All Forum Posts by: Tom McGiveron

welcome robert.

feels great being busy doesn't it!

go to the most expensive area and look for a dump.

see if you can get in to see it.

figure out some numbers.

visit other houses in the area. what's in the area?

what's in the houses in the area that are NOT in the dump?

cost analysis again.

figure out an offer.

talk to a real estate agent that has A TON of SIGNS in that area. call him/her and see what's up.

talk to an attorney about writing offers and buying real estate.
consult your cpa.

it's all about having a plan. all of us should have a plan for our lives.

buy a house, BELOW MARKET. live in it, fix it up and sell it for a profit.

but a second house do the same.

build up some cash, then see where you're at after a few projects.

start SMALL. learn the process. find a GOOD real estate agent, attorney and cpa. along with a solid contractor or two (good luck).

avoid crazy projects and don't complicate things.

best to talk with a real estate attorney or your accountant.

you're right to feel the way you do.

when you're saying this:

"and hope..."

then forget it.

unless you KNOW or have a VERY good idea of THE NUMBERS AND THE MARKET, do not under any circumstances get involved in a highly leveraged situation, especially when it's putting your private assets on the line.

getting involved in a negative equity loan and all those options to pay this or that is just another way for SOMEONE ELSE TO MAKE MONEY OFF OF YOU.

the questions you should ask YOURSELF is:

do i HAVE to do this?
how much control do i have over this investment?
what are the numbers?
am i comfortable with the fact that i could lose my house?
how's the local market where i live? (is your home going to continue to appreciate?)

now also - what do you and your wife do for a living?

where do you live?

the number of sellers is reaching critical mass here!

well first, you should not have made the offer in the first place.

with that offer - you're leaving yourself with 12% equity.

that's not a WHOLESALE PRICE. that's RETAIL all the way.

there really is no way to AVOID counter offers.

i mean one technique might be to offer 3 options to a seller and instruct them that they are each independent options that cannot be mixed and matched. but the seller can always counter or just downright reject it.

as for your offer(s) - as a wholesaler, you're going to have to play the numbers and put offers on properties that you at least can acheive one of the following:

1. justifiable comparisons that warrants a low offer
2. accomodates the sellers needs (you need to know what they are)
3. meet the criteria for buyers on your buyers list.

additionally - DON'T WRITE ANY MORE OFFERS. consult a real estate attorney and a real estate agent (buyers representation).

good luck!

don't assume this. one word - TENANTS.

i'd relate being a landlord to a poker player -

the pros or good players play like they've already lost - so they've got nothing to lose in their mind.

as a landlord, if you're going to start renting real estate - rent it as if it will be totally wrecked.

ASSUME THE WORST AND PREPARE FOR IT.

don't buy and assume the best.

hope for it. work towards it and no matter what, will it to happen, but be prepared to hit brickwalls at high speed.

and in this scenario - get comps - use a buyers agent and offer what you can afford or what the rental will cash flow at comfortably.

terms, price, conditions, etc - work them all out.

RESPA - check it out.

wait.

make sure the tax lien or ANY OTHER LIENS on the property are taken care of FIRST.

TITLE SEARCH.

THEN do all this other stuff.

what's your %?

what will be the terms?

i know attorney will draw it up, but you want to guide the attorney in what YOU WANT.

that tax lien and any othe liens or instruments against the property should be cleared FIRST. EVERYTHING.

TITLE SEARCH first.