I need help!!!!Please - Posted by littleguru

Posted by Brent_IL on August 25, 2003 at 24:14:07:

In general, a lower-priced, entry-level house will generate more net operating income per acquisition dollar than will a higher priced house.

A plan of action for RE investing is a collection of more specific plans that deal with different areas. L/O is an exit plan. The marketing plan is settled in your mind.

Subject-to isn?t a plan. Subject-to is only a part of a purchase technique; but what of the part that the subject-to doesn’t encompass? That’s what you need to concentrate on because this is where the deal is made or lost.

I haven?t read the ABC?s, so I don?t know what they are suggesting, but I would think that to pull this off you would need to develop some kind of potential buyers list so you could divest quickly. Recall that newer houses have no equity. If the seller had equity, he would have taken the easy way out and listed it with a REALTOR®. High closing costs plus an unexpected extra couple of months to locate a L/O?r could add up to three years worth of profits. If you live in a well-populated city, you may not need a list for the lower-end property. In my area of greater Chicagoland, there are probably 300,000 people looking for L/O opportunities, so I don’t worry about it.

I?m not knocking L/O?s, but it?s for those with staying power. If you have cash to back you up, and you know how to frame good offers that sellers will accept, go for it. You can never succeed if you never try.

I need help!!!Please - Posted by littleguru

Posted by littleguru on August 24, 2003 at 22:37:36:

I been studying for about 6mths now and have a plan of action. I going to get into sub to’s with l/o exit. I plan on sending out my first marketing campaingn- flyers bandit signs. Question??

I’ve read the ABC’S they suggest marketing to newer houses 2-4 year old. Here in Michigan those range 220-450k. There are every type of home with in 15 min drive.

(A) small 50yr. old 900sq.ft 3 bedrooms 75,000-90000, (B) 25yr old 1500 sq.ft 3bed 150-200k,
© new style 2000sqft+ ,3,4bed 230-400k.0-6 yr old

Choose house A B or C

I know they say lower end cash flow better, but more headaches and problems. Also i don’t know if i can lease option a 275,000 house. Any thought,i want to put my marketing out this week and would love to here someones input. I have every kind of market within 15 minutes!! But don’t know were to go!

I want to start strictly doing sub to,l/o exit. Thanks so much