Posted by BigV on April 20, 2007 at 11:04:42:
the difference between equity and profit is that profit has been realized and equity has NOT been realized.
In other words, profit is what you get at closing and equity is profit that you THINK you have.
If the coach has 12000 profit, HOW does he continue to have cashflow? They would have to SELL their property so that they can realize their profit.
I think I,m going crazy… - Posted by Celeste-Fl
Posted by Celeste-Fl on April 17, 2007 at 07:38:21:
I,t does not run in my family, but who knows I could be the first. After ten years in the game, I find myself for the first time full of self doubt and unsure of what to do next. I can,t sleep and crunch numbers day and night. I don,t know how to survive this market. I started with rentals years ago and did not like them, So I went on to selling contracts and rehabing and that was great. This last year things have change. The market is down 30% and still falling. Most investors have went belly up. The last 3 deals I got stuck with because the wholesale investors went down after they signed contracts with me. So I rehabed them and it took 6 months.I finaly sold them after jumping through lender hoops($5000 flipping fee) and made as much on all 3 that I used to make on one.
Then I thought I would go back to doing rentals,but houses don,t cashflow here anymore. So I bought a old mobile home on land and was going to section 8 it out and buy 10 of these and live off the cashflow. Well I found out section 8 is not as strong as it used to be. There are more houses for rent then there are section 8 people wanting them. So on monday I found a house that has solid comps a month old at 120k. I have it under contract for 77k. It needs 6k to shine. I know not a homerun, but maybe a single. All night long I could not sleep, I,m thinking about backing out, what if it don,t sell or the market gets worse. I,m so stressed out over this business. I don,t want to go back to a job, but I,m not enjoying this anymore.
Thanks - Posted by Celeste
Posted by Celeste on April 19, 2007 at 06:17:56:
everyone for your help. I do feel better. I never thought fear was taking over, but now I see. I’m going to regroup and let go of the fear.
Re: I think I,m going crazy… - Posted by Jim Adams, III
Posted by Jim Adams, III on April 19, 2007 at 03:28:13:
Real Estate Investors find Lucrative Opportunities in Local Market
Football Coach, Picasso Nelson stumbled across a Free Real Estate Investing Report that has helped him acquire 4 properties in less than a month with more than $95,000 of equity in the properties.
According to Picasso, ?Within one week of ordering the free report, I had 4 properties under contract that will total $600.00 of cash flow each month. Plus I have locked in an average of $10,000 to $12,000 in profit per property. I have never seen an investment opportunity like this before.
It allows me to run this as a part time business while keeping my full time job as a school teacher. The last thing I want to do is to spend my evenings and weekends fixing toilets, changing locks, or painting, and on this program I don?t have to.?
Bruce Burch and Coreen Savikko from Palmdale, CA ordered the special report and flew into Jackson, MS to purchase properties. Their first purchase generated over $500 per month in cash flow and $40,000 in equity. Bruce said, ?We are overall quite happy with our experience and we look forward to more deals on this program.?
Ginger Perkins from Roanoke, VA ordered the special report and has just planned her first trip to Mississippi to enroll in the program. ?My goal is to establish a long term wealth building program and acquire a portfolio of over 50 properties.?
To get a copy of the same FREE REPORT they used to begin their real estate investing business, please go to www.jacksonrealestatedeals.com.
Re:Be Positive - Posted by Mattg
Posted by Mattg on April 18, 2007 at 12:09:09:
What are your concerns more?? losing a good deal or rental?? Stay postive believe in yourself and good things come to those who work it.
close on this in 3 days cash out;no credit; appraisal only
flipping fee - Posted by Natalie-VA
Posted by Natalie-VA on April 17, 2007 at 15:45:47:
Celeste,
I would still like to know what lender charged you that flipping fee. It would help us to know who we should avoid.
–Natalie
Re: I think I,m going crazy… - Posted by Tim
Posted by Tim on April 17, 2007 at 14:19:36:
What about refi?
Why does selling have to be the only exit strategy? I know that buy and sell is the best way to realize quicker profits but not the only way.
If the house will appraise for 120K then you could refi for 80-90%, get your cash out then either rent it out for six months to a year or sell for a reduced price. Either way you should have made your money up front.
There is another board on this site dealing with financing, they talk about cash out refi’s all the time.
Tim - VA
Re: I think I,m going crazy… - Posted by Apollo
Posted by Apollo on April 17, 2007 at 12:26:42:
I used to be a mortgage consultant, and there was a Realtor that I worked with that was very creative with her selling. On a lot of the lower end homes, $200k and lower, she would offer things like a plasma tv or a 4 day all inclusive trip to Cancun to the purchaser.
She’d have fliers made up for the open house that showed the big screen tv, or some beautiful couple lying on the beach. You could look in the people’s eyes and see that they were envisioning that big tv on their wall.
She never had a problem selling her houses that way, and always got her price. These types of things really appeal to buyers in this price range. Plasma tvs are selling for under $1k at Sams, and 3 or 4 day trips to Mexico can be had for even less. You may want to try something like this, before you start drastically slashing your asking price.
Just my 2 cents. Hope it helps.
Re: I think I,m going crazy… - Posted by SteveA (FL)
Posted by SteveA (FL) on April 17, 2007 at 11:39:21:
I wish I could offer some advice but I’m in the exact same boat. I’m sitting on two properties that won’t sell. I keep lowering the price and they still don’t sell. It’s just a slow market. It stinks. I’m just trying to re-structure to hang on till it recovers, and I’m planning on two years. Probably going to do a couple of negative amortization loans to get the payments low enough to try and rent them out.
Like you I’m so stressed over it it’s keeping me up at night and worrying all day. This is not how I had it planned! I still have a 40/week job but had planned to leave it this past January before all this happened.
Good luck to everyone!
Re: I think I,m going crazy… - Posted by Chris
Posted by Chris on April 17, 2007 at 10:35:05:
I do and don’t know where you are coming from. In my area Central NY, there really isn’t a way for the market to “crash”, mostly because it always sucks…but hey we are consistant, right. Anyway, sounds like what was once a steady sellers market has shifted into a buyers market quite quickly. As far as selling in a buyers market, now that is something I have had to master. I advertise myself and owner finance, I do not use realtors, they are slow and aren’t nearly as aggressive as I am. I then sell the mortgage after closing. I rehab, so my homes are head and shoulders above all others in the neighborhood, but that isn’t good enough, I sell on terms and even then it may take a month or 2, but they have all sold within 8 wks or so.
I do understand about not being into the “game” anymore. I have my days.
Re: I think I,m going crazy… - Posted by Chris
Posted by Chris on April 17, 2007 at 09:00:16:
Why dont you wholesale? Thats what Im trying to get into and it seems like a fun job…maybe theres something I dont know though.
Re: I think I,m going crazy… - Posted by Natalie-VA
Posted by Natalie-VA on April 19, 2007 at 07:53:24:
I think the coach got suckered. A cashflow of $600 per month for 4 properties and 10-12k equity per property is pretty much buying at retail IMO.
–Natalie
Re: I think I,m going crazy… - Posted by Sean
Posted by Sean on April 17, 2007 at 13:50:10:
Yea, those folks who enjoyed sellers markets and great runups are finding a rising tide lifts all boats… but the truly great can figure out a way to win even when the tide is out.
I live in an area similar to yours… RE here has ebs and flows, but it hasn’t been a sellers market, other than some small pockets in decades here.
Here finding the deals is easy, selling them, that’s where the real skill and work comes in.
Here’s the truth about rapidly climbing markets… you can sell just about anything fast… because everyone wants to buy because next month it’ll cost more… And when the party’s over… they fall like rocks, because no one buys unless they have to because they know it’ll be cheaper next month… Those with the ability to buy (A qualified buyers) sit on the sidelines waiting for the bottom.
In a slow market its all about CREATING buyers… not selling houses. Forget trying to sell to A qualified buyers, you may wind up with a sale or two that way, but it won’t keep you afloat. Find yourself someone who can get some sort of financing, or has some sort of $$$ and once they fall in love with one of your homes (which doesn’t take much if you are the only path they have to owning a home) you figure out a way to make it work.
In a slow/declining market A qualified buyers will pick and choose… those that never thought they could buy are much more your friend.
Plan your figures on making a decent profit if your buyer can only get an 80% or 85% first, and adjust your offers to buy rehabs accordingly. If you can’t make a profit at 80%-85% LTV, pass on the property.
Re: I think I,m going crazy… - Posted by DaveB (NJ)
Posted by DaveB (NJ) on April 17, 2007 at 10:56:11:
Chris,
When you say you owner finance, do you mean you finance the whole
thing for the buyer, or part of it? If so, you must have large cash
reserves to do the finance? I agree with you about realtors not having
the same intensity as you or I feel about selling our property–but I’d
like to know more about the owner financing part.
Celeste, I have a sense of what you’re feeling down there as I’ve been
trying to sell a condo in Deerfield Beach that was left to myself and my
3 siblings by our aunt. We listed it initially at $159,000, now it’s listed
at $115K and still no offers. Unfortunately, the perfect storm of
hurricanes, overheated market, and rising interest rates really
decimated the market.
Thanks,
David
Re: I think I,m going crazy… - Posted by Jim Adams, III
Posted by Jim Adams, III on April 19, 2007 at 21:12:38:
Thank you for your kind words of encouragement.The coach has 10k to 12k of profit in each property not equity, there is a difference. In our market a cash flow of $150.oo per month, after PITI and Property Management is a pretty strong deal. If you have better deals, please send them to me, we have buyers all over the country looking for good deals.
Re: I think I,m going crazy… - Posted by Chris
Posted by Chris on April 17, 2007 at 15:51:37:
I finance the whole thing, then sell the mortgage. So say I sell a house for 90k, buyer puts down 3k, I now have an 87k mortgage which I can sell for anywhere between 82-85K, depending on how the mortgage is structured.
Re: I think I,m going crazy… - Posted by todd hutch
Posted by todd hutch on April 17, 2007 at 14:35:18:
David, I will buy the condo on the following terms.
Purchase price of $78,200 with $5000 down and payments of $300 a month until paid off.