Posted by Brad Crouch on May 11, 1999 at 16:07:15:
Bill,
Yep . . . when they’re “purty”, it DOES make a difference! But one of my favorite things is “Tumpin’” cows. That’s where you sneak up on them while they are asleep . . . and push 'em over. Letting 'em sleep lying down like most everybody else!
After a few times, however, they get wise and keep waking up when you get near. Then it’s time to find a new (uncontaminated) herd.
Brad
Calling ALL Gurus - Posted by Angela
Posted by Angela on May 09, 1999 at 18:33:28:
My partner and I purchased our 1st investment property last year(yea!). We paid too much in a baaaad neighborhood. So, what can we do to protect our investment and continue in the real estate game? We have little to no money, but a lot of determination to WIN. Your help is apprecitated.
Re: Calling ALL Gurus - Posted by Bill Gatten
Posted by Bill Gatten on May 10, 1999 at 12:00:20:
Angela,
My first property was an Equity Share (many moons ago). I had seen Paul Simon’s 1 hour infomercial on TV and ordered his course straight away. His infomercial was so complete that by the time his course arrived I had already bought two properties using his techniquie… both were one bedroom condos on the second floor, for which I paid full market value.
When his course arrived, the very first tape said: “Don’t ever buy condos, but if you do make sure they are at least 2 bedrooms, on the first floor only and never pay more than 75% of what anybody esle would.”
I gulped, hung in there and continued to do OK. The key is to work to generate as much cash flow as you can, find someone who can handle your management costs and cash-flow in exchange for some of the benefits your ownership can provide… then hang in there and continue to do OK.
Bill
Re: Calling ALL Gurus - Posted by Mike Oldfield
Posted by Mike Oldfield on May 09, 1999 at 19:19:26:
Need more info
Why do you conclude you paid too much?
Is it single or multi family?
Does it cash flow?
What do you think it is worth vs. what you paid?
My second property was owner financed for 10% down $4500. I got the 10% from a line of credit established in anticipation of continued investment. With two signatures this should be easy fro you and your partner. My cash flow paid back the line of credit in ten short months, and I used it again and again and again continually asking for an increase. I recommend starting out asking for at least a $25,000 line for individuals. With a partner go for $50,000. Often the banks will lower the amount some but they never go up without asking. The paymetns are affordable. The amount you pay interest on is lower every month and you dont pay unless you use it. I love my lines of credit because they maximize my flexibility. You can get more than one line too. God bless America!
Good lUck
Mike Oldfield
Cool Man
I Love this business
Mike Oldfield
Condos - Posted by Sean
Posted by Sean on May 10, 1999 at 15:14:26:
Heh… do you still feel that condos need to be 2+ bedrooms and on the first floor only or they’re junk?
Re: Condos - Posted by Bill Gatten
Posted by Bill Gatten on May 10, 1999 at 19:13:42:
No way. I find them OK, so long as they’re in areas where you have lots of single people and older folks…people without children (and who won’t be having any). Obviously 2’s and 3’s are better; but if you can get a deal, go for it. I’ve done very well with the few 1 BR’s I’ve had. Had one in Saugus California that I bought for $60K and sold for $90K a year later.
If you can advertise them “No Down and No Bank Qualifying” with full tax write-off, etc. they tend to move good. Just be careful about the quality of your co-tenant (in a PACTrust or sandwich L/O, Eq. Share, etc.)… they tend to attract the more transient and “weak of resources” types if you’re not careful.
Bill
Re: Condos and Cows - Posted by Bill Gatten
Posted by Bill Gatten on May 10, 1999 at 16:17:59:
Dave,
Remember the old joke about the young bull and the old bull? The youngster spies a herd of cows in the valley below and suggests that he and the old guy race like crazy down the hill and [kiss] a couple of the best looking ones. The old bull looks at him a little condescendingly and suggests that if they WALK down the hill, they’ll likely be able to [kiss] them all.
I think the story could conceivably apply in this case: although this is not in any manner to imply that you would have any more of a penchant for kissing ugly cows than…say… a Brad Crouch might (The purty ones? Well now, that’s another matter).
Bill Gatten