Posted by Curt Dalton on September 27, 2003 at 11:28:34:
100% Profit, Does It? That was the point of my post. No hidden agenda, nothing to read “between the lines”, etc. etc. You used the word “realistic” to define the profit on those checks which I think MIGHT be fine. But as I’ve tried to say, its not pure profit, is it?
If you want to go on about how great an investor you are, go for it big boy. I could care less about you and your deals. I was simply making a point.
Please don’t go putting words into my posts. I never said anything about my profit being “dismal” did I? did I say REI was dismal? No I didn’t. Nor did I say it was a “bad experience”. And frankly, I never asked you to comment on the deal, did I?
Why don’t you keep your rude comments to yourself and go make another perfect deal.
What a BIG Check I Just Got !!! - Posted by Curt Dalton
Posted by Curt Dalton on September 25, 2003 at 13:41:17:
Yup, just got out of a closing where I walked out w/ a check for OVER $53,000! Isn’t that great!!! You’d think so, huh? Ah, but numbers can be deceiving.
I was reading some sales script from a fairly well known RE guru saying he “backs up his claims of success with ACTUAL copies of checks” from his closings. He says that those checks “speak for themselves”. Well I got news for you, THEY DON’T!
Newbies, please pay attention here. Copies of large dollar checks don’t mean squat. Why? Well let me break down my BIG $53k check I just got.
First, I bought the place for $127k and b/c my credit’s good, I could go w/ a conventional lender. That requires a 20% DP. With closing costs, I had to bring about $25k to close. Next, I held the place for over 10 months. I had debt service in there for about $875/mo. Utilities ran me about $50-75/mo (A/C and heat). Fixup was about 12k. Insurance ran me around $800. Sold the place for $174k. Oh, and paid the 5% Realtor fee.
Anyway, doing a quickie calc in my head, I figure I might’ve made around $9-10k on this. Sure is a far cry from that $53k which is what the check says, huh? Did I make mistakes on this, yup. Bought it too high for sure and held out too long for the best price. These things happen in REI. Oh, well on to the next one.
So just a word to the wise…even those hot looking BIG number checks aren’t necessarily the bottom line; in all likelihood its the tip of the iceberg in terms of what they REALLY made.
Re: What a BIG Check I Just Got !!! - Posted by jasonrei
Posted by jasonrei on September 28, 2003 at 02:07:55:
My business partner and I make copies of all our title co closing checks. We joke about how we now have enough big checks in our folder to be gurus.
I know what you mean, Curt. One day I hope enough of our deals follow a pattern that the amount we get at closing determines how big our smiles are. Right now the check sizes don’t mean much.
Re: What a BIG Check I Just Got !!! - Posted by John V, FL
Posted by John V, FL on September 27, 2003 at 22:20:04:
Well said Curt but it still sounds like you still made 20-25% on invested funds which isn’t that bad. I see craziness all the time at the auctions these days. People paying $150-155k cash for that house you sold for $174k. Add in all the costs coming and going plus the risk of not even seeing the inside and they are losing money most times.
Sounds like more education is needed - Posted by Rich_Va
Posted by Rich_Va on September 26, 2003 at 23:12:55:
Those big checks are real out there. I don’t sell any course ware, but I do some very creative investing. I pull $17,000; $27,000; 38,000 etc. checks from closing and I may put in $1-3,000 and a little time, and with the $38,000, the seller gave me $1000 to take it off of her hands with a tenant in it. I go to no closing table when I acquire, and I have a broker put in the MLS, only pay 3% commission to a buyers agent or can sell it myself if I find the buyer. I sold it 3 months later.
The deals can be made, but you need to make them wisely. If you go out just looking for deals to be made no matter what, without proper education, or patience, you will put in a whole lot of work for little reward. Although they can be deceiving at times, don’t put all of the blame the course writers. It is you that makes the decision with your investments.
Posted by Curt Dalton on September 27, 2003 at 10:42:20:
from you, Rich on investing 101. I’m very happy you’ve done so well. Can I assume you’ve NEVER done a deal that’s gone different that you intended? If that’s the case, maybe you should be selling courses yourself or getting into some bigger deals, eh?
I’ve done fairly well in my investing. I don’t feel the need to talk about my successes on here. But I’m also human and have made my share of mistakes along the way and in all likelihood will make more in the future. Oh well, thats life for us non-perfect folks (well for some of us I guess, huh?).
The reason for my post was simple: numbers can lie and some of these gurus pitching courses and seminars lead you to believe that the actual number on those checks are PURE 100% profit. That’s wrong. And it seems others who posted in this thread agree w/ me on that.
I’m not BLAMING anybody or anything; just alerting newbies to be wary of the numbers these hot shots throw out there.
Thanks also for being so authentic about what its really like doing deals. There is definitely money to be made. Great money. But to think it’s Get Rich quick is a major misnomer.
I’ll bet (i’m guessing here) that much of that money is going back to lines of credit, credit cards, or partners who were involved in the deal. Just my experience.
My understanding of the “Big Checks” on the infomercials is cash received at closing when you are purchasing property, not when selling.
Checks received at closing when selling only tells the profit made on the deal minus ALL expenses.
Posted by Rich_Va on September 27, 2003 at 11:13:08:
Sorry if I hit a nerve, and I am glad that you have done successful in other deals, but your posting was leaning toward not being able to make large figures doing this creative investing and that after the dust settles, you will not get anything near what you thought. The numbers that these “hotshots” are throwing out there can be realistic, probably not as commonly as they express, but they can happen. Yes I have had deals that didn’t go as planned, but in my planning, I accounted for potential errors which still gave me a great return.
I will never claim to be perfect, but I don’t get into deals where the profit margin is questionablely low either. I am sorry you are bitter, but don’t paint dismal pictures for everyoneone based on your bad experiences.