All Forum Posts by: Gregory Childs

This is called "negotiation" time - go meet with him for a nice luncheon in a quiet business restaurant (hotel, etc); bring all your numbers (include all the suggestions above) and make a deal that works for "you." If it doesn't work for him, he'll tell you - and you walk... next. Remember he's selling in a down market - prices are depressed.. dah! You're his way out and he's the one that's motivated to sell, not you.

Don't get emotionally attached - this is a business transaction and in the wings are three hundred more waiting for you to discover them. Cut your negotiation teeth on this, it's all a great learning experience and all it costs you is a nice lunch.

What a bargain.
TTFN,
Greg

Providence rewards those that dare!

Maybe send him the $500 check and put a note that you need the receipt. You did the right thing, and you can move on - the next time you need him for work, if he hasn't sent you the reciept he can bring it with him.
You can always put a note in your file with a copy of the check for your accountant.
TTFN,
Greg

Just FYI, you don't have anything until you have a contract. Get it under contract with a 10 day contingency (inspection period) - then you have ten days to listen to us bellyache and pontificate. If you "honestly" feel it is a great deal - then get control of the property now; otherwise this might be the "one that got away" thread.

On your first offer - put it a little lower than you think he wants (don't insult him) but make it a quick close, all cash, and let him negotiate. He will probably meet you halfway - then you'll have a deal, time to back out if their are real problems, and have shut everyone else out of the process.

Threads are all well and good - but success stories are better. Happy hunting.

TTFN,

Greg

Buying correctly and having a defined exit strategy is the key to making profit - everything else is just details. We flip properties regularly and the times we run into the most trouble is when we hold for six months or more.

Markets change (Phoenix), freak storms (Atlanta), flooding (Chicago), we've had it all happen to us. Almost certain, if you hold something short-term, that you will need some kind of contingecy fund, my parents used to call it "rainy day" money.

Another question (as you are buying for cash) why hold it at all - give the guy his money and turn it within 30-60 days to another investor. If it will cash-flow with debt service what's the benefit of holding? In fact, if you turn your $20K profit in 60 days vs. 6 months everyone with think you're a hero!

TTFN,
Greg

Bryan,
I think from a cashflow perspective (income reductions that have happened to people in the recession) he was unable to pay them back, at the going rate, so he let them lapse. I just seem to remember from a seminar i attented at TBREIA that those kind of debts "stick" with the individual differently than a car loan or other loan products; and can not as easily be handled by the credit repair/restoration programs. As I mentioned, all his other credit stuff is clean as a whistle.
I don't have much experience in this arena!
TTFN,
Greg

The reports says 120+ days but I think he is years behind on payments. Not sure if they will reset after this long, that's my concern.

I have a buyer who has a 575 score - but the only thing holding him back is significant student loan delinquencies. From the credit report, it is not a single debt but more likely a semester at a time (CSA/USA Funds mostly) for $4 - 7K each, all are 120 days +. He is current on everything else; zero credit cards, no car loans, etc.and got good ref's from his previous landlord.

I remember hearing in a seminar that Student debt is the hardest to correct and rebuild credit - any advice out there? I am considering doing a lease option - but I want him to be able to refinance eventually.

Thanks for your input.

TTFN,
Greg

I second what Steve says - get everything into an accounting program and just print it when you need it.

I am not sure if I would want to share my detailed financials publically - occassionaly I will offer generalities (ROI, Avereage costs, etc).

Eveyone has a different cost basis - and I am sure a rahabber like me would look very different from someone who buys and holds for the long term.. especially considering taxation, etc. We get hit hard on taxes as everything is short term profit.

We use QBooks Enterprise Edition (because of some online banking, more restrictive check issuance proceedures, and audit advantages) - but you can get various versions depending on your situation. I am sure their are other non-Intuit users out there as well. You can also buy older versions of QB for pennies on the dollar on ebay. I am sure the reporting finctionality hasn't changed much in many years - plus they now have an online version.

TTFN,
Greg

We use Chase and they offer the same service online.
TTFN,
Greg