All Forum Posts by: Carlton Ellis

Originally posted by Steve Babiak:

The last sentence of that article is probably a good summary:

You can stop wondering. This was the headline on the NY Times website this morning:

Obama to Open Offshore Areas to Oil Drilling for First Time

So now oil companies can "Drill Baby Drill" on the east coast along one of the most hurricane prone areas world from August to December. If oil companies don't learn lessons from hurricane Katrina and engineer their rigs properly there is the potential for an ecological catastrophy. Only time will tell if this was a good decision.

Originally posted by David Breitzmann:

Carlton,


There may be a meeting point where our behavior as consumers (enterprise related) can sync more with our altruistic ideals as private citizens.

Now that is one of the most interesting issues facing society today. For the last 20 years income increases have grown faster for wealthier american than any other sector of society. There are those that claim that the wealthiest americans are carrying and unequal burden when it comes to taxes. But if you are benefiting the most from the economic circumstances shouldn't you carry a greater burden? If social conditions are going to improve in this country I think it's going to be incumbent about the wealthiest americans to donate more of their time and money to help solve social issues. It's clear from the recent ordeal to get the health care bill past that Washington can't solve all our problems. People need to be more socially responsible on an individual basis. Also remember what happened in one country when the attitude of the wealthiest sector of society was "Let them eat cake!"

Originally posted by Dan Krause:

I am refering to fee as "consulting fee" or "referal fee" . In a bird dog deal, where finder is not licensed, does asking for a consulting fee or referal fee instead of a bird dog fee make you legal enough to obtain a fee for locating a property?

Don it's all about how you structure your relationship with an investor. This seems to be a VERY IMPORTANT question to you. If you want a consultant's fee when doing business then set up an AGREEMENT to work as a consult for somebody with the approriate terms and conditions. Once again it makes no difference what you call the fee your ACTIONS in a real estate transaction have to legal in the state your are doing business in. In Michigan you can't do the follwing without a real estate license:

Market the sale or purchase of a property for another person.

Negotiate the purchase or sale of a property for another person.

List a property for purchase or sale for another person.

Manage a property for another person.

If you are unsure about your legal standing in a deal then ask if you can become a partner in a joint venture agreement with an investor with the understanding that the investor in question buys you out at an agreed upon price once a transaction is completed. Now, finding a investor willing to do this may be easier said than done but it completely takes the "Is what I'm doing legal" question off the table.

Originally posted by David Breitzmann:

I love this thread. Communications is so exciting right now, business & personal, because of the new mediums that have evolved.

That said, you have to ask one question - "Can I manage another stream of contacts?" If you already own a website, phone number, email and now will expand to social media that requires time management.

Be honest in the expectation as well. Don't assume it's for "networking" or "leads" if there's no way for you to:

1. Follow up in a sufficient window that a relationship is initiated
2. Track leads from social media and conversion rates if this is a component of your marketing strategy.

Give this man a cigar! If there is no way for you to monetize your contacts on social networking platforms or to market yourself then you need to mindful of the amount of time you invest. How many people have actually sat down and thought about a comprehensive plan on how to market their business on social networking platforms?

Originally posted by Will Green:

Mobile browsing is where the internet is going. It's the next big thing (it's really already here but it is just going to get bigger).

I'm curious for those of you that track your websites what percentage of your visitors are looking at your site on a smart phone?

You ask a very valid question but web site tracking is something that a person has to be somewhat knowledgeable about in order to answer your question. If you are using your website to market and promote your business then it's becoming more critical to have this information. I think that is why we are seeing the proliferation of "internet marketing" type businesses and jobs. Seven years ago nobody really talked about search engine optimization (SEO) in the general public know it's the buzz phrase of the moment.

Originally posted by Releaf_OC:

@Carlton: Agreed. There's always a tradeoff with investment vehicles.

That is the beauty of beware aware of the different investment vehicles out there. At the end of the day find the investement that suits your risk appetite, time requirements and temperment and then gain as much knowledge and experience as possible to become successful at it. :D

Originally posted by Johnny P.:

Driving for dollars is a great way to find monster deals because its the only way to find half of these people who have their home for sale. You are looking for the type of person who put a for sale sign in the window and did NO OTHER MARKETING. This means they are going to get almost 0 interested buyers, and you can come along and "steal" it when they get desperate.

I agree with Terry as well - park managers are a great source for leads. I just got off the phone with one who has a free mobile home that needs repairs. I asked him how much repairs are needed and he replied " it needs appliances " :lol:


I would be careful about buying mobile homes to Rent out. You are going to be responsible for too much in my opinion. Just sell it with owner financing and stretch out the payments for 10 yrs. Its likely they will want to move out before they hit the 10 yr mark anyways, and you can just take the home back. Most parks I come across do not allow renting anyways so be sure to ask first.

I want to thank everybody for their feedback. It's been a great help!

Originally posted by Ted Akers:

What Do You Think?

I have a small quote in this msn.com article applauding FHA for suspending their 90 day No-Flip Rule and suggesting FNMA and Freddie Mac should do the same. I just went back to the article and reviewed all of the comments again. You may find it interesting reading.

I support lifting seasoning requirements not only because I provide Transactional Funding but because flippers move properties. Tell me what you think. Flippers - can they help OR should they be strung up???

Here is the link: http://realestate.msn.com/article.aspx?cp-documentid=23616063>1=35000&vv=750

It's fundamental in any market that liquidity improves the efficiency of that market. Speculators get a bad name in the media but they provide a very essential function in ANY financial market be it stocks, currencies, commodities or real estate. In the real estate market "flippers" or speculators provide liquidity and since their survival in the market depends on their ability to sell something at a higher price than they brought it they provide a form of price stability something that is critical in the current housing market.

Can they save the housing market by themselves? Probably not, but they can certainly put the brakes on some of the price declines that we are seeing.

Originally posted by 417Dealer:

GOOD - Getting crazy-good response to my web page and CL ads and mailers

BAD - Someone wanting to sell their mobile home and I have no clue how to value it.

I never want to pass an opportunity to make money... does anyone have good resources for MH values? This is an 84 Skyline single wide in decent shape. Needs a little work (probably <$1000). Any ideas? There is NO LAND. This is on a rented slot.

Hit Google and go to a mobile site and get some ideal of what comprable mobile homes in terms of size, year, number of bedrooms etc. are selling for in YOUR area. Most websites have listing at what I would consider retail prices. If you can buy the home and still sell at a profit at slightly below the retail prices you are seeing then chances are you can make a profit on the deal if you are selling it on the retail market. If you are selling on the wholesale market your margin may be smaller but it may be easier find a buyer in terms of financing. DO NOT forget to factor in the cost of transporting the home if necessary, and other cost associated with preparing the home for resale.

Originally posted by James Harkness:

@Will

From a lender's perspective, a property is worth what it sells for. It doesn't matter what the comps come in at if the property is selling for less. If you buy a property for 60k, it is worth 60k because nobody is willing to pay more for it. If there was someone willing to pay 65k for it, why would someone sell it to you for 60k (unless the property isn't on the open market).

There are also different investment vehicles for the stock market that do allow purchases at values other than market. Options contracts are one such vehicle.

The stock market also allows investors to sell short. Although it is risky, tons of money can be made by betting on a stock going down. This is a strategy that I cannot see a comparison available in RE.

Taking it further, in the FX market (I know that this isn't stock), you can employ leverage (a favorite strategy by many on this board) like nowhere else. Again, it is very risky, but you can leverage your money over 100x in some instances (depending on your investment among other things). Its nice to come to the table with 10k, and be able to invest 1MM worth.

You bring up another good point. Real Estate is extremely capital intensive in terms of startup cost. Yes, you can start out wholesaling with maybe a couple of thousand dollars but you can't actually own property unless your are buying extremely cheap rehabs but then you need capital to fix them up, pay taxes on them etc. In a stock once you buy a stock there are no cost or taxes incurred until you sell it at profit. In an FX trade if you buy a currency with a higher interest rate then the one you are selling you can essentially make a small profit for time you hold on to the currency and it appreciates in value, hence the carry trade which was VERY popular prior to 2007 and it still popular to some extent in todays market. But that is subject for die hard currency traders. :lol: :lol: