All Forum Posts by: Timothy W.

RA - you'll get it figured out soon enough. Sometimes it just takes a little bit of time getting to know your market. Listen to your prefore company and see how they found the property. Mimic their methods - obviously they worked for them.... See what you can get.

Jared - I got one of them. Just offered $4,500 on one orignially listed at $39k today. :lol: Now I know that there's enough REOs and no buyers in my area that the bank will take "something" for the property. I think they're pretty desperate on this one. Someone recently asked me about doing shortsales in my area. I said, "In today's market, why make offers when the bank is kinda f*$%ed? Wait until the bank is REALLY f*$%ed."

Tim

This isn't as intense as you think. If you've ever bought a car, you can handle buying a piece of property.

A letter of intent is really nothing besides writing a letter that says, "I intend to buy". It's a nice psychological tool to indicate a level of seriousness. Think of it as sending a lady a note after a date rather than talking to her the next time you happen to see her. You're indicating seriousness - that's all.

IMHO. If you're making an offer, make it with a purchase contract - not letter of intent. Actually the best thing is to sit down with them, talk numbers and when you've both agreed verbally, put it in writing and sight. Make it a conversation between yourself in the seller....all the contract is, is a binding confirmation of your agreement. Earnest may or may not be needed depending on what contract you use. Realtors like earnest more than sellers because realtors livelihoods depend on a transaction closing so they want you psychologically locked into closing. (Watch the realtors jump in now and tell you how important earnest is.... ;-) ).

Tim

Yes. I go somewhere else. I don't fish for trout in a bass pond. Do a radius check of about an hour and a half to two hours drive out from your location. Chances are you'll find a town that cashflows. If not, stretch a little further. I seem to recall some decent cashflow potential in Gainesville.

Tim

Alright - EVERYONE MUST listen to this post. This post right here is the key to long term Real Estate investing success. Anyone who has made a successful career of real estate investing anywhere beyond 3-5 years and has been successful in both up and down markets employs these principles. Dynasties are built on these simple principles.

Ironically this is nothing new. Our system of real estate is built on the principles of feudalism that were founded by Charles Martel in the 8th century. These principles have been working for 12 centuries. (Where do you think we get the term "landLORD"?.) It doesn't take a brain surgeon to see that they will continue to work another century or two.

Great post Mike - hopefully one or two will listen.

Tim

I do a combination of a buyer realtor and sometimes I go directly to the listing realtor. It depends if the BR brought me the deal or if I went out and found it. I don't do low offers in mass, because I don't want a reputation for backing out of deals. I operate in a relatively small market - you get to know people on a first name basis here.

Tim

Hi Chad,
Chicagoland contractor here too. We worked mainly in the south side though - Palos Park area. By chance do you know Mark from Trinity Construction Staffing? Good guy - drives around the Winnetka area all the time and knows a lot of contractors there. Good luck with the village up there. Maybe they just had nothing better to do it being winter and all....

Honestly if I were you I wouldn't worry too much about getting started. The construction background helps in this a lot more than you think. 80% of the successful, truly active investors I know are contractors who got tired of killing themselves to make a buck. Underestimating repair bills is what kills most investors. Now as long as you don't overpay for property, you'll do pretty good. And don't worry if another investor snags an REO from you. In this market, if they've overpayed - chances are you'll get another crack at it after they lose it....lol Good to meet you.

Tim

No sweat Jeff.

For me, expenses are everything that goes out of pocket (including mortgage) before income taxes are figured. Yes, PITI is part of that when I have it on a property.

That's the hard thing with some areas. Properties just cost too friggin' much to cash flow properly. I scanned Virginia Beach and saw that your cheapest houses there start at 150k. Unless rents are $3,000/month that's hard to cashflow. On the other hand, I've seen property that sells as low as $6,000 per unit after repairs. Not hard to cashflow that. Don't expect it to be a hot appreciation market though....lol.

Tim

FYI Zuc,
My dad's been investing for 20 years. Brings home more in monthly rent than most make in a year. Mom still hates the whole risky "real estate investing" thing....lol.

Sometimes you just have to love them, shut it out of your head and go forward anyway...lol.

Tim

Kiyosaki said this in the intro to his Success Stories book. RD/PD was meant to be motivational. He wrote Success Stories because people were wanting follow up how-to's.

Why would you trust an internet forum for something as important as tax deductions? Consult your accountant man!

That being said, it all looks deductible to me....lol