All Forum Posts by: Mark Freeman

@Edward Eloma

I was top bid on an auction that didn’t hit the reserve a few years ago. They said I had an hour to get the contract in and about 24 hours to wire in 5% of the purchase price. It caught me off guard since I didn’t hit the reserve.  Apparently they could back out for 15 days if it wasn’t approved by the seller but I was obligated, or I could lose the money I deposited to bid.

I had to put up $2500 to bid on this one and would be over $6,000+ with the 5%. I rushed to check a few things before I wired in the rest of the deposit. There wasn’t an inspection period.  (This was listed as a cash only sell. I don’t know if it changes if they indicate that financing might be an option).  It seemed really one sided that they could cancel, but if I didn’t get my contract in and the rest of my deposit, I probably wouldn’t see my $2,500, that I put up to be able to bid, again. I read through the materials and the way it was written, to their advantage, it seemed like they could get away with it.

Having  said that, we went ahead and completed the purchase. We were happy with the house and price and it ended up being a good project. (Just a little scary for a few hours).

I wouldn’t bid on anything I didn’t plan on buying, and if your the highest bid It seems they can hold you to it, whether you hit the reserve or not.

Yes, same guidelines for financeability as owner occupant -  except more money down is required on an investor loan.  (They used to have a rehab loan, but it wasn’t a good product).

@Stipe Ba

You don’t have a kitchen or a bathroom = no conventional loan. Try hard money if it’s still available in your area or partner up as @Jaysen Medhurst suggested! 

(If lenders did conventional loans on these kinds of properties, cash would lose much of its advantage and hard money would not be necessary).

@Tadela Tedemet

In this Covid environment, I say use the KISS (keep it simple stupid)  strategy!  Less is more!

Especially with $55k comps! (I would be nervous about this flip making money - if you went all in .....even if someone gave you the property).

@Erin Dorsey Robinson

Win the lottery on your first try!

Fastest way to lose lots of money ...., Play the lottery!

@Ben Petersen

Find a new agent ASAP! Some of the best deals I've gotten off of the MLS were because the property was priced too high - which kept interest down. If they priced it close to what I payed for it they would have multiple offers and the deal is gone.

I bought a house off of the MLS in December for $100k that was listed for $175k. Find the right agent - which usually isn't your buddy or cousin.

I read a book years ago, I can’t remember which one, that said to get a good deal you should try to offend with your first offer. (I have looked at 1st offers differently ever since).  Loosen them up a bit. If they counter at all, you may have a fish on the hook!

@Justin Ignacio

From your post:

“All the gurus say to build the cash buyers list; my hypothesis is that if I can get a good deal, finding a buyer will be easier. “

I agree with you on this 100%. I can’t stand when wholesalers - with nothing under contract, put up fake ads for deals they don’t have trying to get your info. for their cash buyers list. The guys who are good, build a list from real deals. (You can smell the fakes from a mile away and I’m afraid they don’t ever get any traction).

Sounds like a good plan. Good luck my friend. 

@Blake Dailey

This guy is so sketchy,  I would RUN away!!

@John Collins

Anyone (or thing) that motivates me - helps me make money. Grant C. has definitely done that for me at times.

Having said that, when he did  his first podcast, I believe it was 108,  he wasn’t involved in any reits. (He wasn’t taking investor money at that time, the way I understood it). This video did seem reckless in light of the fact that so much investor money is with him now. It would make an investor think 2x about investing with him now.

Moral of the story - 10x your own investments, but think twice (2x) about investing with him!

@Account Closed

About 20 years ago my aunt had a couple of million dollars from a previous marriage. She would help the grandkids constantly - including putting down $250k on a house my cousin couldn’t afford. When the mortgage meltdown happened my cousin walked and my aunt was sol.  She kept helping different grandkids until all she had left was a paid off house in Saint George, Utah. Grandkids kept asking for help so she pulled money out of the house. Luckily, while she still had some equity she took out a reverse mortgage, but all her other assets are gone and they live off of their SSI. (They’re still in the house for now - I’m  hoping they’ve learned to say NO MORE!)

It is so much easier to lose someone else’s money. Don’t risk your relationship with your parents. DON’T DO IT!

(Start small like most people and you’ll figure out appropriate risks. Lottery winners and others who come into large sums overnight usually lose their money fast - even if they try to invest because they haven’t learned the necessary lessons before they risked substantial money).