Posted by Robert on November 25, 2000 at 09:19:28:
I think the first thing you need to do is check out your local real estate investors group. There is typically a wealth of knowledge to be learned from the individuals and the groups extensive library materials.
Most groups have Carlton’s and others materials in the libraries.
Carleton Sheets Course - Posted by Bill M
Posted by Bill M on November 22, 2000 at 20:35:53:
I am looking for the type of opportunity that Mr Sheets describes in his infomercials. I like what I hear, I now need to see to believe. Can any “experienced” course veterans tell me if the course works? I would appreciate hearing from a real life example of the results of the course. I thank all in advance…
Re: Carleton Sheets Course - Posted by Mike
Posted by Mike on November 22, 2000 at 22:01:10:
The CS course focuses primarily purchasing single family houses with none of your own money down, for the purpose of renting them to generate a positive cash flow. He does touch upon other types of deals such as apartments and mobiles. The course talks about: finding suitable properties, inspecting the property, making an offer, structuring the financing, creative ways of getting the down payment, and managing the property.
Sometimes you can have a true “nothing down” deal. This usually involves finding a house for sale with a very motivated seller who has a lot of equity in the property and will carry financing, or a property that has an assumable mortgage. More frequently, nothing down means not using your own money. You can use a line of credit from your bank, a credit card if the limit is high enough, or something of value such as a boat or a collection of bonds.
I bought a 6 unit building using techniques and strategies from the CS course. First of all I determined projected cash flow and found that there would be enough of a cash flow, after operating expenses to support a certain level of debt. This allowed me to determine how much I could pay for the building and be confident that I could afford to make payments. The asking price was $378,000. I offered $294,870 (always use an odd number). We settled at $308,560.
I used $25,000 from a line of credit, found a partner who put up a like amount, and had the seller carry $28,550 in paper. Our payments are $1502 on the first mortgage, $605 on the second (amortized over 5 years) and annual operating expenses projected at $850 (taxes, city utilities -sewer/water/garage, insurance, maintenance) for a total of $2957. Monthly income is 6 X $700 = $4200 for a positive cash flow of $1200+ per month. After five years, the second will be paid off and will add that $605 to our cash flow. At the end of 5 years, the first will have $201,000 owing and we will have a positive cash flow of $1850 per month. Hopefully rents will go up and the value of the property will increase.
As a post-script, my partner bought a pub in a different town and I have since bought him out…using strategies from the CS course to structure the buy out to my advantage.
Hope this helps, and good luck!
Mike
Re: Carleton Sheets Course - Posted by JOEL BLACKBURN
Posted by JOEL BLACKBURN on November 22, 2000 at 21:34:55:
HI, I HAD PURCHASED TWO HOMES BEFORE I OBTAINED THE CARLTON SHEETS MATERIAL, BUT I UTILIZED THE SAME PRINCIPLES. YES, THEY WORK, BUT MAYBE NOT AS SMOOTHLY AS THEY PORTRAY ON TV. REAL ESTATE AGENTS AND FINANCIAL INSTITUTIONS AND ALL THE PAPER, PAPER, PAPER, PAPER WORK CAN BE MISERABLE. BUT…IT CAN WORK. THE KEY IS FINDING A TEAM OF PEOPLE TO WORK FOR YOU! A REAL ESTATE AGENT AND A FINANCIAL INSTITUTION THAT UNDERSTAND WHERE YOU ARE GOING. YOU MAY HAVE TO EDUCATE THEM. I PURCHASED MY FIRST DUPLEX FOR NOTHING DOWN…ZERO! I WALKED AWAY FROM THE TABLE WITH $531 DOLLARS IN MY POCKET WITH THE SINGLE FAMILY HOME. I’M PUCHASING A 4-PLEX NOW AND IT’S NOT AS EASY. DUPLEXES AND SINGLE FAMILIES ARE SIMPLE…ESPECIALLY IF THEY ARE OWNER OCCUPIED. THEN SELL THEN AND TAKE THAT MONEY AND 1031 EXCHANGE THEM INTO SOMETHING LARGER. THE LARGER PROPERTIES ARE EXTREMELY DIFFICULT TO GET FOR NOTHING DOWN IF AT ALL. JOEL