Posted by Heather Collins on October 27, 2000 at 09:58:35:
Hi! I am interested in purchasing the course. I live in Delray Beach florida. Is there someone who can tell me about their experiences with the course in my area? Thanks.
Inside Info on Carleton Sheets Course - Posted by seesaw
Posted by seesaw on August 31, 1999 at 12:19:31:
I have recently purchased the CS program after having ten years experience in REI. After careful review there are a couple things that 1) can be misleading and 2) are not up to date. First, when you see on the informercial about coming out of the closing with cash in your pocket (especially when you see people showing cashier’s checks for $30k,$40k and even $50k) I have to admit, I wanted to see if there was something I wasn’t doing, because even with my experience, the best I was able to do were almost no cash down deals. I went through the course and watched the videos and lo and behold I found out where the money they show in these checks actually came from. They are the tax credits, last month’s rent and security deposits from buying multiple unit buildings. This is very misleading, as what do you think happens when the tax bill comes due or the tenant moves out and wants to apply their last month’s rent and get back their security deposit. Yep, you have to pull it back out of your pocket. Sure you get to earn interest on this money (that is if you put it in the bank) although it seems that CS is advising that you use this money for your downpayment. If you do that and a couple of your tenants decide to move out and it takes a month or so to rent the unit, you are SOL. Of course, some will perhaps argue that if you can re-rent it quickly, you will get the new tenant’s deposit and last month’s rent. This could be a juggling nightmare and not advisable for those with little financial experience.
My second issue is that CS does not discuss the absolute value of the internet when it comes to REI, from finding current listings and checking neighborhood info, to all the financial calculators and everything available for free (he of course wants to sell his computer program for these). BTW, Forbes.com and Money.com have some great free tools available.
Also, for an instant 50% discount on the CS program, after you receive and within the first week, call the customer service number to cancel and send back the program, they will offer you a 50% discount if you keep it. (Obviously when they ask you why you don’t want it, don’t say ‘because I heard you get 50% off’!).
Re: Inside Info on Carleton Sheets Course - Posted by Dietra Rosario
Posted by Dietra Rosario on September 07, 1999 at 15:50:17:
Hi seesaw,
I recently ordered the the CS course and have been reading it. I noticed in chapter 3 of the course that it says " if you currently have a bad credit record or no credit at all, you can still buy your first home or investment property."
My question is: Is this true? unless i’m mistaken I haven’t read anything else about bad credit in any other chapter of his course.
Re: Inside Info on Carleton Sheets Course - Posted by William Flood
Posted by William Flood on September 03, 1999 at 13:21:29:
Look a little beyond the course - money back from settlement can come from other sources. First, there are still assertive lenders that will finance on appraised value, not purchase price. So, if you find a property well below market, you can often finance more than acquisition cost. The same can be said of private financing and partnerships. Dual closings and flipping contracts can also lead to cash in your pocket during a closing, except you don’t end up with the property. Keep in mind the course is training…you must be creative in your application of the principles just as an advertising student must use the principles they learned and move beyond them in the real world.
You make a good point… - Posted by HR
Posted by HR on September 01, 1999 at 18:51:45:
Seesaw,
There is no question CS’ materials are misleading. If Carlton doesn’t make it sound easy ("You can retire in 5 years!!!), then I don’t know who does. However, for the $180, you get all the basic info one needs to start, in addition to some audio tapes. I think it’s a good value for $180.
What’s outdated are his tax information…by about 10 years. Yikes. In fact, his whole style is outdated; buy and hold, you will notice, is not widely favored at this site. There are good ways to make faster cash, and CS touches on some of them.
Despite this, for the true beginner, it’s not bad info. It’s elementary. One still needs to go to Jr. High, and High School, and hopefully college (and maybe even graduate school)… but that’s what this site and the specialized courses are about.
Compared to many of the high priced seminars, CS materials are a good value. That’s just my 2 cents, though.
Cheers,
HR
Re: Inside Info on Carleton Sheets Course - Posted by AL
Posted by AL on August 31, 1999 at 23:57:40:
This past year Ive purchased 8 properties and cash out on each one.The trick here is to purchase way under market,find a hard money lender or a finance company to loan on the value(benificial,norwest financial,american general much higher intrest rates)EXP.Right after chrismas I saw an ad in the paper for a 4 bedroom home for $9,000.00 I was the only one to call,the house needed $1,000.00 in paint&carpet,the vale was appraised for $36,000.00 I found a private lender who would give me $16,200.00,after his 10POINT FEE!! THE SELLER AGREED TO TAKE $7,500.00 IF I could close in one week I owned a rental accross the street similar to this place,it rented for $495.00 per month!! after closing I cleared $8,200.00 minus $1,000.00 for the clean up left me $7,200.00 (this was one of the smaller deals).Another one I found the seller was GIVING $8,000.00 for fix up and giving the buyer a 7.5% rate on a 30 year land contract.The place already had a renter in it,MY estimate for repairs plus some extras came to $2,200.00.I started out with CARLTON SHEETS course I have a post on the news group 1 page about my year anniversary of being full time investing sooo many people get caught up on what doesnt work and to look at things at a what`s wrong with this picture attitude fortunately these are the same people who have made me sooo successful! AL
My .02. - Posted by Mark (SDCA)
Posted by Mark (SDCA) on August 31, 1999 at 17:12:53:
Here is my .02. (No, I don’t own CS. I bought it and returned it about 7 years ago.)
I certainly think that using rent credits is a viable option ESPECIALLY if you are getting new financing. The reason is that rent is collected in advance but mortgages are paid in arrears. I recently closed on 16 units with new financing. You bet I madee sure that we closed on the 1st. That gave me a credit for the entire first month I owned the property. Then the next month when my first mortgage payment was due, I collected the rent and paid the mortgage out of the proceeds.
Now, if I were a seller and someone were taking the property subject to, I would tell them “you collect the rent, you make the payment”. That is a tougher sell as a buyer.
I did the same thing with fix up allowances (carpet and hot water heaters). Sure, when they have to be replaced, the money will come out of my pocket. But the credit is in my pocket NOW. The repair will come later. I know that, I am planning for it. Money now is worth more than money later.
As for vacancies, you are absolutely right. You better be prepared to handle vacancies. That goes with landlording.
Re: Inside Info on Carleton Sheets Course and “pat” - Posted by fletch
Posted by fletch on August 31, 1999 at 12:49:47:
I agree with you. I have been an investor for 15 years (part-time). I own the sheets program When I saw the info-mercial. I thought the people were buying distressed property that was in disrepair for say 40k which was below the true market value, then doing fix-ups and refinancing for say 60k and pocketing the instant equity and renting the property. Are you saying this is not the case??? Also, isn’t it strange that NONE of these people that have been soooooo successful with the sheets program do not post here. There was one clown a few months ago that posted messages here claiming that he bought 40 plus home in 6 months after buying the sheets program. his name was Pat. When I send pat e-mail asking specific questions about details of the deals, “pat” lashed out at me like some kind of nut-job. pat could not answer one single simple question about any of their 40 deals. It takes all kinds!!!
Re: Inside Info on Carleton Sheets Course - Posted by Celina Vinson
Posted by Celina Vinson on February 25, 2003 at 21:39:32:
I have always been fasinated by this course, I once orded the course some time ago and due to my financial situation I had to return it and that is not something I wanted to do. I have two children, working,and going to school. This is something that takes up a lot of your time. Trying to maintain a family, go to school, and work full time does a toll on you financially as well as physically, and I have always wanted to try this course and could never do so because of this. I just want me and my family to live comfortably through the rest of our lives. Please give me a call as well (616) 831-5218 at this time I am willing to work sometimething out.
Re: Inside Info on Carleton Sheets Course - Posted by Carolyn
Posted by Carolyn on March 01, 2000 at 13:57:30:
Quick question, How do you find property below market value. and then turn around find the financing then sell.
Re: Inside Info on Carleton Sheets Course - Posted by seesaw
Posted by seesaw on September 01, 1999 at 11:46:07:
You know what…in your last sentence you are absolutely right. I shouldn’t criticize and be negative about what I haven’t tried. I will try and be more positive.
Re: My .02. - Posted by seesaw
Posted by seesaw on August 31, 1999 at 19:21:22:
I am glad you were able to close that deal, but I was referring to tax credits, deposits and last months rents, not the rent you could collect if you closed on the first of the month. Although, if it were me, I would hold at least half of that money in a savings account to pay for unexpected vacancies and other expenses. This would give you breathing room to find good quality tenants. I know this from experience as I have had a property that took almost two months to rent in a stagnant market and let me tell you that after that first months rent comes out of your pocket to pay the mortgage, your standards for accepting tenants goes way down (basically breathing and can come up with the first month’s rent). This tenant I accepted under these conditions was the epitome of the ‘Tenant from Hell’ and I swore I would never let myself get in that desperate situation of having a big payment due and no tenant to make it.
Re: Inside Info on Carleton Sheets Course and “pat” - Posted by seesaw
Posted by seesaw on August 31, 1999 at 13:00:24:
As far as I could determine from the program, the cash in hand the people on the informercials are discussing is coming from the tax credits, security deposits and last month’s rent. CS spends very little time discussing ‘distressed properties’ in his program (there is apparently another program he sells which contains more info on these types of properties). Also, in my experience, and I have purchased properties in four states and 1 european country, I find it very difficult to see how some of these properties that CS touts, with their multiple liens and second mortgages, sometimes with high rates of interest, combined with property tax and insurance + basic maintenance can be pulling in a monthly cash flow like he claims. (BTW, cash flow to CS also includes what he determines the tax benefits of owning the property will free up in less money paid for taxes, so be careful there too).
Re: Inside Info on Carleton Sheets Course - Posted by William Flood
Posted by William Flood on March 01, 2000 at 14:59:15:
Finding below market prices is the most difficult part, and isn’t a simple answer. You have to find situations where the seller isn’t motivated by top dollar. Situations include foreclosure, probate, inheritance, divorce, financially strapped sellers, etc.
Financing can be rather easy if you have a real good deal. Banks are not the only source - so are partners, mortgage brokers, your own resources, family, etc.
What are you interests in real estate? I can suggest some additional training materials.
Re: Inside Info on Carleton Sheets Course - Posted by Ace Ventura
Posted by Ace Ventura on June 17, 2000 at 16:10:28:
All you people are idiots. Go to school and get a job, then make your own money. Carleton Sheets and his clones get rich because you dorks buy his materials!
Re: Inside Info on Carleton Sheets Course and “pat” - Posted by JR
Posted by JR on August 31, 1999 at 16:21:20:
Even CS talks about finding motivated sellers. When the seller is motivated, anything is possible. However, some of his success stories I certainly have to raise an eyebrow to. Yep, considering that 30-40% of gross rents are eaten up in expenses for multi-family units, it’s pretty hard to find the kind of cash flows they talk about on zero down deals. On the cash back issue, this isn’t all that hard to do and I’m not talking about all the closing credits etc.
The best way I’ve found to get cash back at closing is to use subordination. Yep, this takes a motivated seller. Nope, they don’t grow on trees but every once in a while you can find one in the blackberry patch. When you can get someone to subordinate, you can get all kinds of cash back at closing by securing a new first. Although I’m not sure, I believe this is their primary technique.
Re: Inside Info on Carleton Sheets Course - Posted by Gabrielle
Posted by Gabrielle on March 09, 2000 at 16:39:17:
I’m very interested in the carleton sheets myself, so I wanted to find out what training materials you were talking about. I’d appreciate your info and wisdom.
GG
Re: Inside Info on Carleton Sheets Course and “pat” - Posted by William Flood
Posted by William Flood on September 03, 1999 at 13:26:58:
Cash flows on low down deals depend a lot on the location. Certain areas have low price-to rent ratios, and others (like San Fransicsc or DC) have high price-to rent ratios. If you are fortunate to live in an area with a low one, you can get cash flow immediately. In a high area, you are lucky if you aren’t lossing money in the first 5 years. BUT – high priced areas usually have better appreciation than the low priced areas.
Sidenote: keep in mind that “flipping” property is one way that these people are making big $. When you see someone say “I made $20,000 in 90 days” the chances are quite good that they bought/sold quickly. Good way to go if you need current income and not long-term gain.