All Forum Posts by: Darrell Lee

My last year working with clients full time was 1986. I was the top producer in Venice/Marina del Rey Calif. I grossed about $360k however, I started in 1980 with interest rates at 15-17%! A house in 1984 could be bought for $110k is now selling for $700k. Unscale houses selling for $350k are now upwards of $2mil. My 1st year with those sky high interest rates, I only sold 1 house and made $4k. every year my income about doubled except my last year I tripled the year before hitting the $360k but it was an unusual tax driven year. 

Then I got stupid and decided to go from a one man shop to 2 offices and 50 agents grossing 2-3mil per year and yet losing money...

No one's given you a road map... I've trained a few hundred agents, past pres of the local Board of Realtors and lots of other community involvement. When you get your license, look me up and I'll give you my blueprint to success...

I closed my Calif RE brokerage and mortgage companies 18 years ago... I've been out of the game all this time. Boy, a lot has changed! Also each state has their own quirks...

Back in the early 1980's... OWC was about the only deals that were made in lieu of 17% 1st mortgage interest rates...

Well, saying you grossed $1mil profit is more impressive cocktail chatter than saying I netted $100k or $200k and while perhaps accurate, it might come off as bragging...

My Vt lawyer will not be involved. I play a lot of poker and am used to making decisions of risk assessment. As I said, if there is no clouds on the prelim but I will review title before I make my decision, but a clear title, then I'll pass.

I have no ideal what it is worth... but there was a $54k loan on it so it must be worth something. Yes, I'm presuming I'll make a huge profit, but I could be wrong it could be destroyed inside...

He said if the title report has no clouds on title pass.

He's my Vermont lawyer and in Vermont the lawyers are the closing agent and also provide the title insurance so they are extremely knowledgeable on title.

Basically pay $100 to insure $550... I'm comfortable rolling the dice and saving the $100. As @John Santero  said, if I'm going to hold, I'd buy it... but I'm just gonna flip it for $8-20k as soon as the broker checks it out and gives me an assessment.

@Jerry W., compromise... Sell one house and take the money and let her spend/splurge the money... take her on a fabulous vacation and make her very happy and negotiate a deal...

She wants to sell so she can spend and enjoy the money while you are both young enough to enjoy it. Depending on your market, if it is still a rising market, tell her the truth, it will cost you money to sell now/early. If your market has peaked, then maybe selling now ain't such a bad idea but know the tax consequences. Or a compromise solution is to sell a couple of your worst performing properties and keep your best ones. But if there's large gains to be taxable, you might want to just reinvest using a 1031 exchange and pull some non taxable cash out. Maybe she just wants to feel more secure having a fat bank acct, but for me, I'd rather have it invested in RE and getting a much higher yield than what a bank will pay in a savings acct.

I talked to my lawyer and since I'm planning to flip as is. not worth spending $100 to insure $550 so I'm going to pass on the insurance unless there's some kind of cloud on title.

Thank you!

I bought a $550 house in Memphis TN. Title Insurance is $100...

Should I save the C Note or spend the money on TI?

What do you recommend?

Your goal is convoluted... I used to set my income goals based on gross income but found it meaningless... When I was a broker, I used to set gross income goals of double the previous year. When I hit  $125k in '85 I thought how do I hit $250k? That year I didn't hit $250, but I hit $360k! I thought impossible to hit $700k so I opened a big office and did $1.2m, then 2.1mil etc... But I was making less money grossing over $2m than when I grossed $360k ($220k net) as a one man shop... Grossing over $2 million and I was netting less than $40k/yr!

Better to set NET income goals, that is the true measure of success...

Making money being an investor is much easier than being a broker... and can be a lot less stress...

Keep track of both your gross and net and focus on how to net more to yourself. Little things make a BIG difference. When you structure your JV deals, work on making the deals more favorable for yourself while being fair. Don't give away the store...

A few weeks ago I was again messing around and bid the initial bid of $20k on a 2br/1ba condo in NH. The comps were over $50k and it needed minor work. The 750sf units are worth $30-40k. Well, the sq. ft. was way off as it was advertised at 950sf and it was 750sf, I called and bitched about it and we cancelled the deal. I did offer to close the deal for a 20% discount ($16k) which was the amount of the sq ft it was smaller. They said no, but I'm welcome to bid on it again. They put it back on but at $5k, so I bid $9k reserve not met, we'll see if it is the high bid and if so, if they want to negotiate.