Posted by Dennis on May 31, 2001 at 23:40:24:
Thats 16 zack
CARLETONS SYSTEM DOESN’T WORK IF… - Posted by Dennis
Posted by Dennis on May 29, 2001 at 23:30:16:
It doesn?t work if rental rates are not commensurate with value, stated on page 11-5
In other words if a home costs $100,000 it must rent for $1000 or more
Or if it costs $150,000 it must rent for $1500 or more. In most areas this is not the norm.
If you live in an area where home values are on the rise and the market is selling your screwed.
Re: CARLETONS SYSTEM DOESN’T WORK IF… - Posted by Jim R
Posted by Jim R on June 05, 2001 at 10:44:39:
I’ve read this initial post, and the responses. Sorry, guys, but Dennis is quite accurate. I’m military, move a LOT, and have seen many different types of markets. In situations where the markets are rising fast, and rents don’t cover, and won’t for some time, there is serious risk of going very negative on mortgage payments. Coupled with fact that these markets also often “burst the bubble,” and the market crashes, there is a real risk you can quickly get upside down (owe more on mortgage than house is worth), as well…then rents drop some more, as well…and so be stuck with a house with a huge negative cash flow that you can’t sell. (I know, I’ve been there…and worked my way back out, too.) Admittedly, there are other opportunities in this type of market…like buying fixer uppers, doing a fast fix-up, and flipping quickly…but these are more difficult to do, depending on your job situation and skills.
So, cut Dennis a break…he is correct, for the most part.
And, lest someone start giving me the “you’re a failure cause you’re not a positive thinker” line of reasoning, I’ve done quite well in my profesion and at least modestly well in RE, thank you. I’ve not been as aggressive as some, and have admittedly lost out on some deals…but I’ve also watched some of the aggressive types declare bankruptcy and/or lose homes to foreclosure. In my current area, I just don’t see any good investment properties, and I see bubble building…so I’m not willing to sink money there. But I have found 2-3 areas elsewhere in the country that are excellent investment opportunities…and I’m pursuing those. Internet makes it a lot easier to do that.
We RE investors should not be trying to push any single course or technique as the answer to every situation. Some states, for example, explicitly outlaw “wrap-around mortgages,” so we should all be pushing a variety of techniques, not a single course or guru.
Okay, I’m off the soap box. Good luck to all!
j.r.
Re: CARLETONS SYSTEM DOESN’T WORK IF… - Posted by terryr
Posted by terryr on May 31, 2001 at 14:59:34:
in higher value neighborhoods look for subject to deals or using trusts fro your profits check out landtrust.net
Re: CARLETONS SYSTEM DOESN’T WORK IF… - Posted by Zack W
Posted by Zack W on May 30, 2001 at 22:51:45:
Dennis,
You seem to have figured out how this CAN’T work, now try to figure out how it CAN work.
If you do that, you will be well on your way to a successful life. Good luck.
Zack W.
Re: CARLETONS SYSTEM DOESN’T WORK IF… - Posted by Dennis
Posted by Dennis on June 05, 2001 at 16:03:09:
Jim Thanks for the dose of reality ?.. Some of these guys sound more like real estate see & say toys than R.E. investors. With all your moving around I hope you post what you are finding in the different markets.
Good Luck, Dennis
Re: CARLETONS SYSTEM DOESN’T WORK IF… - Posted by Dennis
Posted by Dennis on May 31, 2001 at 23:55:35:
Thanks for the imput I’ll check it out.
Re: CARLETONS SYSTEM DOESN’T WORK IF… - Posted by ZACKASS
Posted by ZACKASS on June 10, 2001 at 11:27:33:
ZACK=ASS, It is clear to me by your posts, that you don’t have a pot to piissss in!
Your a loser talking trash, hiding behind your keyboard!
Re: CARLETONS SYSTEM DOESN’T WORK IF… - Posted by Dennis
Posted by Dennis on May 31, 2001 at 15:33:24:
Gee here is some more usefull quotes for you???
A journey of a thousand miles begins with a single step."
? Problems are only opportunities in work clothes."
“There’s an important difference between giving up and letting go.”
?What the mind of man can conceive and believe, it can achieve."
?Patience, persistence and perspiration make an unbeatable combination for success."
“In business, you don’t get what you deserve, you get what you negotiate.”
“I can give you a six-word formula for success: Think things through – then follow through.”
“The path to success is to take massive, determined action.”
“Vision is the art of seeing the invisible.”
?Success is the progressive realization of a worthy goal or ideal.?
?I try to avoid looking forward or backward, and try to keep looking upward."
“Never confuse a single defeat with a final defeat.”
“Optimism is the one quality more associated with success and happiness than any other.”
“A pessimist is one who makes difficulties of his opportunities and an optimist is one who makes opportunities of his difficulties.”
“It is not your aptitude, but your attitude, that determines your altitude.”
You seem to have figured out how this CAN’T work, now try to figure out how it CAN work.
Re: CARLETONS SYSTEM DOESN’T WORK IF… - Posted by Zack W
Posted by Zack W on May 31, 2001 at 18:39:32:
Dennis,
Thanks Dennis, you gave me 15 more reasons why I have become successful. I appreciate your input. Keep up the good work!
Zack W