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All Forum Posts by: MATT WARDEN

MATT WARDEN has started 5 posts and replied 137 times.

Post: Starting a Partnership

MATT WARDENPosted
  • Posts 141
  • Votes 0

You can surely partner with someone, even if you are not bringing cash or credit to the table. But depending on what you are bringing to the table, your % in the profits will be different. If he is taking all the risk, then he's probably not going to be keen on a 50/50 split.

Originally posted by "agentpeter":
Ahhh.... But you are thinking inside the box.

Am I really thinking inside the box by suggesting that it is silly to limit yourself to REI when there are better options in your area?

Originally posted by "agentpeter":
You have to adjust your strategy to fit what the current market is offering. The solution isn't to run away from your market but adapt and adjust. Smart investors make money no matter where the market is going.

No one is saying you can't make money. Of course you can make money. The only question is whether your $x is best put into RE or some other investment. That is the question real smart investors ask.

Originally posted by "agentpeter":
But I'm still investing in homes... I'm just using a different strategy.

And earning better than 10% on your investment, right?

Originally posted by "agentpeter":
The median sales price for a SFR in my city is $300k and the average rental amount for a 3bd property is $1,300. You won't be finding owners willing sell their $300k property for $130k so the 1% rule works.

I am generally confused when things like this come up, and they come up a lot around here.

If I were thinking of opening a Starbucks, because they sure are money makers, but my immediate location was a horrible market for a Starbucks, I either:

(1) would open it elsewhere (and accept associated headaches with remote mgt), or
(2) not open a Starbucks.

Why is the real estate business any different? It almost seems like people are dead-set on being a REI regardless of whether it makes financial sense.

Post: seperate utilities switch

MATT WARDENPosted
  • Posts 141
  • Votes 0

I know people who have converted from gas to electric baseboard heat. See:

http://www.google.com/search?q=electric+baseboard+heat

and

http://www.shopfnc.com/qm2500.htm?gclid=COvVjqjW-IwCFQVpFQodj2tiDQ

The latter will help with some ballpark dollar values, although surely they vary widely by model/brand.

Post: Found a house. Let me know what you think

MATT WARDENPosted
  • Posts 141
  • Votes 0
Originally posted by "NickA":
In the shape its in now compared to the other homes in the area i could easily see it selling for 95,000. They had it up for 90000 and I offer 84000 and they accepted.

Let's say you put only $2k into it to get its value up to $95k. You are at $86000. Sale of the property will cost you around $5.5k. You are at $91500. Add in closing costs/points on the purchase and holding costs, and I'm just hoping you end up in the positive...

REI, am I missing something? Why do you think this could be a good deal? (Disclaimer: I know nothing but light theory about flipping.)

Post: Design on own or Affiliate

MATT WARDENPosted
  • Posts 141
  • Votes 0
Originally posted by "REI":
Driving traffic to any business is called marketing. Outsourcing it to someone else means paying them to do the market. That can be very cost effective if they know your focus and execute. If you want to do something unique outsourcing is not likely to work.

Yes, if you buy a mass-produced product, you're going to get a mass-produced product. The scale is even greater on the Web. These affiliate sites are worthless. If the only way you're willing to get on the web is with an affiliate site, then you don't need to be on the web.

Post: Help!!!! Brand Newbie! Where do I begin??

MATT WARDENPosted
  • Posts 141
  • Votes 0
Originally posted by "Agent007":
Also, my credit is not good at all and I don't have the finances to invest at this time. But I am building a little nest egg. So while my nest grows, I would like to take this time to learn everything I can about this business, inside and out. And also work on re-building my credit.

Do not worry about buying more REI stuff until you fix your credit.

In the meantime, I would just stick with reading this forum and checking out books from the library. If you come across things you don't understand, ask. If you don't want to ask basic questions in the forum, feel free to PM me.

Post: websites

MATT WARDENPosted
  • Posts 141
  • Votes 0
Originally posted by "REI":
2. People who have never received a mailing but could be interested in your services. Do you expect to only deal with them if they want to sell? Or are you expecting to capture their details so you can remind them in the future that you are there and interested in buying when they are ready to sell?

People have caught on to the "build it and they will come" myth. I took the OP to mean that he will drive traffic to the site through direct marketing techniques to sellers, and therefore the site needs to be geared toward sellers. If he meant that he will bank on a high Google ranking, let me suggest that the OP's money can be used better elsewhere.

Originally posted by "REI":
Also look at sites that do not have a specific geographic focus. Do they have a program to refer leads so you do not even need a site of your own?
...
Look at the fine print at the bottom and see if a vendor is providing the site or is offering some sort of service.

No, please do not use these sites. They are useless leftovers from the portal-hype era. They promise nothing except to create a barrier between you and your customers. Just the other day, I was searching for a lawyer and kept ending up on various pages of one of these sites. Needless to say, I kept searching until I found a lawyer with an actual website.

Either a website is useful in your marketing plan or it isn't. These cookie-cutter sites cater to people who are somewhere in the middle. They feel like they should have a website because everyone else does, but they don't consider it a core part of their plan. All they're going to get is the privilege of filling out that line of their business card.

Again, either a website is useful in your marketing plan or it isn't. If it is, then you need to shell out the money to actually create a good website with good content. If a user will find value in your website, then when you build it they will come!

Originally posted by "REI":
You really do need to start with a business purpose and then worry about the right tool for the job. Hence you need to be clear as to what the site is to do and then you can find the solution to do it.

Exactly. Have a business problem and then decide that a website can solve it. I have talked to too many people who do it backwards. If these people are approaching me to do their site, then I tell them to come back when they've solidified the site's purpose*. I would suggest that the OP do the same.

*I've found that such people typically turn out to be horrible clients, because they do not know what they want starting out, and will continually add on and change things throughout the life of the project.

Post: The trouble with newbies

MATT WARDENPosted
  • Posts 141
  • Votes 0
Originally posted by "drweltman":
i probably read over 100 of mikeoh's posts before i realized he had a book he was selling. i plan on buying it sometime soon.

He won't plug it, but I will. Buying his book was the best $50 I ever spent. If you are getting into rental properties and you don't have his book, you're risking much more than $50!

Post: The trouble with newbies

MATT WARDENPosted
  • Posts 141
  • Votes 0
Originally posted by "MarkY":
In addition, some of the advice given is a bit condescending. Suggestions to invest in your hometown, but when it is impossible to puchase a home for 70% of value, the suggestion is to "move".

For example, if MikeOH hadn't responded to my first couple of posts as bluntly as he did, I would not have realized how much I needed to learn and would not have gotten my act together so quickly. Surely, no one likes to feel like an idiot, but sometimes that can create motivation. And I think the thing to keep in mind at all times is that the experienced investors here clearly are trying to keep you from losing lots and lots of money. The ends definitely justify the means.

I see much less "you're an idiot; you should buy my mentoring product so you aren't such an idiot" posting here relative to other similar forums.