All Forum Posts by: Jason Barnett

So true. Some of the best "motivated sellers" that you'll find are people that bought off more than they could chew for an investment property. It is definitely good to have reserves so that you can weather a few months of vacancy or a minor emergency. Personally speaking however, I like to get into a property with as little money down as possible and still be cash flow positive.

I don't want to go off on a rant here, but the type of assets that you want to invest in will depend on the type of risk/return relationship that you're looking for. The so-called "risk-free" rate for T-Bills is much lower than the "risky" rates for stocks, bonds, real estate, and many other types of assets.

Personally speaking, if you're looking at a one year term then you should go with something that is lower risk. If your investment term can weather more ups and downs then you should go for higher returns while minimizing risk.

Hmmmm.... I'm reading over my comment and it probably doesn't mean much to someone that doesn't already understand "diversification".

Originally posted by "abrown342":

Hi,
Thanks for the reply! I have 9 comps and a bank appraisal, I have the cash to do the transaction, and we are not close to auction yet. I'm assuming an attorney specializing in real estate law/transactions would be best.

Yes - you definitely want one that specializes in real estate law.

Originally posted by "abrown342":

Is that really all I need to do - Contact an attorney to help with the paperwork?

Having the cash on hand helps you move quickly. I would hate to rush you through this because it sounds like this will be your first time, but yes it can be just that simple with a good attorney.

Does the house need repairs? If so then you'll need to estimate the costs to fix it up. Don't believe what the sellers say... according to them the only thing you EVER need is "some carpet and a little paint." Although with a 60% discount it would be pretty hard to go wrong.

Originally posted by "Ohio Realtor":

Property that I am working on 165k outstanding loan, bank appraisal 180K. On a good day to the right person if the sun is in their eyes it might bring 140K after it is connected to city water, it has a cistern currently. Property is over 100 years old all the comps on the appraisal are under 15 years old.

Bank says no short sale yet property is worth 180k!

Sadly this is true. I won't say that people or businesses LIE, but I will say that they will take whatever appraisals they receive and use the ones that show what they want. They want it to be worth more, so they show an appraisal that claims the house is worth more.

Yes, realtors can search for expired listings.

I'm not a realtor, but I would imagine that the listing information stays in the system for a while (maybe 2 years?) and then that data is moved to a backup some place and out of the main system. The MLS is their goldmine, I hardly imagine they would ever delete anything.

1. What makes you believe the sales price is actually 60% below market? Are you simply relying on what the seller is telling you or do you have comps?
2. Do you have the cash to do the transaction?
3. At what point in the foreclosure process are you? Is it close to the auction date or is that a long way off still?
4. You don't need a realtor at all, but if you're new you should speak with a local attorney regarding the necessary paperwork for this transaction.

OK I'll bite. What's going on in Kingman AZ? Is that the town you live in (and were referring to earlier)?

Good answer above from gaterunner. I will respond to some specifics:

I have no personal experience with that market, but I have heard that they have some HUGE REIA's in that area.
If you're wholesaling then you need very little cash ($1K is plenty). If you're looking to rehab, etc. then an equity line is cheaper than any hard money loans you'll find. That being said, you should probably consider starting out with wholesaling.
Yes! But this usually comes with higher overall expenses. So you put down less up front, but pay out more over the course of 1 year / life of loan.
Low sales prices in a good neighborhood. These are usually created through your negotiating skills with "motivated sellers".
This would be my suggestion.
Pretty much yes. Most will give you purchase money, rehab money, and (usually?) the money to pay off the monthly rehab loan money for the first few months. So if you estimate costs well then yes you can do it with no money out of pocket at all.
You can find people at the REIA's in your area that will be interested in mentoring you. Just look for someone that is willing to "teach you the ropes".

Not sure of ownership status. Even if the stations are franchises it is clear that Citgo would be hurt by sales. If the locations are good then the owner could easily switch brands.

Perhaps a more effective method here is to contact the station owners and let them know what Citgo is doing. Try convincing those people that they would be better off owning another brand name such as ____________ .

A poster in another thread mentioned Blue Moon Financial. I'll admit that I know even less about Blue Moon than I know about Pinnacle, but this might be an interesting read for Pinnacle investors trying to figure out what is going on. At the very least this will show you what can happen when securities laws are broken.

NASD disciplinary actions

Originally posted by "TN-Apprentice":

I would think that as investors you would want to tell the SEC absolutely everything. Why should you "be careful?" Either the operation is legitimate or not. If it is, there should be nothing to hide; if not, you should want the SEC to know absolutely everything so they can act quickly to stop it and get people their money back. The only people to gain by the SEC not having absolutely every possible piece of information are people who may have been doing something illegal, right?

Apprentice is right... legit investors have nothing to hide from the SEC. After all the SEC was created TO PROTECT INVESTORS!!!!!!!

Tell everything to the SEC! If Pinnacle is clean then the SEC will clear them of any wrongdoing and Pinnacle will return to business as usual.