All Forum Posts by: Michael Carbonare

Can I get a 36 month lease option on a Yugo?  

Is now an ideal time to start?  Couldn't be better.  Inventory is spiking, buyers are on strike as sales plummet, price reductions are at 50% in some markets.  So, yes, this is that "right time" that so many new investors keep waiting for.  Let me add I don't know the specifics of the two markets you mentioned.  Those markets may be doing their own thing.

This one was right in my neighborhood.  I knew the house.  I knew the owners.  What I didn’t know?  They were selling.  It was rundown. Unkempt.
Two brothers picked it up for $530K. About $200K below ARV. They gutted the interior, cleaned up the outside, and within two months, listed it FSBO for $900K.
I told my wife:  "There’s not a chance in hell that house sells at that price, even in perfect condition."
Then I watched and waited. . .
Six weeks later: $880K. . .
One month after that: $860K. . .
Another month. . .listed with a Realtor at $849K. . .
Then quickly reduced again:  $825K.  Still no movement.
Next move?  They tried to rent it.  Asking $6,300/mo! . .in a $4K neighborhood.  Nothing.  Stop the insanity!
The price kept dropping:  $825K. . .$795K. . .$780K. . .$760K
Crickets.
I went old-school and sent them a letter in the mail.  Three days later, one of the brothers called me.  I told him:
"I know the house.  I know the area.  And I know what you’ve been going through."
I pitched a 𝐂𝐨𝐨𝐩𝐞𝐫𝐚𝐭𝐢𝐯𝐞 𝐀𝐬𝐬𝐢𝐠𝐧𝐦𝐞𝐧𝐭.  "Let’s offer it with a lease option.  It’s already been listed for sale and for rent .  Why not both?"
Here’s what we agreed on:
Option price: $775K
Rent: $3,900/mo for 24 months
Option money: $25K (split 50/50)
They had been sitting on this property for 9 months without any interest.
It took me 3 weeks to find a tenant-buyer.  I made $12,500.
They started this deal planning a fix & flip.  But they misjudged the market.  And like many in that situation, they became motivated sellers.
The lease option wasn’t their first choice. But it was a lot more profitable than chasing price cuts, covering holding costs, and waiting for a buyer who never appeared.
This isn’t a one-off. These kinds of deals are 𝑒𝑣𝑒𝑟𝑦𝑤ℎ𝑒𝑟𝑒 right now as the once hot sellers market shifts into a cool buyers market. If you’re serious about getting into real estate but feel stuck waiting for the “right time”, that time is now. You don’t need another podcast, seminar, or TikTok videos. There’s a wealth of information right here on BP to help you get started.

I've been investing for about 30 years.  Started on a whim and purchased my first house, a foreclosure, with a credit card.  Didn't know any better.  But I did end up, somehow, making $30K on the deal.
My second deal, also a foreclosure, didn't fare so well.  Ended up selling it to a smarter investor.  How do I know he was smarter?  He bought if for $25K less than I did.  Lesson learned.
Righted the ship.  Met an investor who was already successful doing what I wanted to be doing and it's been a long, enjoyable, and profitable journey.

The cracks are showing, but are they creating problems or opportunities? The headline sounds scary. But what if this market shift is actually a chance for renters and first-time investors to get in the game? The 'cracks' might just be where opportunity slips through. If you've been on the fence about real estate, how are you seeing this moment? Curious to hear from those hoping to buy or invest soon.

𝐇𝐨𝐦𝐞 𝐏𝐫𝐢𝐜𝐞𝐬 𝐀𝐫𝐞 𝐅𝐚𝐥𝐥𝐢𝐧𝐠. 𝐀𝐫𝐞 𝐘𝐨𝐮 𝐒𝐭𝐢𝐥𝐥 𝐖𝐚𝐢𝐭𝐢𝐧𝐠?
For the first time in over 2 years, home prices in the top 20 U.S. markets are declining.
That “perfect time” you’ve been waiting for?  It's here.
Markets like San Diego, Portland, and Phoenix are already seeing drops — and more are expected to follow.
Here’s what that means for you:
Motivated sellers
More negotiable deals
Prime opportunities for creative strategies.  Sure, cash on hand makes things easier.  But you don't need deep pockets and an 800 FICO.  
But many new investors? Stuck. Scared. Watching.
If you've been sitting on the sidelines, unsure how to start, this market shift is your invitation in.  There are many members here on BP that are happy to share their experience and know how.  You only need to ask.

@James Hamling  So you're telling me there aren't hurricanes in MN?  Then again, you can't shovel sunshine.  Pros and cons, James, pros and cons.

I take a short term approach with assignments, using the capital from the assignment fees towards longer term deals such as buy and hold and fix and flip.

Can't control the weather, Mike, so I don't worry about it.  But there aren't hurricanes or sea levels to worry about in Buffalo, or Minneapolis, or Cleveland, or. . .

𝗡𝗲𝗮𝗿𝗹𝘆 15% 𝗼𝗳 𝗵𝗼𝗺𝗲 𝗱𝗲𝗮𝗹𝘀 𝗳𝗲𝗹𝗹 𝘁𝗵𝗿𝗼𝘂𝗴𝗵 𝗹𝗮𝘀𝘁 𝗺𝗼𝗻𝘁𝗵. 𝗧𝗵𝗮𝘁’𝘀 𝗻𝗼𝘁 𝗮 𝗰𝗿𝗶𝘀𝗶𝘀—𝗶𝘁’𝘀 𝗮 𝘀𝗶𝗴𝗻𝗮𝗹.
While most people see this and panic, creative investors see cracks in the system—cracks they can fill with little to no risk or large down payments.
If you've been stuck analyzing, researching, hesitating. . .you're normal, (I bet is been a while since anyone told you this 😊). You’re waiting for the ‘perfect’ time, the ‘perfect’ plan.
𝗥𝗲𝗮𝗹𝗶𝘁𝘆 𝗰𝗵𝗲𝗰𝗸: 𝘁𝗵𝗲𝗿𝗲’𝘀 𝗻𝗼 𝗽𝗲𝗿𝗳𝗲𝗰𝘁 𝘁𝗶𝗺𝗲, 𝗷𝘂𝘀𝘁 𝗮 𝗴𝗿𝗼𝘄𝗶𝗻𝗴 𝗹𝗶𝘀𝘁 𝗼𝗳 𝗺𝗶𝘀𝘀𝗲𝗱 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀.
This market is full of motivated sellers, shaky deals, and wide-open doors for creative strategies. Creative offers can be a problem solver for a homeowner whose sale just died on the vine.
What’s the ONE thing keeping you from making your first move?