All Forum Posts by: Dennis Treacy

Drill a hole in the basement floor, and just forget about the leak.

Originally posted by Jeff Tumbarello:

I would ask your guru's to provide their 1040's that show their income comes from buying and selling notes..

A local guru was holding a free educational seminar where he was giving away a free copy of his best selling book. I had nothing to do that night my wife and children were away at granny's.

I did not want to rain on the guru's parade, but he kept stating that his book was a best seller, so I asked on what site? I was met with a glare, and he moved on to the rest of the educational seminar.

Later during the powerpoint he showed one of his killer deals, I recognized the property, as I own the building next door.
I was always wondering who was the evil owner next door, he touted the $100K purchase price the $50k of renovations, the 50K cash out at the refinance of the property with an appraisal showing $50k in equity left in the deal.

Sounded oh so great except that the area is zoned only for a 3 units, he had created a 5 unit, and his rents which I know, barely covered the expenses and I would bet do not cover the mortgage in the present market. The area is a management challenge, the rent must be collected face to face (my office is down the block).

Either way I knew a secret that no one in the room knew, this cash cow (his description) was two years behind in the tax payments, in our area the city is totally inept and allows folks to get 10-15 years behind.

During the break I asked him to give me his book so I could go early, or I would pester the crap out of him with specific questions regarding his real estate dealings, and do a search on my laptop now that I knew the name of his LLC.

He gave me the book, a pen, a pad of paper, and gave me a six pack of spring water bearing his real estate guru brand name.

Later I found out from another participant whom I traded cards with, that he collected $7000 from 6 participants who wanted to be rich and escape the rat race that very night.

Not bad money if you can get it. Like P.T. Barnum said many years ago "There is a sucker born every minute." I would add, there are many suckers created at every free educational REI seminar.

Before I would call myself an investor I would look up the word in the dictionary.

I would not however try to create an new definition, that is what politicians do.

Originally posted by Tracey Bowers:

On several other re forums this has been a topic of great debate. There's several "gurus" who claim investing in rentals in dumb. Feedback on this please. Why or why not invest in rentals. Aren't they a great replacement for 9 to 5 income?

I like to do my own maintenance, I fixed a toilet today, it took all of 5 minutes to replace the flapper valve.

The guru's speak of toilets like we poor landlords are cleaning the bowl, sorry I don't clean anything, I can get someone to clean for $50 dollars a day.

I could hire a handyman to do these small repairs, but I like to use these repairs as a means to enter the rental unit and spy on my tenants, to see if they are trashing or doing some other elicit activity in my property.

Tenants like to rat on other tenants, I believe the stories I can verify, but would not have access to the snitch if a handyman was the go between.

This is a smart rule, I have unknowingly been following this rule based on the profit I need at the end of the month.

This 2% rule is going to make my calculations quite bit easier.

The 50% rule is spot on, I see it with all of my properties.
There no sense fooling yourself thinking the expenses are not going to be 50%.

It is sad but for the other guy, but several of my properties where bought with little or no cash-flow going to the original owner. One such deal was snatched out of my hand by a newbie investor with good credit, he paid $125k for a dilapidated property, spent $10 for improvements, and later lost the place to foreclosure. I bought this same building less the copper piping for $50k. I borrowed $70k and dropped $15k on improvements. So I have $65K into the property, which grosses $20,400 a year.

According to the 50% 2% rule, the property could sell for $85K and the rents at $70k should be $1400, so I am more than good on these properties. Funny thing these three units sell for $125k in mediocre condition, and for $150,000 in good condition, go figure

Originally posted by Don Rice:

Being under capitalized. I got my Carelton Sheets packet and soon bought my first rent house no money down. But due to having no backup funds, mortgage due, I had to rent quick, and started the road to hell.

Also too lenient. I have to fight that one still today.

How many time have I heard Carlton Sheets, and the road to Hell?
Maybe Carlton Sheets is actually a bad tenant in disguise.

Joe,

Next time don't yell hello!
Just sneak in with a bat, that's what I did.

We have a local juvenile delinquent, he kicked the door in on one of my rehabs. Not a big deal to me as the builder has to deliver the property as contracted.

Later after the place was done, the same creep broke in again and wrote on the living room walls.
This dope is so stupid he boasted to a neighbor across the street of his exploits, the neighbor is one of my tenants. They did not want to get involved, I can understand that.

Later the house just opposite, became vacate, I decided to do a light rehab before renting it.
While I was working in the house I heard some noise in the back yard and then on the rear shed addition roof.

I grabbed a baseball bat left by the previous tenant and headed to the second floor. On my way up I hear the window breaking and this dope coming through the window.

I ran in and beat this creep right back out the window. I was shaking like a leaf, but nothing gave me more satisfaction then pounding this idiot a few time on his way out the window.

Later that week he confronted me with a buddy, I told him to take his best shot, he is a punk and I once had a violent streak.

I knew he would wait till I left the area to get his revenge on me via the property.

I just happen to own a property with a drug rehab just down the street. So I asked him how much money I would have to give one of the crack heads to put him in the hospital for a week.
I have never had a problem with him since.
My comment was not a threat and he knows it.

His father whereabouts are unknown and his mother is in jail for prostitution, and unluckily his well meaning grandmother lives in the neighborhood, he is in her care.

I have always wondered why a small investor would buy a property that is to far away to personally manage or oversee.

The whole idea seems like a recipe to be scammed.

I have several properties, and I manage all of them, I actually enjoy doing so.
I personally do all the high ticket repairs, and leave the common stuff to a handyman.

I don't know where the saying tenants and toilets originated, but neither bothers me. I can change a toilet in 20 minutes, they cost me $50.

All of my properties were bought at 25-30% of ARV, and then brought up to code so to speak, this makes management easy as all major systems are new.

All of my properties are within the same two blocks, and are one block from office.

Originally posted by Jose Rodriguez:

Hell, just wait a couple of months and get the course on eBay for pennies on the dollar!

You got it! Remember a lot of folks buy the course and never us it. So they figure they might get part of that $2k back by selling on ebay. Check out Ebay first, even if it is not there now it will be in a few months. All the land deals will still be there waiting for you to become a millionaire.

One other good idea before buying a guru course always check out the site RipOffReport.
Here is a link to Jack Bosch.

http://www.ripoffreport.com/home-based-business/jack-bosch-scammer/jack-bosch-scammer-land-for-pe-3a644.htm

Marko sells software, not so much a course but a method of tracking sequential mailings.

You could do what he does for free.
He is selling automation, his ideas for generating deals is via direct marketing mailing letters to lists.

Please do not waste one cent more on courses, at the rate you are going you could get rich by not buying courses.

Just take action, any action except buying more courses.

In a nutshell guru's are in the business of information sales.
You probably know something about something, if you could market this knowledge in a way that would interest people, you could be a guru as well.