Am I missing something here? - Posted by Rob Stevens

Posted by Rob FL on April 20, 2000 at 19:41:40:

Find out the reason why nobody wants it and correct the reason if possible. Fixer-uppers and fire damage, fix the damage. Title problems, clear the title. Expired listing, find a way to make it appealing. Become a real estate problem solver.

Am I missing something here? - Posted by Rob Stevens

Posted by Rob Stevens on April 13, 2000 at 17:26:45:

Hi All,

I bought Carleton Sheets ‘No Money Down’ course.

I went through it from cover to cover (or tape to tape :wink:

When I go out into the market I find houses that cost $150,000 here (Calgary Canada) rent for $1000 or less.

Even if I put up $20,000 cash and borrow $130,000, weather from a bank or the vendor taking back a mortgage - my monthly debt payment over $1000 - never mind taxes, and other expenses.

It seems to me there is no way to buy rental property and have non-negative cash flow without putting a LOT of cash down.

Is Carleton’s method a relic of those bygone days when property value and rents were somewhat related?

Frustrated Canadian,

Re: Am I missing something here? - Posted by The Donald

Posted by The Donald on June 21, 2000 at 22:26:59:

Nope - you’ve got it. Sheets’ stuff simply doesn’t translate well. And the Calgary market hasn’t quite matured yet - hence the disparity between rents and mortgage as it should always meet at least the 1% rule.

Try lease/options - or look into - Raymond Aaron’s Canadian Real Estate course for a more focused Canuck based approach.

The key is… - Posted by Rob FL

Posted by Rob FL on April 14, 2000 at 21:04:18:

…finding motivated sellers. Ron LeGrand has some great how-to-articles on this site that cover this subject.

Although I don’t normally praise John T. Reed, I did get some great info from his book on buying properties for 20% less than market value. 1) Look for properties nobody wants, and 2) Look for properties nobody knows are for sale. Think real hard about what kind of properties those would be.

  1. Fixer-uppers, fire damage, title problems, expired listings, etc.
  2. Foreclosure, probate, divorce, vacant, etc.

Best wishes.

Re: Am I missing something here? - Posted by SS

Posted by SS on April 13, 2000 at 19:08:59:

Are ALL of the properties in your area THAT HIGH? That is very hard to belive (although it could very well be true). Ok, first, if those numbers are correct, you need to be looking into the REO’s and people that are in dire need to unload their property. Houses that have been on the market a good while, ones in need of repair, and from what I’ve seen on this message board, Lease Options may be the way to go for you. I am an optimist and believe that there are no unsolveable problems. As CS teaches…
THINK CREATIVELY! Some people posting on here have properties all over the place, not just in their own area. Property management firms are wonderful if the property can sustain itself. Negativity will only defeat you. It won’t be super easy, everything about it is work, from calling and looking and touring and inspecting and talking with mortgage brokers and loan officers (if you don’t get owner financing). You don’t just find something the very first time you make a call. It’s being persistent enough that you manuver yourself into being at the “right place at the right time.” I am only a beginner (three properties total-two in this last year) but this is what I have found reading EVERY POST HERE! Days and days of reading and they all sum up to this- DON’T GIVE UP! It IS possible no matter where you are.

Good luck and God bless!

Re: The key is… - Posted by CPT G

Posted by CPT G on April 20, 2000 at 09:33:47:

You mention looking for properties that no one wants. If no one wants them how would I unload them myself? I’m starting to get into this so maybe I should read further but that logic makes no sense.

Re: The key is… - Posted by SS

Posted by SS on April 20, 2000 at 19:46:41:

You take a lemon and make lemonade! Spruce up that 50 yr old house that hasn’t seen a new coat of paint since the early 70’s. Update a few things…carpet, paint, landscaping. Fix what is broken…that cracked window from their 8yr old son who is now 30. Then turn around and sell it for a sweet profit. After you have finished with it, someone will want it (even if you still wouldn’t live there…everyone has different standards).