*
Mike’s worried that I’m abandoning my real estate venture. Nothing could be farther from the truth.
I am learning a few things and still figuring out the lease option market. I’ve finally run across someone that actually has the required down payment now and am waiting to find out if the house I’m offering is acceptable.
I’ve also found my first pre-forclosure opportunity. I just met with a nice lady that is three months behind and has a letter indicating a 30 day notice till foreclosure legalities will commence. Once that legal maneuver starts, it’s a lot more difficult to get a house using the seller’s credit line.
I layed out the rent-to-own program that I’m operating and told her how I will make my profit. I indicated that I’d take over her payments and make them dillegently, thus preserving her credit while she finds a job and starts a different life. If she doesn’t land another mechanical engineering job fast, she’ll have to rollback her lifestyle. If the house goes to foreclosure, it will ruin her credit. She tried selling the house for three months at FMV which would have payed her Realtor and loan off. Now, she only has time to toss the loan on and investor.
Some people think I’m taking advantage. I think I’m helping. She understands that I’ll make about 10 to 15k by doing the rent-to-own thing. I’m risking that I can’t get someone in there and will eat a few months rent or worse. The buyers might tear it up.
It’s a cosmetic fixer upper. Paint and minor repairs. It’s not a home run, but I’ll do this every time.
Comments?
blue
Replies
*
Blue, go for it. You are doing her a real favor whether she know it now or not.
You'll have your first deal, and it'll give you a chance to refresh your "Why I hate painting" memories. Joe H
*Blue, If you don't mind me asking, How did you find a "pre-forclosure" opportunity?Dylan
*Taking advantage? Yes. Not of her, but the situation. You found a situation that allowed you to construct a fair and equitable deal for both sides.Keep us posted on how things come out! BTW I've been following your real estate post closely and I tried taking your advise on joining a real estate investment group. However I cannot find one in my area. Can I join the one your in? :-) I'm over in Fenton. I would at least like to buy you lunch some time.Scott R
*Joe, she realizes that I'm helping to create a win-win-win situation. At this point though, she wants to save her house and is making a last ditch effort to secure employment. I encouraged her to do that, but also warned that the 30days does not give me much time, especially with the holidays. The time crunch is critical. I need to research the title and make sure I'm not buying into a legal nightmare. I don't mind painting, one or two days a year.blue
*Dseymour, I didn't find the pre-foreclosure, it found me. I've started in the real estate investment business by placing ads and selling houses. Currently I have an ad running for a 90k house but I don't even have one in the area that I'm advertising. I am collecting buyers however and searching for a house to match their needs. As of now, I have several buyers with the proper credit and not enough down payment. I just made contact with a good buyer that has enough down and the hubby works 60 hours! They may or not be interested in my current inventory of houses. I only have one in their price range to offer, so I might not get them into something. I'm trying though.Because I'm actively seeking both buyers and sellers, my ears perk up when anything about real estate is mentioned. This particular house came to me through my son. He's actively involving himself too, but didn't understand how to deal with the situation. He accompanied me in my meeting with the lady and now understands how/what/why the rent-to-own program works. Print cards, run ads, talk to people. When the opportunity presents itself, act.blue
*Scott R, I'd be most willing to drag you along to the REIA meeting next month. it's in Clawson in Oakland County. It'd be about an hour drive for you. I drive slightly more than that. I'm actually thinking I'd like to reseach the Fenton market. It seems like a perfect place for real estate business.Call me anytime on my toll free number 888 284 2264.blue
*Blue: My take on it is that you are providing an opportunity for both parties to come out better. You are not taking advantage of her, but the situation, just like Scott said. You have a good amount to gain, but you also are taking some risk. So you should be rewarded with a nice gain for this.I dont see it any different that someone with no collateral going into to a bank for a loan. The banker says up front what his charge will be for supplying the money. This money has some risk of not getting paid back on time. The banker is not taking advantage of the borrower, but just making a calculated business venture with gain figured in the end.Good luck on your endeavors.
*Stan, you are exactly right. The risk is there, and it's my job to manage it. I manage it by carefully screening my buyers, getting a large enough down payment, inspecting the property during the term of my contract (if it's on a lease option).Actually, I was attending a PPL Christmas Party last night and was excited to meet a "head hunter". I'm going to put the seller and the head hunter together and try to help this nice lady keep her house, by finding employment. I'd rather work on her behalf to allow her to keep her house, simply because I hate thinking someone has to move out due to financial difficulties brought on by a weak economy. I don't really "need" this one house since there are millions more in the Metro DEtroit area. When I first started researching this business, some of the real estate investors would always say "if both parties aren't winning and helping each other, I'll walk away. It's got to be a win-win situation or you're better off moving on". I now know exactly what they mean.blue
*Blue,
*Joe, I'd rather not cut the yak. Yakking is fun.Quite frankly, my theoretical 10 to 15k is not guaranteed especially in this market. Doing this deal for 7k doesn't make any finacial sense at all. The risk would not come close to the possible reward. For instance, once I agree to take over the payments, I'm morally obligated to make them. If I don't get someone in there, I'm out the 1500 per month. Additionally, if I'm leasing it, I'm on the hook for all repairs. If I need to evict someone, that might take several months, and the place might need 10k or more repairs if the tenants are particulary vile. This is not taking advantage of anyone. I explained exactly the situation and she is in the exact same position to do what I'm doing. She could thank me for giving her the idea and I'd probably even give her tips on how to screen her tenants. Would I be open to making an offer that would share some gain, if there was more equity? Yes. I'd be a poor business person if I didn't analyze each offer on it's own merits. For instance, if we were operating in the red hot market that existed two years ago, I'd be willing to create an equity sharing contract that payed her some of the "profit" that I could create by closing a lease option sale, and capitalizing on appreciation. Again, a win-win situation. I'm using her credit, and helping her keep it good. I'm using my skills at creating a profitable sale, and sharing it with her.Yes, I'd share a profit, but the margin in this case is too slim. In fact, I'm not sure I'd even take her payments, if I don't have at least a few weeks to research the available market for value and rent rates. Things are not so good in this area and this might be a losing proposition. The best choice might be to give the house back to the bank!blue
*Blue,
*Joe, at this time, I don't know how much I'll have to put on the table. The margin is so slim that I doubt that I'll offer anything. If I see a possibilty that there is some more equity than I'll be willing to ante up an appropriate amount. Your own words spell out the risk...."possible income". That alone makes the risk substantial. And if it's so easy, why doesn't the lady just put the ad in the paper and rent it herself? How am I going to get paid for the last month's ads that I'm running and the time spent interviewing possible buyers/tenants? How do it re coup the time spent looking at houses? These are the services that I bring to the table. I offer them, and she accepts or rejects. This is a business....blue
*Blue,
*Joe, I'm not sure which question I didn't answer. I thought I answered them all.I don't see me taking advantage of anyone. In fact, the lady was so thankful that I sat down and discussed a possible solution, she thanked me and demanded a hug before I left the house. Her 17.9 year old son thanked me. He later thanked me again when I saw him later. They were so thankful that I'd feel guilty if I'm not able to go forward and help them save their credit. Not everyone will agree that I'm providing a service. I know in my heart that I am, and that is why I can do the service with a clear conscience. All of my mentors that have taught any part of this business all say that they walk away if everybody doesn't win. I fully understand and agree. Mark Maupin has done this thousands of times. He says quite often, he'll explain that the house has substantial potential equity and that the seller could capitalize on it by keeping it and dealing with the things that need to be done. He says that the sellers simply don't want to be bothered, or don't care to put the effort in. It's their fully informed decision. This is not bottom feeding. The alternative is that the lady will let the house go into formal foreclosure. Immediately, a subtantial legal fee will be attached to the existing loan. Those fees become the responsibility of the mortagor. Contractually, this is the worst case scenario. She will immediately several thousand dollars more and quite probably up to 5k. Her financial situation is the result of her not taking quicker action when the need to financially downsize occurred. If she had immediatly leased the house, and found cheaper housing (600 per month apts are everywhere), the severe financial reality would have been put off for a much longer time...possibly a few years. She could have sold the house for under market, simply to rid herself of the loan. All of these choices are/were hers. She gambled and is now close to a zero option decision. If I don't hear from her real soon, my option to help her save her credit is not going to be available. I don't have deep enough pockets, although I may be able to refer her to another investor with deeper pockets. I'm not sure anyone would do the deal. They'll let it go through foreclosure and buy it "short" from the bank.blue
*Joe and Bluei Yes one that clearly takes advantage of others weak/bad/uncontrollable/unforeseeable positions.I don't know if he was meaning to be that careful in his words, but he is say that you are taking advantage of the SITUATION not the of the PERSON.I don't see anything wrong with taking advantage of the situation. Lets use another example your work truck which you had planned to keep anyother two years was totaled in a wreck. Isn't a salesman taking advantage of the situation by selling you a new truck.
*Blue,
*I did answer it. I said I don't know yet. The lady owes almost 5k in overdue payments. That means she's been living free for the last three or four months while I payed my loans. The margin is so thin, that if I have to make up that much arrears to get the deal done, I won't do it. I might split the difference or try to work something out with the bank. I might be able to find a tenant/buyer if she gives me enough time, which at this point she isn't. Joe, I think you are trying to judge my risk by my out of pocket expenses. Well, I'd have to look in my checking account to see if I've had any expenses that I can directly or indirectly apply to this particular situation. If you only want to judge the amount that I physically hand over to her, you probably will take a dim view. I can't hand anything over because the potential for getting it back is not there. If I sell this thing as a "fixer upper", I'll not get the return I'll need. If I put the money into her house, then there won't be enough to give her. I think it's short sighted to judge the entire deal on my direct out of pocket expenses, which I would like to keep below 3k, whick seems impossible at this point.blue
*Gee whiz: Its clear to me. Blue is taking a risk. This lady HAS to land a HIGH paying job, or CUT back on her lifestyle with a lower paying job. If none of the above occurs and it goes into foreclosure, Blue HAS to rent this out RISKING months without income.Also getting some jerks in there that trash the place. He is taking in risks of ownership as well. I think he should be compensated well for this. Not all these ventures is going to come out satisfactory.
*Stan, the lady is a mechanical engineer. She's probably earned more than me, on average, over the last 15 years. She also has a nicer car in the drive than my wife and I drive. Mine is paid for however...We all make choices. She quit a job about 6 months ago. Oops. I'm certainly taking a risk. In our business, we need to learn to manage the risk by calculating our worst case scenario. In this case, if I misjudge the marketplace, I might have to eat 500 per month and maybe 10-15k unless things drastically drop further. Like I said, if she doesn't act real soon, my offer is off the table...blue
*An older brother of mine always said that the difference between "losers" and "winners" is that the winners always prepare for potential losses, while losers pi*s away their money without saving a dime. What comes in, quickly goes out, and for material things that are strictly expenses - not assets.He also taught me (which I learned on my own) is that the higher your bottom line, the less ass kissing you have to do. A guess my first paragraph explains it in a nut shell.It's said that Americans have among the lowest savings rate of all industrial nations. Our lifestyles is a natural contributor to the mindset that creates losers.Good for you, Blue.
*Don't pat me on the back yet Sonny. I ain't outa the woods yet. But I'm not waiting around like the nice lady either. I figure I can hustle a few bucks here, make alittle there, maybe even go frame a house once in a while...blue
*Blue, it doesn't matter if it gels or not. the main thing is that you got the cahones to go for it. I know of no "winners" who had anything drop into their lap while watching the tube. If it doesn't gel, you go on to the next potential opportunity.What is it they say about the Babe? He struck out over half the times at bat?
*Blue: I admire your techniques for this endeavor. I hope you help many more people keep their homes. You are doing so at your risk, and you should be compensated on the heavy side for this. I want to see you down the road be posting how you made 15K on this and now are helping another party. Go for it, and the best to you.
*Thanks for the encouragement Sonny. We all need a little push once in a while and recognition for effort certainly is appreciated. I think the book i Think and Grow Rich taught me that my ideas neeed action and when my idea fails, I just need to refine the action. There isn't any doubt that I'll succeed. I'm willing to try more methods than Thomas Edison!I just went through some great sales training. This is something I should have done ten thousand years ago! One remarkably simple idea that I learned was that failure (to get a deal done) is great. In order to succeed, I have to double my rate of failures! I'm now doubling, tripling and having a ball!blue
*Stan, I agree that there needs to be compensation for the risks involved. All commerce requires that money change hands and I intend to stay in business a long time. I owe it to my clients to hang around and do them right. It can't happen if I lose money on every endeavor.I just got off the phone with a hard working (she works a job and a half) single mom. She makes about 8.50 per hour x 60 hours a week. She can't afford much, maybe a 50k house, but this is the type of client that I want to serve. My heart pours out to these struggling blue collar workers who want their share of the American Dream. This lady will have about 5k by spring and intends to succeed no matter what. I will find her a house. I'll have to start looking in different neighbohoods. I'll be looking at acquiring a house in the 35k range and putting her in it for 45k or less. I'm willing to take less if the down payment is high enough. 5k down on a 40k house might make me do a deal and net only 5k. Like I said, there are a lot of circumtances that will affect my decision.blue
*Blue, where do you live? You can't get a house for less then 300,000 where I live. Town homes/condos start around 200-250. And these are for homes that are 30 years old and completely run down. I have been reading your posts on lease options and I do know of a house that is being sold by owner that hasn't sold in 6 months. I don't know if it is right though for a lease option because the house is worth an easy 600k and the type of people who qualify for something that much would just buy a house through a realtor and I am sure the owner most likely has lots of equity in it and wants to sell it outright.
*Sean, I live in rural MI, about 75 north of Detroit. I can get to Flint in 25 minutes and they have houses there that range from 15k and up. Markets like Flint and Detroit are great investor money makers, but knowing the market is critical. Property values need to be determined street by street.Don't let your thughts and prejucices stand in the way from making an offer. It's easy to stay home and think of hundreds of reasons why a homeowner wouldn't allow you to lease option, then sub-lease option their home. And don't automatically rule out those type of people that will purchase a home on a lease option. They might be successful business people that are in the throes of a bad cash flow year (that might be most of America this year). Just because they qualified for a huge jumbo loan last year, doesn't mean they can get the same this year. This year, I couldn't qualify for a Yugo loan! I personally will never automatically attempt to buy a house for myself without purchasing it on a lease option, or subject to (take over someone's defaulting loan). I'm willing to buy a 600k house on a lease option for the right terms any day, anywhere.And don't automatically assume that the owner needs their equity this year. If they are getting full price, but closing in a year or later, that might be acceptable. The investors that have taught me tell us that quite often, getting full price on a lease option makes these type owners very happy. They like to brag that they got "full price" and brag about how much gain they got. They don't bother to calculate the expense of the time-value of money. Also, a lease option is the right choice for some sellers do to tax treatments. There are many reasons why someone would sell on a lease option. Often, they don't even know that the technique exists and are simply waiting for a solution to an unsold property. The realtors won't discuss this type of transaction because it delays their commissions.Just run an offer by them. The experience is worth it.blue
*Blue, I have an aunt in real estate that has been trying to talk me for years into buying investment property in Flint. She owns a couple units now on the north end. Don't know if I'm ready for that type of headache for my first venture.Your right about agents not being very enthusiastic about creative financing offers. However they are REQUIRED to submit all offers to the sellers. So Sean don't assume anything, put together an attractive offer and see what happens, the worst thing that could happen is they accept it.By the way Blue, I'll take you up on that offer and will call after the holidays. Thanks!Scott R.
*Scott, I'm not too enthusiastic about getting into the typical landlord/tenant business. If something great comes along, I'll consider it.Scott, the next REIA meeting Jan 10, 2002 (www.reiaofoakland.org) will feature "THE FORECLOSURE QUEENS" Dwan Bent and Sharon Higginbotham. They will explaing the six steps that you must take in order to be successful cashing in on "short sales". These are great meetings. The format is very relaxed: 5:30 pm to 6:30 pm is the early bird beginners session and networking. Basically, you either stand around yakking with someone or sit around listening to local investors answer questions. From 6:30 till 7:30 is a buffet dinner and social hour. The buffet is $16.00 at the door. The fare is usually pretty good and again, we get another hour yakking about real estate deals and networking. Incidently, the meal is optional, you really don't have to buy a dinner ticket. You don't even have to get there until dinner is over if you just want to hear the featured speaker. The featured speakers, the Foreclosure Queens will speak from 7:30 till 9:30 pm. Usually, there is a wealth of info packed into these mini seminars. They usually bring a smattering of different home study stuff that usually ends up costing me a few extra hundred bucks! Luckily I have some interested family members and we get to share the expense several ways. My library is growing but so is my knowledge. I don't intend to stop until I know everything. I learned that from Ralph Roberts, the most successful realtor in the world. Even though he was at the top, he was still attending these types of seminars and buying the materials!Check out the REIA website. There are some good links there as well as the meetings schedule and location. Call me before Jan 7th so we can make reservations and save $2 on our dinner reservation! Oh yeah, the realtor thing. If the realtor does not fully understand the investor's creative offer, they essentially scuttle it by delivering it in the worst possible light. It's actually a waste of everybody's time. A serious investor will write into the offer a requirement to be present while the offer is delivered if necessaryblue
*Another update:I've found that a rent-to-own ad for a 90k house with 800 monthly payments gets pretty solid responses. Several have just called me and theyb ACTUALLY HAVE ENOUGH DOWN PAYMENT!Surprise, surprise!I'm playing phone tag with a nice family mom who has done the drive by of the 119k home. Shes wants a showing but I've been goofing around too much with my latest Pre-Paid statup.Oh yeah, THREE foreclosures have appeared within my grasp! Two are in pre-foreclsure (the best time) and one is in the redemption period. I'll have to find time to look at the houses.I better also go find time to see if that house I'm framing is going up....blue
*Just curious about the mechanics here Blue.Do you actually take over title and mortgage here when you arrange your deal with the seller? If not, how do you ensure that you can obtain title to execute the lease/purchase deal or even sell the house straight out? Do you bring the mortgage holder into the loop or is this strictly a side deal between you and the mortgagee? Do you establish a legal contract for the deal?
*Dick, last question first: Yes, all contracts must be legal, binding and done right.On bringing in the mortgagee: Yes, but it's not necessary. In these particular pre-foreclosures, I will speak to the attorneys representing the bank first. I will find out if the bank will allow an assumption without fanfare or screaming or making me jump thru hoops.If I have to jump thru hoops, I will keep the bank out of the loop using either a simple lease option or a more complicated, but solid, trust, assingment of benificiary and make the payment direct in the name of the trust. The homeowners insurance will be changed naming the trust and homeowner as the beneficiary. The homeowner quietly assigns their beneficial rights to me.Do I take title? Yes if I purchase the home "subject" to the mortgage. No if I buy on land contract or lease option.How do I obtain title? If I buy on land contract, the title is escrowed. If I lease option it, the closing of the deal occurs in the future. At that time, the title is transferred over to me.In all cases, the seller must provide me with a clear title commitment and agree not to encumber the title in any way. To protect my clear title, I have to record something, a memorandum etc.blue
*Blue - Keep up the good work. I have been examining many different ways to get into some REI and your model does work and you shouldn't feel like you are taking advantage of anyone. By the way "Think and Grow Rich" is an excellent book. I read it a few years ago, maybe I should read it again, it is just about 5' from my desk for $%^&% sake.I want to deal in cashflows (since I am currently a corporate financial analyst it fits my mindset well). I haven't ruled out owning a multifamily or two to establish cashflow for investing either. However, the prices are high and the rents are relatively low around here. Which of course results in a tough cap rate situation. All of my models are for a minimum cap rate of 10% with a target higher than that. But people with $1200 total monthly rent roll are asking $100k for the house with roughly 40-50% for operating expenses. Nutts.SJ
*My criteria for rental properties was always very simple: I wanted the net operating income (gross minus expenses, before mortgage) to pay off a 90% LTV deal in 10 years, 12 years max. If a property cash flowed that well, other factors were in line, then at least from a cash flow standpoint the deal worked. Multi-family always seems to cash flow better, but requires more management. I think owning rental properties can be like a big Monopoly Game.
*Allan & Steve, I disagree with Allan on larger (more units)property having better cash flow. They typically flow more cash as there are more units. But the cap rate is often better on single family or duplexes and triplexes. And appreciation is often better on single family/smaller multi units as there is more of a market. Single family units are the easiest to manage and keep rented although my doubles are pretty trouble free also. Every time I have looked at 4 through 12 unit buildings the loan requirements, cash flow vs initial cash outlay made them a poor choice. The advantage I do see is if the property is large enough you can hire a manager and not fool with the day to day. Then again if you have enough smaller units you can do the same. Lots of choices. I read on one of the REI bulletin boards recently a number of answers to the question "what mistakes have you made?". There were numerous responses and none included the statement that the respondents lost money. Most said the broke even or only made a little. Pretty forgiving business over all. DanT
*Dan, Allen and Steve:I've run into unrealistic selling prices in my neighborhoods here. The cap rates are horrible. It wouldn't make any sense to buy anything out here for holding. I'd be losing money every month.BUT!!!! When I was in Florida, before the holiday, I checked the local listings. EVERYTHING had good cap rates. Cap rates are the product of many factors and one size doesn't fit all. In some areas, sfh are best. In others multi work best. ONe advantage of a multi is that if you lose one tenant, you haven't shot the entire income budget. But they are more work intensive (so I've been taught). With multi's, more is better. You can get a management company to handle things. That's one reason why the lease option or Land Contract, or subject to work. In all cases, I'm not landording. I'm not sure I want to landlord, but I like the idea of monthly cashflow. In all three of my above stategies, I get cashflow!Even if I'm sitting on the beach in Florida!blue
*I would be a fool to buy most morgages here . Most of my houses are bought for less than what is owed to the goverment.US Marshall sale, court house steps .Example : 55000 owed on one house I bought for 44901. I made one bid above . Just the marshal and I there .I realize its different every where . Are you making enough profit blue? I wouldnt do the deal you were talking about at the top of thread . Joe can have a coke and a smile, if he was giving you a hard time about it. Still not sure he was though. The house Im talking about appraised for 67500 when I got done .Hope this helps .
*Tim, I wouldn't do the deal either unless I had a buyer going in there. The margin is so slim that it doesn't make sense to risk it. And I wouldn't do the deal that your doing. The 17k spread just doesn't fit my strategies because of the large amount of cash out. I'm guessing you'll have at least 50k out after fixup and figuring in the time value of the money out there. Also, the redemption period makes me shy away from buying on the steps here in MI. There is a 6 month period of redemption in MI. That's a long time to flip a property. Figure your return on your investment. You might be better off keeping that lump sum as a reserve and do ten of the deals that I've outlined at the top. Your method works for you. I personally wouldn't do it. That's what makes this business so great. There are numerous strategies and they all make money!Joe was serious. He doesn't understand the risks involved, even if I get that house with zero down out of my pocket. I understand them, and you do to. Joe is concentrating his emotions on the seller and seeing the buyer as a villain. That's not an uncommon perception.blue
*Blue, et al - I hate really using Cap Rates because they can be so many factors that impact the price of a given property. The biggest big picture issue that I think people (like myself) that have been exploring various avenues of REI is to accept that two people can place two very different values on a property and both be very correct. These sellers who are asking $100k or so for a house with a rent roll of only $1200/mo may value that prop at roughly $100k, someone else may as well. But to me the property is only worth maybe $65-70k as an investor. Given the risk and work involved I expect x% on my money or it isn't worth moving my $ from where it is currently.It is also difficult to figure the rental market here (at least for me). Most multi's with 2 beds are renting for about $450/mo, 3 beds for some reason are going for the same or maybe $500. Section 8 says two beds $660 for year 2000. So for proforma purposes it is hard for me to calculate what it may be possible to pull in for market rent.(Obviously I would never set a purchase valuation on a nulti based on proforma values, only the current actuals....that is the true current FMV not what it could be).With the current Multi market and cap rates etc. I can only make the numbers work with 90% LTV finance package....whatever combination of loans I only want 10% of my own money involved because without the leverage the numbers don't work for me, too much of my own $ tied up.SJ
*Steve, The art, or strategy to good real estate investment is to have none of your own money invested. I have never invested my own capital with the exception of a couple of thousand dollars once to finish up a rehab that went over budget. There are a number of ways to accomplish this. The loan to value ratio means nothing if you buy at the right price. DanT
*Dan T, I've heard that for years. What are some of the ways you've financed some deals?Scott R.
*Scott, I have used VA loans, used equity in one property for the down payment on another, bought land contract with no money down, bought from banks that were stuck with too many repos and since I had good credit they gave me the house and financed it with no money down. Currently I used equity lines from houses I already own to purchase and rehab, then refinance the house and pay off the line of credit so it is available to do it again. Allows me to work as though I am using cash and still use none of my money. DanT
*Wethead, thanks for the tapes...I received them sometime last week, but almost immediately left town on a business trip to Oklahoma.When (if), I get more time, I'll share some of the items that I learned there....blue
*Scott, I'd like to get to that Genesee Real Estate meeting coming up next monday. Are you going to be attending it?blue
*It kinda slipped my mind but yes I hope to attend. I'll give you a call monday afternoon if I CAN'T make it.I've been busy with a new client, You'll never guess who!!! :)P.S. Did you notice on the GLA web site that meetings have been moved to Wally's East on Center Rd? (closer to your neighborhood)Scott R.
*Scott, the Pierson rd Walli's burned down. I guess that's why they are now at the Center rd site.I've never been to a GLA web site, or real estate meeting. I just visited Walli's for the first time last Monday night for a different type of business overview. I'm not mentioning any names....Actually though, I'm reconsidering....I sense my passion for Real Estate fading fast in light of recent developments. I can't concentrate at all about Carpentry anymore and doing the Real Estate business seems like it will take too much time away from some other commitments that I've made....I might still attend that Genesee meeting to prospect....blue
*Blue, you are making this much too hard. Here is the skinny.When you buy, buy from someone who is in the position of needing a payday loan. There is no win-win, there is only you win, the other guy digs himself a deeper hole.You are in a position to do modest/serious fix ups and pocket the profit, or add it to the basis of your property without having to pay tax on the profit until you either rent or sell the property. Get a simple spreadsheet, do a PV on the future cash flows using 10 year treasury rates, and manage the cash flows so you don't have a liquidity crisis - read the first part of buying a property above. Now, have fun, and maybe some day you will sit in a big chair, fat and sassy just like one of your bosses you once featured on this forum.MDF_User
*I'm not sure what you mean MDF.If I can't do a real estate deal that is win-win-win, I don't want to do it. I don't know how to do spreadsheets. I don't know what a PV is. I don't invest in treasury bills, so I'm only vaguely aware of the rates. I do know that the t bills have a profound effect on home mortgages though.Yes I'm in a position to do modest/serious fix ups. I'm still open to that aspect, as well as any "deal" that comes along. Thankfully, I'm in a financial position where I have choices....I'm already fat and sassie....only one last thing to accomplish....it involves money....and it ain't coming my way from custom rough frames....blue