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Author Topic: Second Bubble Burst  (Read 29029 times)

Offline Redstar1324

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Re: Second Bubble Burst
« Reply #45 on: October 30, 2016, 04:51:24 am »
I didn't even know that the book you were referring to WAS Grant Cardone until just Googling it.

It reminded me of a chapter from his book, "The 10x Rule."

I think reading is procrastination for me at this point.

On a side note, it just so happens that Grant Cardone's twin brother, Gary, owns a small percentage of my dad's utility company. Small world. He "hooked up" the majority owners with the major investors in France, or something like that.

Grant Cardone has been to their companies office trying to pitch his "sales training" program to my dad's former boss, the majority owner. (My dad has recently retired and lives off his 20% ownership).

The majority owner of the company is the 5th largest donor to the Church of Scientology in the world.

He's one of those "show up twice a week, let other people run the company," type of guys that I aspire to be.

Yet at the same time, you don't seem very obsessed given that you say you half ass it and could probably make more if you focused on it more.
« Last Edit: October 30, 2016, 05:03:24 am by Redstar1324 »

Offline Randoskie

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Re: Second Bubble Burst
« Reply #46 on: October 30, 2016, 02:22:10 pm »
Reading is procrastination? I'm going back to my cave. I can't take Redstar's nonsensical rantings.
I have my cave fixed up with a fire pit where I can chew on barbequed moose leg while contemplating the Universe.
I have all these questions to ponder about gravity and magnetism and electricity and the origins of matter.
I will emerge this spring with the answers and be ready to make some money.

Rando


Offline Randoskie

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Re: Second Bubble Burst
« Reply #47 on: November 02, 2016, 12:21:50 pm »
I just sold a burnt house in Amarillo TX for $8,000 and I'm here in California, my partner and I will split $1,500 each, but we may be able to get the seller to lower the price from 5K to 3K, Worth a try.
Let's make some Money....

Rando

Offline Redstar1324

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Re: Second Bubble Burst
« Reply #48 on: November 02, 2016, 12:26:12 pm »
Where can you even find a vacant lot for $3,000?

I guess I have a lot to learn.

Offline Randoskie

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Re: Second Bubble Burst
« Reply #49 on: November 02, 2016, 12:47:17 pm »
I've had some decent houses on contract in Detroit for $8,000 and I cudnt give them away.
This house in Texas is burnt down, a few walls still standing, we started trying to get 15K and nobody wanted it, finally got a buyer at 8K, now to go back to sellers who just want to get rid of it and see if they will take 3K
My partner Shyla from Maryland found it, I don't remember exactly how she located it.

Offline Redstar1324

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Re: Second Bubble Burst
« Reply #50 on: November 02, 2016, 03:38:35 pm »
Rando,

 I have probably asked this before, but do you get the majority of your sales from direct mail, bandit signs, or Craigslist ads? Can you estimate a percentage?

I just spent $185 and got about 400,000 absentee owners with owners addresses ranging from Florida to California to Puerto Rico to Africa.

I don't want to waste my money.

Offline Randoskie

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Re: Second Bubble Burst
« Reply #51 on: November 02, 2016, 05:27:46 pm »
Haha, it seems you may have just wasted 185 buks. I have told you several times to get your lists from Listsource.com You can target any area and zipcode. You can concentrate on absentee owners or high equity owners.
I was wondering why u insisted on getting ur list from a title company. It don't make sense. AFRICA???  I wud rather have 2,500 names in the area I'm interested in flipping that 1 million in all over USA and Africa.
You need a quality targeted list in the area you want to flip in. Repeat that. Next time you want to throw ur money away, give it to me or Javipa or Luke or Gold River, we need a cord of wood, winters coming.
But after you have lost ur money that's when you will start to listen to advice.
this year I've got my deals from bandit signs, bird dogs, and direct mail. 20% bandit signs, 30% bird dogs and 50% direct mail.
What you gonna do?

Offline Redstar1324

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Re: Second Bubble Burst
« Reply #52 on: November 02, 2016, 07:41:01 pm »
I didn't get them from a title company. I got them from the property appraiser.

I don't HAVE to mail to the ones in Africa. There's about 300,000 that are more local.

I think would agree with me on this, right Luke?

Offline Luke9686

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Re: Second Bubble Burst
« Reply #53 on: November 03, 2016, 08:19:11 am »
I think Rando misunderstood your post to mean the properties themselves were all over the US, when it's the owners that are all over the US.  Correct?

Also, it doesn't matter the list if it never gets mailed to.  If I remember correctly several days ago you posted that you had mail going out either Monday or Tuesday of this week.  Did it get sent?  If not, why?

Also, not knowing sub2 and not having an equity qualifier on your list you in fact wasted some money because some of the calls you get will want to sell to you but won't have the necessary equity to do so.


Regardless, send a couple thousand pieces of mail to the zip codes you want to work in.  You'll get a deal or two.

Yesterday I got a call from a guy two payments behind in an outstanding suburb.  He'll do sub2.  Owes $85K, $5K to seller, I'll probably wholetale it for around $115-120K.  ARV is $145-155.

Offline Redstar1324

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Re: Second Bubble Burst
« Reply #54 on: November 03, 2016, 09:12:32 am »
Luke,

Mail hasn't gone out because I hired an "amateur" printer and she's working around her other job. Hopefully done today.

I'm trying to understand your sub2 deal.

You're taking over the guys mortgage, on which he owes $85,000.

You are owner financing this and collecting a down payment?

Is the "$5,000 to seller," your down payment?

I don't understand the wholesale aspect of it. Aren't wholesaling and sub2 two different things?

Offline Luke9686

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Re: Second Bubble Burst
« Reply #55 on: November 03, 2016, 09:19:26 am »
Sub2 is really just a acquisition strategy.  On this particular one, I'm buying sub2 and selling it to a retail buyer looking for a fixer upper.  It's not quite a wholesale, not quite full retail.  I'll most likely negotiate to pay seller $2500 at close and $2500 a few months down the road.  I'll have to come out of pocket for the cash, which shouldn't be an issue because I have several smaller deals in the works.

I could do a normal wholesale, but I'd probably only be able to get around $100K for it, leaving my profit at $10K.  I know in this area people will pay more, just not traditional investors.  What I'll do is talk to realtors telling them to bring cash buyers on this deal, and inform them to add their commission on top of my price. 

There's an excellent video from BiggerPockets on finding more cash buyers using realtors.
« Last Edit: November 03, 2016, 09:23:44 am by Luke9686 »

Offline Redstar1324

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Re: Second Bubble Burst
« Reply #56 on: November 03, 2016, 10:06:05 am »
How was the $5,000 figure determined? Is that just to motivate the seller even further because he's not motivated enough by the prospect of being foreclosed on?

Do you also have to pay his two months of back payments?

Offline Luke9686

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Re: Second Bubble Burst
« Reply #57 on: November 03, 2016, 10:22:03 am »
I pitched sub2, he was open to it but needed cash to walk.  We verbally agreed on $5K.  In terms of the payments, I'll have this thing sold before I even close on it, so I'm not real worried about the behind payments.  It'll just come out of my profit at the end.  This area is a hot area with great schools.  House $175K and under sell in about a week.

Offline Redstar1324

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Re: Second Bubble Burst
« Reply #58 on: November 03, 2016, 10:31:16 am »
Cash to walk as mandated by his mortgage lender?

I have another question.

I'll assume his lender is a major institution such as Bank of America.

Don't they have a say in this? Do they have to screen you as an acceptable person to assume the mortgage? Could Bank of America decide they just don't want to do it?

Offline Luke9686

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Re: Second Bubble Burst
« Reply #59 on: November 03, 2016, 11:06:09 am »
$5K as mandated by the seller.  There's equity there, he knows it, and wants something for his time.  If you found a deal like this I'm sure you'd be able to find the $5K to make it happen.  You can't think of ways to kill a deal just because you don't have the cash to make it work.  Hell I'd lend you $5K at 20% interest to make this thing work...

This is where proper education on these different techniques is necessary.  When taking a property subject to you aren't assuming the loan.  You are taking the property "subject to the existing loan."  Essentially the deed goes to me (or my trust, etc) and I start making payments.  Like I said though, I'll end up either double closing this or assigning to my buyer for a $15-20K fee.  Probably double close since the spread is so much...

You do realize that in an attempt to save a few bucks you are actually costing yourself money, right?  Instead of your mail getting out weeks ago, it's still not out.  People like me, Rando, Gold, Jay, etc are stealing your deals...
« Last Edit: November 03, 2016, 11:09:36 am by Luke9686 »

 




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