All Forum Posts by: Ozzy Smith

I'm not sure how this got started but sounds like something went wrong and now the blame game is going on.  Someone also stated that you can't take 15K-30K properties and turn them easily into $600/m rents.  I can tell you from experience that yes you can... I do it constantly.  That leads back to the first.  It all comes down to a matter of due diligence on YOUR part as the investor.  It's not anyone's job to find you a good deal but your own.  So then you say but that's what I hired the TK for or the property manager to do.  Yes that is true but maybe you should have researched that company a little better before you hired them.  Maybe you also hire an independent contractor that specializes in rehab to do a thorough walk through of the property and incentivize him to find as many things wrong with the property that he can factually back up.

The issue with people investing with TK's is I call them lazy investors.  That is not meant negatively in anyway.  I love you guys because that is how I designed my business model to make money and someday I want to be a lazy investor as well.  It simply means that you are more willing to spend your money than your time.  That is the fantasy world where all of the problems start.  It always takes some time involved to manage YOUR business.  If you don't watch your money someone else will and never be as careful with it as you are.  The same thing goes for real estate.  Sure you can buy from a GOOD TK but finding a GOOD TK takes a long time to find.  Same thing with property managers... there are about 9 shady ones compared to 1 good 1.  Everyone is in business to make money and if you don't like what you get shop at another business just like you would for a car.  If you think the salesman is shady talk to someone different.  If you think the car is over priced shop till you find a cheaper one.

I find very often (especially on sites like this) that people like to jump on the band wagon.  If someone tells a horror story about TK's then they all are bad.  If someone bought a city block in Dayton and retired early my market will be flooded with investors and my phone will ring off the hook.  We need to realize that this is MY BUSINESS and if it doesn't make money it is because of something I DID WRONG!  Not because the price of the house was wrong or the TK or the contractor or whatever screwed me.  The greatest thing about a capitalist society is that price dictates what is fair.  If everyone would do their own homework and discover the truth then prices will drop or bad companies will go out of business.  Bad business is paid for by those who didn't take the TIME to do the research and the due diligence to know they were being over charged.

I tell everyone there is 1001 ways for me to make money in RE and even more ways to lose money.  My philosophy as cliché as it may sound is if I can help enough people out I will get what I want.  Constantly I am told I talk to much when I sell or when I'm talking with investors about my projects.  I'm told that I take to much time and give to much info.  I will assure you this... when I'm done with whomever I'm talking to they know exactly what my position is, what I can and can't do, and they KNOW ME.

Lets stop generalizing things.  We get exactly what we pay for most times and our due diligence or lack there of gets us typically what we deserve.  I know I probably didn't make a lot of friends with this one but hey that's what facebook is for... BP is about making money!  If you care to disagree have at it I can take it.  If you agree or would like to learn more about me and my philosophy and how I do what I do send me a connection with a little about you and I will talk with you more.... happy hunting! 

I love this post!!!!!  When I talk to many people they say they can't do something because they don't have the time.  The correct response is they don't give what I ask of their time enough priority over other things.  Everyone has the same amount of time in a day to get things done.  Some spend it watching TV or sleeping or whatever.  I'm glad to see that you took the initiative to prioritize your life on things that will actually make a difference.  Now the key is to actually use that new found time to better yourself.  I hope you do.  Also you don't have to wait for 2 or 3 more years to get started.  Anyone over the age of 18 has the ability to do real estate the same way as anyone else and even those under the age of 18 still have options.  Treat your inexperience just as you did your cell phone time... once you know what the problem is work it backwards.  Don't focus on the problem work on the solution.  Decide what it is you need to do real estate first... that is the goal and work it backwards to find the starting point of what to do then trace those steps back to the goal.

I understand what you were trying to do however if you give possession before the sale is closed then you run into the risk of having to foreclose. The only way around it is to do it as a rental and then you're back to square one where they may not buy. There is absolutely no way to enforce the closing of a sale  prior. The only thing that you could do is claim the earnest money/option money as liquidated damages  Per the letter of which ever contract you use. 

I've been reading the comments above and I'm probably not going to make friends with this but it's been that kinda day so oh well

Number 1. No matter what kind of contract  that you use you can't make somebody go through with a purchase.   even on a standard sales contract the only thing you can do is forfeit their earnest money.

Number 2.  You don't need a separate lease agreement and a rental agreement. The lease option contract covers all aspects of what you were trying to do. As long as it's written up right the option is the money that would be forfeited if they don't go through with the purchase. The rental portion of the lease option is just that a lease.

 Number 3.  To me it sounds like you're concerned with something in the house that they might find once they start living in it. That's why you're selling it in as is condition. If that's the case I suggest you make repairs or drop the sales price low enough to take into consideration any repairs that the buyer will need to do and disclose it before hand. Don't try and sell it shady ... That  could be interpreted as fraud and you could be in a world of hurt. 

Just me two cents

I agree with Matt. There is a huge difference between a lease option and a land contract. Be careful as to which you do based on your strategy

Tom kendo jr is one of the best re attorney in the state. That's who I use

I buy and rehab houses in Dayton OH and am looking for good contractors. My biggest area of concern is an electrician. I do some SFR's but also have some small Multi's that need complete service wiring (4-10 units). I'm looking to move quickly and for someone that doesn't need to be watched over everyday.... any suggestions? Any other reputable contractor referrals are welcome as well. Thanks and happy investing!

Chris

I am back in town now (Dayton) and would still like to know if you would like to meet up when you come into town.  Send me a PM and let me know your schedule and I will be happy to show you around Dayton and some of my projects I have going on.

Cedric

Thanks for the reply but unfortunately Ft Lauderdale is to far of a drive than I'm willing to make.  If I was here for the purpose of business absolutely.  However I am on "vacation" even though I want to see a few things I don't want to spend the entire trip working and that would be a couple of hours round trip just in the car. 

Thanks Nick... I just sent him a message