All Forum Posts by: Walt Payne

@Tapan Trivedi  There is a WHOLE lot more to it than that! 

Here is my comparison for riding a bicycle to driving a car:

A bicycle is cheaper to buy. A bicycle doesn't require gas. A bicycle is more ecologically friendly. More people are killed by cars than bicycles. A bicycle does not require insurance. No parking hassles or parking fees for a bicycle. 

A car gets you there faster. A car takes a lot less physical energy on the part of the driver. A car keeps you more environmentally comfortable. 

Hmmmm, sounds like a bicycle wins hands down, right? Or maybe it depends on your circumstances?

Flipping is not a BAD thing, or even a bad investment. Buy and hold has it's down side too. I do both, for different reasons. Oversimplification is not the way to educate people. Facts are.

Buy and hold based on guru methods is just as risky as flipping via reality show methods. Doing it right is what makes it less risky for either path. Take into consideration things such as financing amount and methods, exit strategies, skill and experience, neighborhood/location etc, etc, etc.  and in the end they can carry similar risks, which are minimal, when done the right way.

 So, do you ever shop at Walmart? You know, one of many who claims to have the lowest prices. Always. Yet how can so many stores have the lowest prices? Yet they then put in small print the caveat that if they don't then they will give you a better price than the other guy, even though they ALWAYS have the lowest prices? So then do they or don't they always have the lowest prices? But it sounds better for them if they claim that they do. Let's all boycott Walmart because of false advertising! 

@Cam Mckin  Actually, the contract with the agent probably extends well beyond the expiration, just to cover such possibilities. They normally cover any potential buyers in contact with the agent or the sellers during the listing period, and extend that part of the contract for an additional 180 days. And you will not be able to deny such contact, even if you wanted to. 

@Frank Crocker  Welcome to BP, and thank you for your service!

You have found a great place to learn about real estate investing. Participate in the forums, listen to the podcasts, and read the blogs. There is a lot to learn, but this is the best site to do it at, and you can learn it all for free!

I have a question for you. Do you refuse to buy from stores that say "We have the lowest prices" if you ever find that another store had a lower price? After all that was unethical and a lie. I believe in total honesty also, but I think you are picking a trivial point here.

It is not necessary to be totally literal. It is more the honest intent and ability to make sure that the closing is carried out, or to tell the buyer otherwise. The technicality of an advertising slogan is trivial.

Being 100% (or nearly) able to follow through with the implied promise is the part that matters. Not destroying the life of a seller who plans their future based on having a contract with you is what matters. The slogan used to initiate the conversation that allows that contract to happen, not so important.

 I am 100% in agreement with that philosophy. I see it all the time in many businesses, and it definitely makes me question their whole business philosophy. 

I agree totally about those who are deceptive about what they are doing. But those who say "I buy houses" under a philosophy that they have a buyer and will close as promised regardless, that is not deception. It is an oversimplified way of stating it, maybe, but not misleading in any significant way. If they are getting it under contract by saying they will buy, and have no certainty of closing, well that is a different story and I think that should be avoided and will probably cause laws that will restrict all, including the honest ones.

I have to wonder about what the liability of those giving online legal advice might be. After all most attorneys give their advice verbally, and it is hard to prove that they said something in exactly the phrasing that you say they did. They can say (or maybe you truly did) that you left out a key word or phrase that changes their liability completely. But if you have an email, or text from a chat, you have proof. Do they accept liability, or do they have such major disclaimers that it is totally worthless as true legal advice? 

I have only been involved in one lawsuit as a defendant, and "lost" but had the judgement paid by the lawyer's insurance because I could prove he gave bad legal advice. But he was stupid enough to do so in email instead of verbally. 

Long distance investing has all the fun stuff of local investing, such as tenant issues, late night repairs, property damage, evictions, etc and has the additional complication of not being there, and needing to trust someone local. I don't suggest that as a first step, personally. Many will tell you that essentially every market has good buys within an hour drive if you are willing to look hard enough.

You might look at note investing, also. Not for everyone, but it has some real advantages. I know @Jeff Brown  and probably several others here can give you good guidance on that topic.

@Leigh C  @Amanda Sutherlin  Paying asking price is not, by nature, a bad thing. Paying an amount that does not cash flow is an issue. Sometimes, in some markets, paying asking price makes sense. I did it on one of my properties that is in a B- neighborhood and was a steal. I was not going to risk the chance that the seller would delay to negotiate and get a better offer from someone else. Could I have gotten it for less? Maybe. Could I have lost it by trying? Probably. I have also bid over asking price. And yes, there are properties that I would not buy at 25% of asking. The deal speaks for itself, not just one part of the deal.

Quote of the day: A good deal is a good deal, regardless of percentage of asking price that you pay.