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another mike,

i agree with you. there's one house in the area i work that has been red-tagged (for unlivable condtions) for years. water and electricity have been shut-off for years. more than once there's been a steaming pile of poop in a corner, or in the otherwise unused showers. and the owners don't care, because they're both heroin addicts. and they rent the rooms out for dollars a day. a few times they've had long term tenants there (4 or 5 months) -old, homeless types with a steady social-security check. prostitutes have a steady job, but like to move around (or pass-out in bus stops or at jail). just to put this area in perspective: blowjobs can be had for a handful of change, and crack rocks are popular in the $5 range. even "bad" biker types might deal dope to these people, but likely that's it. but most "bad" bikers move quantity, and aren't usually standing on a corner selling $5 rocks. if these people even had a motorcycle, they would trade it for a hit of crack.

-dean

mwarden,

i agree, you hardly see anyone selling anything, especially not the old heads. i probably read over 100 of mikeoh's posts before i realized he had a book he was selling. i plan on buying it sometime soon. i don't think i can recall him every plugging it. there's probably more guys here with products they sell, but they never mention it (except for loan products, but that's different. the more loan options i have, the better!).

-dean

minna,

i agree with you. i'm a super noob, and even i can't believe how anything resembling a possible deal turns into a bidding war, while your "normal" mls deals stagnate on the market. weird...

i was talking to my re agent, who is also an investor that deals with rehabs. he mentioned to me that the business used to be him and a few others, but that now there's probably 20 guys doing the same thing in the same area. there's still deals to be had, but the margins get tighter, and niches harder to find. like someone else said, soon those guys will be dropping properties like flies. unfortunately, they probably won't have any equity in them...

-dean

marky,

the only real negativity i've heard around here lately has been your two posts on this topic. guys like all cash and the other old heads on this site have given an incredible amount of information on many topics. i'm sure they get tired repeating themselves every week when the same questions come up. people need to invest more time in researching their questions before asking them. that being said, those guys will still repeat themselves to warn people away from dubious deals. ultimately, "how" is up to you. every state has different laws, and each investor has to find local business associates to help guide their endeavors.

-dean

yeah jim,

that's the one.

btw, i went to a meeting at dfwrein last night. pretty good stuff on "investor financing." it was supposed to be 2hrs, but went on for 3hrs. the one i really want to attend is on "seller financing." unfortunately, i'll be back out of the country prior to that...

hope to see you for lunch before i head out.

-dean

Just so you know, I'm regurgitating something I read. The gist was it has to be an investment property (rental, not flips). The IRS has set a precedent where you can pull it off after a year of renting it, but you will have to provide a good reason for the quick exchange if you're audited(moving, job change, something...). After 2 years it's pretty safe, but as there is no time given, the burden of proving your intent falls on you...
Also, it's all dependent on getting audited -so if you wanna roll the dice, that's on you.

-Dean

ryan,

i'm gonna play devil's advocate here for a sec, so bear with me... the due on sale issue is a civil law issue, not a criminal law issue, so if you're willing to risk the chance of the loan being called due, is there any legal reason keeping you from being able to wrap a mortgage.

i'm asking because i have a house that's been sitting on the market forever, and i'm thinking about owner financing to get rid of it.

-dean

bearcuda,

i should be home for good by late october. i'm leaving tonight on leave, so i'm pretty happy about that. and my son just turned 6 months old, and i'll finally get to see him, so i'm pretty excited. it'll suck in 2 weeks when i have to come back. oh well. i'm just glad i'm in the guard now, so when i get back i won't have to deal with the day-to-day garrison b.s.

watch your 6.

-dean

colin,

you sound unhappy, and from the sound of it, you just graduated high school. guess what. that's normal. i think you just need some perspective on life. i did. i joined the army, and have 14 years in so far. i'm sitting in iraq, which i volunteered for, waiting to go home and see my 6 month old son for the first time. sure, it sucks, but there's plenty of worse things out there. go spend a day at a military hospital in the burn ward looking at young men with multiple amputations. then look in the mirror, be glad for what you have, and go out and do something productive. whatever you have going on, it's manageable. maybe you need a little help from a psychiatrist to get you over the hump. if it's your parents that you feel are forcing you into things you don't want to do, move out and get a job. join the military. do something. stand on your own two feet as a man. best of luck in whatever you do. if you have any questions about the military, feel free to ask. but don't ask for sympathy -you can find it in the dictionary between sh*t and syphillis.

-dean

chance,

it sounds a little like you might be looking for deals primarily off the mls. if that's the case, problem solved (sort of). if you're looking for properties that need work, they'll usually have a hefty discount to go with it. and of course all the rest of the reasons why people are willing to lose money on a house (ie. divorce, death, unemployment, etc.). those deals are out there. the biggest problem is knowing it when you see it, and being able to act when you do...

-dean