CARELTON SHEETS – ANY SUCCESSFUL STUDENTS OUT THERE ?
Question: My name is Kim and I am finishing the Carelton Sheets course “No Money Down Course”. My husband and I are really looking forward to investing in real estate in order to secure our future. But, our credit ranges from slow to very bad. Is there any hope for us ? I would like to hear from some Carelton Sheets students about this matter. Thank You !
Answer: I don’t know why I see criticism so much of this Carleton Sheets. My wife has the course, and its actually fairly thorough. It is not just for beginning investors, and there is some interesting material in the later chapters that is more advanced. For the price, I don’t think that it is a bad investment. The lessons learned through “hard knocks” in RE are far more expensive. The course can help pass along some lessons-learned. I am the one that started this Carleton Sheets thread. Can anyone answer ny original question ? My husband and I are trying to invest in real estate with either “no money down” or very little down to acquire some property. Our credit ranges from slow to bad. We are trying to repair it now. Is there any hope for us getting loans for single family dwellings or HUD homes ?
I am currently looking into the 203k as well as other federally and state provided programs. What are our chances of getting approved to rehab some property and rent them out ? I wouldn’t be pushing it if I said that most of the property we buy is better than no money down, we are usually walking away from the closing table with cash in hand, but it’s very very rare for a new investor to start out with the contacts and knowledge on how to do this.
Your subject line of “Carleton Sheets-any successful students out there” throws many of us on how to reply. Just like most of the rest of the guru’s Curdled Shits also has a 3 stage program. And as I stated, most successful investors do have a copy of his home study course up on their bookshelf. How many went through his school I have no idea. Nor how many took his personally taught private course.
The Sheets course offers a wide range of scenario’s to put together no money down deals, but honestly, those type deals are far and few between. Even if you work at them! But the knowledge gained from his mail order course is an invaluable stepping stone tool to the real estate investment industry. But it is not all you will need to know to succeed in this field.
It takes a lot of hard work and determination to get going in this business, if you have no credit, bad credit, no track records, no experience, etc. it only makes it slightly harder but not much harder than if you have excellent credit.
There are hundreds of pitfalls that you have to learn to work around, and only with experience will you learn them. Most cannot be gleaned out of a book. And new pitfalls pop up every single day.
Using institutional lenders is the first big drawback. They have totally rediculous policies on which they make their loans, that have no rhyme or reason behind them. For example, lets say you found the perfect deal on a home, fairly new, no damage, nothing broken, appraised for 150,000 dollars as is, FMV from comps in the area is 175,000 dollars. You negotiate with the very desperate seller for the rediculously low price of 22,500 dollars. Due to institutional lending policies, you could not get a loan on this house at all, no matter what your credit rating is. Even if the house is in totally perfect condition. Let’s say you did find a lender after a month or two of searching, what will they loan you? Maybe 15,750 on a 150,000 appraisal. And that would only be if they bent their rediculous policies far enough to allow a loan under 25,000 dollars.
To get around these type problems, you have to find private low interest lenders that will make a loan based on appraisal value rather than on purchase price, borrow what you need to cover all the debt plus a little extra to live on (you don’t pay income tax on loans).
Also, you never want to buy a home (and be able to work out a no money down or cash back deal) if the house has been listed on the MLS any time over the past year.
Let’s assume you find a home where the seller has made some upgrades since first placing the home for sale. A scenario may unfold where the seller had found another place to move contingent upon selling his home in time. Because of the urgency, he may have offered his home initially at wholesale, and then as moving time approached, dropped the price considerably more. He may have started out at 85,000 dollars and dropped all the way to 65,000 dollars showing in the MLS. Now that the urgency is relieved, he wouldn’t part with his home for under his original 85,000 asking price, and to help get that price he has cleaned up, painted, repaired a few things, etc. The home now appraises out at 102,000, sale price is still 85,000. Now try to get a loan for 85,000 even. Lots of luck, lenders look at the lowest MLS price and will not make a loan for a selling price higher than the 65,000 and then they normally will only loan 70 to 75 percent of that amount.
It’s a dog eat dog world out here, and you have to locate and nurture private lenders, which takes time. But if you started today, by the end of the year, you should have all the backup financing you need!
Classic Haus Limited, LC was purposely started with ZERO cash, no Credit, no Income and no Borrowed start-up funds, only to prove it can be done with the simplest pieces of knowledge. In it’s first month it amassed 15,000 dollars in start-up capital by flipping homes to other investors for 3 to 5 grand each. The company could have made a whole lot more money if it had credit or funding available. At the end of six months down the road assets totalled over 1/4 million with debt service on assets well under 100k and a positive cash flow of over 2 grand per month. Not a lot, but pretty darn good for starting with absolutely nothing, and working within the strict guidelines of a preformed business plan.
If you are sincere, you will make it happen!
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