Posted by DougO(NM) on February 07, 2000 at 15:29:10:
Socks and underwear rule Gator ! I mean, a guy can never have too many drawers of Towncraft or BVD ! As far as seeing the romance angle, I am very lucky that my boss,er,wife,understands that this is a vehicle to assist us to get where we want to go !
Take Care
Doug
Not your typical anniversary gift ! - Posted by DougO(NM)
Posted by DougO(NM) on February 05, 2000 at 20:26:56:
Yesterday afternoon, when we picked up the mail, we got a letter informing us that the VA had accepted an offer I put in to buy one of their Repos here in Town. (Though I already knew they would because my Realtor friend who handles the VA repos in this area called me a few days ago and told me so) Today, my wife and I celebrate our 6th Anniversary, and after returning from Sam’s Club, where we bought Coffee/Juice etc. for an open house we are having Monday and Pokemon Videos for the kids, as I was fishing in my pocket to give her a mint, she wanted to know where her anniversary diamond was. I laughed and reminded her of the the diamond I just bought her ! She looked at me for a second, (you know the one ladies!), then slowly the light went on ! You see, the diamond I bought her didn’t come from the mall, but I guess you could say it came from a “discount” place, ina town where there isn’t much discount going on due to demand. Housing is pretty tight in this area, and pretty expensive. Nothing much in the under $100K range, and when there is, it gets snapped up quick. So not theres not much in the way of cash flowing rental property. Now when I got the call from my friend to go see this unit, I jumped in the car and went right away. What others may have seen as a chunk of coal, I of course saw glimmering underneath the weeds and faded siding. A 14 x 80 single section manufactured home on a permanent foundation in a fairly nice manufactured home subdivision, on a HUGE lot. (can you say put in a nice multisection later on ?) Paved roads, curbs, city water and sewer. Friends, I can’t even BUY a piece of dirt and put in a well and septic around here for less than what was paid for this deal with the house! And here’s what makes it really nice. It was a cash offer with a letter of guarantee from a private investor who has now funded several of our deals. The best part is we have to put in very little of our funds, and the investor is at the point where 8% is good for them, and let me tell you it’s good for us too ! We will be able to rent this unit, pay the investor on a 15 year ammo, cover the taxes and insurance and still enough positive cash flow to cover any maintenance. What really makes it nice is the new carpet, and the fact that they (VA) fix everything like the mechanical systems, faucets, drains, etc. This unit is nice inside and all I have to do is some cosmetic work outside and a little landscaping. Did we get a screaming deal ? Maybe not, but it reminded me of a few guidelines I have heard over the years, which it did meet, that said, If you can buy it for 10% less than market, with 10% down (or less), with a Mortgage at 10% or less, then you should be ok. This deal exceeds all of those, so all in all, especially since someone ELSE gets to pay it off for us, I think it makes a pretty darn nice anniversary gift, even if she can’t flash it around !!!
Doug
Opportunity knocks, but you have to open the door - Posted by ray@lcorn
Posted by ray@lcorn on February 08, 2000 at 09:09:01:
Hi Doug,
I was so busy debating Garcia up above I plumb missed this post until this morning. Happy Anniversary to you and your wife! I wish for the two of you many, many more.
Your story of the VA deal reminds me that we make our own luck. What’s the old saw? “Luck is what happens when preparation meets opportunity.”
Most of us know there are opportunities all around us, at all times, in any market, and in any geographic area (except where you live!). But we sometimes lose sight of the fact that in order for a deal to qualify as a true opportunity there are some things that must exist on our side of the fence. We have to have the means (education, funds, contacts, motivation, etc.) to act.
As I read about your deal, I look at all the elements of preparation that went into your good “luck.” First, you made the effort somewhere along the way to befriend a realtor that has the inside line on VA repos, and probably other market knowledge as well. But that wouldn’t have meant much if you hadn’t also taken the initiative to actually bid on a particular repo. Even that would have been a fruitless exercise had you not previously have put in the time and effort required to establish a track record with an investor that can supply you with the funds needed to make cash offers. And all those actions together would not have made any difference had you not first been searching for the opportunity in the first place, learning your market and your business and developing the understanding necessary to know where to look for potentially profitable deals.
So your seeming good fortune is actually the result of a whole host of actions you undertook to make you capable to receive the “good luck”. I know you know this, and I appreciate your forebearance in letting me use your example to make a point. Thank you for sharing it with us.
I know you have heard me say this a hundred times, but I will repeat it again for those who may need to hear it, one of my favorite quotes and I can’t find the book I read it in to credit the author…
“Opportunity, without the capacity to capture it, is an illusion.”
In other words, if we haven’t performed the requisite preparation to capture an opportunity, if we haven’t first created the capability to act, then we are fooling ourselves that the opportunity existed for us in the first place.
That 14x80 is certainly no illusion this morning, is it? 
Hope its a great day in New Mexico today!
ray
nice gift - Posted by Gator
Posted by Gator on February 07, 2000 at 08:36:39:
Doug,
Not knowing the particulars of your deal my only comment is that with your knowledge of your market, I know you’ll do well on this one. Personally I’d love to get a home like this for an anniversary present but my wife doesn’t seem to see the romance in a 14X80. Oh well I’ll probably get socks and underware for my anniversary. Best wishes and Happy Anniversary. I always appreciate the info in your post.
Your friend,
Gator
Re: Not your typical anniversary gift ! - Posted by Vicki
Posted by Vicki on February 05, 2000 at 21:19:47:
A very Happy Anniversary to you and your wife!!!
Vicki