Posted by Ralf on April 29, 2005 at 15:51:58:
Gabe, yes 25k in profit is pretty much typical for a sub2. Although it’s relative to YOUR market. In mississippi where a house will sell for 10-20K obviously this is not realistic, but here in North NJ where you’re lucky to find a junker for less that 200K… a 25K profit would be marginal IMO.
Does sub2 really work? - Posted by gabe
Posted by gabe on April 29, 2005 at 13:09:57:
Since my post was deleted before I could read all the responses here I go again. I just finished John Case Lockes course on sub2. The gurus claim 25k is the average profit on each one. Does this seem reasonable? And are there any people on this board doing 1 deal a month or more doing sub2?
Thanks
Re: Does sub2 really work? - Posted by Mike-OH
Posted by Mike-OH on April 29, 2005 at 17:27:29:
Gabe,
Yes, sub-2 does work, but the real question is how often does it work? In my experience, the number of good deals that can be done sub-2 is VERY limited. The vast majority of the potential sub-2 calls that I get are from sellers who owe more than their houses are worth. The point is that if I had to survive solely on sub-2 deals, I’d be eating catfood and roadkill!
The late night gurus love to talk about not needing money or credit to be successful in REI. In my opinion, that’s total nonsense. Cash is king in REI. All of the successful investors that I know have either money or good credit (most have both). When they find a deal, they can move immediately on it and they will beat the broke wannabe with bad credit every day of the week!
Probably not politically correct to say this, but true. Read quickly before it gets deleted again!
Mike
Re: Does sub2 really work? - Posted by Greg(NJ)
Posted by Greg(NJ) on April 29, 2005 at 16:03:03:
Gabe, you better believe they work. And anywhere I might add. It boils down to finding that motivated seller… learn to market for them. Hint: Direct Mail.
Greg