Tired of nonsense in our business
How many of us are sick of looking at ads only to find out there is no substance behind them or that they are just a come on. At 50 I am constantly reminded of the old addage "if it looks too good to be true it is."
You can't buy a house for pennies on the dollar and not expect to spend a ton fixing it up to be habitable. And even then think about updating to code, getting permits which are needed for just about everything. Don't want a permit? Guess what you have to disclose that when you sell or you are open to liability. Never let a Realtor talk you into boolegging work. Also, remember, if you are not a profesional in remodelling everything costs more than you think and little problems become big problems fast.
If you are a savvy investor what I am saying is obvious. If you can't sleep at night and watch the morons who make millions selling you stupid CD's you need to think about these things. In these difficult times, there are great deal, but there are also a thousand investors chasing them. If you have lots of cash, great, go to the foreclosure auction and make a deal with the lender right there. If not expect things to take longer than you expect to close because lenders don't act fast even though you'll hear they do and expect to make payments for several months before you get renters.
Avoid these clowns who just want a commission. Do your homework and if possible look at newer homes if they make sense from a return perspective.
Comments (1)
Hi Jim, just came across your blog.... and I can understand your frustration. There's a lot BS going on with hyped up ads and overstated features or values. But if you find and network with those people that are still honest in these crazy times.... stick with them. I am lucky enough to work with several of them, so I know they are out there! You just have to find them... And btw: Quite often is DOES make sense to buy older properties in order to fix them.... especially at these rock bottom prices what they are offered for these days. For example, one of my "suppliers" (a nationwide investor who mostly buys in bulk, and then resells in smaller packages or all properties individually) sells houses that need remodeling or rehab starting literally at $4K (distressed or fire damaged) or $6K or $10K.... and if I would show you pictures of some of the properties they sometimes don't even look distressed. Okay the paint and/the carpet is awful. And the water heater might need replacing. Or the kitchen needs updating, and the bathroom does not look very inviting. But where else would you find a rehab in Houston TX worth about $85K (CURRENT ARV) that needs about $10K in repairs.... and you can buy it for $12K (in a package of 7 properties) or for $17K cash individually or get it OWNER FINANCED on a land contract with only $3K down and monthly payments of $300? I think, no - actually I KNOW the great opportunities are out there (because I offer them to my shortlist of buyers every month)! You just have to find them... And if you don't believe me, let me proof you wrong: Depending on which state you are looking I'm confident that I can find them FOR YOU! :) Conny Wolfram (wholeseller)
Conny W., over 15 years ago