Re: “No Money Down” real estate - Posted by HR
Posted by HR on May 17, 2000 at 19:36:07:
Here are some thoughts to consider.
First, this site is for the (free) personal education of all regarding rei. Take advantage of it. Read the posts, the free articles, etc. and keep an open mind.
Yours is a very, very basic question. Allow me a stab at some reasonable responses.
Assertion #1) Sheets ain’t current anymore. Ben, this is nonsense. The techniques that CS advocates are timeless; the laws have not changed to hinder them, especially since many of his techniques involve creative ways to come up with a down payment (in tandem with owner financing). Using credit card advances, borrowed funds, asset swaps, etc. will not be outlawed, especially by re laws.
Assertion #2): A rose is not a rose is not a rose. True. The rei market varies from region to region. One region may also have a lot of older houses and thus be a better ploy for one technique (like rehabbing) than another region that may have a lot of homes not selling very quickly (lease option). So what. Thats EXACTLY why one should know multiple rei techniques, ie. so one can capitalize on the unique opportunities of your market. The solution is greater education, not less.
Assertion #3): CS ain’t investin’ no more; what gives? The truth, Ben, is that selling info to large numbers of people (with large profit margins) is easier than hustling to create a re deal. The sad, horrible, unforgivable, distasteful, democratic, depressing truth is that rei takes work. A LOT of work. Selling info is easier than creating deals.
Now, that does not necessarily invalidate the quality of his information. Just cause he no longer practices what he preaches doesn’t make his sermon any less valuable or accurate. It just means he ain’t current with the market. And that’s the context one must remember with CS: he certainly ain’t current with the market.
Assertion #4) If it’s so lucrative, why spread the bread? This is my personal favorite. Ben, let’s think about this for a moment. Suppose you had a rei technique that was so profitable, you could make 10k on at least every deal you did. How much money could you make in a year?
More specifically, how much money could you make in MY market in a year? If you become proficient and make money in your market, why do you think you can automatically invade and make money in my market? CS says that there’s enuf re deals within a 5 mile radius of your home to make you rich. He’s right. Why then, would you want to travel thousands of mile to my market, to compete with me, long distance, when you can do well right around your own block? You see, Ben, he can share it because (as you pointed out in assertion #2) re is location specific, and one person’s success in one market doesn’t often impact my success or failure in my local re market. Hence, he can share it without much fear of competition.
Assertion #6) Greed. The truly wealthy, truly successful get to the point where they have made it, and their new personal wealth becomes sharing their knowledge and skills with other addicts who love the same pursuits so they can watch these proteges become wealthy too.
Assertion #7) these bums have made some big boo-boos. Yes, some of them have. Take the great rei, Bob Allen, for example. Here, you have to separate the wheat from the sherman tank. Bankruptcy can mean big time scum bag scam artist. BK can also mean big time mistake, which has made the person even more qualified (ironically) to speak to and mentor others. Each of us has to decide which is which.
In order to decide, though, you have to actually assess the information. While you may not want to buy the CS info, there is lots of info here about rei. Read it. See if it makes sense. This is not one big conspiracy to sell tapes and books. We are all real, independent people making posts and living lives.
I’ve stated my opinion in a post below about CS; I don’t think it’s the best place to start. It sure beats not starting, though.
PS. I disagree with some of my compatriots who disliked the sarcastic response to you. I enjoy a 'bout of intelligent scarcasm every once in awhile. For every ying, though, there is a yang. If one of them had given you a thoughtful response, I probably would have been a rude dude. C’est la vie. If that offends you, you probably don’t have the mettle to be your own business owner, especially in re.