All Forum Posts by: Stephen McKee

Parts of Socal are the same way right now. Some deals are so good that you are waiting for the house to fall over. The mls is a great source for a few years of a super depressed market. We havn't had deals like this sense 1997 if that give you an idea of how often investors buy listed reo's.

Just get bids, check your rents, figure out the math, and buy. If the numbers work then buy. Math is math and numbers don't lie.

I am doing all buy, rehab, refi and hold projects. I can cycle the same 50k over and over again. This is only an option if you have 50k but when liquidity and owner seller deals are scarce the big boys tend to move in. A buyer can borrow the money but it has to look liquid on paper. If you can not buy in this market larn subject to and option tactics to prepare your sel ffor the next 5-7 years.

Hey Mike

Point taken on the economy. Though it ts not the first time, it is still just as scary. I can't believe how many people under estimate our current crisis.

This is the exact reason I didn't give a time line. Newb May not be buying a porsche for the next 40 years.

the "left out details" is also my favorite thing about guru's. I just spent 3 days trying to talk my aunt out of flipping a house right now. It didn't work so I'm sure i'll have to show her a way to bail her butt out 6 months from now. It all strated becasue she went to some stupid guru seminar.

Wheatie: Thats what I meant, oil shale. From what I understand it has is a huge market now.

If you want move this knock your self out bud.

Tim: Thanks will do. It's funny we have that problem within the state. I can drive an hour and a half to the OC and charge 3 times for the same service.

I'm with Dan on the answering service. We have a phone we call the BAT PHONE. It has over 500 real estate signs for REO's attached to it's number. It's called the bat phone cuz you better freakin answer it if it's in your pocket. The problem is the number stupid calls we get. If they leave a voice mail they are 90% better that everyone else. My close ration on call backs vs. up calls is significantly higher.

I simply like to buy, hold, sell. If you buy 2 homes and they both double in value and you sell one you can pay off the other. This will give you a purified cash flow. At least that is the formula we use in SoCal. At the end of the cycle you not only have a huge source of leverage but you have a check in hand every month to buy what ever you want.

Kiosaki in his simplicity explains this when he is talking about buying his first Porsche. He buys a couple units, then rents go up after a couple years, they start producing more income, then he uses that additional income to make the Porshe payment.

The ideal end result is a bunch of paid off units, purified monthly cash flow, and no heart burn when your tenant missing a payment. Of course by the time you end up at this point you will probably be leverageing everything to continue investing.

Hey NewB

Congrats on taking the plung. First off, California REO's right now are at awsome prices. You picked a good time to buy. As far as what Jason is saying about Option/contracts/assignments/subject too's he is right. You can make a stupid amount of money that way.

I wouldn't recomend that for California right now though (sorry Jason). I would really learn it now though because you are going to need it in about 2 years.

If you wanted to get started out here you need to know what you are buying. I work in the IE but I know a little about OC. There are some decent 2-4 units out there and you might get lucky and pick one up REO. As far as valuations go...just pick an area you want to buy and study it like crazy. You'll catch on after a while. It's like buying a computer. Some houses have better parts than others so they are worth more.

Good call wheatie. And banks don't do subject to.

Oh, it will be back. Anyone rememebr the world savings 40 year, neg am, 0 down, loan back in 1986-1991. I think they called it someting else.

I can't wait to see what the next generation of "I can't believe it's not better" loans will bring. The corporations job is to suck as much money out of the public as possible. The consumers job is to protect the fruits of their labor. Some where along the line we stopped teaching money in high school. There is a whole new generation of money stupid people getting ready to buy houses in the next craze.

A side note. Thanks to that wonderful thing called the freedom of information act, everything is available online for free if you know how to look for it.

I can find almost anyone, anywhere. Between nexus/lexus, title, and the courts alone, 99% of people are tracable.

So no need to worry about that GPS in your phone or the onstar in you GM. Some simple grunt work can lead to just about anyone.