Second Bubble Burst

[javipa]

Rando, that is enormously generous of you.  Honestly.

[Randoskie]

Well, I got some time before I hibernate and get snowed in and my cave entrance is blocked by 10' of snow.
And all ears needs some help, not sure if he can get a better attitude and he's worth helping.
And if he needs help on some deals it will cost him 50% I'm not a Saint.
I'm motivated by potential profit, but mostly I cant stand the frikin whining.

[javipa]

Pffft!  OK!  Still, you're a good man, Charlie Brown.

[BlakeBuysHouses]

All markets eventually level out but if you get the right terms it doesn't matter. I like dealing in all markets. If you find the right deal there is always money to be made.

[Randoskie]

It's been a few days and Ears has never requested the book I offered & learned from, the book that got me going from having nothing to having nice vehicles, an airplane, steak dinners and a fat bank account.

Maybe he prefers to whine and complain & blame everybody for his situation rather than to actually do Real Estate deals.

Cmon Ears, if you had a book that you got for free that cud change your life, would you read it and take action, or keep whining and complaining and never take action?

Success or failure is a choice.

Rando

[Luke9686]

Ears is too busy trying to figure out the business dynamics of owning a hostel at this moment.

Meanwhile I just signed up a deal from my direct mail that should net $30K.  One of those tiny $200/month sub2 deals I was criticized for.  Except this time I'm taking sub2 @$75K and retailing out for $135K.  $3500 to seller and $6-7K in repairs.  Am able to afford the cash to seller and repairs from down payments from previous deals.

[Bill H]

Randpskie. you are far to generous with all ears.

I have reached the point that I would not give him a toothpick if I had TWO lumber yarsd.

[Redstar1324]

Ears is too busy trying to figure out the business dynamics of owning a hostel at this moment.

Meanwhile I just signed up a deal from my direct mail that should net $30K.  One of those tiny $200/month sub2 deals I was criticized for.  Except this time I'm taking sub2 @$75K and retailing out for $135K.  $3500 to seller and $6-7K in repairs.  Am able to afford the cash to seller and repairs from down payments from previous deals.

I take back everything I said in the past. I don't know ****.

But when I criticized sub2, I didn't realize the profits came from the down payment.

The "$200/month" figure is why I've decided not to ever get in to single family home rentals. It's just not worth it to me.

A couple months ago, I was going to "rehab houses with my bare hands," but that didn't turn out to be the best plan.

I don't even know if I would want to own a hotel at this point. If it's all about the money, wholesaling seems like the best ROI around, in theory.

Of course, I still haven't made a dime.

[Luke9686]

Have you sent out any mail?  Is so, what were the results?

[Randoskie]

Like I've said before I usually double or triple my profits after expenses on these direct mail campaigns.
But this latest mailing is off the charts. Out of 2,500 post cards sent out I got very few calls. But the calls were of a higher caliber.
The first deal I made $5,000, the second deal was the 18 grand from the double wide mobile home, and now I got a duplex and a house, 3 units on a single lot,  the seller wanted 127,500. I sent it out and I got a buyer that wants it for 137,500
Now most normal persons wud have been happy with a 10 Grand assignment. But no, not me.
Because my testies have swelled, I called up the seller and told him the properties need too much work and its too risky for my partners and I. Unless he can do 120K, Our earlier conversation he said he cud def not go below 127,500. After a little back and forth, We settled on 122K
Holy piles of guano, instead of 10K I just got my buyer to sign my assignment of contract for $15,500 Frikin dollars.
I sometimes surprise myself, am I getting more experienced, more greedy, more smarter, better at negotiating, more obnoxious, going insane or all of the above?
Let's make some Money....

Rando

[Luke9686]

Love it.

If you start mailing to 30/60/90 day late lists you'll find tons of sub2 deals.

Plus the occasional *******.  The other day a guy said he was gonna punch me in the forehead...  Wonder if he knows I'm 6'5" and about 240???

[Redstar1324]

Have you sent out any mail?  Is so, what were the results?

I'm currently waiting on these in the mail, as required by the post office bulk mailing regulations. I'm buying a "permit imprint stamp" so that I can print stamps on my computer.

https://m.uline.com/h5/r/www.uline.com/Product/Detail/S-5503/Mailing-Labels/Mailing-Labels-Clear-Acetate-1-1-2

Punch you in the forehead? Call the cops. I've done that on my tenants about 20 times so far. They all know I have the police on speed dial.

[Redstar1324]

Like I've said before I usually double or triple my profits after expenses on these direct mail campaigns.
But this latest mailing is off the charts. Out of 2,500 post cards sent out I got very few calls. But the calls were of a higher caliber.
The first deal I made $5,000, the second deal was the 18 grand from the double wide mobile home, and now I got a duplex and a house, 3 units on a single lot,  the seller wanted 127,500. I sent it out and I got a buyer that wants it for 137,500
Now most normal persons wud have been happy with a 10 Grand assignment. But no, not me.
Because my testies have swelled, I called up the seller and told him the properties need too much work and its too risky for my partners and I. Unless he can do 120K, Our earlier conversation he said he cud def not go below 127,500. After a little back and forth, We settled on 122K
Holy piles of guano, instead of 10K I just got my buyer to sign my assignment of contract for $15,500 Frikin dollars.
I sometimes surprise myself, am I getting more experienced, more greedy, more smarter, better at negotiating, more obnoxious, going insane or all of the above?
Let's make some Money....

Rando

Double or triple profits? That sounds great. If my first one or two on my own go well, I'm going to ask my dad to invest in my marketing so I can be sending out 50,000 (or 50,000,000) letters/postcards per month.

I have no problem being ruthless. If I owed a mortgage and caught cancer, the bank would take my house and mess my credit up in my final moments. That, or some other investor would try to save me by doing what some of you are doing.

I still think postcards are a viable option for the future, but I have a problem of a criminal record and identity to hide. I'm currently using my first and middle name. I will probably switch to middle and last.

Or I may do something like "Red Star Property Group LLC" for when it goes national.

Only thing is, corporations are taxed at a higher rate. I don't see a lot of liability risk in wholesaling.

(I hate doing these posts with quotes embedded in quotes, but sometimes it has to be clear who I'm responding to)

[Randoskie]

At first I was only going after the Sub TO's, and it wasnt an easy thing, I did a few deals and it was profitable, and 1 deal imploded. I found most pre foreclosure people will stay in the house for years for free until the bank takes them back.
But I still keep an eye out for them. My city is so full of these junk houses and wholesale opportunities and I found it much easier to concentrate on them.
I've often thought of doing some rehabs, but when I'm making 5,12, 16,18, and $15,500 just in the last few months on  wholesale deals that  I spend 30 minutes on, it's a no brainer, no risk, no work, just rake in the buks.
Rando

[Redstar1324]

Not that you need a complete amateur with $0 in the bank to tell you what to do, but I also think rehab is a waste of time due to the amount of time it takes.