Let me be a role model for you fellow Real Estate Newbies. Im just a 17 year old mediocre intelligent boy from a small town in Indiana. The market is terrible.
FDJAKE taught me something in a little post earlier today. Things are getting bad, so I better get my arse out there, sooner the better!
Anyway, im taking the step from sitting on my butt and learning on this computer to actually getting out there bird-dogging. Im going to begin tommorow by putting ads in the newspaper looking for buyer. Calling up people from Craigslist/Newspaper, and will be handing out cards with a “I Buy Houses” and my number on it.
I know some of you may think this thread is not worthy of making a whole entire new thread, but IT IS. I see people coming here every day asking if its possible to make money if
You live in a bad area.
2.You have no money.
No time, or whatever
The point is, I think this thread will show that anybody can do this business if you really want to.
I will show my results of the money I make, and how I found the deals for you fellow newbies.
Peace, and remember my name, I will be big someday!!!
If a 17 year old that can’t even put his name on a contract can take action, ANYBODY above 18 years old no longer has a credible excuse for NOT taking action.
Congradulations, but don’t forget to haul your ass and work hard.
Why can’t a 17 year old sign a contract? I don’t think it is illegal, just unenforceable if anything goes wrong. If Josh can perform, then why not put stuff under contract?
He can put his name on a contract. Anybody can. I guess it all depends on the contract originator’s risk level. If you want to know more, go consult with, say, at least 10 business that have been consecutively successful for over 50 years what their policy is on contracts with a minor. Then go consult a business law attorney about those policies to understand better.
Overall, Hoosier really doesn’t have a problem if someone makes him wait. It will be valuable time to build a comfortable business relation with his contacts. (Note, its not law that he has to wait; its wise business practise of the other party to wait - again, depending on their risk level).
Was a lake property. 2 bedrood 1 bath brick house. He wanted 40,000 cash for it.
The land alone that it was on was worth 150,000, and it was a pretty nice house, but the land alone was deff. worth the 40,000. They sell very easily too. A peice of land right next to it, same size and everything, just sold for 170,000 a month ago.
I called him up and said " I will give you $500 today, if you give me the right to buy or sell your house for your asking price or more. Give me 5 days and you will get your asking price."
He replied “Actually I think I have a buyer, im expecting a call tommorow. Ill call you tommorow if he doesnt call me, unless you want to buy it right now?”
To make a long story short, the guy bought the house 3 days later. But, If I would have had that 40,000 in my hands right now, I would of had a deal.
Did I do something wrong?
God, the power of cash help you on deals doesnt it! :flush
He said he didnt want to do the ‘I give him 500 dollars, he gives me 5 days to find a buyer’ deal. Unless I had 40,000 cash right then he would rather just wait on that other guy who MIGHT buy it is 2-3 days.
There is a lot of info you left out. What if you found out that you had an oil tank buried in the backyard that was leaking oil into the soil? Then you’d have to pay all that money for cleanup. In something like that, you can have an inspection contingency, but you may not have been able to get on done quickly. Why was he selling for so cheap and needed the money so fast? It may very well have been a great deal. It sucks that you needed $40,000 in cash, but there will be other deals. Don’t get discouraged. Try to learn what you can and keep moving forward.
Well the way to look at that situation is that you weren’t “prepared” to buy. You see there’s many different ways you could invest in real estate with very little down but sometimes you need to have acess to “cash” available before you go negotiating. And I’m sure you learned your first lesson with that situation.
I think it is awesome how you are taking action and diving into REI. I wish I had the gumption to do the same. I was wondering how you found such a deal and what you are doing to find more of the same kind of discounts?
The deal wasnt in the newspaper or anything like that yet. The house is actually located 2 houses down from my grandpas. I saw them moving furniture our of the house, I asked them if they needed help. They said they were moving and I asked for their #. I was in a rush so I couldnt talk to them about the deal person to person.
I guess you never know where your going to find deals… :beer
That one wasn’t your deal. The seller needed cash right now, this minute.
At some point in your career, you will be able to pay cash for a deal like that one. $40,000 isn’t much cash after you’ve done a couple of deals and if you save your profits and re-invest them.
Also, after you’ve done a couple of deals you will find a hard money lender who will trust you to make a deal like that, where the papers must be signed on the spot, and call him for the cash after the papers are signed. Probably not today, because of your age and inexperience, but once you show you can do it, your age won’t matter.
The point here is that you actually found a deal like that just by keeping your eyes and ears open and having the nerve to ask. So now you’ve seen that the deals can be found if you work at it.
Maybe the next guy will have a few more days that he can wait for his money and will like your offer.
Yes, cash makes real estate easier. Oddly enough, after you’ve got cash, it is easier to find the no money down deals so you don’t have to spend your cash. But there are deals that require cash now, and you can’t do them if you don’t have the cash, or instant access to cash.
I am impressed that you went out and found a deal so quickly. Just keep going, and it is going to work for you.
When you start to think like an investor, the world looks different doesn’t it? When people are saying that there aren’t any deals out there, are not thinking like an investor. Their eyes and ears are not trained to detect potential.
I had a similiar situation on my very first deal. The seller wanted 20k cash for her house. Another buyer looking at the house when I arrived offered her 19k CASH. Well I had NO cash, so here’s what I offered her. I offered her 21k (1k more than her asking price and 2k more than the cash offer she just received) with 1k down and the balance within 6 months, plus I added that I would pay her 9% interest on that 20k balance. This seller said she needed the money right now and couldn’t wait, but when I made her realize that she could make a couple thousand more by waiting a few months for her money she agreed and accepted my offer, I just about fell over because I knew all I had to do was put about 5k into this place and sell it for around 60k, that’s what I did too, I sold it for $58,500. The point of my story Hoosier4life2005 is get creative, you never know what these sellers will accept until you ask. Don’t be afraid or embarresed. This one deal made me a believer and I haven’t looked back since. I have been really busy with rehabs, three this year already.