "We buy Ugly Houses" guys here in Birmingham. I have bought and sold over 600 houses in the last 10 years and on my biggest year sold 98 houses in one year...not like realtors where I listed them,but I actaully took title to them and sold them to someone else...maybe only for like 10 minutes but still. No offense to any realtors, just saying owning and listing are 2 different animals all together. I have had a high of 125 houses in rental inventory and currently own 44.

I have transitioned out of the real estate business for day to day income and have kicked my insurance business into high gear. Just a little snipit
 

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Discussion Starter #7 (Edited)
Can you tell me more about the insurance business? How do you possibly have time for both? Do you live off 3hrs of sleep and redbull? :D

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I thought about wholesaling, but the problem i saw with that was, I'm not willing to drive around in the broken down parts of town to find houses with a caved in roof, broken windows and what not..I dont want to get shot trying to make a dollar. Where I live, in this part of town, you just dont have those kinds of houses, and plus, investors arnt buying as many properties these days, so selling the contracts would be hard.

My family and I..or should I say, my family (I didnt spend a dime, but they were going to split the profit with me 50/50...HEY, i was learning..gimme a break! :) ). We did a flip, i think it was in 07 or 08..anyway we bought this house at the top of the market...we, like many people, didnt know any better. We did 100k in renovations, made some stupid mistakes, and the repairs took forever, because the contractors werent there many days to work on it..they had other jobs to work on, and plus it was raining so much, they couldnt pour the concrete. Long story short, we lost 100k on the flip.

Thats amazing!.. 600 houses..98 in one year!!...omg. How many people did you have working for you..or were they partners?...

How did you get started in real estate. As you can see from the above, my 1st experience wasnt so great.
 

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Sleep is overrated.....but seriously, we have a management group that manages our rentals so we don't do anything with them at all. We no longer do the day to day selling of houses. I do keep my ear to the street and would do a deal if I had an investor ready to buy, but with the current market the investors are few and far between and have a hard time coming up with financing.

I am sure you can some way make money in real estate but I knew a bunch of guys that made livings for a while and very good ones at that and they are either out or doing minimal deals at best. Key is the financing for both aquisition and end user. At one point with about 3 or 4 banks we had a total of about 4-5 mill in lines of credit or hold lines and that dwindled druing the start of the credit crunch to around 500k at best. If we were big players and had that happen then imagine what happened to our investors that bought from us.

When we were running full tilt I had 3 contracting crews for the most part, 3 guys in the field buying houses for me and 2 office staff persons, plus myself and my wife.

We got started the old fashioned way, with no money or credit and worked our way up by sweat equity.

We currently do life insurance which is a lot easier than most versions and we can insure a steady stream of business, that has replaced our day to day income that we made from buying and selling houses. To be honest I wish we had made the move 3 or 4 years ago, I would have saved myself a lot of stress and headaches.
 

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Discussion Starter #9
Are you a member of the real estate club up in Homewood at the senior center? They have meetings there like every month on monday around 6. Alabama Real Estate Investors Association ALREIA thats the link.

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About 6 months ago, I almost got a job at liberty national. They told me I had a month to get 90 leads, before they would hire me. They gave me a packet, and that was about it. I was saying to myself.."..umm I dont know anywhere near 90 people, and even if I did, I'm not going to force them to get a different policy, just so I can get this job " I threw the packet away, and never went back. It seems that unless your a very social type of person, with a ton of friends and connections, making it in the insurance business would be very very hard. At least for me.
 

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I don't the investor club scene anymore.

We do direct mail which generates leads so we call people that request our coverage, no cold calling, or door knocking, or selling family and friends. Liberty is a good company but not the way to go for newbies.
 
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