All Forum Posts by: Tom McGiveron

wholesaling.

think of a clothing store.

they purchase clothes at a wholesale price. the wholesaler purchases it from the manufacturer.

the retailer buys it from the wholesaler at wholesale prices, then turns around and sells it for a big mark up.

each level has it's business-specific system in place and specializes in its own respective area.

buying a property "wholesale" is similiar, thus the name.

there are so many posts on this, check some of them out too. but this gives you a frame of reference.

jerry, that is a common starting post. just be cautious how you approach rei. don't get ahead of yourself. slow and steady wins the race!

the whole no money down thing really, i think, depends on where you live or where you plan to invest.

and really, "no money down", the term is very relative. it can relate to different things.

and there is a huge difference between BUYING houses with no money down and making no money down OFFERS.

anyone can do both, but actually doing one successfully, where you find a buyer who is willing to do it, takes time and alot of effort.

i would just go out on a limb here, but i'll guess that you're not even close to doing this. it takes networking, marketing, number crunching and learning how to do all that stuff and more, before you can actually do it.

reading back posts will help. buying (or borrowing from a friend) carleton sheets will help you sort of. no matter what book you buy (or take out of the library for FREE!), if you're totally new to investing, start slow, pick a topic a week and study the heck out of it. topics such as title insurance, HOA, Investor Loans, Hard Money, bird dogging, and focus on your personal finances and much more. systematically doing things will get you places you never thought you could reach.

what i'm saying is, it's up to YOU! no book holds your hand.

all cash,

what about just using Excel to input all that information.

you use Excel to make the hard copy, but do you use it for automating your equations? ie:

gross rent - taxes - insurance - expenses (attached to logged expenses for month) = net income - [debt service] = monthly cash flow [tie this to annual reports]

maybe you use Excel this way, i just didn't catch that in your post.

do you still have the same cell phone from 97?!! lol

what are you looking to organize? your financials? your desk? general stuff? like??

i clicked on a google ad right here on biggerpockets:

http://www.thecozzateam.com/investment.html

just another option for you to consider.

i have no idea who the Cozza team is.

hear hear, tucker.

pressure is a feeling. when you make decisions under it, they are emotionally-based. that's bad. pressure to meet a deadline and work toward a goal/project that was well-thought-out - that's different.

dude, i hear you. i'm a Rich Dad Poor Dad "disciple". that book, which is very general in content, did at least wake me up to smell the coffee. that and The Bible.

if what you plan to do has good intentions and is well planned - you will more likely succeed, than if you go into it with an attitude like: "Give me Real Estate or Give me Death."

i know, you're reaction will be, that you do have a plan and blah blah blah. no pun intended here either. i'm just going to keep it as real as i can. in my experience, myself included. i started out writing dozens of "plans", and they just kept changing as i actually learned more about rei. i realized that you have to narrow down what you intend to do. you have to really network and develop a better sense of yourself.

i see you're feeling the "wholesaling" thing. let me ask you, describe what you mean by "wholesaling for quick cash."

where are you going to do this?

what type of money are we talking?

how much money do you have?

the price range you've identified, is it suitable for a "quick cash" turn around?

do you have a team?

what does your team consist of?

what will you do with all this money you get from rei?

what is your knowledge of finances?

can you balance your own check book?

how do you track your personal debts?

have you ever followed a budget?

what is your experience in managing money?

managing properties?

managing rehab projects?

what is your partners experience and what are his goals?

this list can continue but it gives you an idea of what to focus on first. yes you learn WAY more by doing, but don't do anything until you can answer questions like these above quickly and confidently. then you'll move into the arena of financing, asset protection, contracts, etc.

well, i'm assuming you've googled "real estate books florida" - i did and on the first page, i found this:

http://www.bobhogue-school.com/books.html

not sure if that's what you're looking for. but i also found this:

http://www.powells.com/biblio?isbn=0470037008

this might be your best shot:

http://www.shelteroffshore.com/index.php/investment/cat/C95/

powells looks like a book to help realtors pass a test. but hogue seems interesting that it offers information on realty in florida.

this last one at a very quick glance seems at least interesting.

i've taken out a HUGE book from my local library that helps realtors, appraisers, inspectors and brokers, to learn New York State real estate law and regulations. this was a great resource, filled with information that an investor could use to "get inside the head" of those they work with.

hope this helps.

the key to a lease option is to make the consideration...considerable.

dal, a thousand bucks is not enough....if you're selling the house for 100k, i'd say 2500 MINIMUM consideration would be okay. that's 2.5% of the purchase price.

you're person basically gave you a security deposit. no good.

i've never been involved in a lease option transaction, but i know this much:

the transaction must be "recorded" - i guess that means at the county offices and/or definitely notarized.

a deed is drawn up that states the sale of the property will take place on X and is contingent on blah blah blah [the buyer fulfilling the lease requirements].

if they don't, they lose their consideration (money down). as a seller, never accept any kind of promissory note, unless it is backed by real property. get the cash and make it substantial. if a tenant/buyer can't afford it, too bad! get another tenant/buyer. who wants a tenant/buyer who can't come up with money down.

with my limited knowledge of Lease Options, i also know that if you (as seller) have a mortgage on the property - this is a contract for sale - thus any Lease option would violate your DOSC, and vise versa, i wouldn't enter into any L/o with a seller who has a mortgage on the property, unless he could prove to me it will not violate his mortgage agreements.

also, you record the L/o because it protects both you the seller and the buyer.

a portion of the rent goes toward the purchase of the property and the consideration acts as down payment, or the buyer may request that the consideration be given back to him at closing.

what do you want to do?

i assume you're interested in rei. but what do you want to do?

do you want to be a realtor? a realtor/investor? a mortgage broker?

an appraiser, inspector? a developer?

you want to buy houses and sell them for a profit? rent them out?

with good or bad credit, you can start taking real estate courses to get your realtors license. if the area is sslloooowwww, can you move?

are the housing prices depressed there. are there any plans for the area? any changes coming down the road that may suggest growth in the near future?

i've had a few people tell me that the Raleigh-Durham area is getting hotter. i know a few people who are buying down there. i have not looked in that particular part of NC.

the questions above need answering. you have to really think about what you want to do. write things down and practice changing the way you think. spending a few hours on a rei website will do little toward improving your goal achievement position.

this rei stuff is like an awakening for alot of people...it may even last for 3 or 5 months...but if you don't commit to it and either buddy with someone who's done it, or push yourself to do it, you're interest will drop off and you'll end up just not doing anything.

if you want to change your life, half measures won't cut it.

oh heck, you're ahead of the game by a mile. what is your interest now all of a sudden sparked for rei?

have you done real estate closings?