Posted by bob on October 26, 2001 at 06:02:48:
You MUST work with motivated sellers… That is the KEY. When they find YOU, the properties can be bought with better terms then 20% down.
Good Luck & Good Investing
Advice - Posted by San Diegan
Posted by San Diegan on October 25, 2001 at 18:25:56:
I live in North San Diego County, and have read the Carlton Sheets program. Prices are very high here and in 3 years of looking I have never been able to find any of the kinds of deals CS teaches. I own my own home and have one rental property which I bought w/ 20% down and it just breaks even. I have done extensive research on rental rates and looked at hundreds (literally) of houses. The best deals I can find here take at least 20% down to get a break even cash flow. Am I in the wrong area, or am I going about this all wrong?
Re: Advice - Posted by Kerstin Decker
Posted by Kerstin Decker on November 02, 2001 at 19:43:31:
We have bought 3 small duplexes, that generate income nicely, my husband and I are older and retired, we want to move to Fl. The properties are in Akron Ohio. We thought, that we should sell because of possible management problems. The markedt is soft and the R.E. man wants to sell quick. He has an offer that is less for what we bought the property. I am not ready to sell, because I believe that what makes money sould keep going. The R,E. man wants to even give part of his commission. To be frank, we would loose money. We are retired and the 100.00 we are making on the 6 units would be a bonus for the little bit of retirement money that we have, the R.E. man wants to have our answer by 11.3. I do not want to sell. Do you believe that the properties could be managed from Fl.? we do have a son living here who would manage. These properties do not cause too much problems, they are brick and rather large and rent very quickly. Please advise us. I also believe that these properties help with our credit. Please hurry
Thank you
Kerstin Decker
Re: Advice - Posted by Dan
Posted by Dan on October 29, 2001 at 16:08:43:
I also live in the San Diego area. We have been successful with one type of C.S. techniques, and that is lease options. Basically, we have put in ads attracting sellers who have the following problems: job transfer, laid-off, baught another house, down-sizing homes, rental problems. Which by the way, most owners who are renting houses have had SOME sort of negative experience. If that experience is too big of a deal, they will listen to your pitch regarding lease option/rent-to-own.
The housing market in San Diego is actually flat, and somewhat on a down turn. Our neighbor is an agent, and we pulled the words “motivated seller” lease option, etc… key words. We pulled literally hundreds of listings. Sellers are reducing home prices, moving out of the area, or the like. Lease option gives these sellers FULL price for their property, rid them of managment responsiblities, maintanence issues.
Right now, US is under some changes, obvioulsy with what is going o in the world. With lease options, you are 'guranteeing" a seller a ‘todays’ price in 2-3 years when you exercise your option. Who knows what the market will be like in 2-3 years! You get the point. Sellers will definitely listen to you.
We have 3 properties as of right now that we purchased lease options that I subleased to a buyer/tentant. In a year and a half, the options are up.
Sheets program is not the most accurate depiction of our market. For the most part, I believe, 99.9% of his methods will not work here. (at the present time)
Look at areas like City Heights, Escondido. Markets that are not totally desirable, but still liveable.
-good luck.
Re: Advice - Posted by Nathan
Posted by Nathan on October 27, 2001 at 20:46:09:
I think Bob is absolutely correct, You have to get motivated sellers to call you. Run an ad in the paper, and screen the calls to find the motivated ones. At least this is the way I do it. There are people out there who will even deed you the house, and give you the equity to go with it.