All Forum Posts by: Account Closed

Ashley - I don't know if this is a good deal or not - but I did respond to that listing - it looks bad and empty - There could be lots of equity or lots of stress - I like in and out in a short period of time.

• In my opinion every property offer is a "deal" - 
• Every property offered is or could be a good deal -
• The only thing that make a property a bad deal is PRICE
• Every property will sell if the price is right
• Time on the market and price (reduction) are close cousins -
• Price softens as time moves on and motivation and reality is realized
• Everything will sell at a price -
• The first thing I'd want to do is get the history of the property - how long on the market, why is it vacant - what's the reason for selling -
• What is the current mortgage balance - is it current or in the arrears - 
• What other liens or obligations are on the property
• How many owners - decision makers
• What is the commission - will agent split
• Are there open to a reasonable and creative offer
• Do they want any profit or to just get it out of their name
• Can down payment be paid over time
• How much paper with they accept - delayed payments - principal mortgage

Ashley - since you exposed this property to all of us - You should see if you can get the answers to those questions above - and play the game - WHAT WOULD I OFFER?

If there is little or nothing in the deal - why do the deal?

If the agent calls me (they are usually slow to follow up) I will make a reasonable offer subject to inspection and a study period.

Everything is negotiable - CONTROL IS KING - learn how to control real estate - it is a short cut to cash flow -  it is the best way I know of assigning properties.

Who controls real estate - 

1. An agent with a listing agreement (treat them well - they are in control for a period of time)
2. An accepted option agreement
3. A buyer with an accepted contract of sale with contingencies

http://www.realtor.com/realestateandhomes-detail/M...

Charles

I am a buyer - if you think you have properties that have cash flow or equity - I will make an offer.

• Who controls the property - owner, agent - no control - estate how many hairs 
• What kind of control - listing agreement - wholesale contract
• What's the term of the control agreement - must contract now or study period provided
• When is settlement expected
• Are there build extension to settle
• Are all properties on the MLS system
• Are there appraisals or comps on the properties
• Are these properties offered at retail (not for investors) or at a discounted rate
• What are the terms - seller financing - delayed settlement - clear title - hybrid agreement
• Does the seller understand and will consider "buyer Incentives", subject to assignment
• Are the properties in move in condition
• Can the seller contribute to the transaction or stay in the deal for an additional turn over profit
• Will the sellers take split notes as consideration or chattels 
• How soon can I get a list of these great potential profitably deals

Look forward to your response - call if you like.

Charles

Great Biz Plan - now go make some offers - that's the best business plan!

Start looking for another management company or start to manage yourself. You should not have to make that request more than once.

Charles

Kevin - thank you for the kind words

Thanks for correction. 

You can buy back the Baltimore ground rent at a cap rate of 6% or negotiate it at a higher rate to get a discount.  So a GR of $96.00 can be purchased at a cap of 6 would be $1,600, at 10% it would be $960.00. GR's are not as popular as they use to be - Baltimore has changed the rules - guess what - if you don't pay the ground rent they can sue you only for 3 years back payments - it use to be that the GR hold could get your house.

What's good about GR's? When you buy a property with a GR - you can depreciate 100% of the purchase - you don't have to take out 20% that represents the ground since you don't own it.

So -- here is an idea - when you buy a house - have the seller create a ground rent (small one) and you are able to depreciate 100% (check with you lawyer before trying this). Have an agreement to buy the GR at a set price in the future.

Charles

Thank you Bryan - I use many of those financing techniques all the time - I like to do commercial real estate - it seems that the owners are more open and eager to listen to a creative transaction. We do warehouses, bars, land and even notes.

I believe when you make full disclosures - I tell the sellers  "My goal is to make a reasonable profit". When sellers understand your method and business model and that you are in it for the profit and that there is no commission or settlement cost - they are attracted to the proposal.

Many of my leads come from radio ads - I am partnering with other members here to run ads in their area, take the call on my 800 number - make an offer on a skinny contract offer subject to assignment and sell it within 3 weeks using my auction method of selling - spit profit and move on to the next one.

Having been in this business now for over 40 years and still  love investing, flipping and developing real estate nationwide.

You need to ACCELERATE your learning curve - YOU don't have time to learn from your mistakes and bad information from others.

REIA's are great for entertainment and exposure to those selling dreams and stuff - but they will not move you forward fast enough.

You give me the impression of being impatient and want to reach your financial goal - maybe before you even have them.

• I too know many of those 7 figure income people and own a unit in Manhattan and other states.
• Those 7 figure income people got where they are by making right decisions - they have the ability to see right through a novice and a bad or unprofitable deals and have the ability to dismiss an individual without mercy!
• The best language to use with the 7 figure boys is to show them facts, profits and a deal that makes sense!
• I may be able to give you some ideas on how to find the great deals and how to have your 7 figure boys knocking on your door. Send me a note - glad to give you some suggestions.  -

Charles

• Planning is great - I never was good at that - words are easy to put down on paper - other people's ideas are fun to experiment with and can make someone new in this business feel good for awhile I guess.
• Over 40 years ago I can recall as if it were yesterday - I was where many of the new folks on this site are today - I was motivated to make money in real estate - had a giant desire to create a little success (the low pay awful job I had, and a jerk for a boss just wasn't cutting it  - but I had motivation - i discovered quickly that it takes more than motivation to pay the bills.
• So this one seminar I took the guru said "set a goal, build your team and find a mentor".
• OK - I set a goal to get rich in real estate - to buy one house a month and to quit my job. Unfortunately I was not prepared to achieve that goal because I didn't have the skills to do it!
• I called a real estate lawyer, thinking I could add him to my so called team, "Sure I'll work with you, give me a retainer of $1,000 and when you find a deal I'll tell you what to do!" Well, I thought that was easy -wish I had a $1,000 to waste on no counseling at all!
• So the agents I wanted to add to my term wanted to qualify me - "How's your credit, how much cash do you have to put down, do you have a co-signer?" No - No and NO! 
• I did find an agent, he just got in the business and was happy to show me all of those over-priced listings to sell me -  I had no clue how to buy them - with simple math I determined that I would have a big negative cash flow - that is if I was able to buy.
• So I gave up on those suggestions of Building my team!  It made no sense than and it doesn't make sense now!
• I don't mean to go against the grain of those who are selling that idea - all I can say is that it did not work for me.
• So.......... back to taking seminars, buying cassette tapes and books - I wanted to learn everything I could about investing in real estate ---- so--
• I had to get money, working capital, and I needed to go on the cheap - A friend told me about cheap properties you could buy in Baltimore - houses for only $2-3,000 and many of them could be found at public auctions.
• After borrowing some money and getting some credit cards and a new job - one in sales - I was ready - ready to invest in cheap- junk properties in the City.
• And wouldn't you know it - I got lucky at my first auction and purchased a cheap house that was boarded up - 
• Because of all those expensive seminars I enrolled in I WAS READY - prepared with my pry-bar, flash light, level, marble and probe - 
• I decided to go to this building that was being auctioned the next day - I sort of removed some plywood and crawled through a window to take a look -
• Boy was I surprised - this place looked great - I later found out that the estate boarded it to keep squatters out.
• The next day - I was ready with my deposit and waiting for the auctioneer to start his melodious hypnotic chant - 5 bidders appeared but did not bid because they could not get it - I was the only bidder and got the house real cheap.

Today as an auctioneer, investor and developer of commercial properties - if someone would ask my opinion on how to get started I would suggest ---

• Continue to study but learn how to cut through the BS
• Get a credit line 
• Learn 20 creative financing techniques - no money down systems (that is none of your own money)
• Hang with a few successful investors and pick - pick - pick their brain
• *** Look at 50 houses in the area you intend to invest (not expensive, blue collar, mixed rental and home owner neighborhoods)
• When you are finished looking at 50 properties - you will be armed with knowledge that most agents and other investors don't have - knowledge of values -
• Keep a journal, put listings in it, write down everything the agent or owner says, keep a record of the cost per square foot - this will help determine values -
• Have agents send you expired listings - go knock on the door or send a letter to ask if they are still accepting offers on the property - Remember an expired listed is a property that failed to sell - the seller should still be motivated to sell. 
• If you ask the seller why didn't the property sell when it was listed - the answer is "The agent did not do his job, the market was bad, the house needed some repairs, the agent was a relative and did not have the skill needed ----WRONG - WRONG - WRONG - The real and only reason it did not sell is it was OVER-PRICED!

Use a few of those 20 creative ideas to make offers - use a little of you credit line to control the property and flip it quickly to build your cash reserve - need a partner ???

Charles