All Forum Posts by: Tom McGiveron

in what? did i miss the first part of another post?

what list?

first, DO NOT ACCEPT being unable to "find a renter" or "not sell the house".

that's just not acceptable.

man, i hope you have not gone down that road. i mean, in the end it's is just such a bad way to conduct BUSINESS.

treat your personal finances better.

GET A RENTER IN THERE!!!

OFFER MORE INCENTIVES FOR PEOPLE TO BUY YOUR HOME!

if it needs cleaning, do it! paint it, put cheap rugs in, fix a leaky faucet, change some switch plates and replace the crappy drapes. cut the lawn, seed it, trip some bushes, put a sign on it. heck, contact your local reiclub and offer to sell it to them, NOT WHOLESALE, but for 20% below market - as long as you get at least some money out of it.

COME ON!

you can't find a renter????

call your local section 8, contact some nearby churches, see if they have any programs for needy families (they'll pay you!) advertise it again, put it on craigslist in your specific area!

email me.

cyndi,

if you buy an "ugly house" you just have to make sure it isn't too "ugly" and thus in need of a large amount of work.

if you or a partner can do the work - and manage to spend about 6000 on materials (paint job, rugs, doors, some appliances, ceiling fans, a tile floor, and a few other splurgy/nice items) - then this strategy is definitely doable.

qualifier - it's easier said than done to find these deals, because the we buy ugly houses guys buy'em all up!! :D

but seriously, there's so much to go around, if you reeeeaaallllyyyy work hard at it - you can do it.

ryan,

now with the wholesaling, i mean, isn't it a numbers game? you have to make a lot of offers to actually nail a few deals? i mean, you're not going out there and targeting a house here and there and putting in offers this way, or are you?

additionally, what about finding buyers? could you expand on your techniques for finding buyers, or explain a little about your network, i.e. selling to other investors...

well that is what r2 is saying and that's what i've heard before. i just never really considered it as an option, especially where i live. i know that there is alot of "stuff" you have to follow up on, like permits, codes, plans, and inspection follow up - the thing has to be built to code. new construction doesn't always mean good construction.

but if a builder is doing a bunch of houses or just a few, if the owner(s) can get money NOW, it's better than waiting to get money later. again, i'm not entirely familiar, but it definitely interests me. and my numbers in previous post are totally arbitrary.

first, MG, anything is possible..within reason (i.e. you can't jump off the empire state bldg and live...duh), but most things within any reach of being possible - are!

there are so many ways to buy real estate. you do not need bank financing. you do not need credit. although it helps. after 2.5 years of having a CC with no late payments....mmmm...you're young so your credit is probably okay. building good/great credit takes TIME.

and remember all credit is is a running tab of how you pay your debts. the whole idea behind "good credit" has been pumped into the human psyche so that bankers and bank owners can get rich!! i attribute the dramatic increases in prices of items to this idea and utter acceptance of "credit". You can't buy a new car today for less than 12,000. who has 12k to buy a car? most people, no matter what the price, FINANCE, many different purchases.

focus on your MONEY. focus on how much MONEY you can create for yourself. you MONEY management skills will pay off in spades. pay attention to things like APR and how much interest you pay for things you buy. don't buy things that give you "bad" credit...like a depreciating vehicle. if you can avoid such purchases, then do.

as far as making real estate purchases - the options are many:
sellers can finance the purchase, partnering with someone else, partnering with a mentor for your first few deals, borrowing from relatives/friends, having relatives GIVE you money with no return payment expected, Lease Options, land contracts, short sales, flipping [wholesaling].

now you can't just jump into all this. it takes time and a focused effort to get into this. but here's the catch!

if you honestly focus and believe you can become a successful real estate investor/businessman - you will. if you do the work and do not shy away or become frustrated with the amount of things you must learn and do not become too afraid to get involved, you'll be able to purchase investment properties.

now, you may screw up. there's the other catch. don't be fooled into thinking that it is easy or that you will not actually screw something up. but it is your ability to use your rational mind to figure solutions for what ever the obstacles are that can and will present themselves.

good luck and get started...

my guess is that the advantage is you're buying it before it is completed. so if upon completion - they're selling for 399,990...you buy it for 325,000 or whatever before it's done. the developer gets his money and you do the finishing touches. again, i don't know the details. you then turn around, put a little "extra" into the property and sell it for 410,000...cuz you put that "extra" into it.

but r2, with this investment strategy, what are the issues that the investor has to watch out for? i would imagine you have to check up on permits, get them inspected, find out about any violations...make sure the unit you buy is squared away...right?

so you need an inspector and you need copies of the permits and c/o's...or the c/o's come later closer to completion?

r2,

i actually looked at a house recently - a 6 year old reo for 76,500. it needed about $2500 AT THE MOST in some fixin. comped at 104,000 - the only problem was the driveway - which was ridiculously graded - like bottom-out grade. the house from sidewalk to front door must have been a 40foot walk with a 25 foot elevation.

so we decided to pass, but i was so drawn by the neighborhood and the condition of the structure - i was thinking of offering 64,000 to the bank...even though the prop was only listed 30 days ago. could possibly have been sold already.

i just want your opinion. your response could be as brief as, "are you kidding me?" :goofy:

r2d2 - nice. where do you live? do you have partners? who does your rehab work?

i'd just like to add that there are ALOT of steps - and probably the most difficult for the beginner investor - between numbers 5 and 7.

great post, but for my two sense - 5, 6, and 7 is where you will need to do the most preperation for your investing. if you buy RIGHT - (below market) - the rehabbing can be done on-the-go. but between number one and three, i would add this:
make contact lists with contractors, realtors - with the flat fee - very good, title companies, re attorney - they usually can just refer you to a good title company they do business with, insurance companies - you'll need at the very least HOA and price out all your expenses. this last one is BIG.

i think you should do this before you do number 3. Additionally, of course, you would make up, or just get from an rei book, a questionaire to have ready to interview potential sellers and buyers. a good, easy to follow, interview sheet is AWESOME. it makes communicating so much easier. get one and go through it 4 times a day, while you do all this other stuff. it will take you 15 minutes a day to go over it. do it with a parent or someone you don't feel corny with. you will develop a flow. you want to sound professional on the phone.

i have one that i will be publishing in the future that works for me. it will just take pressure off you.

take a month - make the time to sit down and prepare. depending on where you live in the country - you could have your first investment prop fairly soon. weigh the risks first...