All Forum Posts by: Royce Talbo

@Account Closed  like I said the beginners don't buy up much property just a few here and there.  Most take years to get their first property, some never get started.  Again they also teach old techniques that are widely know, but not to beginners. they also teach some techniques that don't even work anymore, but beginners don't know that.  They sell you on the idea of getting rich by throwing numbers at you, but never take you step by step through each process and the different ways things could end up.  Some don't even own property and just write books on theory and what they researched and read on the internet, they organize it and regurgitate it to the beginners.  There are many who do lots of deals and make millions and never share.  then there are those who share and get rich by just sharing by regurgitating with no actual history.  then there are those who made their money and really want to help others.  
as for couldnt they make more with less competition, yes for those who are actually investors could and some of those are the people who make millions and dont share, but their is so much inventory out there that people dont realize.  they are only focusing on their local market, while these so called gurus are giving you guideline thats works in most markets.  

hope this helps clear things up a bit.  I use to think like you when I first started out, but I come to realize that there are always deals to be found and new ways to make money as the old ways fade away.  on a side note the generation now known as the peter pan generation would rather rent and have no responsibilities than grow up and buy a home, so this leaves less competition for buying.

What is the reason they are not utilizing the garage?  If they feel it is a safety hazard then yes remove the garage as it could be a liability and is not adding value to your property.  If it is structurally sound and they just prefer to park on the street out of convenience then keep it and fix it.  

will it affect resale value or rentability for top dollar yes and no.  If you have a sound garage vs no garage you can bet you will get more money for the garage, but if its in bad shape then people rather buy a place that they dont have to deal with repairing or demoing the garage.  Same as renting potential renters will look for garage parking rather than park on the streets.  They will not know if they like the garage parking or not until after they have lived there for a bit and decide that street parking is more convenient. if its bad then they might wonder about the rest of the house and prefer a place that has open parking rather than a place with a garage thats falling apart.

so pretty much good garage with repairs but not convenient>no garage with open parking on site>bad garage

Part of it is because they do want to teach people, but they also make some profit from doing seminars, writing books and making a profit from that, and doing pod casts to make a name for themselves.  Their name is a brand and that's one way of making money.  They tell you all the things that beginners don't know, but never the real nitty gritty details or tricks they learn along the way, that they keep to themselves. 

The other reason is that people who are learning are beginners and pose no real threat to them as they are only entering the market with limited funds that will just get a few properties.  This will actually help them as these people entering the market will improve the property and force appreciation, in turn it will raise the property value of the properties in the area, thus increasing the value of other investors properties that they currently hold. 

Hey guys, so I was wondering how this works exactly.  Here in Honolulu county fair market rent according to hud website is $2682 for a 3 bd.  In Honolulu city I can see a 3 bd going for this much but not in other cities on Oahu, but Honolulu county accounts for the whole island.  So can I advertise and rent a 3bd/1bth for $2682 when current rents in that particular neighborhood rents for $1500-1800?  Once I advertised for $1800 and had an sec 8 applicant say that they had a voucher for $2100 and would give me the full $2100 voucher if they get the place.  I did not pick them so I don't know if this would have worked or not.  

@Dmitriy Fomichenko thanks for the welcome

@Ally H.  thanks its great to hear from other hawaii people. where and what did you buy?

@Andrey Y. thanks I'll look over the start page, but just to clarify I am not a beginner, though I'm no expert,  I am somewhere in the middle.  But there is always something that I could learn or refresh on.  I forgot who said it, but it was something like paying $14 for an investment book even though you know 99.9% of it.  if you can find that one thing that will save you money, it will pay for it self ten fold.  something like that, but you get my point hahaha.  

ok thanks for the input guys.

@Dev Horn  thanks for the more in-depth explanation, this is making even more sense now.  I was thinking these houses were just in bad shape, but livable.  Not like how @Nicholas Miller  video was.  

When I talked about the in lieu of agent commission I was assuming for example the property market value worth 275,000 after renovations,  current condition seller can get 200,000  less 6% commission so 188,000, without realtor we explain to them that its not worth what market is because of the repairs blah blah blah and get it for 188,000 then sell the contract to buyer for 195,000 they put in 50,000 renovations. we profit 7,000 buyer profits 30,000.  that is how i thought it was done.  

now that I am learning more I think I research more about this topic now that it seems feasible.  
 

@Nicholas Miller Just to clarify I do know that POF means proof of funds but it entails that you provide at least a pre-qual letter and bank statements or stocks or some sort of liquid funds, where I am from anyway. As far as all cash offers that you get from hard money lenders they also need POF to show that you can repay their high interest rates and here they ask for you to put down around 20% "to have some skin in the game." not sure how it is in the mainland but I tried getting financed from mainland companies and hard lenders before, but they wouldn't finance because it was too much risk because they didn't know hawaii's market.

I've heard about options a long time ago but none here in hawaii, maybe thats why I stopped looking into them, but maybe I need a refresher course hahaha.

Yes indeed that is a good paycheck for 20 mins hahaha one day I hope to build my network and have opportunities like that, BP seems like a good place to start hehe, thanks for the reply Nicholas.

@Brett Russell  ok thanks that makes a lot more sense.  How many sellers actually go along with this? normal folk i think would be hesitant without the guidance of a realtor.  If I didnt know the process of buying and selling I know I would be hesitant. Sure I could hire a lawyer to look over the contract, but thats only one part of the process.  

I now see how this is possible and to me it seems like the money that the seller would pay their agent in commission goes to to the wholesaler instead.  The big problem I think of, is the trust issue.