All Forum Posts by: Wade O

First ONE? :shock: I saw several!

1) Is your credit bad? Until your company has some history, your credit is your company's credit.
2) The shows are notorious for gettng would-be investors in trouble.
3) Yep. That's the hardest thing.

:welcome: Welcome to investing.

I was in the process of adding some fraud-warning links to my site when I found this definition of the "Ponzi Scheme". It's no news that Pinncale has turned out to be such a scheme, but this definition gives some details how the orginal Mr. Ponzi worked his schemes. The "50% return after 45 days" made me smile--the comparison was so dead on.

http://www.crimes-of-persuasion.com/Crimes/InPerson/MajorPerson/ponzi.htm

What a Realtor can say or do is heavily controlled by state law. In some states, a Realtor can show you property as a "Transaction Broker" but unless you've signed up with that Realtor as your Agent, he's legally hindered from giving advice. He can help you through the transaction, but he can't really guide you. Other states of made being a "transaction Broker" illegal. Others have banned Single Agency and every Realtor is a Transaction Broker.

However, whatever the law, most agents (I hope) try to be as helpful and resourceful as they can. Most, however, really aren't trained to understand real estate investing. I would not expect an agent to break down the deal for you...to tell what would be a good investment. They'll be afraid of being sued. They should, however, be willing to provide any information you need to make an informed decision. Tell your agent what you need, up front. If he's not providing the information, tell him. If that doesn't work, get a new agent.

My thoughts, as a Realtor,

Wade

Everyone wants to answer this one!

Here's what I have to say: do both.

I would look into student loans with nothing due until graduation, and I would save the appropriate amount to repay those loans before they start gathering interest.

You have your AA, so to get your BA we're talking $100,000 or less. Take the remainder and put the bulk of it in something that will earn some nice interest but that the banks will view as liquid. You'll need to set aside a small amount for RE investment. Either on your own or through a program, you can then use that to invest based on the strength of your credit and assets.

At the end of two years you will have your BA and spent tens of thousands of dollars getting it, but you will also have earned a large chunk of that back in RE. The short of it is that you are not in an either-or situation. Follow your heart.

If you need some specific ideas, let me know.

Wade

Noobdogs--

I was checking out your website. Liked the legal notice.

However this line took on new meaning...

If you do not agree with this Legal Stuff, please discontinue usage of this website.

...when you take your definitions into account.

[b]The word Stuff means Notice.
The terms website and site mean the guys/gals who own and operate the site.[/b]

You must feel so used.

:wink:

It's not true that an agent can only find what's on the MLS--though state laws do vary. In my state, an agent can approach ANYONE on your behalf, as long as you are working in an agent/client relationship. (As opposed to the transaction broker/customer relationship, which does limit the Realtor to the MLS.)

However, the advertising and other non-agent methods probably have weeded out the "motivated" (as you used the word) sellers before your agent has a shot at them. If the "We Buy Ugly Homes" investors are beating you to the deals, then maybe you need to pick up their tactics.

Of course, so much depends on your own financial situation and the market you're in. With decent credit and some reserves, you could get into a program or partnership and build up some real money to play with. Other than that, I know of some good deals in Tennessee, but nothing in your neck of the woods. That, of course, is the other option. if your area (or even 45 minutes away) can't afford you positive cash flow, maybe you should be looking elsewhere.

Wade

I work with a similar company--so I know what you're talking about. But do you have to assign?

Here's what I've done: I talk to the principles about bringing them investors, and we cut a deal. That way, I'm getting paid by them, and the deal to the investor remains the same.

If you pick up the property at their offered price and assign it to someone else at a fee, then you're always in the position of putting yourself out of business. You've hooked up the investor with your source. From that point on, they can go around you and make more money.

I'll echo "Ohio". The value of the detail depends on your plans for the property. You seem to indicate selling in two months? Do you plan to sell it retail or wholesale? Perhaps I'm wrong and you intend to hold to property as a rental?

My thoughts are these:

You're anticipating a $35,000 difference between total costs and final value. That's a good number. Subtract from that any holding costs over those two months, if you have not already. Maybe that brings you to $34 or $33,000. (Maybe less. Don't forget your closing and loan costs.) Selling retail, you'll sell under market and still have some holding costs. $10,000 below market--sold in a month--that brings you to $22,000. After selling costs, I see you taking away: $15 to $18,000.

That seems like a nice cushion, leaving you some room should your repair estimates be off.

I think that article eventually becomes a review, after several paragraphs of character assassination. I know of the book, but have not read it. After spending some time wading through the article, I have no real opinion about "Rich Dad, Poor Dad", but I have developed a distaste for the author of that "review".

Mr.Vee: I think he's referring to the fact that we can sell our home and not pay taxes on the profit if we have lived in the property 2 out of the last 5 years. He would not have to rent it for 2 1/2 more years. That's irrelevant. It's the 2 years of living in the property (I presume as one's homestead, but I'm not sure), that count. You don't have to have actually owned the home for 5 years.