All Forum Posts by: Joe Cummings

 OOPs sorry I posted before I read to the end. Didn't have my glasses on, and my eyes were starting to get blurry. Sucks getting old :)

Tell her you want to look at the property again. When you're there measure a bunch of stuff and snap lots of pictures, take the cover off the breaker box and some of the outlets and switches. Make it look like you are really looking hard and take lots of notes even if they are total BS.

Wait a week or two.

Get back to her and tell her that you sharpened your pencil and beat up your suppliers, and that some of the work you were going to contract out you are pretty sure you can do yourself. Tell her it'll be a bit more work for you, but you'll save 5 G on your rehab costs Then offer her 70 G.

That way it looks like you are going to have to work harder to make the deal work, and everybody saves face. She feels like she didn't take your first offer, and you look like you didn't low ball her. Not to mention, people like to hear you are going to have to "work harder" even if it doesn't benefit them, they still want to think you have to sweat a bit more. If you doubt me on that one, there is a book by Thorstein Veblen called "The Theory of the Leisure Class" that explains it much better than I ever could.

http://xroads.virginia.edu/~HYPER/VEBLEN/veblenhp.html

What I'm trying to say is, if you can really tighten your belt, in a little over a year you could have 100 G for a down payment. With that much down, lots of lenders will be interested. 

Dude, I'm seeing about 110 G after you pay for your house, car, and student loans. Tighten your belt. Are you saying you can't buy food gas, clothes, electric, ect on 500 a week and bank the rest?

Lose the fancy cars, they are nothing but money pits. Only idiots are impressed by cars.

Seriously, you could be banking an easy 75 G a year and never go hungry or have to ride the bus.

Not to mention the rental property sounds like a loser. It's only making you 180 a month before you even pay for maintenance? I guess it's building equity, but 6 bucks a day positive cash flow? Really? How is that paying for your time and risk?

Sorry I sound harsh, but if you want to make money in business, you have to sacrifice something in the present in order to get a big payout in the future.

Well, I'm not broke, so a billion in a year should be realistic right?

Seriously though, I'm in a position now where I can buy most houses around here cash. Shopping for something that needs work. So I'm looking for opinions, what should I do, buy property for cash?

I have my reservations about blowing a wad of money on something that is only going to bring in a lousy 1,000 - 1,500 a month. Although rehabbing it and reselling it could get my capital back with hopefully a nice margin for profit.

Really though, is the money there to risk a couple hundred grand?  If there isn't enough to pay for my time and risk, I don't want to do it. I've been in business before, and no way I want to compete with people who risk their capital and work hard to come out with a lousy 20 bucks an hour when you add up all their time.

Lead paint, radon, mercury, asbestos, bla bla bla

Next thing you know, you will have to have a house de-smokified by a licensed and bonded do smokifing contractor if a smoker ever lived there.

America is the land of the big wussies anymore

Paying in cash is a risk. Risks have to have a payout.

What is this guy going to do for you to make your risk have a payout?

 I meant to say "Sent to you in the mail by his insurance company". Just wanted to be clear.

 If he is a real contractor with equipment and insurance 50@hour is really cheap.

Have you ever asked this guy for a "Certificate of Insurance"? BTW a real one will be sent to you in the mail and will have your name on it. Landscapers and home improvers are notorious for handing you one they made up with a computer and a printer.

Sounds like you are describing my last couple girlfriends. Some of them even fit into two of those categories :)