Give up now - REI does not work - Posted by Darin

Real Estate Investing
1

Posted by Carmen on January 29, 1999 at 19:35:37:

Sandy - Actually, it wasn’t “that” one, must have been the “other” one. They must all get together and work out these spiels. I have since spoken to one or two pleasant hard money lenders, so I’m not going to put the whole breed down. I’d love to get together and trade some war stories. Can’t wait to get back on the MLS and start “fishing” for property. (just about $500 to go - bet you didn’t know it cost so much).

Carol - to answer your question, these guys are both - it’s not too difficult to get a real estate license (after all, I have one!) and gives you access to MLS and comps.

2

Give up now - REI does not work - Posted by Darin

Posted by Darin on January 26, 1999 at 22:40:15:

4 years ago I was shopping for a home. Always heard you could buy a house with no money down. Familar with real estate but not creative deals I was shopping the paper and came across an ad that read “House for sale, will consider Land Contract…” bla bla bla. I then became interested and contacted the owner who lives out of state. Being the professional I am, I told the guy I had no money and bad credit but I like the house and wanted to buy it. Simply enough he said ok. The purchase price was 3 times more than I was looking to spend. My Grandfather thought I lost my mind, my father thought I was an idiot, My boss told me I just bit off more than I can chew and on and on with the negative comments.

I signed a contract for 180k with fair market value being around 160k. But hay, I moved in with out a dime. How, well my paymentw were going to be 1,500 per month so I got 2 roomates @ 400 per month with 1,200 each to move them in.

I did a few repairs and sold it for 220k, Thats 40k profit. During the time I was there, my payments were the same as rent or less, I got help on the house and in the mean time paid the land contract down 20k more.

I walked away from the closing with over 50k.

I then rolled that into a house in a hot area that nobody wanted to buy because of overgrown trees, a tar driveway that has never seen a coat of tar and a house painted in puke green.

I paid 155k for that house that appraised @ 175k and after a few repairs,185k.

Those two little deals have put me on the map.

If I would have for one second listened to a nevative remark and acted on it, things would be differnt now. Its that one deal that will get you going. Even though the first are the very hardest. We make mistakes, say stupid stuff, over spend when we could have gotten by cheaper, got less when we could have gotten more, get beat out by cometors,…

You learn by doing and doing more and more you learn more and more. Mix that with all the knowledge with the people on this site and read all the books you can get your hands on and we will be dangerious.

Just a thought

Darin

3

Follow up-Give up now - REI does not work - Posted by Carmen

Posted by Carmen on January 27, 1999 at 12:52:12:

Great story, and hits home because I am planning to do my first deal within the next 1-2 weeks.

I started calling Hard Money Lenders. OOOOh, boy, what an earful I got yesterday! This one person, who “controls over 65% of the hard money out there” by his own claim, stated, bluntly, that if I didn’t have $8-10K to put into fixups, I should immediately give up the thought of getting into real estate investment. He said I should go to my “friends and relatives” to get the money (as if).

He refused to present any of my “lowball” offers to the sellers because “they would never accept them” - which is illegal (I had received a list from him). Another pearl of wisdom was that I should look at each and every house inside and out and know the exact amount of fixup involved before making any offer. My plan for right now is to look for one or two “great” properties by making low offers (with an out clause, of course) until I get one accepted by a REALLY MOTIVATED seller, then see if its a keeper (no structural damage). Since I work full time, going to see each house prior to getting an offer accepted based on my numbers (taking into account a goodly amount of repairs and carrying costs) seems like a waste of time, especially since only 1 out of 10 or so will even counter. He called my method of “culling” “A–Backwards”. He also had a few more choice things to say, which I will spare you. I think he is trying to scare people out of the business.

At first I was shocked at his negative attitude and rudeness - after all, he is providing a business service, and I would be a “customer”. But then I laughed all the way home.

Guess he’s never been to this site. LOL!!

4

Great success story! - Posted by Baltimore BirdDog

Posted by Baltimore BirdDog on January 27, 1999 at 08:46:22:

Thanks for sharing. I’ll be sure to put this one in my motivation file.

-Jeremy

5

Carmen… - Posted by SandyFL

Posted by SandyFL on January 28, 1999 at 07:28:31:

I know who you are talking about (H.M.) because I got the same attitude from him over 18 months ago! That is pretty funny. It must be his
weedout speech. Actually, he probably believes every word of it.
Or maybe not.

That guy actually lends money for 100% purchase all the time.
Or so he says at the meetings. He is good for a new joke every
month, and that is about it. Oh and he did talk me out
of buying a house with a cracked foundation becuse “the
city officials would be crawling up my – um - backside”. LOL!

There are other lenders in our area who are easier to
stomach (and do business with). And anyway tell that
bloated old behemoth of a hard money lender that you
can submit your own offers! (in a couple months)

Carmen, we gotta get together on this, haha

Sandy FL

6

Sandy… - Posted by karp

Posted by karp on January 28, 1999 at 09:43:14:

No you know I am not much for win/win.

But I do believe in fair play. This guys is breaking the Board Of Realtors “LAWS” and misrepresenting all over the place.

Me? I wouldn’t laugh too long… Not until I had taken him right the heck out. A phone call to the board should do it…

karp

7

Re: Sandy… - Posted by Karp…

Posted by Karp… on January 28, 1999 at 10:12:43:

Yes I suppose if I wanted to spend my time going after
unethical people I could do that, but I would rather go
looking for deals.

I simply choose to do business with ethical people instead.

Sandy

8

oops… - Posted by SandyFL

Posted by SandyFL on January 28, 1999 at 10:24:40:

That was posted by me, and was supposed to have
the header “karp…”
ohhh never mind. LOL

9

Re: oops… - Posted by Carol

Posted by Carol on January 29, 1999 at 06:22:09:

Sandy, I’m confused …
Is the guy a lender or a RE broker (or both)?
Maybe I missed something, but then, what’s new?
Carol