I’m only trying to be helpful. I believe the first thing you’d have to do is get rid of the fear out of your life. You’re are already defeating yourself by your confessions. Yes the numbers play an important rule in your deal, but there is plenty of great deals out there in southern California. So get busy to make something happen.
If you’re constructing a lease option deal, you can expect your tenant buyer is going to pay more than the fair market rent and they will be happy to do it, even in Southern California. You’re giving them a chance to buy a home when banks have turned them down.
I have purchased the Carleton Sheets tapes and also have gone through the personal coaching program. After all of the money that I have spent, I am still very fearfull that Carleton’s methods won’t work in my area. I am wondering if there is anyone that has had success in my area. I am very motivated and any words of wisdom are greatly appreciated.
I’m not in So. CA, but I do know that C.S.'s system does work.
I noticed you used the word ‘fearfull’. I think that this is your key. What are you really afraid of? The seller will say ‘NO!’? Or that the seller will say ‘YES!’?
I, too, was very nervous when I got my first deal. I think it was about 2 months and 30 offers until someone said ‘YES’. I followed the plan step by step all the way to closing. Even at the closing, I was so nervous I felt sick, but I kept my cool and went through it anyway. I got my closing package and a check (more then I made ALL month at my day job) and ran to the bank to cash it before (I thought) they’d change their minds. In about a week, I knew the money and property was really mine and forgot all about the fear AND knew RE investing was the way to go. Haven’t looked back.
Truthfully, there are many systems and different ways to buy houses for investment (C.S. being only one of them). Learn as many as you can and USE them.
“The more ways you know, the better your chances that your offer(s) will get accepted.”
Don’t give up! The only difference between a $30,000 house and $300,000 house is the later has more zeros behind it.
I know because I was afraid to, most of us were. Remember you don’t have to buy in one area…many people are coming to the southern part of the United States for investments…though not cheap but cheaper than California prices by far.
It’s all proportionate anyway…I hear people complain back here in the south that real estate is getting expensive, I lived and was raised in the San Francisco Bay Area…people here in the south don’t know what expensive real estate is comparted to Calforina prices.
you may live on the west coast but you don’t have invest in the west coast…there is a thing called property management to take care if investments for you.
I’m sure there are people that are motivated in Southern California that need to sell their homes, don’t they have divorces, foreclosures, tax problems , etc, there like the rest of the county.
If I had $300,000 to invest, I would by 10, $30,000 homes rather than one $300,000 home. Ask yourself this which would be easier to find a buyer for and a renter?
Re: Creative Real Estate in So.Cal. - Posted by Mark (SDCA)
Posted by Mark (SDCA) on October 30, 2000 at 13:54:27:
Ummm… yea… If I were trying to use CS in Socal, here is what I would be afraid of: That the seller says yes and I have a house with a 1900 per month payment that will rent for 1600.
If I know the market rent is only $1,600/mon and the deal requires $1,900/mon in payments, I don’t do the deal or close and ‘I TELL THE SELLER WHY!’ We either come to an understanding and agreement or part as friends. I do this for a profit and every seller I’ve bought from knew this. If there is no profit, I have no reason to become involved. Just be up front with the facts. Sellers actually like this streight line/out in the open approach.
Now there are ways to deal with this type of problem and turn it into profit, but that requires some real creativity and a REALLY motivated seller who’s very credit conscious.
Re: Creative Real Estate in So.Cal. - Posted by Mark (SDCA)
Posted by Mark (SDCA) on October 31, 2000 at 08:46:56:
Exactly right. And my point (and probably the original poster’s as well) is that this is the NORM for SoCal. The rent to price ratio is VERY unfavorable out here.
Creative R.E. works EVERYWHERE! Let’s not make things any more complicated than they need to be! The original question was --does it work? My answer…not unless you do! I lived in San Diego(which I love) and bought(actually L/O) a house in Del Mar with an oceanview(people like that sort of thing) and sold quickly(I mean QUICK) for $203K in profit baby! There’s so much money out there …it’s unbelievable! Just because you can’t afford it doesn’t mean someone else can’t! Get it?
Let me know what happens…
Angel,
Do you mind going into more detail on this lease/option deal and how exactly did you get 203K out of one deal–that’s amazing! I’m kind of new to REI, but finding this website was like finding a diamond in the rough. I have learned a lot just be reading questions and responses on this website. Are there any general REI tips you can offer. Thanks in advance for any help you can provide.
Matt-Ohio
Re: Creative Real Estate in So.Cal. - Posted by Mark (SDCA)
Posted by Mark (SDCA) on November 02, 2000 at 08:16:00:
I agree that CREI works. My point is that not all techniques work everywhere. CS emphasizes getting into the property in nay way possible as long as it is no money down and then renting it out. Could you have bought the Del Mar house and rented it for a positive cash flow? Probably not… That was my only point. You are very correct that LO DOES work very well in SoCal. Renting for cash flow is much more of a challenge…
BUT there are ‘Creative’ ways to overcome the negitive ‘Cash Flow’ problem in almost any deal. You need to be taught these techniques to really see the potential for positive ‘Cash Flow’. As a beginner, you need to beware of getting yourself over your head. That’s the point I’m trying to put across. Just be carefull!