>> What made you think I didn’t know this? My point was, that I finally have the money to pay, which I didn’t have. So, I don’t understand what your point is.<<
Well, let me just quote you via cut & paste:
“The thing is I only work when I need money ;-). I’m kind of lazy and when I run tight I say to myself: Ok, you gotta do some work. Go out there and find a lot next week - and then I do find one.”
Bearing that in mind, I figured if you needed money in April, you would have gone out and found a lot in April, not October. If you thought an extension was an extension to pay, then that explains the discrepancy.
Since you now have said you knew it was an extension to file only and had to pay in April, then I really don’t know why you didn’t simply do a deal in April, as per your earlier post.
I just know if I had a deadline to pay something and could go out and do a deal at the drop of the hat as you said, then I certainly would have done it.
Posted by Michaela-ATL on October 01, 2003 at 21:10:53:
I wrote about this lot the other day in regards to foreclosure and redemption etc. Anyway, according to the city it was not auctioned off. I got it under contract today. It’s a double lot in a higher end intown neighborhood. Normally I just wholesale to builders at a low price to get fast cash.
In this case I will actually borrow the money, purchase the lot and list it at full value - 150K. I’m buying for less than 30k. Not bad for a few hours worth of work
Re: Got a sweet deal today - Posted by B.L.Renfrow
Posted by B.L.Renfrow on October 02, 2003 at 10:14:12:
Gaaaakkk!! One hundred and fifty grand for a vacant lot?? That makes my head spin. Guess I do have a sheltered life in my little small town. There aren’t more than 10-12 HOUSES in my town worth $150k, let alone lots!
Posted by IB (NJ) on October 02, 2003 at 09:27:24:
Great job young lady! I was going to ask how were you going to get a loan on vacant land when you reminded me of the ‘private money mortgage’ lesson we received from Terry at the workshop.
Next question: how many payments will you make to your ex-boss? Will he make much in monthly payments? Since I’m assuming you won’t be holding on to the lot for more than 1-2 mos. It sometimes only takes me 2-3 weeks to dispose of vacant land.
You have it all, don’t you? Make gobs of money with almost no work. Live in a warm southern location. Are good looking with your green mohawk haircut. And you spretchen die deutsch and the english. What a person.
Re: Isn’t it illegal? . . . - Posted by michaela-ATL
Posted by michaela-ATL on October 02, 2003 at 12:32:05:
You’re right, that doesn’t work anywhere else. Since I’ll be moving somewhere else and don’t know where, yet, please don’t anybody start trying this in other parts of the country. Until I know, that that’s where I won’t be moving. Well, all those snowy states can go ahead and try it there
Re: Got a sweet deal today - Posted by michaela-ATL
Posted by michaela-ATL on October 02, 2003 at 12:29:05:
Brian,
this is a double-lot, meaning, these were 2 lots at some point and they were assembled. So, now they can get disassembled and the builder can build 2 +300k-400k houses there.
Re: Got a sweet deal today - Posted by michaela-ATL
Posted by michaela-ATL on October 02, 2003 at 12:23:20:
I will set it up the way, that Terry suggested. 3 months prepayed, so I don’t have any payments and then 3% exit bonus. 15% . If sold in 3 months (which I expect, since double lots, where the builders can build 2 houses, are really pretty rare) it would be a 27% yield and it would cost me $3375.00 on a 50K note. I can certainly live with that and I hope my old boss can as well. He’s out of the country until this weekend. Otherwise the agent I’m working with told me, that he could probably find the money for me as well (he’s got lots of funds).
Posted by michaela-ATL on October 02, 2003 at 07:10:04:
Ron,
I only work when I’m almost broke, so I always make enough to pay for whatever I need. I’m really not so much into money, but whenever I need money I can pull a deal to me, that gives me what I need/want.
I had put off my taxes since april and filed 2 extensions. I figured I need to come up with some funds for october 15th and decided last week to make a little money and ‘voila’ .
So now I can create a note for 50K as terry vaughn has shown us in the lender’s workshop. It just so happened, that my old boss called me a couple of weeks ago. He got beat in the stock market and is looking at putting money into real estate - just passivly. I bet I can get him to buy the note. So, I’ll have money to buy the lot, he makes more profit than in the stock market, I can pay my taxes and everybody’s happy
Re: Got a sweet deal today - Posted by michaela-ATL
Posted by michaela-ATL on October 02, 2003 at 06:45:05:
Heather,
I’ve made a whole lot more money with lots than with hosues in the past 2 years. The thing is I only work when I need money ;-). I’m kind of lazy and when I run tight I say to myself: Ok, you gotta do some work. Go out there and find a lot next week - and then I do find one. I do abandoned lots with tax liens. They usually had a house on it, that got torn down years ago and the owner had already given up or is dead. Now the neighborhood is coming up, but the taxes are high and people have all forgotten about it.
Here are the pros:
I don’t have to compete with 3000 other investors, since everybody else is focused on houses.
The owners/heirs have no idea about the value
They usually don’t have much money and are happy to get something
Probate neds to be done and I have my attorney do it all and I pay for it, so they can just sit back
In the right neighborhood I have no problem selling the lots. Builders just gobble them up.
I like to do a little detective work, as in searching for owners, then for their heirs etc. Most people don’t so, there’re quiet a few lots out there, that noone has redeemed.
Negatives:
It can be quiet a lot of digging to find the present owner. Internet, vital statistics, courthouse, probate etc.
there aren’t as many lots as there are houses
you have to be proactive and find them. You can’t really advertise ‘I buy lots’, because people don’t even remember grandpa’s lot and that they could sell it.
Since I’m planning on moving in Spring, I figure I’ll buckle down and really work the next few months and make some money, so, that I have an easy start somewhere else. An whenever I make a decision like that I can pull something to me
>> I had put off my taxes since april and filed 2 extensions. I figured I need to come up with some funds for october 15th and decided last week to make a little money and ‘voila’ .<<
Actually, you had an extension of time to FILE, not an extension of time to PAY. Be prepared for penalties.
Michaela, I would really love to hear more about finding and buying lots, etc, and the methods you use to track down owners of them. Also, I am in Atlanta and would even be willing to do the work that you hate doing FOR you in some form of partnership agreement if you want. Please contact me by email and we’ll talk.
Re: Hate to burst your bubble, but … - Posted by Nate(DC)
Posted by Nate(DC) on October 06, 2003 at 01:48:17:
True, although the IRS penalties are chump change compared to the cost of getting the money fast without a good source. Even combining the penalties and interest, the total cost of paying a year late is under 10%.
I’m not advocating tax evasion - I believe you gotta pay what you owe, particularly when the creditor is the government - but if you’re trying to decide who to pay when cash is tight, the IRS makes it pretty easy (financially) to deprioritize them.
Re: Hate to burst your bubble, but … - Posted by michaela-ATL
Posted by michaela-ATL on October 04, 2003 at 19:35:02:
What made you think I didn’t know this? My point was, that I finally have the money to pay, which I didn’t have. So, I don’t understand what your point is.
Re: Got a sweet deal today - Posted by michaela-ATL
Posted by michaela-ATL on October 04, 2003 at 19:38:11:
kevin,to be honest I’m a loner and I don’t ‘play well with others’. I’ve had several Atlanta investors contact me on this and offer to help me in exchange for learning my secrets. I’ve already kicked myself for writing too much. I could tell you all I do in an hour and then you’d be competing with me for the same properties.
