Posted by Bill on March 14, 2001 at 01:26:46:
That’s how it works.Buy the course and the industry
laughs at you. I would be very surprised if Mr. Whitley
has an answer for you. There are no money down deals but I feel these courses are no money in your pocket and all your money in their pocket.
Real Estate Investing - Posted by Paul Maguire
Posted by Paul Maguire on March 12, 2001 at 24:57:18:
Just a bit of lessons for those of you new to buying real estate from a seasoned investor. I have bought, sold, renovated, traded, lots and lots of properties, and hold over 13 million in real estate from single family to 2 million dollar multiunit buildings. I am 37 and do not have to work another day in my life, but I do, as will you , cause you love doing deals!!!
The biggest mistake I see in beginning real estate investors is there unwillingness to step up and take a risk. The other is an unwillingness to pay the price to take seminars, ask questions, be embarrassed once in a while, and spend a few bucks.
Here is some basics I use everyday:
Houses: look at the price per sq foot. compare what you are paying to what everything else is going for. There are deals in new homes as well, if you look at the price per sq. Often you can hold a home for 6 months to a year or more, with a simple 1000.00. Its like a lease option, with prices appreciating. Always buy near job centers, or growing areas where there is demand. I made over 250K last year buying new homes that when finally delivered, had risen in price substantially. I bought based on low price per sq foot starting prices compared to the market.
Units: Look at the cost per door of similar product, and look for under market rents owned by mom and pop properties. My largests is 32 units. ULtimately,this is where the money and cash flow is. with a duplex, 1 vacancy, you lost 50% of your revenue, with an apartment, 1/32nd of the revenue…I have buildings that I have owned only a short time, and they bring in 6 figures in positive cash flow.
I made almost all of my money on fixers in Oakland CA, mostly buying foreclosures. I paid points and got hard money loans, because the price was cheap for most of these properties, so 5 points was say 2500. I lost money and deals trying to mess with conventional lenders. ONce you get a track record, Hard money guys will lend to you all day long. Good luck out there, and if I can help any of you guys, let me know. RE is the best way to riches. I see all these dot com guys with their tails between the legs who were high and mightly last year. Remember too, real estate can be very forgiving in time. And a quote from a guy that owns a bank, had at one time 6000 units, and currently has 50,000,000 in tax free bonds from divesting all his real estate…" I never lost money in real estate by paying a bit too much, but often lost money in real estate by not paying enough". Good luck all. Paul
Re: Real Estate Investing - Posted by Erik Bergerud
Posted by Erik Bergerud on March 15, 2001 at 04:50:13:
Paul-
I am a new REI in Lake Tahoe… where it’s currently a high priced seller’s market similar to the Bay area. How would you suggest that I get started? I am educated with Ron LeGrand’s materials and am trying to track down some L/O, owner-financing, wholesaling deals.
Re: Real Estate Investing - Posted by Rick
Posted by Rick on March 13, 2001 at 23:29:06:
what is the best way to get started in real estate? I have had an interest in it for 2 years now. I wanted to know the easiest way to start and understand the real estate business. What would you suggest?
Thanks Rick
Re: Real Estate Investing - Posted by Steve (OH)
Posted by Steve (OH) on March 12, 2001 at 15:06:07:
I LOVE THAT QUOTE!!
Thanks for sharing.
Re: Real Estate Investing - Posted by Rose
Posted by Rose on March 12, 2001 at 12:47:34:
“mostly buying foreclosures. I paid points and got hard money loans, because the price was cheap for most of these properties, so 5 points was say 2500.”
Paul, I am thinking of buying my first foreclosure property and don’t want to pay much closing costs. The mortage on the house is on a high interest rate. So I need to go get my own loan. What are you talking about when you say paid points and got hard money loans?
I appreciate your input. -Rose
Re: Real Estate Investing - Posted by russ whitney
Posted by russ whitney on March 12, 2001 at 08:08:58:
Paul,
Great job! And I have a jillion people tell me it doesn’t work in California… : - )
Amazing.
If you ever get to Florida, look me up. Would love to chat for a few…
Keep up the good work!
Russ Whitney
Re: Real Estate Investing - Posted by Misty
Posted by Misty on March 12, 2001 at 06:50:54:
Paul,
Of course we love to hear these success stories, it’s very inspiring to us!!! This site is so wonderful I get on it faithfully 3-6 times a day just reading and taking notes…
My question to you is that you mention about hard money lenders and I’ve been hearing alot about hard money, exactly what is that and who are these lenders? I live in New York, I am about to take dive into a $200,000 deal, my first one, but I want to know about this hard money thing! Does it go on your credit report? And the thing that I liked is that you said these people will lend to you all day long if you are consistent, my partner and I have pretty good credit,my partner, AAA, but don’t want to use the conventional methods until we absolutely had to! Is going through a mortgage broker considered conventional? Let me know, I will wait for your answer before doing this deal as I have not made any offer yet…
Thanks,
Misty
Re: Real Estate Investing - Posted by Dee Smith
Posted by Dee Smith on March 12, 2001 at 06:12:47:
Hello Paul, what you said was very interesting, as well as confusing for a novice like myself. I’m a mother of two, who for years wanted to be an investor but never had money. Bought the Carlton Sheets program and RE agents just laugh. Needless to say I now have a negative balance in my bank account and very much want it to go positive but I do not know how to get started and dont have the funds for failure. Can you point me in the right direction? By the way, congratulations to you for all the success you’ve had. Also, if Mr. Russ Whitley is reading this I would very much appreciate advice from you as well sir. Thank you.