Posted by Dr. B. (OH) on February 26, 2011 at 14:56:27:
I am following Ohio law. The RISA (Retail Installment Sales Act (ORC: Chapter 1317))has been on the books since 1961, lots of case law to support it and no license required. May not apply to real Estate.
Steve
Celeste’s model can be the answer - Posted by Tony Colella
Posted by Tony Colella on February 13, 2011 at 07:43:08:
We have made mention many times of the possible outcomes of this economic crisis. Inflation, deflation, hyperinflation, devaluation of the dollar, lower prices for real estate, lower rents and other reasonable speculations and guesses.
How can we or new investors create income in such an environment and place ourselves in a position to not only weather the storm but also capitalize upon the opportunities it creates?
I would suggest that Celest’s post may be just such an example. Here is a copy and paste of her post:
“Not only banks are slashing there prices. I have not been looking for any deals for months now. Last month I get a call from a woman that heard I buy mobiles. She had a single wide with a porch 2/1 on land in the area I have six others. She is a older woman who moved out of it two years ago and into a house. She had to evict two times and had handy men rip her off. The last straw was when she left it empty for 6 months and went to see it and found the front door broke in. They stole the a/c,ceiling fans,light fixtues,stove fan and stove. There was a leak in the back bedroom that caused some ceiling to come down. She wanted 17k for it and I told her to give it to a realtor. She then said 12k and I said ahhhhh. She then looked me in the eye and said 6k. I said ok.I just rented it last week for $500 a month with taxes and ins at $50 a month total. I put $1900 into it. So I have $7900 in it. I will take these all day long.”
Re: Celeste’s model can be the answer - Posted by shawn sisco
Posted by shawn sisco on February 13, 2011 at 08:43:55:
That sounds like a great deal! I have a question-comment about the theme of these land-home posts, and that is this.
Are you saying that this is about typical and available most anywhere if one is working his plan right?
Or is this just communicating how good the deals can be.
Certainly with land homes as with anything else “you make your money when you buy.” I have always snatched up all of the steals that I could find, but whenever the deal is not a complete “no brainer” then what.
When is a deal a no go? I have seen many investors buy nice site built in nice neighborhoods that must be fed from other income sources to stay afloat, and the rationale is that the real estate values will appreciate over time. I guess we will see whether they do or not. I feel that very strong market pressure will be forcing house prices down in a market with rising interest rates, and tougher underwriting standards. Of course, the replacement cost will apply upward pressure, as will the buyers who will reason that they should buy now before rates climb higher still. It will be interesting to see it play out.
I believe that these cheap land-home deals will be more profitable than any strategy that relies on long term appreciation of SFR. Unless of course if the SFR is about the same price as the land-home…but honestly, how many of you have seen GOOD quality sfr in nice neighborhoods selling at a price in which 3-5 years rent pays back the purchase price with refurb cost included. I have seen some site built homes that are of this ilk with respect to the numbers, but the houses are deeply flawed and have no more exits through conventional financing to homeowners than do the land-homes. What say you?
Just briefly - Posted by Dr. B. (OH)
Posted by Dr. B. (OH) on February 13, 2011 at 16:08:07:
As you call it, Celeste’s deal is a no-brainer. I’m having a hard time risking my (or others’) money for much more than a near no-brainer. Recently bought from an out-of-state lender a 2000 16 x 80 3/2 that needs the carpet cleaned for $5000 (borrowed $$). Will sell for $16K seller-financed $1600 dn @ $250/mo.
Like you said, Shawn, you make your money when you buy.
Anybody who buys and has to feed the alligator until it appreciates, no matter what it is, is a speculator not an investor.
Investing is a business, speculation is a hobby. Anyone who HOPES for a profit due to outside forces is not in business. One has to have a PLAN as to how to make a profit. Warren Buffet buys UNDERVALUED businesses, not businesses at retail with the hope they will appreciate. But you already knew that.
Steve
Re: Just briefly - Posted by Vic (OH)
Posted by Vic (OH) on February 25, 2011 at 14:47:33:
Hi Dr. B.,
Maybe I missed this in a recent post, but I’m just curious to see if you actually went out and got licensed to meet the SAFE requirements, or are you just using a mortgage person as a conduit for financing the homes? I recently passed the exams for the licensure, but I’m curious to see how other people are doing it.
Vic
Re: Just briefly - Posted by joe-ga
Posted by joe-ga on February 21, 2011 at 19:24:56:
I always try to make my money when I buy, not when I
sell by getting a great deal.BUY CHEAP==SELL HIGH!After
all, remember this… YOU are the one who can solve
the problem someone has,and DONT fall in love with a
home till you already OWN it.