What is the best thing to focus on? - Posted by Tony Cooper

Posted by Ronald * Starr(in No CA) on January 27, 2002 at 24:58:24:

Tony-----------

$2K is not too bad as a finders fee for some deals. For this one, I agree with you.

It seems awfully tight to me. Paying 85% and you have to get the work done. Now, this may in part be determined by your plan. Long term hold? What rent. What is the cash/cash return, what is the cap rate at the purchase price. Quick turn-over. Could you find a handiperson to buy and do the fix-up work? Or do a take over sj to and then “sell” on a lease/option with the leasee/optionee taking over on the fix up work.

If you can minimize your time investment, this might not be too bad. I am thinking now that the way to evaluate it is to compare it to other deals that might be available now or that you have gotten in the past. If this is better than anything else you can see on the horizon, that might make you a little more inclined toward it.

Nice that you are getting some response from your advertising.

Good Investing********Ron Starr*************

What is the best thing to focus on? - Posted by Tony Cooper

Posted by Tony Cooper on January 25, 2002 at 14:55:01:

Maybe one of the more experienced investors could give me their opinion or advice. I already own 8 sfh holding them as long term rentals, however I have never devoted much time to my real estate. I now want to make it my full time business. I have good credit, I have open credit lines combined of more than 50K (Credit cards home equity lines etc. with low interest 6% - 12.99%) I know people that have more money that I could borrow from them short term (30-90 days at low rates). Note: Average house in Valdosta GA where I live is aprox. 70K

I have studied the Carleton Sheets course more than once and I have read for hours on this web site; all of the money making ideas, all of the how to’s, most of the success stories and many of the posts. I feel like I know so much about RE and I even own houses but I still feel like a newbie because I am not making deals every month and the deals I have made were not nearly as profitable as some I have read about on this site or in the Carleton Sheets infomercial.

Finally My question is:

I want to make my living in this business. Knowing what my resources are, what should I focus my attention on to allow for the quickest success? Success being: not needing another job to support me, building net worth and cash flow

Re: What is the best thing to focus on? - Posted by Ronald * Starr(in No CA)

Posted by Ronald * Starr(in No CA) on January 26, 2002 at 17:09:10:

Tony Coooper------------

I think that Eduardo gave you good advice. Know what YOU like to do and want to do. That is the place to start. Compare other people’s investment programs and ask “How would that fit me and this locale?”

I have a long post laying out my prescription for success in real estate invseting. It is at message number 59703 on the main bulletinboard of CREONLINE.COM in 2001.

I think that you have success stamped on your forehead. You just can’t see it yet, because you haven’t held up two mirrors. You have, as Eduardo, pointed out, a lot of experience with a certain real estate investment approach. You might want to expand that or you might want to develop another approach for more immediate income. I personally like the long-term holding, but that is not the only way to go. And it can be combined with some sort of quick resale techinque.

The money that you have available suggest to me bargain real estate buying. One approach is foreclosures. This is a risky business, but can be very profitable. I usually try to discourage beginners from doing it. But you are not a beginner. It mas still not be for you, but at least it fits with your cash/credit availability. I think the best guide to a range of bargain buying approaches is Jack Reed’s “How to Buy Real Estate for at Least 20% Below Market Value,” which can be found on his website.

Good Investing*********Ron Starr************

Re: What is the best thing to focus on? - Posted by Kent C

Posted by Kent C on January 26, 2002 at 04:48:41:

Not knowing where you are in life exactly, I’ll take a guess that you may be similar to me. Here is my story:
http://www.creonline.com/ss-166.html

Kent C

Re: What is the best thing to focus on? - Posted by SCook85

Posted by SCook85 on January 25, 2002 at 19:39:45:

Tony,

You need to be more specific with your goals in order for anyone to help. In order to know how you are going to get somewhere you first need to know where you are going. The only thing we know about where you are going at this point is that you want real estate investing to be what you do full time.

Eduardo gave you a lot of questions to ponder. Are you looking to make passive income, if so how much? Are you looking to do rehabs and cash out? Once you know where you are going, you can probably answer this question yourself. Things get really clear once you know where you are starting from and your ending point. It really narrows down how you are going to get there.

Steve

Re: What is the best thing to focus on? - Posted by GL(ON)

Posted by GL(ON) on January 25, 2002 at 17:21:15:

Don’t quit your job until your real estate income is big enough to replace it.

Also, without a steady pay check your ability to borrow plummets to practically nothing. You must build up your ability to borrow based on your RE income and business or find alternative sources.

With your experience you should be able to figure out how to meet your goals. I am only suggesting that you should add these 2 to be reached before you go full time at RE.

Re: What is the best thing to focus on? - Posted by Eduardo (OR)

Posted by Eduardo (OR) on January 25, 2002 at 16:13:19:

Tony–

How old are you? How is your health and stamina? Are you married? Does she work? Do you have kids? What other obligations do you have? How much can you live on and get by? Are you a workaholic? Are you handy with tools? Do you get along with people? Are you good at negotiating? Can you focus on the bottom line? Do you know how to use a financial calculator? Are you a risk-taker? Do you have other skills to fall back on if the need arises? When do you want to retire? How much do you want to retire on? Do you know your own mind? What do you want out of life?

Focus on answering the above questions and others like them to allow for the quickest success. With your 8 sfh you already know more than 95% of what needs to be done. Learning the additional 5% of technique is probably not worth the effort IF IT TAKES YOUR TIME AWAY FROM ACQUIRING MORE PROPERTY THE WAY YOU’VE BEEN DOING. You’ve already proved you can acquire substantial real estate. Rule: Them that can, do; them that can’t, teach. --Eduardo (exception to the rule)

Re: What is the best thing to focus on? - Posted by Tony

Posted by Tony on January 26, 2002 at 23:39:54:

Thank you for the remarks. It is interesting that you advised foreclosures because I got a call today from an add I have in the local news paper. It was another investor that has a lead on a foreclosure that is coming up on a property. I am meeting him tomorrow for all of the details. But this is what I have right now. Fixed up the house will appraise for 60-65K The loan is behind and needs aprox. 7K to bring it current. The balance is 44K the house needs 3-5K in fix up and the investor wants 2K to flip me the deal because he is from out of town. I am told that the loan is FHA and no qual assumable. His suggestion to me was to take the loan subject to and pay the 7K to bring the loan current. He says that some amount of the money that I use to bring the loan current will pay down the balance. If I understand it this is how it will work. This considering there are not other encumberances on the property.

7K to bring it current Cash
2K “Finders Fee” Cash
5K “Fix up” Cash
39K Loan assumed. (Aprox. Number)

53K Total, Market Value 62K = 85% of market

How does this sound do you see any problems with this?
I was thinking that 2K was a little much for a finders fee.