Posted by Jim IL on February 13, 2001 at 13:55:39:
Bud,
Could not have said it better myself.
That is exactly the point of saying the 65% rule.
I also like to use the word “Severe” when I talk about buying at a discount.
When sellers ask, “why so low?”, my response is that I use my own funds in addition to private investors, and in order to insure that these investors loan to me rather than someone else I need to give them a good return on their money.
I also tell the sellers that by going so low I can get the funding together FAST, as in a 10 day or less closing.
Re: Questions to ask sellers? - Posted by B.L.Renfrow
Posted by B.L.Renfrow on February 16, 2001 at 21:31:58:
Sure, I think it’s possible, though others have told me it “can’t be done in a town that size.” The trick is to diversify. Instead of doing only lease-options, or rentals, or mobile homes, you have to be flexible enough to work a deal however it comes along.
I do mostly subject-tos and then sell with owner financing at the moment. I’ve also done lease options, rentals, flips, Lonnie deals, notes and hard money cash deals. About the only thing I haven’t done is rehabs…and that’s only because none of my offers on junkers have been accepted.
My problem is, I’ve spent a number of years in a profession which I enjoy, and spent a lot of time getting good at. But I grew weary of having my livelihood depend on the whims of others. So now I do both, each essentially part-time. I have no doubt I could do very well with nothing but full-time RE investing…though I would have to work harder at it than I do now.