Discount your way to wealth. Something for newbies (and pros)to look forward to - Posted by Mike Oldfield

import · April 20, 1999, 2:31am

Posted by Mike Oldfield on April 22, 1999 at 12:38:02:

Imagination. Thats what creativity is all about. I was hoping that you would see that the focus here isnt that your curcumstances fit, but that there are circumstanes that do. I have found several, again, that do not apply to your circumstances. Since I gave one example which has actually happened in reality, and I have shared it with you. You wont have to imagine it, like you say you cant do. (Dangerous talk for a creative person)

Here is another example which may clear it up for you.

When an investor has an opportunity far more rewarding than the investment they are currently invloved in with JohnDough me or you, they may desire to cash out and move on to the new opportunity. Just because it hasnt happened to you yet does not mean that it wont. Because it does wether you can IMAGINE it or not.

Yes, it is clear to me that your circumstances do not fit. However I havent spent a whole lot of time thinking about your circumstances since you didnt spend any time thinking about mine.

I will reiterate that I didnt get nor did you get where you got by offending our most important contacts. I have offered discounts they have been accepted and these investors continue to loan to me on other projects. We have traveled together, broke bread together, laughed together and remain freinds. I found found that business people are not nearly as sensitive nor emotional as you have experienced. They realize that we all look to better our positions on an ongoing and continous basis. This does not offend them because they are the same. Capitalism is robust is it not.

Take your blinders off and look beyond your own circumstances. Perhaps you would enjoy considering mine. After all they are DIFFERENT and still effective for both the investor AND THE LENDER

One answer I recieved from my investor was

"No thanks This time Mike. Good Luck with that. Maybe you could refi with a commercial bank, you have some equity now. Try going that way.

Are you going to be in town Monday? I’d like to play some tennis after the business hour. How’s your serve coming along?

Call me,

Mr. Investor"

That doesnt sound resentful to me. But just to be sure, I called him. I asked. I read him your post. He is sorry and concerned THAT YOU CAN NOTIMAGINE also.

Each to his own my friend. Sorry we disagree but I will defend my contributions so that newbies dont get the wrong idea. I wouldnt want newbies to think that a lack of imagination and creativity is a good thing.

Maybe you should work on your relationship with your lenders. I like to speak frankly with all of my associates and friends. I have found they respect it more than your alternative. Its more efficient and we are all busy people.

Good Luck with your endeavors,

Mike Oldfield

import · April 20, 1999, 2:31am

Discount your way to wealth. Something for newbies (and pros)to look forward to - Posted by Mike Oldfield

Posted by Mike Oldfield on April 20, 1999 at 02:31:40:

I specialize mostly in buy and hold multi-family as many already know.

I have found many deals over the years with some type of owner fianancing or another.

For every property in my portfolio with owner financing, I do the following every year.

Write a letter to MY private mortgage holder offering a discount of 20 to 25% off the principle balance. They usually dont respond for the first few years.

EVENTUALLY EVERYONE CALLS BACK HEE HAW!

NOW YOU HAVE THEM WHERE YOU WANT THEM.

I make my offer in the form of an OPTION to pay off at the discount in the next 60 days or so, so I am not obligated to pay it off. I have simply created the option to do so. If I dont, I dont. The note holder would like you to, but cant force the issue.

Then I go looking for funds to pay off the note. Every time I do this I end up lowering my actual purchase price by the discount. Example for the hopelessly confused …

Buy four unit for 100K with 70K commercial mortgage 10K from signature loan, 20k from seller. Write to your seller in the first six months the following.

Mr seller I came into some cash and would like to pay off your mortgage. I have only have 15K to work with. If you would discharge our 20K note for 15K please contact me as soon as possible. I am looking at several other deals so I need a quick answer. Thanks, Mike Oldfield

After the first letter I write another one naturally with a slightly lower amount every 8 to 10 months. Eventually they all call back.

Net effect. You have lowered your purchase costs to $95,000 from $100,000 increasing your net worth by five grand all NO MONEY DOWN I have done this over and over and over again.

If you use another private lender to fund the 15K. You can do the same to them.

Please note that this concept works just the same on private 1sts except we are talkin’ bigger money. It doesnt always work but when it does YIPPIE!

If anyone our there is paying on a privately held mortgage you should go write this letter immediately. This is truly the easiest money you will ever crank in your life. You can thank me later Ha!

I love real estate,

Mike Oldfield

import · April 21, 1999, 2:09pm

Nothing new. - Posted by Baltimore BirdDog

Posted by Baltimore BirdDog on April 21, 1999 at 14:09:27:

I think I’ll thank the people I originally got the idea from…Russ Whitney, Robert Allen, and Wade Cook.

-Jeremy

import · April 20, 1999, 9:27pm

Re: Discount your way to wealth. Something for newbies (and pros)to look forward to - Posted by Irwin

Posted by Irwin on April 20, 1999 at 21:27:37:

This might be a good play for contract sellers, or carryback financing holders, i.e. a seller; however, I would NEVER try this with a private mortgage lender. Private mortgage lenders (at least mine) would resent such an offer to the extent that I’d never get money from them again. You have to be careful not to antagonize people for the sake of a few short term bucks. My private lenders will always get 100 cents on the dollar.

import · April 20, 1999, 3:43pm

Re: Discount your way to wealth. Something for newbies (and pros)to look forward to - Posted by Trudy

Posted by Trudy on April 20, 1999 at 15:43:52:

Mike, I enjoy your posts and love your enthusiasm. Was your first deal the hardest? What courses did you study? How long have you been an investor? I have yet to purchase my first property. I am interested in multi-family units to hold. I need to generate cash first though. I thought flipping may be the way. Any suggestions?

import · April 21, 1999, 11:42pm

Re: Nothing new. - Posted by Mike Oldfield

Posted by Mike Oldfield on April 21, 1999 at 23:42:48:

Good job.

With all the postings I have contributed. I have received countless amounts of email thanking me for my contributions and assistance to the readers of this site. There are numerous people who are far more appreciative and far less arrogant than you are who do not own nor can afford all the courses and/or books which you cite. I would imagine that you realize that not every post is for YOUR benefit. I could watch for all of your posts carefully to monitor your every idea for originality if I really cared what you thought.

Your first demonstration of originality to me is a very poor showing sir. There is nothing original about mocking the efforts of someone volunteering their time and thought to help others achieve thaeir goals. In my experience, your sort, that tramples on the efforts of others is a sign of insecurity. I also wonder if everyone you are hoping to protect for my lack of originality appreciates your concern as little as I do.

I hope on reflection you realize that you have made an error and extend an apology to a fellow investor. My understanding of the editorial policy of this site is different than yours.

I am not impressed with your sarcasm. An apology? Now that would impress me. I have made friends on this site and attempted to help many where I could. These have been my goals. I am not sure what you are trying to accomplish. If your goals are the same as mine then you have started off on the wrong track at least with me.

If you cant bring yourself to apologize, then feel free to pass by my posts. Apparently, they are not meant for you. If you have something meaningful to add, I hope that you will. In my experience, that is what this site is all about.

Good Luck,

Mike Oldfield

import · April 22, 1999, 12:03am

Re: Discount your way to wealth. Something for newbies (and pros)to look forward to - Posted by Mike Oldfield

Posted by Mike Oldfield on April 22, 1999 at 24:03:21:

Good point (with exceptions) If your private investor is getting out of the business like one of mine recently did, I offered cash for discount and he liked it.

Bottom line, I agree with your point.

Here is another angle to consider though. We are talking personalities and circumstances here (of the lenders). Wouldnt you agree that there are circumstances and personalities of lenders that would welcome the opportinity to cash out?

I would imagine so

I am sure neither of us has gotten where we are by offending one of our most important contacts.

Mike Oldfield

import · April 22, 1999, 4:07pm

Re: Discount your way to wealth. Something for newbies (and pros)to look forward to - Posted by Trudy

Posted by Trudy on April 22, 1999 at 16:07:08:

Mike, I enjoy your posts, but I’m glad you’re not my dad! :->

import · April 22, 1999, 2:42pm

Re: Discount your way to wealth. Something for newbies (and pros)to look forward to - Posted by Mike Oldfield

Posted by Mike Oldfield on April 22, 1999 at 14:42:42:

Let her have it friends.

Explain to our new friend that she does not need cash first.

Thats the point of this site. Do what you want from the get go without the cash. You dont need it

Sorry Trudy. I mean well. Think about it and write me. I will encourage you always when you are on the right track. When you are not I will show you the light

Good Luck

Mike Oldfield

import · April 22, 1999, 9:29am

Apology Submitted - Posted by Baltimore BirdDog

Posted by Baltimore BirdDog on April 22, 1999 at 09:29:30:

Mike,

First of all, I am sorry. I realized last night on the way home that it was a stupid, non-productive post. I just have a real problem with other people taking another’s material and promoting it as their own. In rereading your post, I realize that you weren’t trying to do that and as a true newbie, I would have benefited from the idea. Hence my apology. However, there’s nothing arrogant, unoriginal or insecure about voicing an opinion to the contrary if it is warranted.

Two points in your rebuttal did disturb me, though. First, I don’t accept the no time/money excuse. As with many people on this site, yourself probably included, there have been times when I have had little to no resources, but have fought and scraped to find a way to learn or get what I needed. If people want it bad enough, they can find a way to get it. It might not be easy or obvious, and it might take more time than if they had the resources in hand, but in the final analysis I’ve found that there’s little that isn’t achievable.

Second, by no means is this my first attempt at an original post. I’ve been contributing original thoughts to this site for several months now, and have also received many e-mail messages of thanks. All the more reason I should have known better when responding to you, but be that as it may, I clearly stepped over the line here. Sorry for the offense, and I wish you the best of success in the future. Friends?

-Jeremy

import · April 22, 1999, 3:49am

Re: Discount your way to wealth. Something for newbies (and pros)to look forward to - Posted by Irwin

Posted by Irwin on April 22, 1999 at 03:49:25:

Since a discounted payoff would mean an out of pocket cash loss to a friend or business colleague, I can’t imagine any circumstance where I would offer one. And since my notes are short term, or demand, there wouldn’t be any reason for him to ask for one either.

import · April 22, 1999, 12:04pm

Re: Apology Submitted - Posted by Mike Oldfield

Posted by Mike Oldfield on April 22, 1999 at 12:04:47:

Thank you for decency and understanding.

I was interested in seeing what else you had contributed the the site, so I took the time to read all of your posts last night. I relaized after having done so, that you and I have much in common. We both have a love for our endeavors and learning in real estate. We also both enjoy helping others very much.

Once realizing this I had second thoughts about wether I should have sent the post. I decided to wait and see wether you agreed. I am relieved that we can focus now on helping others.

Like you I have done s tremendous amount of reading and I have and will continue to do so. I have been investin for about seven years and my educational efforts have served me well.

My focus with all friends, aquaintenances and strangers is always to encourage their efforts to better themselves, to take the plunge and go do waht needs to be done. I have prided myself on encouraging others when the habit of most well intentioned friends and family is to discourage. With so much of that going around, I have my work cut out for me.

Let us work together to help Zig overcome stinkin thinkin and get the newbies on the right track! PMA

A friend you have made,

Thnaks agian and good luck with your endeavors.

Sincerely,

Mike Oldfield