All Forum Posts by: Account Closed

Congratulations, $100,000 a year net is pretty good. No doubt you work very hard to make that, we have some associates in Baltimore flipping properties at public auction making between 30 and $50,000 per month. I know you're working hard taking care of  your portfolio. You deserve a lot of credit.

Make an offer if the properties have equity or cash flow. 

Controll Low, Assign Low and do it often. 

Doing this will make you wealthy. 

Without an "e". 

What You want is not available! The only way to get that GC you're looking for is to do your own due diligence.

Who is great for me or others may not do you well.

Contractors for the most part see us investors as cheap - and we are! We are too use to negotiating the best price, contractors don't like that. 

Find your contractors at Home Depote at 6am. You'll find all the hungry contractors you'll ever need. 

Thank you for your kind words.  I remember over 40 years ago when I started, trying to get help from local investors was almost impossible.  To them I was there competition, no way were they going to help me be successful. I was forced to take every course and seminars I could fine, until I found the niche that help me make a lot of deals and  and cash flow. 

 I quickly learned that the best deals that I could fine and make were at public auctions, I couldn't wait to get to the next auction sale because there were so many great opportunities there. I would buy at auctions,  pre-auctions and post auctions. 

 Today at 74 years old I am an auctioneer and still attend public auctions for residential and commercial real estate, I always do an extensive inspection and comps of all the sales and preview before the auction so that I have a leg up on the competition. 

Thank you again, I'm always here to answer your questions.

Charles

Ira - REIA's are easy to find - just Goggle Real estate investor's club - I own one in Baltimore - we keep everything in house.

Many of these REIA's are formed as for profit entities - how many course can they sell - who is the next self-appointed experts can they bring in to hawk their courses or seminars or books or other stuff they are selling.

BP has some great programs - look into them also. Read the Blogs here - they are written by experienced investors -

Just be careful that you are not taken in by predators who want some of your cash - those presenters are very good at motivating the uneducated. Get counsel before spending money - check their reference and goggle their name.

As for fellow investor - it is a great place to meet them - I find that the real investors - those with big portfolios are too busy doing deals to hang around for 2 houses listening to someone tell them how to get rich. You'll meet folks there that will tell you exciting war stories of how they made big money - some of it is fluff - be discerning - ask for details - how much down did they put up, how did they flip it - where did they find the transaction - how much money did the make --

You want to learn something - try this ------

• Track down tax sale owners - ask if they would like to sell
• Visit Expired listings owners - ask if they are still taking offers on their house
• Look at 50 houses (don't make offers - just look and take lots of notes) go with agents, look for FSBO's, - make it a goal to tour 3-5 house a day - you will become a expert in values in a short period of time.
• Have agents send you current listing and also expired listings
• Attend public auctions - meet some of the bidders - collect cards and names - these are the REAL investors in your market - they are out there bidding on houses and making deals
• Establish a credit line of $20- $100,000 - when a deal comes your way - you will be ready to do business
• Have all your forms ready - in a packet - your long form contract - your skinny contact offer - a hybrid offer - confess judgment notes - checks - disclosure forms - a list of contract clauses - list of creative financing systems - real estate formulas forms - lead paint waivers - referral forms - non-disclosure agreement and non circumvent agreements
• When that great deals comes you'll know it (provided you worked the 50 house rule).
• don't waste your time with folks who talk the talk - sometimes we say BIG HAT - NO CATTLE!
• Don't take yourself too seriously - have fun in this business and you will do well
• Do something every day - go to the library check out some books
• Sit in your local rent court 2-3 times a week - listen to the "failure to pay rent cases" you'll find lots of unhappy landlords there - they may want to give you one of their rentals
• Sit in Housing Court - listen to the cases - you'll get lots of ideas
• Farm an area - ask 10 people a day "Do you know of anyone who is selling their home?"
• Read the business or legal papers - look for leads - NOTICE OF FORECLOSURE - tax sale- law suit filed - business partitions - sheriff sales - public auctions
• Run ads - WANTED - real estate houses and commercial buildings - 
• Be ready when a call comes in - you only have a few seconds to get their attention - what do you need to know to make a deal work for you ----

1. what's the balance of your mortgages (do not miss this question and make sure you get the answer - this is the key to finding the equity)
2. payments current - in arrears - how long
3. who is on the deed
4. who is living there - vacant - occupied
5. what improvements have you done in the past few years
6. does it need any cosmetics or up-grades
7. what are houses selling for in the area (let the seller give you an idea of values)
8. how much do you need (always ask "Is that the best you can do?"
9. the reason for these questions is to determine motivation and the potential equity
10. equity is what you will be negotiating for 
11. if the seller owes $50,000 and he is asking $100,00 you can guess that the potential equity is $50,000 - cut that in 1/2 to be safe and guess the equity is about $25,000 - the question now is how are you going to negotiate for a part or all of the $25,000
12. who are the decision makers

We are here at Bigger Pockets wishing you success and cash flow --  do not get discouraged - this is a hard business to get into and to be successful - take it easy, be careful of the Big Hats out there, have confidence in yourself and study - study - study 

Charles

Welcome - been investing now for over 40 years - BP is a great place to be - if you ever need personal help - just call -

Charles

  The skinny contract offer makes it easy for the seller to read and to except unlike agent's contract which number about 30 or more pages, the skinny contract is one page and very clear. All the disclosures you need are in it; profit  disclosures, assignment disclosures, and one out contingency. 

The other thing that we add to the skinny contract is a hybrid clause, this is a proposal to give the seller an additional payment for their real estate making them potential partner. 

There's a great book you may enjoy reading, it's called 500 Ways to Make Money Without a Job, by Conrad Levinson. 

 If you can figure out how to make $100 a day doing what you know how to do now  you'll never need to work for anybody again. 

Here are some ideas that may help you that is related to real estate. 

Monday morning go to your local rent court and listen to the cases,  it will be very easy to recognize a motivated landlord, a landlord who has not received rent for a period of time. Talk to that landlord in the hall after  the court proceedings. Ask "Do you know anyone who has property they'd like to sell?" Let him know that you can manage  properties and do light maintenance.  Do this 10 times a day and I'm sure you're going to expose your self too many opportunities. 

When you find a distressed landlord who is sick of tenants and real estate,  control that property with a simple skinny contract of sale with the right to assign. Now go find someone to sell your contract to. 

Earning income in the related real estate field is fun and profitable, and the freedom you experience without the incarceration of employment is exhilarating. 

Enjoy your new found freedom and thank your employer for kissing you goodbye.

HML are hard - too hard for me - When you get a great deal and you really want to hold the property - maybe a short term HML is the way to go until you can get some "soft money".

• If you intend to flip the property - do not buy it..... instead  CONTROL IT with a skinny contract of sale - with all the necessary clauses in it that will benefit you and the seller.
• Make sure you have lots of time - use "banking days", study periods and delayed settlement terms.
• I think it is unproductive to use a HML for short term flips -
• Once you get a property under contract - start immediately to find your end user - your assignee the smart investors who can understand a bargain when one is presented.
•  All make full disclosures - like ---
• "Our goal is to earn a reasonable profit -
• Our intention is to assign our contract within the terms of our agreement
• If we do not assign our agreement this offer is subject to cancellation
• Consider offering a "Hybrid" in your offer - a hybrid is where you offer to give the seller more over your offered price if you make more - this always pleases the seller - it make the seller sort of a partner with you in the common goal to cash his property out.
• Find the high equity potential property, control it and the money will come - HML is OK for some, but if it is your intention to flip the property - make the seller your partner - liquidate the property as fast as you can and do it over and over again.
• As an auctioneer - I turn properties over nationwide using the auction method of marketing -  and "Power Prospecting" you might want to do the same - it works well when you understand the system and what you want to accomplish.  

Have fun - don't take yourself too seriously and make one offer everyday --

Charles