All Forum Posts by: David Breitzmann

Kel,

I hope this finds you well. More than a few seasoned investors have supplied a few starting pegs for any strategy; viz:

(1) always list Highest and Best on the offer - it's assumed only about 5% of competitive bids will ascend victorious - "submit it and forget it"

(2) always consider securing deals with an EMD to show the intent to close quickly;

(3) always consider including clauses in contracts that the seller pays you for any outlays of time due to inabilities to close quickly

It honestly depends on your strategy and personal goals.

My bias comes from a strong need to be as efficient with time as possible. Generally, the freedom from stress & time to invest in learning and community building is paramount.

Originally posted by Paul Ohlson:

I just want to get the practice of making ridiculous offers so I get over the fear of it. And, hey, if he accepts - even better!

May this find you well,

Many veterans, who are far more experienced and knowledgeable than I, would say building relationships viz; closing viable deals, is core to increasing word of mouth referrals.

If one becomes noticed as someone offering prices which are "ridiculous," it may become a serious problem at the point when you draft a business plan. It's assumed that has yet to happen because, if so, the research entailed would have answered the question.

Does this strategy fit into your overall long term vision?

In spirit,

David

Originally posted by Mariah J.:

28.6% return on the $58,400 investment in 2 months
Not bad considering I just write the checks. Ideally I will 1031 exchange and not pay taxes immediately on this profit.

What am I missing? Please tear this analysis apart.

I hope this finds you well. The assumption of "profit" here rests on the fact that one can stipulate that there is an impossibility of downward trends - many "micro" variables determine trends and etc; definitely not a broad statement.

Secondly, that you cite "2 months" as the gains period for the profit obscures that all of these funds are iliquid until the point that the transactional loop is closed - eg, "exchanged" property is sold.

To cite a true estimate one would need to know the second property margin of profit and average the total into the entire timespan of both transactions.

It's not a "tearing apart" in any sense; a community scratching to sharpen ones understanding.

In spirit,

David

This is an interesting question.

What's much more compounded now is the celerity at which one neighborhood can transform itself from decent to what an investor would judge as "lesser than."

It may also depend on the need of the investor to learn. Regardless of "all else," many get themselves into calamities because they become emotional. Many times, security is quite irrational.

Someone may meet a neighbor who offers that they smoke marijuana. Add to that a few neighbors who don't maintain their laws and a recent robbery.

We may all answer differently as to what type of neighborhood the above represents; emotional decisions of security aren't based on reason.

Take a scenario where a homeowner has purchased a new home as of '06. Recently, the following have happened;

1. Many for sale signs have cropped
2. The mix of ownership to rentals is
swiftly changing
3. "Strategic foreclosures" are occuring
(homeowners just move out without
transfer of deed to buyer)
4. REO signs are beginning to flourish

In the preceding example no violent crimes are committed. Yet, homeowners become so insulated in their own feeling of "security" (sans crime) that they become desensitized to a growing potential for a home devaluation.

Security is a multifaceted question indeed.

Ashley,

It's wonderful you're so young; time is the crucial element.

First and most importantly, a thank you for serving the nation.

Secondly, most "credit repair" operations work on mostly the same model; (1) pay company xyz instead of your creditors, (2) we, company xyz, will let time elapse then, (3) your creditors will be so desperate the debt can be disposed for a fraction.

Most folks can do this themselves - there are serious consequences, but nonetheless.

Thirdly, be aware that old debt affects your credit less so than new debt. When the older accounts are satisfied which haven't had any activity it may actually lower - not raise - your FICO score. This is quite contratrian to what many think happens.

The veterans have given great advice; self-educate on personal finances.

May you be well.

David

"money" - It is true that the depress costs it is necessary to try to employ labor at a lower wage. However, it is also true that we tend to reward the "masters" organizing and creating monopolies; whenever labor organizes, there is an undertone of negativity to the conversation.

Curt,

I am struck by your post because if you truly deliver an experience that cannot be duplicated no client would want to venture elsewhere.

You are actually the only element of the business that cannot be replicated.

This is a two way relationship; your clients can also scout others. From what you described, they would quickly regret that decision.

Kel,

The home looks beautiful. A piece of information is the question of holding costs. Can you sustain "feeding the alligator" as the vets call it if it ends up stalling? What's the flow (market time) in that area? What is the minimal rent you could collect to cover the mortgage if concessions are needed?

I say that because you stated a "hope" that your previous strategy -not lining up renters - will continue.

Phil,

I hope this is, at minimum, a learning lesson. What wasn't included in your post was a vital piece of information; how does this fit into your long term business/life plan? Since you posed the question of whether an amount was "too low" it seems the answer is "no."

Without your intentions outlined, no one can tell you how to move here other than general conjecture.

Best in your pursuit of happiness.

What a wonderful note by Priscilla and others. If experts weren't giving us all free information on this site - we'd have little knowledge on which to find anything to begin with.

We all gain because others are willing to teach us these lessons.

Peter, I share the view that there are a wide abundance of opportunities.

Furthermore, my own view tends to be those requiring en masse transactions have the power to change their budgets so they can become more secure. Whether or not they choose to is their own decision.