All Forum Posts by: Marcus Auerbach

@Jesus VillarrealI think you should. 

The reason is in the sequence: when people start getting your letters, they will generally not be interested in selling (yet). But they become familiar with your offer and your brand. As you keep mailing them over 6 months a certain percentage will encounter changed life circumstances that will move them into the very small group of motivated sellers. Then they get you next mailer. They already know you, they are familiar with your offer and they trust you (because of the repetition, you demonstrate consistency, you are not a one flash in the pan and then never heard of again). So all the sudden they need to sell fast, guess who is going to get the phone call.

Second point: scrub your list - make sure you don't waste money on mailing people who will not sell. I get a mailer once in a couple months: interesting point is I am being contacted for a property I own less than a year? Someone was not doing his homework... Second observation is that I never get mailed twice.... let alone consistently over time.

@Doug Prahstyou are 100% correct. You cannot afford to work with a CPA who does not fully understand your business. Been there done that. I have found a good place in Cedarburg. PM me if interested.

yes it does. A lot of agents dont have much or any background in construction, so they are not much help when it comes to interpreting an inspection report. The first home I bought in the US for myself is a perfect example. My realtor was an older lady, we loved her, she was like a grandma. The inspection showed elevated radon levels in the unfinished basement and she kept talking about the dangers of radon and foundation issues in general. Today I have to giggle when I think about it. It was a poured foundation and she got as all concerned about the hairline crack in the corner next to the sump pump. And the radon of course. The house was perfectly fine and just 5 years old, I am glad I bought it and we had the seller install a radon system for $800.

Years later I sold another house and I had a seller walk on an inspection with radon and "dangerous electrical issues": we took care of the radon and the dangerous electrical issues were two junction boxes in the attics that did not have cover plates. The buyers agent was on vaccation and had asked another agent to sub for her: the one time you need a buyers agent to be there and hold hands, she's gone! We had everything professionally fixed within two days, but it was too late. At least we had it ready for the next offer and it sold a month later. 

@Jason HawkI have a wired idea for you: lower your interest rate. People think that everything double digit is risky or even smells fishy. I usually pay 6-8% for private money and people are excited about that. If you build your business credit score systematically, work with D&B and upload financials you will start to see mailers from institutional business lenders offering up to several 100k for anywhere from 5.99% to 19% depending on your creditworthiness. Small banks will do the same or better.

@Frank B. I have been asking the same questions two years ago. I wanted to make sure I am in good control of my numbers, so I thought I can do it myself. Two years of painful struggle later turns out that a.) my time is better spent making offers and b.) I suck as a book keeper (and I hate it). So I made myself a Christmas present and hired a book keeper. Best thing ever. What was I thinking??? I have the desktop version, online sucks. My accountant has online access to my machine at home and she pulls an accountant copy, so my data is frozen, but still available until she puts the updates back on my machine. Works like a charm and I spend my time analyzing the bottom line instead of entering numbers. Do yourself a favor, hire it out!

@Russell Millan Gee - why would you buy something with a tennant in place?? Why would you not want to pick one yourself and know what you get! My recomendation is you buy a duplex in Chicago and move into one side. Fix a few things as needed and rent out the other side. You will be able to get a great 30 year owner occupied fixed rate loan and your rental income should make up for all or most of your mortgage payment. This is an easy way to get started, test the water and learn the basics. You will find many posts about this under "househacking". Welcome on BP and good luck!

I have all tenants set up with ACH autopay, which is automated direct deposit into my account. Most big banks charge a fee for the service, I bank with a smaller one and its part of their service package. I dont give tenants a choice anymore and some are sceptical in the beginning, but after they are signed up everyone likes the convinience.

Thanks @John Horner for asking the question - it is a subject that should be discussed a lot more in the "am I ready to quit my job" space.

Being an Austrian export who lives in the US since 2008 I can tell you the cost of health care in the US is inflated absolutley out of proportion compared to what I have seen in Europe. Partially this seems to be driven by our legal system in the US which is driving cost for malpractice insurnace.

Years ago I was invited to a presidents club meeting of a company selling equipment for cancer tissue diagnostics. Expensive machines with expensive supplies for every test. Turns out the US sales guys made about three time the business volume than their European counter parts. What is driving that? A hospital in Europe would run one tissue test on one machine. The machine is about $100k and the cost for the hospital is about $400 in supplies per test. The test has an accuracy in the high nineties, I forgot the exact number. A US hospital would have two identical machines sitting next to each other and in order to improve the statistical accurancy they will run the same sample on both machines - twice! So four tests. Four time the cost. Why? If they get sued for malpractice they can prove they did everything ethy can - even ran the test four times.

Last summer I was on a business trip in Germany and a US colleague had ran out of meds and had to go to the doctor for a prescription. I went with him to help translate (BTW was not really necessary, every doctor or nurse speaks english). It was a quick visit, took about five minutes and the doctor knew right away what he needed. Of course he'd have to pay out of pocket and when it was time the check out my friend got a little nervous and asked me how much cash I had on me and if they would take a credit card. He could not believe it (and made me verify in German) that the total bill for seeing the doctor visit was Euro 11.25 - that's about USD12!

That is what keeps health care cost and health insurance afordable in Europe - and drives insurance cost in the US.

@Fritz Westfall you might want to provide more details otherwise this might get looked at as a scam.

The way BP comunity works is to build credibility over time through your interactions. Also you might want to complete your profile: right now it only says you are a RE professional and you are looking for money.

I would say on a duplex it depends on the windows. If they are modern and the rest of the home is nice it will probably not make a much difference.

On a SFR it will impair the use of the yard space in the summer, that will put you in the same category as a corner lot.

IMO a lot of major inner city roads are equal or worse than a freeway, because of ambulance and police cars, accelerating traffic and the occasional nonsense souped up car.

I down own a property on a major street, so this is just my humble opinion.