All Forum Posts by: Frank C.

I have been looking for my first deal.  I ran across what looks like a foreclosure auction close to my primary residence. It is an a C class neighborhood. There are no inside pictures available.  "As-is, where-is, no inspection contingency or access to the property.  Title to this asset will be conveyed to the buyer via Quitclaim Deed or its equivalent and with no express or implied warranties of title."  The FAQ on RealtyBid says: Unless otherwise noted on a property's Bid Page, Buyers will not be responsible for back taxes, liens or title-related issues for the property purchased. Unless otherwise stated, the Seller will convey insurable title to the Buyer upon closing; otherwise, the Buyer has the right to cancel the purchase with a full return of their deposit.

There are no bids on this property and the auction will be over on Monday.  I probably will not bid since I want my first deal to be a low risk, low-medium reward endeavor.  If I were to bid, how would I ensure that the title is clean?

@Account Closed, Just curious to know what motivates you.  Why not do the deal yourself?  If finding deals that turn $11k into $52K in 90 days is that easy, why don't you do that all day long and skip the teaching?  What does that come out to, $5000 per hour for his time?  Not a bad wage.  It is substantially better than what I make and probably better than you teaching wage too.

@Dan Vleck  I am working on finding an off market deal that works.

I read RIch Dad Poor Dad 5 or 6 months ago and a light turned on in my head. I read several more of his books. He talks about ethics, honesty, and doing what is right. I realized that my big, fancy house is not an asset, but a huge vacuum that is constantly sucking money out of my account and hindering my retirement dreams. I became enamored with the idea of passively earning income while on vacation.   The ability to deduct expenses and deprecation enthralled me. The idea of retiring early from my very rewarding W2 job enticed me. I loved learning that I can pass the rentals on to my kids and they will benefit from a stepped up tax basis making the appreciation tax free. How cool is that? I read Keller and Wheelwright and Berges and Gerber and David Allen and Brandon Turner. I have listened to 90+ BP podcasts. I will have finished all of the podcasts by mid June.

Somewhere along the way I looked into what the gurus are all about. That the gurus charge tens of thousands of dollars to newbies for coaching or mentoring is appalling to me. Gurus are helping newbies eat their seed corn. I am glad Josh and Bradon use BP to warn about the abuses of paid educators as well as providing a great alternative.

In some cases a paid mentor might be OK if the cost is reasonable.  A surgeon gets paid about $800 to remove a leg when the gangrene threatens to spread throughout the body or $1500 to rid the body of colon cancer (that is inclusive of all of the care after surgery for the 90 day global period). A great lawyer can earn $400-$500 per hour. @Account Closed

As a new real estate investor who has not experienced the cyclical nature of the market, I wanted to see what experienced people say about trying to time the market.  It seems like locally and in many markets across the country the real estate market is heating up (overheating?) and may be due for a correction.  The Taliban is resurgent in Afghanistan.  N Korea is a problem.  Radical Islam is an ongoing threat.  Syria is a mess.  A government shutdown is being discussed.  Interest rates at some point have to go back up.  Black Swans seem to be circling the pond.  I have followed the Motley Fool approach to stock investing and they always point out the dubious success of stock market timing. 

Should I proceed with my first SFH if I can find the right deal? Or should I keep my powder dry and save up cash to pick up multiple deals in a year or two once the market softens or corrects? I do not need the cash flow now. I want to build passive income so that I can retire at a time of my own choosing, tentatively 13 years hence. Thanks.

@Teddy Smith

Teddy, what did you think of Brandon Turner's guide for working with investors?

https://www.biggerpockets.com/renewsblog/2013/08/24/real-estate-agents-working-with-investors/

Helpful to you as an agent?  Was it unrealistic?  Just curious.

@Russell Brazil

There is no way you should blame BP for unrealistic expectations. As a whole, the company goes out its way to properly educate and keep new investors grounded in reality. Yes, there are stories of great success on the forums, podcasts, and blogs. Just like the illusion of beginners luck, the losers drop out and are never heard from again. As a newbie, I think BP has gone to great efforts to emphasize the risks, the pitfalls, and the fact that REI is no get rich quick scheme. Do you have to look for good deals? Yes. Success is not going to slap many people in the face like in "09. I know I have to dig, and hustle, and continue to learn. Mistakes will be made. The biggest mistake is not to try. BP is encouraging people to get in the arena, not to be (to paraphrase) a cold and timmid soul who neither knows victory nor defeat.

@Sam Levin  Thanks for you insight.  Several of you have told me what I suspected already about Park City.  Since Bigger Pockets is such a great site for people like me eager to learn, I thought I would run the numbers on the forum and let others chime in.  Thanks to all. 

I am sure there were deals to be found in '09. If something like that happen again, I may invest in Park City.   Until then, I will have to  be renter on my ski trips and help pay someone's mortgage.