Sheets method does not work in NYC - Posted by Amir

import · November 20, 1999, 9:21am

Posted by Rob FL on October 28, 2000 at 21:29:42:

Before buying Sheets course, I would read all the how-to-articles and success stories on this website. After reading through these you can find a niche that interests you.

You don’t necessarily need credit or lots of money to invest in real estate. Certainly the better your credit and the more money you have the easier it gets to invest.

import · November 20, 1999, 9:21am

Sheets method does not work in NYC - Posted by Amir

Posted by Amir on November 20, 1999 at 10:21:37:

Hi, I bought Carleton Sheets Program last year and I have not been able to buy any property. I think it offers valuable information and may be an effective program. I live in New York City area and I tell you, I tried very hard to buy a property with his method but it appears that in a area like NYC the method simply DOES NOT WORK! Some of the reasons why it does not work is listed by Matt Gregnon in his website:

There are not that many houses in most areas that you can buy with no money down. Some areas won’t have any at all.
Many of the good assumable loan programs are disappearing. This will make no money down buying almost impossible in the future.
Buying houses and sticking renters in them is really hard work and can be dangerous. Wait until the first time you have a trashed house without any money coming in to pay the rent. I don’t know about you, but the idea of toilets and tenants doesn’t excite me.
Who wants to spend a lot of time driving around looking at properties when you could be making some big money from home?

In addition, most sellers I came across in my area wanted income and credit checks. Can any Carlton Sheets graduate in NYC area provide any advise/share his/her experience?

Thanks.
A.K.

import · November 20, 1999, 8:44pm

Re: Sheets method does not work in NYC - Posted by Rob FL

Posted by Rob FL on November 20, 1999 at 21:44:50:

Here is a tip. Look for motivated sellers. Normal sellers won’t do no money down deals. Motivated ones will. Here are two examples.

I bought a duplex for no money down. The duplex was fully rented, but the landlord was in foreclosure. Why was he in foreclosure? The duplex had a balloon mortgage on it and the balloon was already 6 months past due. The owner had bad credit and could not refinance. He ended up selling me the property for just simply taking over the payments. I ended up refinancing the property with Nationsbank. FMV=90K; amount I acquired it for (amount of the loan in foreclosure)=65K; new loan after acquisition=70K.

Another example, older landlord wants to sell a SFH. I had sent her a letter regarding the property and she responded to it. Because she had owned the house for 20 years and had paid off the 1st mortgage, she would have a huge capital gain. My letter told her I would be interested in buying if she would give me owner financing. She would with 10% down. Where did I get the 10%? Visa. Sales price=67K; Owner financing=60,300; 2nd loan from Visa 6,700. Since I was able to negotiate a nice 7.5% interest rate with the seller, I now have it rented for $150 a month positive cash flow. Once Visa is paid off in about 2 years, it will be around $230 a month positive cash flow.

Tenants and toilets are sometimes made out as a big bad deal. All it takes is a strong lease, a little knowledge, and some creative landlording to get by. For instance, I always make sure my tenants are “handy.” Why? Because my lease requires them to pay the first $50 of any repairs each month. That house I just described that make $150 a month profit, how many times have I been out there since the tenant moved in last November. Twice. Why only twice? Becuase the tenant makes all the minor repairs. The major repairs get made by my handymen.

For some good landlording tips you may want to subscribe to the Mr. Landlord newsletter. www.mrlandlord.com

This question might get more responses if posted on newsgroup 1.

import · November 21, 1999, 11:39am

Re: Sheets method does not work in NYC - Posted by Amir

Posted by Amir on November 21, 1999 at 12:39:01:

Rob,

Thanks for your advise and insight. Are you based in Florida or NYC? If you are in NYC, you probably know that in addition to barriers listed in my first posting, there is a huge housing shortage in both NYC and NJ areas. Thus, the real estate market is more “sellers market” rather than “buyers market”. Any comments?

Thanks

import · November 21, 1999, 6:38am

Re: Sheets method does not work in NYC - Posted by JA-FL

Posted by JA-FL on November 21, 1999 at 07:38:36:

Rob. Ref your advice to Amir in NYC. Although we see a lot of input on these sites that tend to make you believe,nothing works in NYC, something must? Rob, yours was excellent advise and We might add, “Persistance Pays” You have to keep looking until you find what you want. Its out there, its usually just having the patience and persistance to find it. The more you look, the more you learn what to look for and how to do it. Keep on Trucking.

import · November 21, 1999, 7:16pm

Re: Sheets method does not work in NYC - Posted by Rob FL

Posted by Rob FL on November 21, 1999 at 20:16:48:

I am in Florida. Never been to NY or NJ. I can tell you for a fact though that there are motivated sellers/distressed properties in any market.

There are two broad categories to look for.

Properties that nobody wants. Like fixer-uppers, title problems, termites, fire damage, etc.

And

Properties nobody knows are for sale. Like foreclosures, probates, divorces, tired landlords, abandonned, etc.

Get the idea? Like I said before, you may get more responses on Newsgroup 1.

import · November 22, 1999, 11:48am

Excellent advice… and text… - Posted by Mark (SDCA)

Posted by Mark (SDCA) on November 22, 1999 at 12:48:39:

I agree with this. My opinion is that in a seller’s market, some of the “traditional” motivated sellers are not… Let’s take divorces. If I were getting a divorce and could make 200K now by selling to you or 250K in 30-60 days by listing with an agent, I think Id find a way to tough it out. In a slow market, who knows how long it will take to sell or what you will get so it’s a different story. One more thought is that this is eventually going to change. Seller’s markets eventually become buyers’ markets.

As for the comment that “most sellers won’t accept NMD”… Yea, exactly. Everyone agrees with this. I believe Carleton himself may say this. But how many deals does it take? I would 1 or 2 a year and you are set. if you are beating the bushes enough, you will shake something out.

import · November 22, 1999, 2:11pm

Re: Excellent advice… and text… - Posted by Rob FL

Posted by Rob FL on November 22, 1999 at 15:11:17:

Another thing to remember is that just becuase you buy no money down, does not mean that the seller does not get any money at closing.

I buy a house for 100K from a seller. I get a new mortgage for 80K and seller financing for 20K. I put no money down but the seller gets $80,000.

import · November 24, 1999, 11:07am

Re: Excellent advice… and text… - Posted by Al

Posted by Al on November 24, 1999 at 12:07:49:

I’m very new at this real estate investing and before I buy a house I’m concerned about two things; Taxes and mortgages. I don’t know what the tax consequences will be and don’t know where to get a mortgage other than the bank or a seller. Banks take a month of Sundays to get it done and I doubt my credit, although not bad, will hold a second mortgage. How do I get around that? I assume a good accountant could help me with my tax questions. Right?

import · November 24, 1999, 4:52pm

Re: Excellent advice… and text… - Posted by Rob FL

Posted by Rob FL on November 24, 1999 at 17:52:37:

Yes, if you don’t understand the income tax side of real estate you will probably need an accountant or some type of tax advisor.

As far as mortgages go, there are lots of sources other than banks and seller financing. Contact a mortgage broker and ask about hard money loans. Also look in the phone book under mortgage companies for hard money loans as well. If there are any real estate clubs in your area, you may want to visit with them. You can probably network with people there to find some lenders. Credit cards are also good hard money loans. I use them all the time to borrow money.

Of course with any loans, you need to have a specific plan before you just go borrow any of it.

What state are you located in?

import · November 24, 1999, 6:30pm

Re: Excellent advice… and text… - Posted by Al

Posted by Al on November 24, 1999 at 19:30:16:

I’m in Texas - Dallas, but I’ve got a property in Virginia Beach and family in Indiana and Michigan. I was thinking about buying in those states as well, so we can travel back there and use it as a right-off. Any suggestions?

import · November 24, 1999, 9:17pm

Re: Excellent advice… and text… - Posted by Rob FL

Posted by Rob FL on November 24, 1999 at 22:17:34:

I personally am not fond of long-distance property management. You can always hire a full-time manager and cut 10% of your income, but you still have to manage your property manager to some degree. I do know of several people on this board who do long-distance management successfully, so I know it can be done.

Just some things to think about.

import · October 28, 2000, 8:12pm

Re: Excellent advice… and text… - Posted by curtis mitchell

Posted by curtis mitchell on October 28, 2000 at 20:12:25:

I AM NEW to the realestate market. before I spend money on carleton sheets method, should I clear up my credit.