Re: sheets - no money down course - Posted by Tony
Posted by Tony on December 07, 1999 at 01:46:09:
Please do not be discouraged by the post left by tang-o-rang. Anything worth having is worth working for to obtain.
The CS course is a very informative course that gives good techniques, if you understand how to apply them.
My suggestion to you is to invest in your education and let tang-o-rang continue playin tango @ their job.
The course is worth it. The best advise that I may give you is to look at the person that is giving you the advise. If they are not where you want to be and or have not applied themselves but only make excuses of their failures. I sincerely have a problem with that because it hinders new investors from even tryin.
You can’t lose by investing in yourself. Whether its that course or any other. Check out this site, Ron Legrand book"Quick Cash" is a good book also that gives
good information on several aspects of real estate.
Decide what you are tryin to accomplish with real estate and that may help you to decide which area of real estate that you’ll start.
Look, dont get too hype about buyin no-money down. because lots of investor’s really dont understand that technique. The reason I say this is because you make your money money in real estate when you buy it, and only collect it when you sell it.
Therefore, it you must be conscious of the price you are paying whether its no money down or not. Lots of investors will pay 100% plus of the value of the property, if they can purchase the property for nothing down.
It makes no sense because you are highly leveraged with debt and most of the time beginning investors may not have cash reserves and credit rating may not be strong or it may.
And if the tenant doesn’t pay, the investor now becomes a motivated seller. But he bought the house for no money down. He paid too much and the property is cash flowing, so price and the amount you are financing must be taken into consideration.
I say that to say this. When I first got into real estate I was hype about buyin. I just wanted to buy a house no money down( i didnt understand it) and pat myself on the back because I purchased a 3bd house for $45,000 with no money down.
Grigg Street Property:
Existing Mortg: 40,000(approx) $376.14(PITI)
Owner held 2nd: 5,000 5yr 7% $ 99.01
Total Mortgage Payments $475.15
Rented @ $495.00 minus 475.15 equals $19.15 positive cash flow…Hmmmm I did the deal no money down no out of pocket cash $19.15 net for the rest of my life whooo peeee dooo.
Well Im not actually accelerating toward financial independence…It was a good deal, but in the beginning new investors need to concentrate on building cash not equity…Equity does not pay the bills…cash pays…
As my experience grew I learned how to buy real estate…make your money goin in…let me show you
Example: Arlington St Property
Purchased price: $14,001.00
Appraised Value: $45,000.00
Arranged Financing:$28,000.00 secured by property first mortgage. Net Loan proceeds were $27,460.00 minus purchase costs $14,758.06. The net cash back @ closing $12,701.94.
This was actual cash back at closing$12,701.94 on this
2bd 1ba Liv Kit C/A/H
Fenced Yard(Nice Bread butter property)
Now the house appraised for 45,0000 the first mortgage is $28,000 10yr @ 8 1/4% $418.43(PITI) Rented @ $525, positive cash flow $106.57 plus 12k plus in cash and $17,000 in equity(Appraised $45K minus Loan $28k equals Equity $17K)
My question to you is which no money down deal would you do. Ive done both. Again, I reiterate dont give up because someone else failed ask them why, most of the time they dont because they gave up too soon.
Tang-o-rang…dont give up on real estate it works, give it a try again, but take a different approach.
May God Bless each of you in your real estate endeavors.