All Forum Posts by: Brian P.

I'm always willing to give price first, they say how much do you want, I'm always glad to say with a smile "I want $500,000, what price did you have in mind? This something I want $250,000 for. They will then give a price and we can go from there, or they will get excited and say are you crazy or some such thing, and I will say of course I don't expect to get that price but if your willing to pay that much I'm willing to take it of course, now tell me what do you think is a fair price, what would you be willing to take if you were in my shoes?

After we have done the deal I've asked and many said they gave a higher price after I said that then they were going to give originally. My goal was just to get a starting price from them and avoid the old game of no you first, no you first , no you first.

As has been said, what does he really have into it and what is it really worth today. I used to have an investor that liked to buy, make a few cosmetic adjustments, and then put it on the market for a ridiculous price, hoping to find the sucker. The property would cash flow so no need to sell, he just wanted to throw his line out there in hopes someone would give him a great price and a very good payday. And it didn't cost him anything, the broker was putting out the money and effort to try and sell it, I sold him a few but never ever took one of his offers list to heart, it would be like trying to sell $20 dollar bills for $40.

For awhile I was buying redemption rights in a few states, surprising how many investors started rehabbing properties before the redemption rights expired. The rights were freely transferable and the former owners were happy to get a few bucks. I was more like a sleazy lawyer, you have a legal problem here is the price I will settle for the redemption rights, pay up and next time buy them before you rehab. Actually I started this as a way to help a friends kids make some money while attending college there. I think they kept it up for quite awhile after they graduated. Plus the investor got an education and it wasn't to expensive.

I like to view back taxes as a short term loan that is assumable, and the further away the tax sale date is the better.

Make the most of it, have a flyer about you and things you would be interested in buying or knowing about. Many agents run into a property they don't want to list and the chance to get a sale-able listing from you when you rehab something they let you know about is an incentive. and be sure to list with them.  As for wholesaling, a nice "gift" for a lead that leads to a deal is a good deal, think of them as knowledgeable bird-dogs. Network with them. Before I became licensed I worked a small file card box of agents and it produced a good deal for me every couple of months. I still got calls after I was licensed but now I could pay them referral fees. 

Best degree for a real estate investor, a J.D.

Don't learn dollars, learn percentages. For example as a broker I sold many homes to people that wanted to buy in my main town in a certain area and school district and there were two main streets that conducted the rush hour traffic.

Actually the noise inside the houses wasn't very bad. The difference between that street and one a block off these  main arteries was 15%, and 20% for the section closest to town. This price difference allowed me sell to people that really wanted to live in that area and school district. Agents couldn't understand how I kept selling these homes.

I told buyers to visit the homes during the rush hour and see if it was a problem for them, but buying one of these homes would allow them to live in the desired area. The bad feature is these homes would go up at the same rate as the surrounding homes but when you went to sell, you would have to sell at 15 to 20% less then what the surrounding homes are going for, but their value was going up at the same rate as the other homes. Never had one complaint about the deal and most stayed when they could have just as easily afforded to move up.

Been in a few of these. It always pays to confirm who is in possession. I had two clients in my early years that each successfully ended owning an expensive house free and clear. California's short 5 year period is attractive to these people. When the actual owners finally showed up it was too late. I bought one once with a couple trying to pull that trick, thought they could play it out but they left in a hurry when my new tenants showed up to take possession, a well know group to law enforcement. The group was glad to return a favor, and I was glad to get uncontested possession so quickly. I understand they headed for L. A., the Bay Area wasn't to there liking anymore, I don't know why, they got to live in a nice home and good area cheaply and I understand made a few bucks renting out rooms. I guess they were upset they missed the big payday.

Whether your 16 or 60 the first thing you need to learn is how to find the deals. Prospecting or lead generation is activity #1. Suggest you start two binders 1. finding sellers 2. finding buyers. Activity#2 Find someone you can trust to contract with. I started at 16 and one week, but without my older married brother who was 19 and could legally contract I couldn't put a deal together, back then you had to be 21 instead of 18.

Agree with Chad.

Contact Julie Broad and her husband. I've recommended her to a few people and they were happy. Don't know her personally but you can check her out on you tube.