All Forum Posts by: Wade Alderson

Oh... 

So what you are saying is that if this was an $80,000 paying $4,000 a month deal they would jump at it right?

I think I understand now. 

Thanks 

I want to buy an investment property in Claremore OK that is a mobile home on an acre of land, cost $8,000 (I will cover the closing cost) with a monthly rent of $800.

My pitch to my investor was that I would borrow $8,000 from them like a CD for two years.

They lend me the $8,000, in return I give them a 10% a year return on their money for two years. 

I pay them 1/24th of their $8,000 ($333.33) and 1/12th of the $800 ($66.66) a month but to make it easy I would just pay them $400 a month for 24 months.

Is there something wrong with this offer? 

Land her in Claremore OK is around $4,000 an acre and the NADA guide has this mobile home at $8,462. 

Is there something I am missing that an investor wants?  

I had friends who had the same problem as your seller. Their buyer came up with a really cleaver solution. He went through with the sale and then rented the house back to the sellers until they had what it took to move out. The sellers rented for 4 months with a cleaning deposit and gave 30 day notice with their final payment of rent.

I read  How to Make Big Money in Small Apartments by Lance Edwards as well and I got to thinking about it and something a mentor told me that to really learn things you need to go to more than one source. I really like The Real Estate Recipe: Make Millions by Buying Small Apartment Properties in Your Spare Time (Nuts & Bolts Series) by Brian K Friedman, and Multi-Family Millions: How Anyone Can Reposition Apartments for Big Profits by David Lindahl to name a few, but I have gone to Amazon and purchased a bunch of cheap kindle books that have a much more realistic view with out all the hype. 

So far... I have not gone so far as to purchase my first small apartment building, but I know that with out all the hype I will make a much smarter investment  with a long term view of how long it will take. Some hype says that you can retire in 3 years or less, but if you really dig down and get rid of the "Results Not Typical" to find the "This is what MOST people who really did what needs doing, got and how long it really took." we find that a more realistic time is 10 years. 

I would LOVE to reach my goal of $10,000 a month in passive income in 3 years like Lance says, but alas... the research does not show that MOST people were able to do that. 

I see Lance's book as an up sell for his Deals and Dollars Club (I mean seriously how many small apartments can there be that meet his guidelines to buy? I live in Oklahoma and so far find most owners know what their properties are worth so there is no room to raise rents right away) but if I did have the money I would so join his Deals and Dollars Club for the cashflow properties his handful of students who could make his system work offer for sale. 

Check out http://dealsanddollarsclub.com/

But this is just the opinion of a research junkie who has no cash.