All Forum Posts by: N/A N/A

No, you cannot just drill. You have to check with the state and find out the requirements.
rochelle

You need to talk to the county!
rochelle

Don't make it so complicated. Look at the overall growth patterns, look at the prices in that area, and offer less to purchase then the going price!
rochelle

You can make alot of money with land if its bought for the right price in an area that will grow in the future. Go to the courthouse in the county where the property is and ask them everything you can think to ask. These people are usually very happy to answer all your questions.
rochelle

Offer the property with owner financing making it easy for soneone to buy . Once they are paying for 6 months, you can get them financing or you can sell your note to an investor and cash out.
rochelle

You can lose if you don't have more specific plans for the property along with more zoning information for that property. You want to know:
1. if the property can be split into more lots
2. will you need a well and is the land perkable
3. how much will a well cost
4. are there plans to extend utilities to the area and if not what would that cost? (If you opt for solar, that can also be expensive).
5. what is the growth pattern for the future pertaining to that area? Are you going to be the only house in the area?
6. What would future marketability be for that property. How about road access up in the mountains in the winter?
7. Is the land in a flood zone.
8. What is the land assesed for in the county courthouse?

I would also talk to a surveyor to get his opinion on some of these things.

Land in a growing area can make alot of money. But there are some areas, that frankly will never make money!
rochelle

Take all your potential rents of a prospective property times 12 months. Then multiply that number by the condition of the property. For example, if the property is in excellent condition use 80-85%. If its in horrible condition, use 30%.
So, if this is a four-plex and the rents are $500 each, your potential rents are $2000 per month. Multiply that by 12 months and you have $24,000.
Say the property is in average condition, rate it as 70%.
Multiply $24,000 by 70% and you would get 16,800. Add a zero and this would tell you what you need to pay to have a 10% cap; $168,800. If you pay $200,000 you would have an 8% cap.However; caps can work if you have no extra expenses. There are other things to take into consideration such as:
1. if the landlord pays utilities besides the water. Especially if the landlord pays the gas bill and the property is in a colder climate.
2. if the vacancy rate is below 90% on the average
3. are there major expenses needed such as a new roof?
4. what are your costs for management and maintenance?

Look at the costs for all these figures in past years and see if the numbers make sense with the cap or do you need to figure a lower number instead of 70%.

Everyone will tell you that you can't find properties with a good cap but that's not true. I know people that won't buy a property less then an 11% cap. You just keep looking until you find the right property, or you offer a lower price and the seller accepts that price. You have to make sure the numbers work, or you will lose big time! But if you buy and the numbers work, you should be successful.
rochelle

Allen is motivating and good, but you can read his book and do his system and be successful. I understand that if you have one-on-one training using his system though, you will find it easier to stick with the program and be succesful.
rochelle

I have the books on the option program and I have found that if you follow the instructions in the book and do it enough times, you will find it works. I really don't think its necessary to invest a few thousands
dollars to do this. You still have to make the calls with or without the mentoring system. Having mentors just makes it more accountable on you to actually do what you want to do. If you can be accountable in the same way to yourself, then you can save alot of money.
rochelle

I actually used all of the forms that came with the course after taking these to my lawyer and having him look it over. He then re-wrote the paperwork for me so I would have no problems with the title company.
I recomend that you go to your attorney first to get this done. You need a real estate attorney. Believe me, its well worth the price. Also, you can close these deals through his office which might save you money in the long run.

The inverse program does work and I recommend doing it as close as possible to the way its recomended in the course.
rochelle