All Forum Posts by: Tom NA

As usual, Mike is right. For the most part, RE is a zero sum game so when you get a good deal, the other party usually doesn't. Now, you may have filled an immediate need for them to have $10k in hand for example but you also eliminated the possibility of them having $20k in hand 3 months from now if they had been able to wait and sell at full market value. I guess it all depends on someone's perspective of "winning".

It's no different than when I was happy getting rid of our crappy old car as a trade-in for $3k last year (felt like I won) until I saw the dealer wash the car and put it on the lot for $6k the next day (felt like I lost). I'm sure he didn't get that much but he probably got more than I thought he could which leaves me feeling like I left money on the table - my win became a 'push' at best within 24 hours...

I do respect your desire to put family first though, Ivan. I agree with the strategy of just avoiding the topic but in my book, family trumps all else - especially the almighty dollar.

I would advise against this Steve. I think this was discussed awhile back and many issues such as insurance, employment, fair pricing, etc. can come into play. I'm sure some others can present some more concrete reasons why not but this is definitely a precedent you want to be careful about.

Where I do have advice is if you currently have a tenant asking about this. I had a tenant ask for this type of exchange (contracting type services for rent) which I refused to allow. In the end, it was a tell-tale sign that he had financial trouble and I had to evict him within 2 months of that initial request. So, be aware if someone is asking because evicition and a judgment you can't collect on may be next if your experience follows mine...

Didn't really need the facts - nothing I didn't expect. You overextended yourselves not only on your mortgages but also on credit cards it seems and somehow it's someone's fault other than yours. Same story, different person. Except I don't even hear about a job loss in your case so I can't even see where your hardship is coming from other than letting your friend take advantage of you.

To answer your question about me, I'm mostly just a random working stiff schmuck homeowner with a couple investment properties on the side. However, the key thing I know how to do vs. the people who have put this country into this mess is manage my finances. Not only can I continue making payments regardless of the environment around me (e.g. lending meltdown) but even if my properties go vacant for a few years, I can weather that storm too. Yes, you can say that I'm fortunate but I would claim it's also that I know how to be financially responsible and invest within my means.

Sorry, this isn't really meant to be an attack on you as many people are in a similar situation and come looking for help. If I were qualified to offer such help (beyond basic money management 101) I would. It's more that I'm asking you to look in the mirror before you start saying that other people are "giving investors a bad name".

Good luck.

Legality aside, Vivienne, I find it odd that you are being foreclosed upon yet at the same time, trying to figure out how to increase your investment holdings. Don't you find that a little ironic?

You talk about the "black eye" this guy's behavior was giving "us investors" but have you looked in the mirror? Purposely going into foreclosure so you can get part of your debt forgiven in the hopes of generating capital to invest further? Could that possibly *not* give investors a "black eye" at least as bad as your potential purchaser's proposal?

Like so many others out there, I'm funding your little foray into investing. It doesn't even sound like you went into foreclosure out of need but out of opportunity. Make a few late payments, claim poverty, and let the government write off part of your responsibility so you can sell for a profit(!) and go make another bad investment. Great to see my tax dollars at work.

Sorry if I'm overly harsh - people not living up to commitments (at my expense) is a hot enough button with me. Those same people pointing at others is really the cherry on top.

I have tenants pay me via Paypal which has worked great. I just don't let them fund the Paypal payment via credit card.

To Corey, check out this link for what is and isn't allowed on credit card fees:

http://www.creditcards.com/credit-card-news/merchants-who-violate-credit-card-terms-1275.php

Sounds to me like your apartment complex is in violation of card agreement though they may be able to stretch the definition of a "convenience fee".

Technically, that's slightly over a 200% return, not 300%. Remember that the first 4.5¢ returned is the money he started with and thus, not profit:

(15-4.5)/4.5=233%

Regardless, a good return!

Pam,

I agree with all the advice you've received. $10k loan on a vehicle is too much if money is tight and drain the pool if necessary.

Also, I wouldn't assume that when your loan adjusts that the payment will automatically go up. Last time I checked, base rates are incredibly low right now so once indexed, adjustable mortgages may not be as high as you believe.

Good luck!

I'm with Owen on this one. Without any cash reserves, which is how you make it sound, you may be one evicted tenant or major repair away from losing this property in a hurry. It's not the deal that I question but your ability to support it.

It's certainly not to the same extreme but it reminds me of the person who wanted to put down $350 on a property I was offering to owner finance (I was asking $5k down). He actually needed until the next week in order to get the $350 together! I'm not sure he would have even had the property a month before I had to repossess with finances being that tight!

Take it from someone who has multiple judgments worth 10's of thousands of dollars - you will not collect. Don't waste your time, energy, and legal fees and just move on.

If the Finance degree can serve you well either in your current or potential future non-RE related jobs, I would always recommend education. From what I can see, I suspect that 99% of wanna-be "investors" probably never pull the trigger even once so you should always have something to fall back on. Even if you do end up in RE full time, I think the degree would probably serve you well.