All Forum Posts by: Don Gouge

You needed to find the answers to these investment questions before you tied up someone's property. 

Anyone that really knows anything about real estate has a good Idea of what a property is really worth. Right now we have alot of unmotivated sellers that just list with a big price hoping to find a fool. A correctly priced property in this current market won't last but a few days. As an example let's say there is a house that among the knowledgable real estate people its deemed to be worth 300k. The unmotivated seller prices it at 400k to catch someone napping. The seller willing to negotiate prices it at 325k. Realistic seller prices at 300k and stands firm. Desperate seller prices it at 275k and the fool price it lower than that. The sub 300k listing will probably be sold an hour before list or even before. The question is where are you offering in this spectrum? Are you offering 300k on the 325 listing or you offering 250k on the 300k listing? 

I understand all to well that your offer has to meet your financial criteria but the problem seems that your criteria dosent match the market and sellers might view you as a bottom feeder that isnt worthy of consideration. 

As has been alluded to earlier, if you want to low ball in this market, make a all cash offer with proof of funds. Large earnest money deposit, no contingency and 10 day close. This puts you way ahead of the iffers and maybe and those that need a third party to actually provide the funds. 

Is there a cancellation clause in the contract for either party? Is their a price escalation clause in the contract due to material cost?

It's a long and capital intense process. The profits can be very good if you can get if done and sold quickly. The permit and environmental process can potentially be a nightmare. 

Write a book or sell videos or even better do seminars and bootcamps. Of better yet, start a website that caters to real estate investors and has articles and a forum and offer exclusive memberships. Charge people to advertise on your website and even sell your own things on there. If someone would only do that..........

Once more I agree with Robert. You need to be a grown man and let them know that this is your property and they are very lucky to be able to live there. Once more spell out what is exactly in the lease and hold them to it or give them notice. BTW, go get your money NOW and tell them its THEIR responsibility to get it to you on the due date.

My first question is a little brutal but it makes a point. Why are you broke? A well organized handyman that has construction skills and people skills is in very high demand. It can be a very lucrative business if it is operated correctly. Concentrate on your business and get on a solid financial footing and get back to us. Contrary to what the book selling gurus tell you, real estate isnt a way for broke people to become rich with no money. 

There are ways but they are like the first two rules of The Fight Club.

First question; Why? Is this the highest and best use of your time and investment dollars? Are you in love with the house? This has all the ingredients for disaster. Carefully reconsider.

Before I jump on the band wagon to congratulate you, I want to know if you made any money? What were your repair costs? Holding costs? Closing costs?