All Forum Posts by: Edward Peugh

@Winston Holloway actually makes a great point!!  If it isn't flooded it just appreciated in value compared to some areas!!

@Cortney Arenstein Alright so you for sure need to get the deal under contract before talking about it any further.  Rule number 1 in Real Estate, don't talk about your deal until it's under contract.  Someone who is sophisticated in your market should actually be able to identify your deal from the information you have offered.  (How many properties in "area 9" have been reduced by 30% in the last two weeks?)

In any case, put the offer out, ensure that your contract has assignment rights, and then wholesale as normal.  As you are licensed, ensure that all parties involved know that you are licensed (Put that in writing).  Also check with your office lead, and the realtor board.

Good Luck!

Ed

@Daniel Toshner There are a myrid of ways to write this deal.  The tool I prefer for something like this is what @Ed Emmons suggested.  I would do a Lease-Option written up by a qualified real estate attorney (State law may effect the viability of this suggestion).

I would suggest that you agree on an option price, take a down payment and then allow some portion of the monthly rental payment to be applied towards equity.  Remember the amount applied towards equity from monthly payments can easily be offset by the amount you request as the down payment.  

One reason this is a great option for you is your ownership is maintained until the option is executed.  If they don't execute in the allotted time the Down Payment should be your to keep.  However a little downside, this does mean that the Landlord-Tenant relationship persists until such time as well.

Msg or text with questions. 

Good Luck!

Ed

@Kevin Rangel Hit all of the local REIAs/Real Estate Clubs/Meetups you can.  Just be persistent.  I am sure that you will begin to develop a network of folks you can call when you have questions.

Another key, Invest in high quality business cards, and carry them every where you go.  You never know when will meet people who will provide you a lead, or support.

We have a brother and sister who are friends in our market who have flipped their third house and she is just turning 20.  So don't think your age is a hurdle.  In fact it is probably a great asset because you are learning about Real Estate at a much younger age.  By the time you are the age of most of us you should know alot more then us.. 

Good Luck!

Ed

@Lakshmanan G. No it won't matter to the judge much about the previous evictions, in fact it will be difficult for you to even mention them...  Just stick with your situation.  Don't worry too much about trying to demonstrate how "Bad of a person" the tenant is.  You should be fine.  Call or text if you want to talk through it..

Amil, This depends on your lease and state law.  

Having said that, I try and be pretty reasonable about something like this.  If they have been a good tenant and don't complain much then you can always "give in" even if it's not your problem.  If they abuse this kindness, then you gotta cut it off.

As an aside, you should be able to find a fridge on Craigslist for like $200-300.  In fact you could post an add looking for one... something like "looking to by XX size fridge, with working ice maker, must look nice, paying $200" and I bet your phone will blow-up..

Amil, What is your equity position in each condo?

@Ryan Munson (not to be too direct but) this type of post will not get you anywhere.  You really need to find a more constructive way to develop this type of network, and I don't mean that you should pay ~30,000 for educational programs.

May I suggest a more effective approach.  Go in person to your local REIAs, Real Estate Clubs, and Meetups.  I have been to Austin, it's a great market with loads of active investor groups.  This is where you can develop relationships with local folks in your market.

Another suggestion is start making offers, like alot of them.  If you decided to you could make 30 offers by the end of the week, just through looking at Craigslist.  I guarentte if you made 30 offers, you would get at least one contract.  The very worst thing that will happen is that someone will accept an offer and you will decide not to move forward on the deal.  This act of making offers will get you experience in valuing deals and negotiating.

Good Luck.  Let me know if I can help.

Ed

@Fernando Amezquita It depends..  Many times a property is going into foreclosure, because they owe more than it's worth.

My suggestion to you is simply get the house under contract at the best price possible, then try and figure out how you will get paid. You should be able to just do a standard kinda wholesale deal unless you are really tight on the timing with the foreclosure date.  In that case the seller should do all he can to delay the auction.  Rights vary by state, but he should contact the lender and see what can be done to delay the sale.

As far as the fee, I normally do a double closing only when the marketing fee is ridiculously high.  Otherwise, just have your fee as a marketing fee and move on.

@TJ Hey keep your eye on the prize!!   You may not have your real estate empire in the next week month or even the next year.  However the great news for you is that you have a much longer runway then about everyone else on this site.  You are 1/2 or even 1/3 the age of some of the folks on this site, and of those in the Real Estate market in general  The very best thing you can do at this point is start speaking to everyone you can about real estate.  In fact the transition into leasing is a perfect way for you to learn all about the leasing process, after all aren't you going to have know all about that process to operate your business.  Learn how to do it the right way now, while you are recieving a paycheck form someone else.  Every day at work should be focused on research for your future endeavors.  Study every part of your employers business.

You should pride yourself on becoming the person who knows the answer to every question that comes up in your office (and if you don't know, take the time to get the right information).  Learn how to interact with people on their level.  This investments now will pay great dividends for you in the future.

Another suggestion is start getting involved with Real Estate Clubs, REIAs and Meetups in your area.  Don't be intimidated, some people might treat you in a certain way.  That's their problem, move on from that.  Find those folks who are willing to take a few minutes and allow you to ask some questions.  It's pretty amazing how open someone will be when you offer to buy them coffee once a week.  

Last thought, Start reading (or listening, audiobooks count) to as many business focused books as possible.  I suggest you start with "The 10X Rule".  If that doesn't get you fired up, then you don't belong in Real Estate.  Then just continue to do everything you can to condition your mind for the grind you are just starting.  Check out stuff from Eric Thomas (Google "as bad as you want to breathe") and anything else that gets you pumped.

In short "keep up the fight"

Let me know how I can help.