All Forum Posts by: Pavel Sakurets

@Pavel Sakurets  Thank you for your advice. You seem to have a lot of wisdom in the industry so by no means am I downing your advice, however that strategy may work for you, or Andrew Carnegie  but that doesn't work for my personality, or my goals.  

@Ben Leybovich 

Not sure how long it took you to get a case of the PHUKITS. My first serious case took 3 years. I had an awakening though and named our company Tradewind because we HAD TO learn to let the market winds lead us. I thought in 1992 that I would be excelling in the luxury home sales market and carried away on a cloud to finical freedom. Instead, I got into Las Vegas apartments for 3 years in early 1990's and property management became a necessary evil. Then into rehab/flips in mid 1990's. Then into rentals late 1990's. Then into lending 2000. Then development and construction early 2000's. Then court litigation with lenders in 2009 as all projects lost 60-70% of value. All to come full circle back into discounted SFR in 2010. Now its NPN for a season of maybe 3-5 years. You just need to relax and be more pliable with your model. It will open the next door of opportunity as long as your not looking at your feet when it shows itself. There is no business better than real estate, where you can be your own boss because the market winds bring you fresh opportunities with every cycle and allow your to do something different than last week.

wish you the best...

I assume this is the verbiage from the statute that supposedly pertains:

I wouldn't classify getting paid to drive around and jot down addresses to be receiving a commission, rebate, referral fee or finder's fee.  The work the person is doing has nothing to do with a specific transaction.

While I have no idea what case law suggests in the way of paying someone to drive neighborhoods for you, I'm pretty sure you can probably get good guidance from an RE attorney in your state.  At very least, I'd call the MN RE Commission and ask them.  It's possible the information you got from the DoC guy was incorrect or you explained the circumstances in a way that he didn't understand.

Based on the laws I'm accustomed to wrt RE commissions, this defies common sense.  Not saying there aren't laws that defy common sense, but it's worth investigating further in my opinion.

Man - you are robbing them...:)

@Bill Gulley - I suppose my post was more of a "what now".  I am fully aware that  we can't fight the cycles in the marketplace, especially when the overlap the cycles in our careers.  But, there's just nothing out there to be had of what I'd want to have...makes sense?

My wife can perpetuate the business.  Patrisha could't do the high-flying creative finance and all that, but she should be OK if I get taken out, which was always my goal.  Now - what now.  I want to do more in RE, but I want what I want, and the market ain't cooperating, so I find myself sitting on my hands re-investing CF in amortizing notes.  I am bored out of my mind...

Somebody - throw me a bone.  100+ units is all it would take to get my brain to wake up :)

If you truly are doing 5 million dollar deals like you said early in the thread, then a couple people working at $10/hr plus expenses should be a minimum bit of overhead for your company.  Most laws are fine with employees doing scouting and such as long as they don't try to handle the solicitation and are just getting wages for scouting.

@Pavel Sakurets i use kets system - www.findmotivatedsellersnow.com

in addition i use the freedom of information act and request public utilities that have been turned off - it isn't easy to get, but they have to give it to you.

This is what you said above:

But, in your example, the only way you receive $200 net income per month is if you add back in your $500/month of principal reduction.  Thus, you're adding principal reduction into your net income equation, which as you just said, is incorrect.

As I've pointed out, others have pointed out and even you pointed out with your Wikipedia article, cash-on-cash return is calculated without principal reduction factored in, and therefore it's impossible to have negative cash flow yet positive COC return.

Which was my original assertion and is still the case...