All Forum Posts by: N/A N/A

In my reading, I've come across the suggestion that an ideal situation/purchase of investment property is one in which the seller finances the purchase. But doesn't this go against what most sellers are looking to do, which is to be rid of the house and any debts associated with it?

Well in my studies I came across the following link which I think might help new people who are starting out avoid some authors and "get rich in real estate" programs.

http://www.johntreed.com/Reedgururating.html

Reed takes a no B.S. approach to debunking a lot of the programs and books out there...good way to know what to avoid for us newbs : )...

What exactly are "closing costs"? Is that the cost of tranferring title and realtor fees?

Ok, can you explain what is considered an "expense to put the house in selling condition"?

thx for your help

I've been analyzing the numbers from the example deal from the Bird-Dogging 101 article here:
http://www.biggerpockets.com/articles/bird-dogging101rb.html

I'm using a spreadsheet, and I can't seem to come up with the numbers that he has mentioned...specifically the "Additional (Not covered by loan) expenses: $7,500.00"

My understanding of this figure is that it is the difference between the loan amount, and all of the expenses.

The loan amount was $105,000, and the expenses were each of the following:
Acquisition Cost: $7,500.00
Repairs (estimated) : $9,000.00
Four month Average. Hold Cost : $4,900.00
Misc expenses (5%) : $7,500.00
Cost to Sell (5%): $7,500.00
Max Purchase Price: $91,100.00

The total of these is $127,500. So the not-covered-by-loan amount would be $127,500 - $105,000 = $22,500, unlike the $7,500 he mentioned?

Is there something wrong with my analysis?