Posted by Hank on October 27, 2002 at 18:39:20:
On the other side of that new investors flooding the market coin, you have a whole group of people that have lower… mmmm…shall I say different standards to flip deals to.
"OK Mr Jones, your paying me 3k, making up 7k in back payments and legal fees, another 3.5k in paint & carpet plus 1.5k in holding costs. Total of 15k out of pocket.
Now you should get 7k down in non-refundable option consideration, 3k in tax benefits, $175.00 bucks in monthly cash flow and at least 15k when the guy exercises his option.
Then you could work out the % gains for him or just say something like - Sure beats the heck out of the stock market, right?
Oh you want hold this for your retirement? Well you could do a refinance since you allready own the place - I mean, you will when you pay me - and they’ll give you 80% of the value of the place. That’ll put most of the money you put out back in your pocket and the rest will be gravy in the coming years. Not bad".
A “Legrand guy” would never guarantee a note or put that much out of pocket. That deal wouldn’t be sexy enough unless it was in a really hot area.
I’m not sure if I articulated my ideas right but I think it comes across.
Just work out the cash on cash for them and even a marginal deal to a seminar grad looks like gold to a guy thats been getting a big nothing in other investments.
