Pop Quiz

[kdhastedt]

Please, tell me that you don’t mean that you want to be like Mike when you grow up!

LOL

Keith

[Steve_Smith]

@ctguy

That’s my problem too.
If it was free and clear, I’d do full price, principle only payments for 5 yrs, balloon at term. I’d then lease option it out for 3 yrs and make my money over the term on payments and deposit.
You can do just about the same thing if it is sub 2 with some equity. I’d get the seller to hold a note for the equity with no payments on a three year contract, five if I could get it.
What I was wondering about is two things:

First, if you could get the bank to sell or short the note, you would increase the equity in the house, and thereby increase your profit. But I don’t know if they would, on a performing note.

Second, could you have a private investor buy the house with his perfect credit at a much lower monthly payment. Then buy from your investor sub 2, and sell to a lease option buyer for a higher payment. Once again making your money over time on deposit and cash flow.
Then maybe sell off the note in two parts to note buyers for cash?

I still think there is something that I am missing, But its fun to think about. Thanks for playing along.

The fact that you are giving a quiz implies that you have something to teach. But your posts seem to be a rehash of Sheets or some other guru material. Do you mind sharing your experience level?

The simple answer is that your example is not worth pursuing. And “throwing a dart at the real estate section and making $30k to $60k for each throw” is a ridiculous pipe dream.

[TNVOLS]

HI Ctguy,

@ctguy

Imagine if you could throw a dart at the real estate section ad make 30-60 grand with each throw?

You have definitely piqued my curiosity, how can you make 30 to 60k on this deal? I can’t wait any longer to know!

Mark

[propertymanager]

And "throwing a dart at the real estate section and making $30k to $60k for each throw" is a ridiculous pipe dream.

…and yet that is EXACTLY what many of today’s most popular “gurus” are selling…a ridiculous pipe dream. They promise 20K per month to be an apprentice, $250,000 for 20 minutes work, etc. In their infomercials, they are standing on their yachts and getting in their private jets implying that if you only take their training, you too will have a yacht, a mansion on the water, and a private jet! Ridiculous!

I was at a REIA convention a year ago. There were a group of ladies, that based on their dress, looked like they just came from the welfare office. The “guru” got them all whipped up and at the end of the presentation, they were lined up at the back table to buy the $1,500 course. I remember watching one lady who had to present 3 credit cards before they could finally piece together enough credit for her to buy the course!!! I’d bet $100 that the course is still in the wrapper!

Ranf Off.

Mike