All Forum Posts by: Michael Dorgan

Umm. Why does the property being listed with a Realtor matter to you? You don't technically pay the commision as a buyer and can offer whatever you want to the seller. Yes, the seller has to pay the agent, but they choose to do this when they signed the listing agreement. Would you have this property if it wasn't listed? If not, then why cut out the agent for doing their job?

I am probably missing something here. If so, please explain.

Perhaps, there is something more to the course that I'm not aware of. Perhaps. But my one and only in person dealing with a NR person felt like an Amway pitch. He didn't want me to buy the program for the education, he wanted me to buy it so I could sell it to others (and so he could collect a commision.)

That does not bode well.

FFS, if I wanted to invest in RE, I could every book in the store on the topic and attend every local meeting for a year and still come out ahead. I could spend $30 on a mobile home book, flip 4 trailers, and have over a grand a month of income for over 4 years.

I have no problem with NR as an education instrument, I have a problem with its price and the MLM portion to it that turns newb investors in zealots.

Sorry, this doesn't answer your question, but it is my strong opinion.

Not approaching tenants in the beginning is normal. Later though, you will want to verify leasing and get an Estoppel letter or something that verifies deposits and lease terms and such. With an offer, earnest money in place, and a little notice, you'll be able to view the 2 occupied units.

Great Deal!

I was guarantor on mine. Guess I wasn't late enough for them to care enough - it would have been a 30 day on personal. Wells.

Oh, but it does. Selling a trendy RE education program to people with money can be much, much easier than dealing with people just about to lose there house, or stepping through the floor of yet another fixer, or ...

With a MLM sales job, there are very few variables. Mostly, it's all about getting person X to sign on dotted line Y and collect. None of your money invested means infinite yield. Get 2 people to join and you break even (and your mentor gets a small kickback.) After that, gravy baby!

Puke.

Here's hoping that you make your money back through a profitable investing career.

I've yet to see mine touch my personal, even when I missed a payment a year back.

5. Start.
6. Cat pee smells like money. :)

Most people who are willing to dump 16k on a real estate education aren't necessarily going to do well in the field. Drive is good. Negotiation skills and seeing value are equally as important if not more so.

I'm sorry, but 16k on information that is 90-99% free to be had with a little bit of digging and some free networking isn't my idea of value. Esepecially since the person who sold you said education is keeping at least 50% of that tuition for him/herself. In all honesty, seeing this thread and others similiar to it makes me want to throw together my own little education program/boot camp and sell it for as much money as possible. I just don't know that I'd be able to live with myself afterwards when my marks - err students went out into the world and do what most do after boot camps: nothing.

Honestly, I had my only REO purchase try the same thing on me. I told them they already had my highest and best offer. They came back 2 days later and accepted.

You already gave them your highest and best offer right? :)

And what exactly would the sales price be with the 17-18k lump sum? As far as I'm concerned, that's money straight off the purchase price. Also, partial interest = reverse amoritization = leverage working against you. Ok for very short term deals, deadly for anything else.

If, 165k sales price and 17-18k cash brought to the table and you pick it up subject 2 the current loan and the buyer is willing to help pay the mortgage for a bit (if this is what partial interest means), then you have a passable deal.

165 - 18k = 148k / 186k = 80% LTV - the starting point of a decent deal, but absolutely no room for wholesaling profit. Help on payments and the loan in the sellers name makes the place cashflow break-even so there's the possibility of future rent appreciation and loan paydown for a buy and hold.

The big problem with this is, the deal is not at all clean. You are leaning very heavily on the current owner and if anything goes wrong, it would look bad in the eyes of outsiders (you 'stole' the property with a QC deed, made the person pay you a 10% fee, then forced him to pay partial rent while you collected all the profits? Guilty. Next case.) Once the seller is out from under the property and his assets are out of the fire, he won't be willing to keep supporting you.