All Forum Posts by: Michael Carbonare

@Ryan A Rodriguez-Wiggins  I've done hundreds of lease options over my 28 years in real estate.  Done correctly they can be a safe strategy with minimal cash requirements.  But the bigger issue in this deal, at least for me, is that you are involving business and family, often a recipe for disaster.  Should an unexpected financial issue arise, guess who will be at the bottom of the list to pay that month. . .good ol' cousin Ryan.

It's not you, it's the market.  Sellers are in control.  They're holding out for all cash offers 10 to 20 percent above asking price, no contingencies, no inspections. . .and they'll likely get it.  Our business is based on dealing with motivated sellers.  Don't become a motivated buyer.

Hi, Will.  As an ex-NYer I feel your pain.  The prices, the taxes, the politics. . .is it any wonder why half the state has moved down here to Florida?
I've been investing for about 28 years.  I found my footing back when I learned about different types of lease options.  Still use them to this day, especially when doing virtual deals, which are the backbone of my business currently.  Doesn't matter that I'm in FL and a property is in Arizona or Tennessee, or anywhere else.  If you know what you're doing a lease option assignment is risk free and cash out-of-pocket free.  Smart, safe real estate and an easy way to mitigate risk.

I know nothing about this guy or his get-rich-quick scheme.  But the moment the ad screams "Free houses", that's a red flag to get out of Dodge.  And the $97 teaser fee is the beginning of an upsell funnel that you will never be able to quit, leading to his likely $30K get-richer-quicker scheme.  Caveat emptor.

@Andrew Nieto  If you're trying to time the market, any market, it will always be too easy to find a reason that you interpret as "not yet".  If you take a long term buy and hold approach, market fluctuations don't matter as much.  If you take a shorter term approach such as flips/assignments, you're also able to reduce your risk and exposure. 

@Jordan Johnson  If you're looking at starting via a more traditional path such as buy and hold, then not having a traditional, verifiable source of income, a W2, will give most lenders a reason to pass.  I faced the same situation when I was starting.  Looking back, though, it turned out to be a good thing because it forced me think about other, non-traditional strategies.  Tried wholesaling. . .not a good fit.  I could never convince a homeowner to sell me their property for .40 on the dollar.  I eventually started using short term lease option assignments.  No banks needed, and I was able to raise capital and show a track record when I was ready to buy and hold and use banks.

What Taylor said.  Waiting for the perfect time to get into the market is often an easy strategy for a new investor remaining in his/her comfort zone.  Not at all uncommon with new investors.  I probably wasted three years telling myself I needed to study a bit more, learn a few more secrets, attend one more seminar.  In reality, it was all a ruse to allow me to avoid my fear of entering the fray.
I get the "waiting for the market to die down" thought process.  But when that happens is a anyone's guess.  If you purchased a property a year ago it is likely worth 15% more today, possibly more depending upon the market.

As a former NYer I say this with full confidence:  get the hell out of NY.  The state, (ugh, Cuomo), and city, (2X ugh, DiBlasio), are mismanaged disasters sinking further and further into lawlessness, chaos, and tax hell.  It's also a very tenant friendly state and any landlord is viewed with suspicion when there is any tenant/landlord dispute.

So someone pays this guru $1000 for the privilege of touring his land?  Do you get the opportunity to at least pan for gold?  Oh, wait, now he's in Florida.  No gold here.  Just sand and limestone.

You don't need to compensate your kids.  You raised them.  That's enough.