Posted by John SirJohnathon Grounds on May 29, 2001 at 23:47:23:
Rickyd,
Here is what I learned in the past. I used to be in Venture Capital. To get there meant I spent years in school and busted my butt to get my MBA from a top school. This earned me the right to help other people by giving them advise and money. I often gave a small amount of advise out free, and watched what was done with it. After a point, I found many people were using my knowledge to advance themselves without working for it. Why should I have spent thousands of dollars and thousands of hours away from my family just to give my knowledge away. Think of it this way…knowledge is capital just like cash. When you have a ton of it, you owe it to society to give a little away (hence CRE). However, when someone starts taking advantage of it…the charity stops and it is time to start charging.
I would recommend you stick to your guns. I am not sure what the numbers look like based on the age/condition of the homes, but if this guy is using your ideas to try and screw over his tenants, let him do it himself. Hold tight, and turn the management back over to him. Let him come present the contracts. My guess is after a couple weeks he will become a little more motivated to sell for a reasonable figure.
Just my thoughts…
John “SirJohnathon” Grounds
needs advise !!! - Posted by rickyd roland
Posted by rickyd roland on May 29, 2001 at 20:06:09:
i either need some advice or maybe just some encouraging words.
i had been wanting to do “lonnie deals” for a long time, and never had the oppurtunity to do so-(or maybe just scared).i meet a man whom owned 48 units in a park in my home town. this park has 164 lots.i was excited, but didn’t want to jump in too deep too fast. so i started out with buying 6 of these units for $12k.-(thats 2k each) -the 1st one went rather quickly. i put maybe $400 in repairs, painting ceilings, replacing tile for kitchen, etc. i hAd this one sold before repairs were even finished, so i took the $500.00 d/payment and used for repairs. (no money out of pocket)-created a note for 8500.00 at 12.75 interest. for 4 years. the 2nd one went just as fast, and we have 3 pending sales for the 1st of june. he also wanted me to more-or-less oversee his other 41-42 units he had left. (he lives 4 hours away in n.ga)-as far as collecting rent-doing repairs, expenses, etc, dealing with these people in the park in his units. now for the problem-(may not be a problem ?)-he wants all of the tenants in his units to purchase their home, (he wants out of the rental business) do no repairs, raise their payments-roughly-25-$30 a month-at 10%-for 6 yrs.-needless to say, no-one in the park has agreed to the contract as of yet. and they are furious, (to say the least). most of these good people have been there for years. ( he had also made comments to me in the past saying i may be able to acquire the rest of his 40-41 units)- he’s really confused on what he wants to do with them. he talked to me today, saying i could have ALL of them for $150,000.00.-which is a far cry from $50,000.00, which i offered to him last week. to me, what he wants is a very high price for these units, and they are in some degree, in need of repairs to get full price. i have the knowledge to get all of these up and running for him, rented, sold, whatever he wants to do, but he is not willing to put anything into these homes, and it’s gonna be hard to sell-“as is” for the price he wants.
my question, do i keep letting him know of MY ideas, (which i have several times) and persuade him to come around, or do i just say forget it and stick to my 6, and carry on, which is a sure money making idea-i’m in dier-need of some advise. he has already sent contracts for ME to issue out. ASAP
thanks-rickyd