Maybe a quick close and sale is a better option - Posted by Trish Martel

Posted by Dr.Craig Whisler CA NV on September 13, 2003 at 12:59:38:

… my kids. The most precocious one points out there is one added benefit to borrowing from your parents. He says the notes are self-canceling if you wait long enough. Arggggggh!

Grab the wedding shot gun ma.

Regards, doc

Maybe a quick close and sale is a better option - Posted by Trish Martel

Posted by Trish Martel on September 12, 2003 at 20:07:43:

Hi. I did a post based on finding finance at appraisal value not purchase price. The area our home is in is highly desirable location in NH, I’ve even contemplated converting to a mobile home park but lack the necessary funds. Right now am wondering if owning this place is worth the headache. This may be a stupid question but would it be wiser just to make a quick close on this property, then sell considering the market analysis came back being so much higher than the purchase price?

Re: One final caution… - Posted by Greg Meade

Posted by Greg Meade on September 13, 2003 at 08:37:29:

make sure the investor type you bring into this deal is 100% trustworthy. In order to make this happen quickly, you will need to make a full disclosure to this investor. Deals like this tend to bring out the very worst in some people…a signed non-disclosure contract prior to opening up the deal would not be out of line…I am sad to say this should include family members. I really like Doc’s option idea. Maybe take a 1k loan against a paid off vehicle or borrow a grand from grandma. Sent 1300 to a son 2 weeks ago for a similiar (much smaller) deal. The most critical thing is to legally bind this puppy down…today! Please post and let us know how it sorts out!

Excellent advice from Greg. Beginners … - Posted by Dr. Craig Whisler CA NV

Posted by Dr. Craig Whisler CA NV on September 12, 2003 at 23:25:35:

…don’t need ANY cash when starting out IF they know these techniques.

I would consider buying a 90 day option for about $500-$1,000. If necessary take in a partner right from the start. Where do you find a partner? Well anyone with $1,000 still left on a credit card would be a good start. Offer them a chance to make 1,000% profit in just a few months. You could probably do this more profitably than to take in a 50% partner. Think about it for a miunute. Don’t you think someone in your town would be interested in turning $1k to $10k quickly without even using ANY of their own money? I do. You could have a $200k profit going here. Why give up $100k to a partner if you just need $1k for an option? You could then, never actually buy the property (read NO CASH NEEDED), but instead, sell your option to someone for $200k or whatever you can get. An option would tie up the property for 60-90 days to give you time to see if you can resell it (at any profitable price). If you can’t resell it just let the option lapse, and let your credit card confederate simplly lose the $1K. Its a small risk for the probability of a $10K profit.

If you are just starting out as an investor and you don’t have any money to work with yet, another way to do this deal, without a partner or money, would be to sign a contract to buy it providing for a 60 or 90 day escrow. Simply include a weasel clause that says something like this agreement is subject to the approval of your dog Spot (or any person you can CONTROL like a husband, friend or attorney). This way you don’t even have to buy it and close the deal OR even pay for it. You can just sell your contract for whatever you can get for it. The only hard part about this is getting the seller to sign the contract without a large cash (non-refundable) deposit. I have done this time many times though and you can too. I never put up more than $1-$100 for an escrow deposit. When asked for about money you just quote the creative investor’s motto…I’VE GOT SOME MONEY COMING. Don’t you have an income tax refund coming next year? Well then you’ve got some money coming, dont’ you? Everyone should memorize that standard BS line to explain why they can’t put up a large deposit right now. I know real estate agents hate this. They will swear that at least a 10% deposit or more is required by law or by an act of God but it just ain’t so. I don’t give a hang for what real estate agents claim is “customary”. The agent just wants to know where his 10% commission is going to come from if you fail to perform on your contract. But it won’t be coming from you because you will be protected by the escape (weasle) clause.

This sounds like a super deal. Go after it and remember what Greg said, “you don’t steal in slow motion”. If you are slow I may get to it before you do. What town did you say you live it?

Regards, doc

Re: Maybe look for an investor… - Posted by Greg Meade

Posted by Greg Meade on September 12, 2003 at 22:13:07:

with the needed capital. I know there are bargains like this out there…be careful and do all due diligence. will present zoning allow increased density of mobile homes? If d.d pans out, don’t try to steal i n slow motion. Tie it up and flip it for 100% value or jv with money man for increased profit. 12% for short term souldn’t be a deal killer…Good Luck

defenitely get signature from relative - Posted by Philip

Posted by Philip on September 13, 2003 at 08:50:56:

I love most of my relatives but people get amnesia and stupidity when money is involved. I know you know…but just a reminder.

Lend a buck, lose a friend. - Posted by Dr. Craig Whisler CA NV

Posted by Dr. Craig Whisler CA NV on September 13, 2003 at 11:05:31:

Friend of foe, here is what I usually do…I put into writting any transaction involving $100 or more. Years ago it was $25, and as a kid dealing with siblings it was 25 cents. If you are rich or religious, its still 10 cents.

We tend to have less trouble with strangers because we are more circumspect and wary of them. Watch out for family members and friends though. PUT IT IN WRITTING with EVERYONE, if it involves $100 or more. All parties sign the writing. All parties get a copy (to jog their memories). If you don’t have a photocopier just make duplicate originals and label them as such.

Its a little like the, ‘good fences make good neighbors rule’. Good contracts make for good long term business relationships. Be fair. What is worth more, a one time deal in which you make double profits or a life time business relationship that involves hundred of deals with single profits? Even if you are in a position to overreach a little, don’t do it. Most deals won’t come to fruition unless they are MUTUALLY profitable. Leave something on the table for the other guy to make it in HIS best interests to fulfil HIS part of YOUR deal. This took me many years, and millions of dolars in lost profits to learn. I’ve always tended to go for the jugular but it isn’t the most profitable policy in the long run. It isn’t the go-getters who prosper most, it is the go-givers.

Verbal agreements are only good for starting arguments, causing defaults, and ruining friendships.

As for dealing with those close to us remember the admonition: Lend a buck,lose a friend. More than a little truth in that one.

Regards, doc

Re: Lend a buck, lose a friend. - Posted by Philip

Posted by Philip on September 13, 2003 at 12:42:57:

I have legal prommissory notes that I send to my parents when they invest. And I get along best with them. Any other relatives(my brother) I can’t deal with. And it is a shame because he needs to learn how to invest and has some money. I know more about the investing and need the capital.
Years ago I told my parents we needed written agreements and they poo-pooed the idea. Now they admit it was best for all.

Re: Amen / NT - Posted by Greg Meade

Posted by Greg Meade on September 13, 2003 at 11:31:29: