Posted by Gene on February 03, 2010 at 16:52:16:
I have read CS’s stuff…I thought it was mostly good info. Like you say, its not as easy as they say.
But then again…they aren’t selling RE books. They are selling the dream of easy money, fancy boats and cars…
Do you follow the Crisp and Cole case in Kern County? They cracked me up during the run up. I specifically remember a photo of them posing in front of a private jet and limo. Fake it until you make it…or something like that.
CASH OFFERS - Posted by FELICIA
Posted by FELICIA on January 31, 2010 at 13:19:13:
I NEED HELP I RECENTLY GOT SOME INSURANCE MONEY IN THE SUM OF 50K, I HAVE VERY BAD CREDIT AND MYHUSBAND HAS NO CREDIT. WE WORK LOW WAGE JOBS AND REALLY DON’T WANT TO MESS THIS MONEY UP. WE FOUND A HOUSE IN DECENT CONDITION, “ALTHOUGH IT’S DEFINTLY A FIXER UPER” THE ASKING PRICE IS 45.250K MY QUESTIONS IS HOW MUCH OF A DISCOUNT CAN I GET FOR A CASH OFFER, AND WHAT OFFER AMOUNT WOULD U SUGGEST. PS. IT’S APPRAISED AT ABOUT 75K.
Re: CASH OFFERS - Posted by mike ia
Posted by mike ia on February 06, 2010 at 23:04:00:
I think right now you should keep the cash. What if one of you loses
your job. Maybe put 40k in a CD or something secure and take 10k
and put down on a house on contract with a 20 yr payoff, and yes you
are still eligible for the tax credit if you buy on contract. Live there 5
years, sell it. So you ended up making 6k on your CD over 5 years. You
received a tax credit of 8k. You put 10k down. The house appreciated
approx 5% per year or $2500.00. So you get back your 8k tax credit,
your 10k downpayment, make 6k off of your 40K in the bank and the
property appreciated approximately 10k. So end the end after 5 years
you made 24k plus you had reserves just in case. Just my thoughts
Re: CASH OFFERS - Posted by Felicia
Posted by Felicia on February 02, 2010 at 19:14:53:
First I made a mistake in not saying that the house was for personal use and we would be first time home owners. Thank you to all the respones I was really stuck and like I stated I don’t want to mess the money up. As a follow up that house I spoke of is now under contract 
but I’m sure that there are more good deals out there. R there any websites sugges. or auction advice… I’m listening! and Thanx again!
Re: CASH OFFERS - Posted by Gene
Posted by Gene on February 02, 2010 at 12:47:05:
There are no hard and fast rules. Its all depends on the level of motivation the seller has.
Ask the seller questions which commit them but not you…such as…
“If I paid all cash what is the lowest price you would take?”
…“is that the best you can do?”
…“even with a fast closing, using all cash…that is the best you can do?”
Re: CASH OFFERS - Posted by IB (NJ)
Posted by IB (NJ) on February 01, 2010 at 20:02:19:
I agree with the others and just want to add that you should probably lock it away in a cd (certificate of deposit sold at your bank) for at least 6 months while you learn all you can about real estate investing. Then come out and invest a little in your business (marketing and more education). Turn that $50 into $5 million in 5 years.
Ib
Why are you so desperate? - Posted by Rick, the Probate Guy
Posted by Rick, the Probate Guy on February 01, 2010 at 12:55:02:
First off, please use lower case letters on these boards because UPPER CASE is like shouting and harder to read,
You sound like you’re in a lot of fear. Why?
Is it because you’re afraid that you’ll spend all the money if you don’t put it in a safe “investment” (like real estate)}?
Or because you’re afraid that you might make a mistake and lose it that way?
Only you can answer those questions for yourself.
However, this little saying applies to all of us: “There are always desperate Sellers, but never be a desperate Buyer.”
I agree with the other posters who said to not do anything for the moment. Why, you probably don’t even have the money in your hand quite yet so you’re still ‘safe’ for now.
Panic buying contributed heavily to the nations real estate bubble and subsequent crash. Granted, you’re looking to be an all-cash buyer, but you can still make a bad decision if your emotions take over the decision process.
I think your best plan of action is to focus on learning what you can about real estate investing.
This forum and others are excellent places to read what experiences others are having, and for you to profit from the collective wisdom of the other posters who respond.
In a short time you’ll have either some idea what direction in investing that you want to take, or at least some investment types or situations that you DON’T want to go near.
Relax. Whatever the traumatic situation that resulted in the insurance settlement should now be largely behind you, so you can focus on your real estate education and meet new friends along the way.
Don’t make ANY Offers - Posted by Keith
Posted by Keith on February 01, 2010 at 11:50:02:
Felicia,
DO NOT MAKE ANY OFFERS WITH THIS MONEY until you have learned your market. What are houses selling for ? Are they selling at all ? I have seen offers that are 30% below asking price and are still too high to make money. The asking price is meaningless. You need to know what you can quickly sell this home for.
Do some homework first. Go look at 20-30 similar houses on the market and then find 20-30 similar homes that have recently sold. Compare the prices.
Don’t spend that money until you are 100% confident you can’t lose.
Keith
Re: CASH OFFERS - Posted by Dennis
Posted by Dennis on February 01, 2010 at 09:06:32:
Hi Felicia,
If this is your first deal and this is your personal money. I would definitely see about wholesaling this property out to another investor.
You will get the experience of finding deals, negotiating, and even going to closing without putting all your eggs in one basket.
I know it’s hard to pass deals up, but I would suggest getting some experience and maybe taking a smaller profit up front.
After a few deals, you can start investing your own money.
I’ve got a flowchart you can get for free on my Blog which shows you how you should move through your real estate investing career.
You’re welcome to it
http://house-buy-coach-dennis.weebly.com
Dennis.
Re: CASH OFFERS - Posted by Maurice
Posted by Maurice on February 01, 2010 at 24:43:02:
Try an offer of 20% or 25% below the asking price. The way the real estate market is today, money talks.
Do not be upset if they do not take your offer. There are plenty more houses for sale.
Here is where you have to use your own judgement. Compare various houses. Look for the best buy.
You do not say if it is for your personal use or as an investment.
The way things look in the real estate markets, there may be a further drop in prices this year and next year. Prices may not recover for some time.
If you want the house for your own use this may not matter. After all how much more can they drop?
You should have in mind, to buy a house you will be happy to live in for 10 years or 20 years. This is not a time to speculate or do quick flips.
Re: CASH OFFERS - Posted by camgere
Posted by camgere on January 31, 2010 at 16:46:06:
Congratulations on your newfound wealth.
Is this your personal residence or an investment?
Cash offers may produce a lower sales price if a property does not qualify for (FHA) financing due to needed repairs. I made about a dozen cash offers in the last year and it made very little difference. My offer might be considered first over a financed offer of the same price. Oddly, financed offers are commonly called a cash offer, because it is cash to the seller. (No seller financing involved).
I concur with William, be careful with your windfall. You might want to wait six months or a year to spend it. That way when you think of a way to spend it, you have months to re-think all the angles and see how comfortable you are with the ramifications. When you finally do spend it, you will have had time for calm thought and lots of research.
Re: CASH OFFERS - Posted by William
Posted by William on January 31, 2010 at 16:24:04:
Don’t put all your eggs in one basket, Felicia. If things don’t work out as planned with this property, you’ve got no back up to bail yourself out with.
Why not buy creatively,and use that money to control four or five or six properties, instead of just one?
50K into 5M in 5 years - Posted by Kristine-CA
Posted by Kristine-CA on February 01, 2010 at 22:05:52:
OK. I like this challenge. The 50 K is easy enough…that amount has
come and gone many times in my last 10 REI years. Why, or why didn’t
I turn into into 5M? Did I forget? Do I just not have the skills? Bad
market? Do tell, what did I forget to do?
Jokes, and self pity, aside, I think it’s actually do-able. Thanks, Kristine
Re: CASH OFFERS - Posted by Felicia
Posted by Felicia on February 02, 2010 at 07:33:35:
Thank you so much this is just what I wanted to know. The house is for personal use and we would be a first time homeowner. We are and nervoue/excited “about the tax rebate deadline”, but some have warn against buying a house with no equity to pull out to get a mortage when or credit is repaired. Can you advice on this?
Re: 50K into 5M in 5 years - Posted by Kristine-CA
Posted by Kristine-CA on February 02, 2010 at 21:55:10:
Back when I first learned about REI, on the internet, I didn’t have
television. In fact, I didn’t have television from about 1993-2003. There were all these references to Carleton Sheets and Tom Vu and
John Beck on this site, but I hadn’t seen any of them.
When my kids were younger I used to take them on camping trips way,
way up north. In order to make the drive bearable for them and for me,
I’d drive halfway at night, from about 7pm - 1 am. And stop at a
motel. It was on motel TVs that I learned all about infomercials. They
were absolutely fascinating to me. I’d already done some deals and
kind of knew that it wasn’t as easy as they said. But at the same time,
it’s not that complicated either. I have a successful investor friend who
said the first course they ever bought was Carleton Sheets and it
inspired them for months.
It’s all what you do with material…even Tom Vu’s. But I gotta say
that yachts and T&A just don’t sell me on much.
Because you didn’t listen to this guy… - Posted by Gene
Posted by Gene on February 02, 2010 at 20:23:55:
The one and only Tom Vu:
Re: CASH OFFERS - Posted by Maurice
Posted by Maurice on February 02, 2010 at 15:26:51:
Why would you want a mortgage?
You have no idea what a burden is lifted off your shoulders when you own your own home OUTRIGHT with NO MORTGAGE.
If you have $50,000 and the house is $45,000 you can pay for it all cash.
I don’t know where you get the idea of having “no equity”. Do you mean you should have instant equity when you buy, by paying below market value?
That is definitely doable especially when you have all cash to offer. As you know money talks and not many people have the money to go buy a house all cash, no mortgage.
If you have looked at some houses and studied your local real estate ads you should know if it is a good deal or not. In any case you should be able to buy a house for a bargain price because you have cash and it is a buyer’s market. That may be what they mean by equity.
DO NOT “pull out” money from your house when your credit is repaired. That is how all the suckers got creamed. I mean the ones who are now losing their houses.
Ya they lived the high life for a few years throwing the borrowed money around but now they are LOSING THEIR HOUSES!!!
Don’t be a sucker. Buy a house for cash and keep it mortgage free.