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I think we said the same things, only differently. Burned out landlords are a great source of deals.... I dont want to become a source for another inestor if you know what i mean...... So do you have any input on the actual deals mentioned above?

I've done more than my share of "chunkers" or rehab/flip properties. which I like.... Looking at taking a profitable hobby to more of a wealth creation / full time endeavor.

I've got little to no experience with the lease option/RTO pretty houses in nice neighborhoods or the landlord business in general. So I thought I'd throw out a couple of deals I'm considering for feedback.

1). Nice/clean house in desireable middle class suburb. Flat market, with lots of inventory available. This is a 3/2/2 1800+sf well kept home in subdivision. comps out at $230K resale, pre-forclusure situation with mortg bal of $201K, with 3+ months in arrears (approx $5K). Monthly PITI payment is approx $1500.

I'd like to help the owners (middle 20's couple in process of divorce). They have already had it under contract for $215K but it fell through.

I see my options as finding a RTO tenant buyer and making a $100+ in monthly cash flow with a $30K+ payday when they close. (Downside is limited buyers with $5K down payment)

Or potential short sale candidate.......

2). Historic revitalization part of town that exploded approx 5-10 years ago. Somewhat of a bubble burst recently. These are large, 2-story historic homes that ARV is approximately $250-$300K but lots of inventory on the market & lots of rehab candidates still vacant.

I have access to a coouple of quad plexes. Each should generate approx $24K (using HUD-8) in gross rent annually after rehabbed. They will need $80-100K in repairs. My thoughts are to buy for $25-35K cash and use a hard $ lender for the rehab, then refi & cash-flow.

I just have never really been in the lease-option-RTO or landlord business, so I'm cautious of the unknown. The RTO seems to be more desirable, HUD-8 sounds very undesirable.... but I really am just making an educated guess. I dont want to take the fun out of RE investing, but I dont want to sontinue the corproate rat-race another 5+ years either.

Thoughts? Thanks in advance.

I hate them.... they obviously work though. Another investor in town told me he puts out 200+ new ones every month and that is his sole source of deals.

I was considering jumping into the fray of posting bandit signs. All the "Guru's" claim to use hand-written signs, etc. Obviously high traffic areas (stop-lights, exit ramps, etc.)

My question is: Are these more successful in lower income (not high crime) areas where the homes sell for less? These neighborhoods are typically more active for wholesaling/rehabbing than the upper middle class suberbia. Any suggestions or tips would be much appreciated.

Thanks,

Jim

So far, I'm not real impressed.

I just got it on Monday evening. Very slow delivery. I have not watched the dvd's yet. Though, I am only a couple of chapters into it; the written material appears to be a very basic course in commercial RE investing.

I'll post more when I finish it early next week.

He claims that he will send you your first commercial deal with a minimum of 20K profit in it...... He sent me a triplex (HUD-8 candidate) that had just been re-habbed by a guy I know who bought it from a disgruntled landlord. Hardly what I was expecting.

You said you weren't going to pay retail and was going to hold long term. With that combination, I'll reiterate that your risk is mostly the "potential" mental anguish (not so much financial) of being a long-distance landlord.

I dont care if the market goes further backwards, if you buy the property right, you cant avoid making $$$. My $0.02

Good luck!

Dude, relax... You're doing the right thing. Congratulations on your soon to be first purchase!

The emotions you are feeling are normal for everyone when they bought their first property. Even if your friends and the other doom-sayers are right and the market still has some downside; RE is a very forgiving investment. Time will overcome all short term setbacks & fluctuations.

You said you're not paying retail price (which is the only way to buy in a slow/down market) and you were going to hold long term. Other than the potential long distance landlord challenges that could arise, I see very limited downside for you.

P.S. going from $50K in DC to $40K in FL will be like getting a raise, not a pay-cut. :)

REI, I'd love the link for Alcorns info. Thanks!

I did go ahead and order the Vukas commercial course. He threw in a few freebies too and the whole thing was only $200. If its as GetSmart describes, I'm sure I'll fall asleep too. Then return it for arefund after I wake.

Thanks guys!

There's actually three different RE groups in Jax. They all have ads that tell where & when in the classifieds RE section in Sundays FL Times Union.

Thanks GetSmart!

I was mostly interested in his Commerical RE course. He also claims to have lots of funding sources that he will share. He even claims to provide your 1st commercial deal (in your home zip code) with a minimum of $20K profit to you. I guess when things sound too good to be true, they usually are. Much like his add is going to outproduce all other adds by 5X as he claims. I dunno..........

IMHO, most RE courses today are recycled & redundant versions of Ron Legrands & Carleton Sheets courses from 1990. I still own both of them and have used many of the techniques they disclosed.

But when a course is <$500 if you get one usuable technique thats new to you, then its time & money well spent.

Anyone have any experience with this guru or his courses?

His company is called Platinum Acquisitions. Thanks!