I agree with both you guys.
I say this all the time to people and have probably posted this a dozen times here:
“It’s as hard as YOU want to make it.”
JFpen nailed it on the subject of LEARNING a lot about many various systems in a home and in real estate in general. If a huge corporation was handed those tasks they’d study the crap out of them and DO NOTHING.
Look no further than the DOPES running short sales and foreclosures for big banks…I can’t tell you how many times I’ve SEEN people put in cash offers on a home in January for say $100K and have them rejected, only to see the same property SELL in April for $75K. It’s the same same sh*t Lutz was talking about.
One other example…I’m buying houses like crazy and just wholesaling them because of this GENIUS RULE:
The BRILLIANT 91 day FLIP RULE!!! :flush
Here’s an example…I just purchased a home yesterday for $35K that needs interior paint, carpets and a kitchen/bathroom update. The house needs $10K worth of work and materials…Finished the house is worth $90K-$95K BEFORE realtor commisions…This is an EASY 2 week rehab. BUT some GENIUS decided that we need to WAIT 91 DAYS before I can even enter into a sales agreement. So, 91 days before we have a signed agreement, THEN you have inspections, underwriting, so basically 4 to 5 months to complete the turn. In a market where RETAIL BUYERS don’t want to paint a HALLWAY never mind rehab kitchens…and the entire process just STALLS…
Screw them…I sold it today to a part time rehabber for $65K and I’ll own it for 10 days and have my money…No credit bullsh*t, no bank crap, no home inspector insanity…Just a good, old fashioned…CASH BUYER!
Let’s PROLONG the housing CRISIS!!! Don’t make it easy for REAL ESTATE DEVELOPERS like ME to go into a neighborhood, fix up the JUNKERS, HIRE a bunch of struggling contractors and put them to work…No Let’s make it HARD…Let’s set it up so it takes HALF A YEAR to pull your money out of a single deal!
So…How do I deal with this when I don’t want to wholesale???
I BECOME THE BANK!!! BIG points paid to me from the borrower on any deal I do, PLUS a part of the end profits, and MY NAME ON THE DEED along with DEADLINES for completion…You miss your deadline…You LOSE…I NEVER lose…It’s NICE being the BANK!!
Nothin’ like having MORONS make the rules!!!