Is there a deal here? - Posted by Randy D.

Real Estate Investing
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Posted by SCook85 on January 22, 2000 at 16:55:28:

Perry,
I can honestly relate to where you are coming from right now. It took what felt like and eternity for me to get my first deal behind me. When I came across the sellers on my first deal it was an awakening. These sellers were begging me to take their home. They had tears in their eyes having to let it go, however part of the tears were happiness. At that time I only signed the contract but I knew what they meant at that very moment by the what is usually quoted as “if the deal is good enough the money will come”. I had an appraisal in hand and a contract for 30% of the appraisal. Wasn’t very hard to have people coming up with the money for that one. I was instantly cured. I don’t think I ever dealt with another unmotivated seller, at least I got out the second I realized they were not motivated.

As far as the “Happy Investing” goes, Happy anything and everything is what I experience now. I too lived a life absent of happiness and it cost me dearly. It’s just not worth it. As I learn to live a happy life, things seem to get easier. So do as you said, “SHOUT IT FROM THE MOUNTAIN TOPS”, that in in itself does a world of wonder and curing!

I’m shouting out now,

HAPPY INVESTING!

Steve Cook

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Is there a deal here? - Posted by Randy D.

Posted by Randy D. on January 22, 2000 at 01:26:40:

One of my co-workers is selling his house. It is in a good area and the FMV is 150,000. The mortgage balance is 140,000. With closing costs and commissions he wants to net at least $2000. I tried to get him to LO it to me but he is adamant about getting at least $2000 out of it. Is there any way that I can LO it from him or just get the deed without coming up with $2000 out of my pocket? The monthly payment is $1175 and I’m sure I could get at least $1250 a month from a T/B. Any suggestions?

3

Re: Is there a deal here? - Posted by SCook85

Posted by SCook85 on January 22, 2000 at 06:48:14:

You need to have a motivated seller in order to be able to put a deal like this together. The deal appears to be way to tight, especially when it is with a co-worker. I think I would pass on the deal.

But if you feel that you must move forward I would work it from this angle:

In my area commisions to sell a house are 6-7 percent (I thought it was like that everywhere until I went to North Carolina where standard is 4.8%). With a $150,000 sale price his commission would be $10,500, less his share of closing costs, about $1500, less any other contributions or repairs that he may have to make, we’ll assume $2000. He nets only $136,000. He would have to pull $4000 out of his pocket to make the sale happen, he surely wouldn’t walk away with anything, at least not where I live.

Time will take care of the $2000 on its own. I’m guessing that he has not had his home on the market for a very long time. The best thing to do is wait it out, let him know what you want to do and tell him to contact you if you can ever be of any help. Then don’t worry about it again.

Remember: You are looking for motivated sellers- Not houses!

Happy Investing!

Steve Cook

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Re: Is there a deal here? - Posted by chris

Posted by chris on January 22, 2000 at 01:51:14:

Will he take the $2,000 over time. You could split the positive cash flow with him from rents until he is paid. If he is not hooked up to a realtor mention that he can save commission by lease optioning to you. You could also offer to split the saved commission. Maybe he would consider getting an equity loan for the cash he needs with you paying it for him. Another way to get the $2K is by getting a nice sized security deposit from your tenant.

Using your above figures for a positive cash flow of $75 per month have you included taxes and insurance, garbage removal,etc? Any work need done on the house?

-Good luck, Chris

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Just curious - Posted by Mark-NC

Posted by Mark-NC on January 22, 2000 at 15:43:23:

Steve,
I am just curious where in NC were you that they had the 4.8% Real Estate commissions. I know they are not like that where I am ( Standard is 6%).
Thanks in advance
Mark

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Making that last line my mantra. - Posted by Perry IL

Posted by Perry IL on January 22, 2000 at 11:42:47:

Good morning blue vaser,

I was about to leave the house to go serve my penitence for having NOT implemented, that which I know… about the biz, and for having NOT implemented, that which I have learned… from this site, which means I am STILL a slave to a paycheck / j-o-b.

Having said that, I chose to take one last peek at CREO, before heading out the door, and this particular posting / respondent, caught my eye.

Funny how these things work.

The student appears when the teacher is ready, and…the teacher appears when the student is ready.

Steve your final comment to Randy is a simple enough concept to grasp, yet it is also worth pointing out what a powerful commandment / mantra, it can be for us / me !

Allow me to repeat it. " You are looking for motivated sellers-Not houses ". That message is not lost on this soul !

Happy investing is an excellent salutation as well.

I have found the whole adventure of investing to be quite taxing on my psyche. Having struggled way more than is necessary, for the meager results at hand, I can honestly say that the human emotion "happy ", is all but absent from my " feelings " portfolio.

The axiom that we move away from pain and towards pleasure, and that we move towards pleasure and away from pain, is evidenced by my own personal situation with regards to the biz.

Hey, it ain’t been much fun folks!

My achilles heel has been and continues to be financing / funding of any and all deals. More pain / unhappiness.

Oh yes, I can see and feel the therapy is already starting to work, by the process of placing inner dialogue upon this screen and by going thru the motions of personal reflection today.

The light bulb is going off.

Abundance and prosperity.

This particular exercise / teaching preceeding the convention, and taught by John Behle, is the healing elixir that I feel is vitally necessary, to open the constricted supply vessels which feed the creative / tempermental parts of the brain. (mine)

It is my fervent wish to attend the CREO convention, and it is mandatory for ME in doing so, that this high performance turbine engine which I call my brain, receive only the finest tune up and inspection possible.

While readers cannot possibly see it, I wear a Texas size grin upon my face as I think of all the " health specialists " that await my arrival at the neuro-surgical repair center in Atlanta, GA. (CREO), whom will administer to me, using their life saving skills and techniques, to restore the broken mind and soul of yours truly.

Happy investing !

Yes indeed…shout it from the mountain tops brothers and sisters !

HAPPY INVESTING !

Blessings to all who visit here, Perry, IL.

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Re: Just curious - Posted by SCook85

Posted by SCook85 on January 22, 2000 at 16:30:36:

Mark,
I was in Raleigh, NC. I was talking to a realtor there when my brother was looking for his homes. All the listings showed 2.4% to the buying agent and the selling agent. When I asked her about it, she said that’s all they get. If they normally make more, she didn’t lead on to it.

Happy Investing!

Steve