All Forum Posts by: Account Closed

Sharad Peterson "I want to get to know some of the local players in the investing game.

That is a reasonable question Sharad. What would you like to learn from the "Players"?

? How did you get so many buildings?

? How did you accomplish your excessive wealth?

? If I buy you lunch, may I pick your brain, will you give me a copy of your contract offers, show me you best creative financing technique?

? Give you me your contacts of hard and soft money lenders, contractors, handymen, title companies?

? Can you tell me how you have been able to flip so many deals, what's the name of your lawyer, how do you do NOTHING DOWN DEALS? 

? what's your secrets of controlling foreclosures, commercial buildings, how are you able to assign so many buildings?

? How are you able to find motivated sellers willing to give up some of their equity to you?

The problem here is that these players in real estate in Baltimore are NOT going to train others (a stranger) to be their competition! (What's in it for them? they don't need money, they are rich in equity, they have been thru the miseries of learning, investing, failing and succeeding from their street wise experience over many years.

Most "players" are not so ready to give up what it took them years of hard knocks, failures and answering to their spouses to learn this wonderful business to share?

I had that very same idea in 1980 when I met an elderly gentleman at a public auctions, introduce myself and asked if he'd help me learn how to make serious money in real estate, he agreed to tell all, how to flip, buy at auction, creative financing and he'd give me all of his contacts ---- oh, under one condition I HAD TO MARRY HIS DAUGHTER! That proposal however so attractive to me wouldn't work since I was already married. ( I saw her picture, she was not a pretty specimen and way too old for me at that time)!

I have been playing in Baltimore real estate game for years - maybe some of these ideas will help you.

Forget the bad classes or seminars. Only learn from professionals with a proven track record.

Pay a coach to train you in some of the following (have a written agreement with coach to learn: Local tax sales investing, All types of contracts; hybrid, joint venture, skinny offers, commercial contracts and arms length contracts, assignment offers. Flipping expired listings, Buyer brokering and power prospecting (finding truly motivated sellers). 

Your written offer is your proposal and first steps of controlling real estate at an equity profit. 

Be aware that --- what you put in writing (in an offer) could be seen not only by the seller, but their lawyer, a judge a jury and others. So do it right! (Understand every word in your contract offer, (your clauses for assignment, dispossession, out clauses and hybrid agreements)

Here are my suggestions:

Stop thinking about buying  real estate; houses, land, apartments or businesses with real estate or non-conforming properties.

START THINKING ABOUT  EQUITY!  Your profit in the short term comes from negotiating the equity in any deal - the experienced investors, the players, don't have time to wait for appreciation - they WANT IT NOW! If you are going to make money in this business CONTROL EQUITY! 

Forget about bed rooms, up dated kitchens, roofs and other stuff that might motivate an inexperience investor - IT'S ABOUT EQUITY!

Master the EQUITY FORMULA and you will do well in this business -- Cheers and good luck.

Charles 

Please note my response to this post is NOT a solicitation to sell a service or a real estate product. That would be contrary to BP rules. Thanks. 

glad to network with you, been investing here for 49 years, what are you trying to accomplish? 

Charles

the county has done that to us also, appeal it and they will reduce the fine, put the tenant on notice.

Jon Kelly Investor from Bethlehem, Pennsylvania

I recently looked into Robert Kiyosaki's "The Lazy Way to Invest in Real Estate," and I love the title. I think it draws interest from people looking to start in real estate but think it's too hard,

Thank you Jon, anyone can put a titillating title on a book and know that X  number of people will buy that incomplete how to get rich stuff! 

At 78 years old, and in this business for 49 years, THERE IS NO easy or Lazy way to make big bucks in this business - sure we call it real estate, but really it is about people and how well we negotiate the transaction with people and the words and statements we make as well as knowledge of how to CONTROL real  estate.

This business is easier when we can eliminate the "gate keepers" agents, appraisers, lenders, relatives of sellers and deal directly with decision makes, those who are authorized to sign a purchase agreement.

Over the years of Trial and Terror trying to make equity profits and cash flow and avoiding Gate Keepers, I've developed several systems to accomplish this; Nothing down methods (investing without real money) Control and Roll (using contract clauses and  a"SKINNY CONTRACT" that give me possession with assignment rights), and public auctions for fast assignments.

This is a good business, it is not for fast profits or lazy investors, it takes creative knowledge of contract engineering, power prospecting and effective negotiations and a sense of honesty and disclosures. 

Disclaimer: my responses here on BP is in no way a solicitation to sell a product or courses.

On line auctions are a great way to find bargains, for me I am from the very old school, I like to look at, preview, touch and understand the market close up and personal!

I have been bidding on real estate auction for years and done well, here are some suggestions that may help you:

Here are some things to consider when attending an auction - helpful hints.

• Preview properties with an auction associate if possible.
• Make a pre-auction offer(to avoid the competition).
• Ask for known details (zoning, tenancy, existing financing, code violations, taxes, comparable sale info/comps, will seller finance?)
• In person, arrive early; preview again before the auction begins.
• Look and listen for clues as to seller motivation or needed work.
• Observe other potential bidders (your competition) don’t tell on yourself.
• Be ready with certified funds or cash for the deposit if you are successful bidder. Note: My company will accept personal or business check/with ID.
• Know where your funding is coming from (a credit line, pre-loan commitment, seller financing, uncle Bill or Mom or your shoe box under the bed).
• Understand bidding position (where to stand).
• Your options with real estate (flip it, assign your contract for a fee, renovate and sell for taxable income, offer it on a Tax Deferred 1031 Exchange for equal or greater value, keep it for a cash flow income)?
• Consider adding any of your properties to be offered by reserve auction.
• Study the market, have a plan, know your spending limits.
• Form an investors group, pool cash for more buying power.
• As an investor always be prepared to do business.( keep contract offers with you, blank checks, screw gun, flashlight with good batteries pens and blank addendum).

Wishing you good luck and successful investing. 

How sweet it would be if you found a seller to agreed to give you possession of their building, at a price agreed to be paid some time in the future for little or nothing down to be paid when you assign your equity  position. (for a profit of course!).

How many property owners in your marketing area would go for a proposal like that*? Just suppose you engineered a deal that gave you 100% leverage with possession and time to assign?, And put s few dollars in the property and flipped it 29 days for a cash assignment profit of $20,000, or $10,000 or $5,000? Wouldn't that put a smile on your face?

There are ways and legal contract agreements to accomplish this form of super leverage, I have done these deals over the crazy 40 years as an investor trainee (still learning). The process works on houses, land, commercial or businesses with real estate.

Inserting yourself in the chain of title is a good position be in to share equity profits. These types of transaction are done all the time with FSBO's, Expired listings and estates.

At 78 years old now, I still invest and assign contracts and doing more coaching and flip assignments using Control and Roll, auction wholesaling.

Real estate is a great business, stick with it. 

Charlie

Corrected response:

Sharad Peterson -- Thank you, becoming financial successful in this business is not easy, during my beginning years, learning to know and understand what I didn't know and the unwritten concepts of elements of creative financing was like "Trial and Terror"! I have empathy for all those getting started in real estate.

It's a pleasure to recall the many things I experienced over the years and passing them on to others on Bigger Pockets, my goal on this site is to reach 2,000 votes, only 600 more to go.

I"m always ready to network and chat with those trying to find the many options to building cash flow and accumulate equity. Struggling to learn the principals of Real Estate investing and building a full or part time business is way better than working for the MAN - I call it "Creatively Unemployed!"

I am still investing and making offers, I've slowed down a little at 78 y/o, having fun coaching others.

Thanks again ..... Charlie

Sharad Peterson Thank you, being financial successful in this business for me over the 40+ years was not easy, learning to know and understand unwritten concept of elements of creative financing was like  "Trial and Terror"! I have empathy for all those getting started in real estate.

I find it a pleasure to recall the many things I experienced over the years and passing them on to other on Bigger Pockets, my goal on this site is to create 2,000 votes, only 600 more to go.

Always ready to network and chat with those trying to find their wsy

You know this business is not as easy as some promote!

 YOU want to make money off of someone's house, THEY want top price! You can't afford to pay top price, You can't live that long for it to go up in value!

So.......what do you do? GAME OVER? STICK with your day job and hope for the best or learn more about making real estate work for you in your market?

My opinion, anyone with a house or property to sell, that is not sold is MOTIVATED! They may not want to let you know that, but they are! (been there!)

So ------------ where do you start with these motivated sellers who don't want to tell you they are motivated?

First - leave your emotions at home, NO COMPLIMENTS of the property, look for Value Deficiencies ! There is ONLY ONE thing you are interested in! That is how  much can you make off of the  equity sellers have? Good negotiating take time.

Equity is defined as real value less liens.

You got to be ready to write an offer (if they don't cry, your offer is too high!).

You are not trying  to solve their problem or make a friend - you are in this for a profit! If you can help the seller solve their issues, you will be able to make a deal.

Look at the numbers. how are you going to flip this deal once you make it? or are you going to hold it for rental? 

Being prepared, have your contract offer ready (I use a skinny one page contract), are you ready with your cash or financing? Don't play games with the sellers, they have needs also.

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