All Forum Posts by: Eric Delcol

Jason Pinkerton The first step in establishing an organization is finding out if there is a demand for it. Let me be the first to post and say I'd hire a crew involved in that type of organization. Wish I could offer you something more than that. Let me know how we could help.

Originally posted by @Matt R.:

 "This source is Zillow senior editor for the since 2009 portion and CoreLogic NYSE symbol CLGX for since 2000."

 Matt, can you point to the exact source data?  I'm curious to see the full data set.

@Wilson Cheung 

Our strategy is cashflow positive with high probability of appreciation.  

We focus on this path because it allows us to have some funds coming in after all expenses while at the same time after a few years we can re-finance and draw out the increased equity.

Typically, 

more focus on cashflow is

less risk, shorter pay-off time frame, good reward.  

More focus on appreciation is 

more risk, longer pay-off time frame, fantastic reward!

Like us, you can move the slider between the two, and create a hybrid of the two strategies.

Thanks everyone for the responses so far. Keep em coming! A common theme seems to be of people writing from the perspective of the investor who is selling. The point of view I'm curious about is that of the seller who responds to "yellow letters", bandit signs, etc. For those of you who do direct mail and similar marketing strategies I'd love to hear from you. What are some reasons and advantages your clients see to selling their property without an agent?

I'd like to pose this question to anyone who has insight into the 'off-market' market.

Why on Earth would anyone not use a real estate agent to sell their house?

It reminds me of the people who attempt to perform medical procedures on themselves or try to rebuild an engine in their driveway.

With anything in life I'm sure there's an element of 'it takes all kinds' but do you find a common theme among the market of those who do not work with an agent?

Is it ignorance?  

A stubbornness of not wanting to pay a (usually well deserved) commission? 

Circumstances?  (e.g. needing to sell in a few days)

Apathy?

It'd be interesting to hear what you've all experienced.

Originally posted by @Travis Toler:

I have put [offers] in on over 8 properties now, but have been beaten out by prices that pretty much will not even make it profitable. I don't know if there is a different way of looking into properties? I currently just use the MLS. Any advice would be much appreciated.

 It sounds like you're doing things right.

Think of the converse - if your very first offer was accepted right away what thoughts would you have?  Maybe it was a good deal, but the chances of that are like hitting a single number on the roulette wheel.

Stick to your numbers, your formulas, and your rules.  Check with your agent or a mentor to make sure your figures are realistic.  If they are, analyze at least 100 more deals.  Of those, put in a minimum of 10 offers.  

Some people may balk at that "100 deals?!"  The only folks who said real estate investing is easy are the Gurus on late night TV.  If you're willing to put in that type of effort you will find success.

If you put in 10 offers from 100 deals and do not get a single one accepted - at that point I would suggest you revisit your formulas and fundamentals and possible change your strategy.

These two points alone would be worth it if it passes:

"Prohibit the use of the Exchange Stabilization Fund to bail out a financial firm or its creditors.  

Repeal the FDIC's authority to (1) bail out creditors of "solvent" banks, and (2) bail out creditors other than insured depositors of "insolvent" banks that are in receivership."

I'm actually amazed at how long it took for the mortgage crisis of 2008 to happen.  Let's think about it for a second - imagine you're a mortgage broker and there's no law on the books saying you need to vet your clients.  Wouldn't you be selling to anyone with a pulse who wanted a mortgage?  Are we surprised that they did?

No matter how much regulations government put in place - the market will find a way to win.  

I look forward to the day in the next few months / years when the auto-loan crisis hits so I can say 'told ya so' and more importantly, utilize the opportunities it'll present.

Then several months after the bottom the government will pass the "Who's his face, and What's his name Act" that will clamp down on those "evil auto loan sellers".  Then, all will be well once again ... until the next crisis.

Jason Pinkerton Send me a PM and I'll give you some contacts

Also, for our US friends - the tax implications are totally different.

Carolyn Guertin "If he rents it, is it still his primary residence? " No. Primary residence is where you primarily live - that is the test. "What are the tax implications of renting it when he is living elsewhere? " He will have to claim rental income. This can be reduced by deductible expenses. "Can he claim repairs or utilities on his tax return to offset any rent monies he collects? " Yes, see above. "Will it alter his tax bracket? " Probably not, unless we're talking about a luxury estate. "Will he have to pay capital gains on it if it has been rental property when he does eventually decide to sell it? " Only primary residences are exempt from capital gains. I.e. If he rents it out, then sells - that triggers capital gain. However, you get credit for years the property was your principal residence. "The house is starting to need a lot of work. Would renting it help make renovations and repairs a better financial option? " Probably not. Renters are going to expect the property to be in good condition. "I'm not really sure of what questions to ask or what issues his living situation might raise, so I'd appreciate any insights the community can give me to understand the implications of both renting and selling in his situation" If you see this being a temporary living transition - renting may be a good transition until he can move back in. If it's more of a permanent move I'd suggest selling.