Short sale question from a newbee. Thank you. - Posted by Rose H.

Posted by Natalie-VA on September 25, 2005 at 08:47:30:


I saw that your first post hit some nerves, but I think you were on the right track. Yes, you can find deals with no money and bad credit. The great people on this board are excellent at encouraging newbies to get started, but sometimes we need a realist.

The fact of the matter is that this is a business which takes planning and discipline. People who have bad credit and no money really need to learn how to run their personal business first, otherwise they will fail in other business.

I appreciate the original poster’s enthusiasm, but the odds aren’t with her to be successful if she doesn’t fix her problems with her personal finances.


Short sale question from a newbee. Thank you. - Posted by Rose H.

Posted by Rose H. on September 21, 2005 at 13:52:19:

Thank you for taking the time to read my post!
I would just like your opinion on weather or not you would recoment short sales to a newbee like me? I read in the archives someone sugesting that short sales are not a good idea for unexperienced REIs. That person sugested “quick flips” by wholesaleing. I have considered wholesaling to start off with since I have bad credit and no money.
Any comments are welcome.

Mobile Homes. - Posted by Philip

Posted by Philip on September 23, 2005 at 13:35:09:

Except re-invested profit none of my money is invested in what I do.
I only have done a few mobile home deals, but I have a few k in the bank, cashflow, and equity value on a few small pieces of RE.

Their is a guy on the mobile home site that has a phrase GOTC.
Go check it out.

It takes HARD work, PERSEVERENCE, and after that mostly hard work and perseverence.

Knowledge IS power.

Some of your first answers may be a little curt on any of these boards…but don’t worry about it.


It takes money to play this game! - Posted by caseygump

Posted by caseygump on September 23, 2005 at 01:14:16:

Don’t give up on your pursuits, but I have to tell you, it takes money to set up your business. You have to pay for marketing, you need a computer/laptop, MUST have that cell phone that you will talk on 1-2 hours a day at least. Fax machine, copy machine, postal mailbox, shoot, business checks cost around $85! You will have paperwork out your ears, you need to buy office supplies to manage your paperwork and file cabinets, a desk, supplies to have in your vehicle when you are out in the field checking houses. Don’t quit your day job. Yes, it doesn’t cost anyting to write up a contract and flip it to one of the 100 rehabbers that want your deal and will pay you an assignment fee, but it takes $$ to get in that position. I’m not saying don’t do it…but you have to get a job to raise some cash to get there. And GAS for your car to drive to all the houses…study this site, it has a wealth of info! Good Luck!

Re: Mobile Homes. - Posted by Rose H.

Posted by Rose H. on September 23, 2005 at 17:34:43:

Thanks Philip! I will check out the mobil home site. There are a lot of mobil homes in the area where I live. Most are in their own land. We do have a few parks. Is there a big difference on how deals are done with mobil homes with their own land as opposed to single family homes? I might have a chance to do a deal on a mobile home on .25 acre. The home it self needs a lot of work. I will continue to educate myself and to learn as much as I can from folks like you who seem to be sucessful and who are nice enough to help a rookie like me.

Re: It takes money to play this game! - Posted by Rose H.

Posted by Rose H. on September 23, 2005 at 17:24:14:

Thank you for your responce and advice. I do understand what you mean that I might need certain supplies to run the business. Most of what you listed I do already have except for the fax machine and bussiness checks since I don’t have a bussiness account yet.
When I said I didn’t have money I meant the money for example that it takes to give a down payment to get my own finacing. I don’t have thousands or even hundreds saved up at the moment.
I will deffenately continue to educate my self as well!

Why didn’t anyone tell me? - Posted by michaela-ATL

Posted by michaela-ATL on September 23, 2005 at 06:35:08:

Here I’ve been doing real estate fulltime for 10 years and noone bothered to tell me, that it can’t be done without computer (didn’t ahve one when I started - still don’t have a laptop), copymachine (don’t ahve one - go to staples if needed), cellphone (didn’t get one until 4 years ago), no or business checks - gee, if someone had only told me, that I needd all that stuff I could have - gasp - stayed in my dayjob.


Terrible post. - Posted by js-Indianapolis

Posted by js-Indianapolis on September 23, 2005 at 02:10:19:

Terrible, negative, awful, uninspired post. Why make a giant list of all the things that could get in your way? Most of what you listed aren’t “needs” anyhow.

I did my first deal with $1 in earnest money. I didn’t ever talk to the owner on a cell phone. In fact, I never saw her. Fax? Mailboxes etc. was used for another $1. Post box? For what? Copy machine? Right, I’ll buy a $500 copy machine as opposed to making ten cent copies. Business checks?

Before you get all that stuff, you can flip a deal. No, you don’t need a JOB to raise money to get to a deal. You need to work smart. I made a phone call to a FSBO seller, and netted a 5 figure deal. I still laugh thinking about the title company accounting for that $1.

Think of what’s possible, and you’ll see the possibilities.

Carefully read - Posted by Philip

Posted by Philip on September 24, 2005 at 07:21:11:

Carefully read every post on that site written by Tony, Steve, Karl, Anne, and many others.
They have tons of experience and ambition and expertise.

Mobiles are different from homes.
Mobiles on land can be similar.

If you buy any materials Lonnie Scruggs book “Deals on Wheels” is the best $30.00 you will ever spend.

Tony Collello’s book is priced low and is good for mobiles with land…which by the way are the ‘most sought after type of residential property in the country’.


Re: Why didn’t anyone tell me? - Posted by Caseygump

Posted by Caseygump on September 24, 2005 at 16:03:55:

Rose stated in her post, " I have bad credit and no money. " Guys, I’m sorry if I gave a negative, terrible post.

My marketing costs money. I’m glad that YOU can find motivated sellers without paying money to advertise. Just how is she going to find these properties to flip? If I don’t answer the (cell) phone live and get out there THAT day with a contract, I lose the deal to my competitors.
If you are doing “business” from your personal checking acount with your home address on it, you are not only being dishonest with the bank and the IRS, you are exposing your home address to sellers and contractors. Same address issues on your marketing: to get a forwarding address on return marketing pieces you must have a return address, it’s not going to be my home. In my metropolitan area, most all of the records I need to access are on the Internet, I understand in some smaller areas you actually have to drive to the courthouse to get information. The computer saves time and gas. I don’t know how you deal with your title companies and mortgage companies without sending and RECEIVING faxes. You are correct on the laptop when starting investing.

Rose, learn and do Real Estate investing. I’m sure everyone does things differently and you may very well not do anything like I do. But don’t let anyone tell you that you don’t need a slush fund to get started.

Re: Why didn’t anyone tell me? - Posted by Rose H.

Posted by Rose H. on September 23, 2005 at 17:40:20:

You brought me some relief and well as some chuckles =). Thanks!

Re: Terrible post. - Posted by Rose H.

Posted by Rose H. on September 23, 2005 at 17:08:05:

Thank you for your inspirational post! Congratulation on your first deal! I’m more than ready and willing to do the work it takes to succeed. I know it won’t be all sunshine and roses and that like any business it can take time for me to be at the point where I can live on the proffits alone. But like you I believe in dreaming big.
Is earnest money what you gave the seller to secure the sale to you?
How is your bussiness doing today?

Very simple… - Posted by michaela-ATL

Posted by michaela-ATL on September 24, 2005 at 21:30:04:

I decided to find some niches, that others don’t do. So, I don’t have a lot of competition to deal with. I don’t have to worry about other investors going after the same properties. I live 5 minutes from the courthouse and love to do research there. I can find a whole lot more than i can find online, because they only have stuff after 1980 online.

Where am I being dishonest to the bank and the IRS?

Frankly, I have no problem with exposing my home address to my contractors. Hav enever had any kind of problem with that. Sure, anything can happen. I can also get hit by a bus tomorrow. I like to live dangerously.

Yes, it’s nice to have funds available. BUT, guess what, if you really want to, you can find deals without money or credit. It’s all about your own personal attitude.


Re: Very simple… - Posted by Caseygump

Posted by Caseygump on September 24, 2005 at 23:30:07:

Thanks for responding. When I saw that I offended people with my post, I thought about it all day. That was not my intention in any way! I have learned so much from this board and I do not want to be a “negative” poster. But I just remember when I started my investing career that I was spending money before I had an income and it was nerve racking. As far as the business checking goes, I learned that lesson with another business I had in the past. I was using my personal checking account to receive funds from my customers, and paying expenses with it also. I didn’t think much of it or that I was doing anything wrong. Oh boy, when the bank found out, they let me know in no uncertain terms that it was fraudulent. Inquire with your bank and see what they say, don’t take my word for it. They also “threatened” to report me to the IRS, because they accused me of not reporting earnings. I’m sure that you are working a legitimate business, but some people hide their income that way. I was also concerned that the original poster would be taken advantage of in her zeal to start this business. There are very good “gurus” that sell quality products, and there are “gurus” that charge lots of money and sell empty promises. She said, “no money and bad credit” in her original post, and I didn’t want that situation to worsen. I totally agree that you do not need good credit to do this business. If there’s value in the deal, you can find money anywhere. I also go into contracts with sellers using my company name and PO address for several reasons. All contracts in my state are assignable and I write “and/or assigns”, but it makes for a smoother transaction at closing when the seller sees another buyer on the contract.