The Right Properties - Posted by Darin Auvil

Posted by Mike (KCMO) on January 19, 1999 at 21:56:50:

Hi Joe,

I have always loved the common sense approach in the advice you give. Tell you what, I’ll even buy you a drink. Just meet me on March 6th in Texas. . .

Mike

The Right Properties - Posted by Darin Auvil

Posted by Darin Auvil on January 19, 1999 at 18:20:25:

In many of the Q&A’s posted, there are several references to the “right property”. What is the right property? Im from Tacoma WA. and just getting started in REI. I need to focus on that “right property”, but without the elusive description… I don’t know where to really start…or what to look for.
I don’t want to mess around looking at properties I shouldn’t be looking at. Time is money…
Carleton Sheets for example refers to “Bread and Butter Properties” as “The Right Property”, but he never really goes into a description of what a property may look like, or maybe the age or condition …or whatever. Odviously a dump is just that and a costly thing to renovate, thus cutting into your return (maybe)…To expensive on the other hand does not allow for flexibility as far as say, meeting a 1% minimum rental return with postitive cash flow (depends). I may be answering my own question by stabbing somewhere in the middle between dump and Castle, but is there something more definative.

Re: The Right Properties - Posted by JPiper

Posted by JPiper on January 19, 1999 at 20:52:37:

The right property is one which is owned by a motivated seller. It?s the property that is owned by someone who is willing to sell to you at a significant discount, or on terms that are extremely favorable.

Which properties are those?? They are the ones that are owned by people who can?t afford the payments. Or they are the ones that people can?t afford to repair. Or perhaps the ones owned by people who are tired of being landlords due to non-payment by problem tenants. Divorce, death, job loss, job transfer, etc. are all conditions which can lead to motivation to sell.

These conditions do NOT necessarily lead to motivation?.but one thing for sure, everyone who is motivated has one of those conditions, or others. Targeting people with these conditions will lead to motivated sellers, and therefore to the right properties (those that will produce a profit).

Speaking of targeting, Joe Kaiser has a number of courses available which do an excellent job at accomplishing this, and has written a variety of ?How To Articles? regarding this subject. All are available at this site.

JPiper

Re: The Right Properties - Posted by Joe Kaiser

Posted by Joe Kaiser on January 19, 1999 at 18:38:13:

The right property is the one you can make money on. This notion that there are “right” and “wrong” properties is a tired cliche, just as the “1% minimum rental return” is. Forget that stuff.

Throw out the rules of thumb and get in there and negotiate your socks off. When the dust settles, if there’s money on the table that belongs to you . . . that was the “right property.”

Simplistic? Probably so, and you’d have to know a few things to pull it off, but that’s the way it works in the real world.

Joe