“Too many people can’t run their own financial lives(bk’s, exhorbitant credit card debt etc) yet they believe they can juggle dozens and dozens of houses.”
Ain’t it the truth? I always get a kick out of the people who post here, who don’t understand basic financial concepts or can’t buy a $30 dollar or $300 dollar course without worrying about getting ripped off. Oh well, some people do pull themselves up, so I won’t throw stones.
Excited Newbie for Sub To deals…HELP - Posted by subtomess
Posted by subtomess on March 10, 2004 at 23:07:23:
I am so pumped! I just paid 1500 bucks for a weekend with a country bumpkin that taught me everything there is to know about Sub-to and how I can buy 500 houses and be a millionaire in two years!
Here is my situation. I have 500 bucks from my IRA I cashed in and I have my tax return of 350.00, which the guru told me I can go to usps.com and send out his postcard to people and they will give me their property for 10 bucks! And the best part is that I can get 10-15k down from the potential buyers and charge 50k on the backside on every deal!
I am so excited, the money I spent with this fellow is so worth it. Now all I need to do is get my Trust documents together, place my newspaper ads and postcards and I know my phone will be ringing tomorrow!
Wish me luck everyone!!!
Geez…isnt it a shame that this sort of thing goes on? What a mess, that poor guy below.
I suggest that any new person looking to get in to real estate investing via sub-to or being a bird dog that you know completely what you are getting involved with. Count on a minimum of 20k in funds that you need for reserves and advertising and expenses. If you cannot afford those kind of numbers and take responsibility for the worst case scenario, then do the next best thing and buy a REIT, get involved in real estate that way!
Re: Excited Newbie for Sub To deals…HELP - Posted by DaveD (WI)
Posted by DaveD (WI) on March 11, 2004 at 07:50:14:
So what’s wrong with buying a house for $10? Works for me! Your post with free reality check brought a smile to my face this morning. Can’t argue with your advise… a good primer on how to set yourself up so you don’t get creamed (or at least survive if you do get creamed). It’s the thin shaky deals that keep us up at night, don’t you agree? I’ve never lost sleep on a well-equitied purchase, even if I only paid $10 for it.
Your histrionics aside it seems your antidote to irresponsible investing is too sissified. Do you really think you need a minimum of $20,000. to begin investing? Perhaps a solution is to run your business like a professional- carefully measure risk, buy low and do what you say you’re going to do and maybe- if you work hard- you’ll achieve success.
Yes, as has been stated here numerous times by long time pros such as Joe Kaiser and JohnBoy, one does need at least twenty grand to hold properties long term. That is what the poster was referring to.
Sissiness or machoness is irrelevant bs, and measuring risk and saying you will fulfill your obligations is navel gazing if one doesn’t have the financial wherewithal to weather the likely storms.
I’m all for professionalism and treating RE like the business it truly is, in fact, I think that you’re right on in mentioning it first. It is THE most important idea new folks need to understand, and I mean truly understand. Too many people can’t run their own financial lives(bk’s, exhorbitant credit card debt etc) yet they believe they can juggle dozens and dozens of houses. Please.
Wholesaling and doing rehabs with hard money, don’t require 20k, but wraps and landlording (which include subject to deals), necessitate the use of reserves. And 20k is a minimum to alot of the experienced folks here.
