All Forum Posts by: Matt H

Liquidate your retirement savings. Trust me, you might take a hit but you need that money asap. Combine it with what you have. So hopefully you have 10k at that point. That 10k should buy you a $200k house any day of the week. Look for a good flip. You could either live in it or continue to live in your parents basement while you flip it. After flipping it you could make anywhere between $25k to $50k. Just do paint and carpet on your home depot card. Complete that in a week relist on mls and flip within a month or two. Continue the process flipping like this ever two to 3 months. Worst case senario you do 4 flips in a year at just $25k net net profit each. So you have $100k saved at that point. Then you take that 100k and you look for a 1m dollar apartment building. Something with as many units as you can find. You should be able to find something with at least 30 units. That will give you approximately $5k per month liquid spendable cash. (plus about 5k pre month in asset appreication and about 2k per month in mortgage paydown so for a total of like 11k per month net net) Spendable cash will be about $60k per year. Hopefully that's enough for you to quit your job off. Then continue to flip and buy apartments with little to no money down. And yes, no money down is good not bad. Why spend money? The key to getting high, I mean rich is using OPM remember, not you own opium to get high. ha ha. To get rich you need lots of OPiuM, lots of good debt and as many income producing assets as you can muster. So that 10k should be enough to get you started my friend on your way to lots and lots of getting high on OPiuM.

Carlton Sheets says "Never buy a property without getting title insurance". If it's good enough for him then it's good enough for me. But check this out....

Why Title Insurance is necessary

Many buyers ask why title insurance is necessary. Title insurance protects a property owner (i.e., buyer) from hidden defects in title that are not uncovered (and in many cases could not be uncovered) during the course of a normal title examination. Examples of such hidden defects include forged signatures on deeds, missing heirs, wills that have not been properly probated, and errors in the clerk's office in recording deeds or releasing liens. Although claims involving title defects do not occur on a daily basis, the potential loss, in the event a claim does arise, can be catastrophic to a property owner who does not have title insurance.

They offer both personal and business cards.

beekrock,

Well thanks. I really appreciate that!

You know it's not hard to get rich. All you need is a lot of good debt and as many income producing assets as you can muster. That's it, that's the magic formal. I know for most people buying one apartment building would literally solve there financial problems for live and allow them to retire almost immediately. And buying an apartment building is not hard to do. I just bought one with 10% down and that's up here in Canada where we don't have the liberal lenders like you have down there in the US. Down there, frig, seems like everyone and their dog will lend 100% or 110% on a property.

But as a safe bet all you need is like $50k. $50k will likely buy you a multi million dollar apartment building, which again will set you up financially for life. From there the sky's the limit.

All you do is go on to your MLS, or check your commercial real estate papers for apartments that are for sale. And just start making offers. The offers will look something like this....

Here's the letter of intent that I actually use when I'm trying to make a deal with a seller without having to commit to a contract: ( if you use it you'll have to clean it up a little, it didn't paste right on here)

=============================================
LETTER OF INTENT TO PURCHASE

Date: Sept 22, 2006

To: XXXXXXX

From: XXXXX XXXXX
XXXXXXX Inc.

Re: 50-plex residential property located at: XXXXX, XXXXX, XXXXX

The following sets out the basic terms upon which we would be prepared to purchase the Property. The terms are not comprehensive and we expect that additional terms [including reasonable warranties and representation,] will be incorporated into a formal agreement (the “Agreement”) to be negotiated. The basic terms are as follows:

1. Purchaser: XXXXXX Inc or it’s nominee

2. Vendor: Current owner of the Property represented by Realtor: XXXXXX XXXXX

3. Property: 50-plex residential property located at: XXXX, XXXX, XXXXX , free and clear of all liens, charges and encumbrances at Closing, except: [e.g. those recorded on title to the Property as at the date hereof, with the exception of the Vendor’s mortgage(s)].

4. Purchase Offer: $2,000,000.00

$1,500,000 New first mortgage (or possible option of assumption with increase of existing first to 75%)

$450,000 Second mortgage (carried by vendor for 5 years interest only at 8%)

$30,000.00 Initial Deposit
$20,000.00 Balance

5. Deposit: Upon execution of the Agreement, the Purchaser will deposit the amount of $30,000.00 which will be fully refundable if the Conditions Precedent are not satisfied or waived in writing by the Purchaser. Otherwise, the Deposit will be applied to the Purchase Price at Closing. If the Purchaser defaults at closing, the Deposit will be retained by the Vendor as it’s sole remedy.

6. Conditions Precedent: The obligation of the Purchaser to purchase the Property will be subject to satisfaction or written waiver by the Purchaser of the following conditions within 60 days after execution and delivery of the Agreement.

Review and approval of the documentation concerning the property;

Completion of satisfactory physical and environmental inspections of the Property; including suite inspections.

Completion of satisfactory due diligence search and examinations;

Satisfactory review of the title of the Property;

Satisfactory first mortgage financing being arranged for the purchase of the Property;

Satisfactory second mortgage being provided by the Vendor for the purchase of the Property;

7. Additional Items: This letter of intent hereby states the major terms of the agreement that the Purchaser would be prepared to move forward with. This letter of intent is in no way a legally binding agreement between the Purchaser and the Vendor.

Sincerely,
XXXXX XXXXX

_____________________________________

The above terms are accepted this ___________ Day of _______________, 2006

_____________________________________

XXXXX XXXXX
President
XXXXX Inc

Phone:
Cell:
Fax:
Email:
=============================================

All you do is start sending that out to enough realtors and or private sellers who have apartments for sale and you will eventually find one that will be in a situation where they want to deal with you. This is an actual letter of intent I used to start negotiations on a building I bought. Some of the info I modified slightly. But the premise is exactly the same. The deal worked out exactly like this. A first, a second, and my small down payment. Anyone can do this. It's easy.

Minna,

There's good debt and there's bad debt. You want to accumulate as much good debt as you possibly can. Good debt is any form of debt that you use to buy an asset that's appreciating in value. Like a house, or apartment building. That's why I preach buying multi million dollar apartment buildings with as little down as you can. Because buying one will make you rich. That good debt is making you rich as long as the interest rate is bank rate and the property is cash flowing. So that kinda debt you can have long term and it will only make you more wealthy, and not take money out of your pocket each month.

Then as for bad debt like student loans, car payments. The reason it's called bad debt is it's debt taken out on an asset that's depreciating in value. So the longer you have it the more you pay and the less you have in the end because after you've paid off all that debt you're asset isn't worth much anymore. A car is a perfect example of that.

In your situation if I were you I'd save all my money toward using it to aquire a rental property. Then with the liquid cash flow you have at the end of each month, use that to pay down your bad debt.

See, what principle you have you want to put it to work for you and keep it. You do not want to get rid of it, otherwise you might not have enough to buy a property. Buying a property will be pivotal to you getting out of debt in the long run.

well in that case I guess you're fine. Ya usually that's a risky situation.

Alberta is the largest local exporter of oil to the US. We have more oil in tar sands alone than all of Saudi Arabia. The oil sector here is booming!!! Multi billion dollar projects are going up everywhere you look!!!

Edmonton is the capital city of Alberta with about 1m people. The Edmonton market is soaring!!! Last year realestate appreciated by 52%. yes I said "52%". This year we're already up 18% and predictions for year end run as high as another 52% year in 2007.

The big thing going on here right now is condo conversions. We have very little restrictions what can be done to a property so everyone is converting to condos and cashing out.

So if you want to make some several hunderd thousand dollars with very little work then this is the market to do it in. That being said, I have a 15 unit apartment building which is available for sale. I have to sell it before May 31st as I have another deal that I need the funds for. So if you're a someone who has deep pockets and can move quickly this might be a great opportunity for you to make half a million dollars in 6 to 12 months. For complete details on that building go to: mshinvestments.com and check it out.

Well in the US it's totally different but up here in Canada what happens is if you want high ratio lending it's tricky. The only two ways to really do it is a 85% CMHC insured first, a seller 5% second and 10% down. Or you can go conventional 75% first and then whatever the seller will carry as the second. There's not many I know of up here that do really high firsts and also allow just anything as the second.

You might find a birddog there to take hunting.

Realestate is the safest investment on the planet. What exactly are you risking? I just don't see any risk. What you should be comparing is the Las Vegas casino to the property owner, they both win almost everytime. Real estate is not a gamble. In the worst case senario imaginable you sell the property and break even. It's not like a stock that can lose it's value overnight. Anyway both of you play it safe then and hide your money under your matress ok.