All Forum Posts by: Eddy Dumire

And then there's no motivation and no know-how.... like the 40 year olds that still live with their parents and play video games all day long.  Not sure how that relates, just thought we should explore all four possibilities. 

The last is of course lots of motivation and lots of know-how.  That one's boring, but profitable.

@Bill Gulley

The main point of my response is that Rich Dad had great value for me...  You can disagree with that if you'd like. 

I firmly believe that someone should be adequately prepared.  The books mentioned will all help with that, but know-how without motivation is useless.

There has to be some reason that so many successful people on the podcast keep mentioning Rich Dad as their favorite real estate book.

Sorry I couldn't really follow the last line with the pharmacy analogy.

I think our major point of disagreement here is in that it seemed to me in your original posting you didn't put any value at all in what Rich Dad can teach people.  What I'm saying is that it does have value, and I believe that the mindset shift is more valuable than the technical how-to info.

I also liked the E-myth and the 4 Hour Workweek. :)

@Richard C.

Yes, I'm a Kiyosaki fan.

Kiyosaki is definitely not in depth enough to give someone adequate knowledge to do this business.  I totally agree with that point.  He did reaffirm and clarify lots of things that I was already formulating in my head though, and from that perspective had a bigger impact on my life than any other book I've read to date.  I had told lots of friends "Go start a business, because if you work for someone else, there's always a limit on how much you can make".

To characterize this as a "See spot run" of real estate books doesn't quite give it the credit it deserves.  I've invested lots of time and energy reading "Rigorous" books to get me my degrees in Chemistry and Physics.... and that qualifies me for a $50k job standing all day in a lab.

I also spent time as a paper pusher for a mortgage insurance company (who basically performs the underwriting for lots of small banks) so I know the underwriting guidelines quite well.  That qualified me for a $25k job (in 1998).

I just took a real estate licensure course that had quite a bit of rigor (though broad based, not very specific on any of the topics) and I'm sure that there are a lot more millionaire real estate investors than there are millionaire real estate agents.

I have a really good job right now as a programmer and trust me I've had to read lots of very rigorous books to get here and to maintain my skills but it won't make me rich.

What this business really takes is "big brass ones" (@@Joshua Dorkin, podcast 105) and if people find that in these books then I think they are the books with the most value in this industry.

Yes, if you rush in you might make a mistake that will cost you thousands or even tens of thousands on a single deal.  But if you try to learn everything about everything, you'll never get out of the bookstore.  The guy who rushed in but persisted will have done 10 deals and recovered his losses while you still haven't even got your feet wet because "what if I don't know enough?"

The "Substantive Work" is what you do, not what you read.

Welcome @Iyabode Azeez

I'm in Stafford, but I lived in Woodbridge for most of my life.  In general, I think the responses you're getting are trying to point you to more information so you can study up and be prepared.  To answer your question directly, no you probably shouldn't walk up to a homeowner or an agent with a for sale sign posted in the front yard because it isn't likely to get you far unless the sign has been sitting there for a very long time (6 months?).  In general, properties that are listed for sale are retail ready properties.  These are properties that need minimal work and therefore are ready to be put on the market and can command full retail price.  What most investors will be looking for are distressed properties.  These are properties that either have a seller that cannot wait for the property to sell, or properties that cannot meet underwriting standards of lenders because they're in very poor shape.

A common guideline for investors is that they don't want to pay more than 70% of the value of the house after it's been repaired (After Repair Value or ARV). If you're trying to sell to these investors (as a wholesaler would) you would look to pay even less. If property is ready for the retail market, they probably aren't going to sell it at 60% of the market value.

The Ultimate Beginner's Guide to Real Estate Investing that @Brandon Turner referred to above and the BP Podcasts will teach you everything you need to know.

Eddy

@Frank Durham

 OK, so I guess you can sell a big camper on craigslist too, but the point is still valid :)

What if after spending $$$ on your 31' camper with 13' foot bump out your wife comes to you and says, "After spending a couple days in the woods I've discovered that I really hate camping..."

Now you're stuck with a very expensive asset that has a very limited market (very high net worth people who like camping and are willing to buy used) with very few liquidation options and takes over every square foot of parking space in your driveway.

The depreciation of your very large asset has probably already cost you more than the total cost of the popup camper and If you had bought a popup camper you could sell it on craigslist.

Start small.

@Stephen Craig

If you're looking for a HELOC for an investment property, then your options are limited. TD Bank does them, among just a handful of others that I've heard of.

I think the most important question here is were you denied because the bank just doesn't do those kinds of loans or were you denied because of the bankruptcy?

So after poking around on the forums a little bit this question seems like its been answered by lots of people more experienced than me.  What I have suggested above are just quick hacks that I've figured out for myself as I went.  Others will likely have much more substantial advise (and some of questionable legality).  Search the forums for credit repair and you'll see lots of advice.

It really depends on what the underlying problem is.  For lots of issues, the only thing that will fix it is paying your bills on time for a few years. 

Use any of the following advise at your own risk.  Misusing this may cause your scores to drop.

I did have a few late payments many years ago when I got out of college.  I found that if I disputed every negative item, that some of them had to be removed because the creditor didn't respond to the verification inquiry from the credit bureau.

If you have high credit card utilization rates, but very few inquiries, then your scores can actually improve by asking for credit limit increases.  This may cause an inquiry but often the inquiry is less damage than the high utilization.

Ideal utilization is less than 30% on each card.  You can transfer balances from one card to another and even them out if you have one with lots of room and one that is overextended.

Do not close accounts.  An open account with zero balance allows you to have more available credit (for utilization percentage purposes).  It also may hurt you quite a bit if you go and close out your oldest accounts.

It used to be the case that if you were added as an authorized buyer on someone else's account that you got to share in the wealth of their pristine payment history.  I'm pretty sure I've heard this loophole was closed.

If collections are brand new, do NOT pay the collection agency.  Pay your original creditor directly and you may be able to clear the collection.

If none of these scenarios fit the bill, give me more details and I may be able to give better guidance.

Eddy