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.
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.
I take back everything I said in the past. I don’t know shit.
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.
Have you sent out any mail? Is so, what were the results?
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
Love it.
If you start mailing to 30/60/90 day late lists you’ll find tons of sub2 deals.
Plus the occasional asshole. 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???
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.
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.
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)
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
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.
If the Great Depression was not easy for you, why would the Great Recession be easy for me? I was in my early 20’s when the economic collapse began and I had zero clue it was going to happen. It wrecked me. You guys were ultra big tough and strong and resilient, I definately was not. The Great Recession wrecked me. If that is too much for you to handle then go fuck yourself. Why would my terrible experience from the first bubble burst (without rosey colored glasses) tick you off so much?
About voting. I did not vote for anybody. Saying “YOU VOTED FOR HIM”, where the heck does that come from? No I did not vote for him you ding a ling. I do not even watch TV, you buffoon. It is a scientific fact that your vote for president does not count. Look it up. The whole thing is designed for ding a lings like you to buy into the whole soap opera and pit Americans against eachother, weakening people more. Your vote for president does not count. No matter how much mud you throw you still have no control over it. I willtell you how the soap opera was pre-written. First we have a black president, Obama, then they have a female president, Hillary, and next they will have a gay president. You cant see that far into the future and see you are being duped?
About baby boomers. This is all I see all day every day. It is the most maddening thing. After reading the book Jay recommended, The Millionaire Next Door, all I see are baby boomers with millions of dollars and the vast majority of them have lived lives doing all the things that book says are not millionaire traits. It is a total fact that baby boomers have committed generational theft. The country was in perfect shape when they got it and it is now in shambles. Its the truth.
More about The Millionaire Next Door. People like Jay had parents who were doing all the things to generate wealth and following the principles of wealth. A big one is being frugal. Sure he had all the property portfolios handed to him for nothings day, but he came from a background of parents doing the rights things economically with rentals. However. The vast majority of baby boomers did not have to do that. They are just living on ponzi schemes that successive generations are paying off for them. Social security, incredible pension plans, medicaid. Its not normal how they did not follow the characteristics in the Millionaire Next Door, and wound up on top. I know every baby boomer will light up like a venomous flame thrower hearing that, because it is the truth. Dont like it, go fuck yourself. Its free speech. Its an unmoderated online forum too.
admittedly I have a mountain of anamosity towards the baby boomer generation. Id like not to.
About calling me a girl. This is the only time in my life people have said that me. It just does not happen in real life. About Jays “Now go vite for Hillary” mud slinging. Who the fuck do you think you are? Ive stated above that I do not vote. I certainly would never vote for Hillary.
I stopped watching TV during the first Obama campaign it sickened me so much.
We live in some scary times. The future is not looking so bright for many native born Americans. Im going to come out on top somehow.
That is just about the first bubble from 2007.
My take on the second bubble burst will be too much for baby boomers here to handle reading so I will not even state my opinion here.
Haha, now your getting comical, we are laughing at you Ears. I gave you an opportunity to climb out of your poor little me situation. All you have to do is stop whining like a child, get the book that I used to change my life, and what do you do? Nothing. Just whine some more. It’s really pitiful, but funny also.
A grown man acting like a little girl, unwilling to do what it takes to be successful.
What is your excuse? Why wont you accept my gift of a free book that I used to change my financial life?
Why do you persist in being a whiny coward, yea coward, cuz it takes guts to read a book and take action and change your life.
At least redstar has the guts to take action.
So you gonna whine some more, insult us some more, complain and act like a stupid kid?
Or get the book, read it and become successful?
If your not going to try, then go back to bothering your family and others that are probably avoiding you because of your downer attitude.
Good luck.
Rando
Rando,
Because I have probably already read and applied the ebook you are mentioning.
OK, then what is your excuse? Why wud it work for me an old unemployed construction worker that never graduated from HS and not for you?
You going to complain and whine and insult us some more? Let’s hear why it wont work for you?
We are all waiting.
Haha,
Lets change the topic,
Rando what is your rendition of the Second Bubble Burst?
How will this one play out?
Also I am not doing too shabby with advancing my knowledge and taking action.
The past moneth of me being at this forum I have done a ton going in the right direction
Its only a matter of time before I complete a real estate deal and make some money
Your advancing your knowledge & taking action?
What have you learned? And what action are you taking?
Why Change the subject?
Give us the rundown on Mr all ears, the angry guy with the bad attitude.
When you were a child were you ridiculed and told you wud never amount to anything and always be a loser?
Did your first love run off with your best friend?
What makes all ears so intent on not being a happy fun guy that will succeed?
What horrible events took place that makes you so depressing?
Please tell us, maybe it will be a learning lesson, things for us to avoid.
This isn’t a quote from me.
I did call you a girl, because of your previous (and continued) incessant bitching and complaining about your circumstances, and justifications for failure, if not why you can’t succeed as easily as someone else.
As far as being handed my parent’s properties, I never said that. My mom is still alive. When she dies then we’ll see what’s left. However, her portfolio is not my portfolio, and I wasn’t handed squat in the meantime. What I received was management experience, and I’ve taken that and done well with it. Anything else, I had to learn and do on the job, and on my own.
But you can continue wallowing in self-pity, envy, jealousy, anger and all sorts of emotionally dis-empowering dysfunctions if you wish. It’s no skin off my nose. However, those are the kinds of sellers I like dealing with, because they have no faith in themselves, see no options; assume circumstances won’t change; and are so short-sighted that it takes very little negotiation to equity-strip them like two-dollar prostitutes. Yay for losers.
But All ears finally took advantage of my offer and I sent him the book, and photos of some of my recent big checks to prove I’m not blowing wind.
Let’s see if he can read a book and take action Like I did, me, an old chewed up ex construction worker that never finished HS that took the info in this book and got busy.
Now he cant admit that I’m a better man than him, can he?
Don’t count All Ears out yet, I got high hopes for him.
Rando
Alright thanks for the advice and comments guys.
Rando I read this book about wholesaling a year ago. I will read it a second time and then apply its knowledge a second time.