Nervous Newbie - Posted by Dee Dee/TX

Posted by GL(ON) on July 13, 2002 at 18:47:39:

What happens is they eventually fall over, if you buy them before they fall over they take your lifes savings with them,

Just kidding but not much.

Nervous Newbie - Posted by Dee Dee/TX

Posted by Dee Dee/TX on July 13, 2002 at 15:06:12:

I have been reading your posts for several hours now and must say that this group really impresses me. You all seem very genuine in wanting to help others. So, here I go, cause I need advice.

I have always been interested in REI, but afraid to take the plunge. I think that I’m afraid of making costly mistakes because of my inexperience. We haven’t rented in several(20) years or owned property because my husband’s job has always provided housing. We have good credit, but not alot of cash cause we’re putting our daughter thru college.

I have found a property in a good area of town that is condemned. It is a house with 3 apts. and a 1br/1b garage apartment. Only the house is condemned but, the garage apt needs work too. It is being sold “as is” so I’m under the impression that I can’t get a “seller’s disclosure” on it. According to my realtor it has been vacant for about 5 years. It sits on about .25 acres (the lot is deep). The asking price is ridiculously high (69,900). My vision for the property would be to demolish the houses and then build a nice multi family unit. I would like to add that the houses on either side of the property are very nice and well kept. I was told that if it were an empty lot it would be worth about 12K. I would like a little advice from all of you with more experience. Any suggestions.

Also, is there a place for me to go to get definitions to all of the jargon, like “comps”, “hard money”, etc…?

I’d like to add that we are in the process of buying a new place in College Station for our daughter and 2 roommates and I was wondering if anyone could recommend good landlord software for record keeping, forms, and all that stuff.

Thanks for any help.


Re: Nervous Newbie - Posted by waynepdx

Posted by waynepdx on July 13, 2002 at 20:40:14:

let me show you a way to free up your cash and put your daughter through college.

You click on the link for the advertisement here…Mid ohio securites. Roll over your 401ks into a roth ira.

Now make it a self directed roth ira. You then set up a trust to use that money to do real estate deals.

Now all the money you make (you are limited to 4 or 5 deals per year this way) you have paid back into your roth ira and it is 100 percent not taxed.

If you take the money out before you retire then it is taxed.

Now when you figure out how to do this…create a roth ira for your daughter. And repeat the process.

Now your daughter can pull money out of it with no tax consequences for her college.

voila…your kids college is paid for by your property deals.

Consult your tax advisor or attorney for information.

I am not either and it is just my opinion.

Re: Nervous Newbie - Posted by Scott Ewing SW Mich

Posted by Scott Ewing SW Mich on July 13, 2002 at 20:38:58:

Best software for a newbie is a notebook and pencil. Get a reciept book for rents from the local office supply store. Save all reciepts in an envelop that you keep with your notebook. Can’t see spending money to keep track of one rental. I have 8 and just use a check off on a sheet of graph paper. Different symbols for on-time discount, base rent, rent with late penalty, or vacant. Hope this helps, Scott

Re: Nervous Newbie - Posted by Al - So Cal

Posted by Al - So Cal on July 13, 2002 at 18:44:13:

Dont touch it with a 10 foot pole. Learn what youre doing and only do what you know.

Re: Condemned House - Posted by Travis (Dallas)

Posted by Travis (Dallas) on July 13, 2002 at 18:27:47:

I would heed the advise that you have already gotten.

However, some condemned properties look that way to the novice. I am amazed by what experienced rehabbers can do. You might try to offer a ridiculously low price like $2,000 with the intention of flipping it to a rehabber.
With the new Texas contracts you can pay a $50? option fee to inspect the property over a period of days and then can get out of the contract, if you can’t find a rehabber that wants it.
Get help before you do anything.

Re: Nervous Newbie - Posted by Travis (Dallas)

Posted by Travis (Dallas) on July 13, 2002 at 18:13:48:

What city are you in?
Is your daughter going to Texas A&M?

Do you want a condo/townhouse or a single family house in College Station? How are you going about finding the property? Will it be for investment purposes to own while she is in school and to sell when she graduates? That may be a good way to get started in real estate, if it is not too far away from you.
Does your current job provide housing? If not, that might be the first place to start investing.
Good luck.
Travis (Dallas)

Re: Nervous Newbie - Posted by JoeKaiser

Posted by JoeKaiser on July 13, 2002 at 17:42:18:

“Condemned” can mean a lot of different things. They are obviously thinking there is some value to the structures.

Building is very different from being an investor, btw. I’d pick one or the other.


69,000 - Posted by Donald

Posted by Donald on July 13, 2002 at 17:19:09:


If you want to build— purchase a vacant lot or site, not a condemned building.
It will cost a fortune to make your plans work.
my 2 cents

Re: Nervous Newbie - Posted by Chris (TX)

Posted by Chris (TX) on July 13, 2002 at 16:11:49:

Sounds like what you are saying about this property is, you’d have to spend a big chunk of cash (for demolition and clean up) just to get back to the basic lot… which is only valued at 12K. I don’t think you would make a dime on this deal, in fact, you’d probably invest way more than you’d ever get out of it. Keep looking. Good luck.

Where in TX are you?


Re: Nervous Newbie - Posted by GL(ON)

Posted by GL(ON) on July 13, 2002 at 15:12:31:

Dee-Dee? Haven’t you posted before? Maybe we have someone else with the same name?

What you are talking about (buying, demolishing, building anew) is a big, big project. Leave it to the more experienced developers. Besides such projects rarely make money, you can do better buying an existing property.

Re: Nervous Newbie - Posted by Dee Dee

Posted by Dee Dee on July 13, 2002 at 20:46:33:

I’ll have to look into that. Can you do it with a 403b? I’m an educator and that’s what I have. Thanks for the suggestions. I have spent the entire day reading and trying to soak up everything CRE has to offer.

Re: Condemned House - Posted by Dee Dee

Posted by Dee Dee on July 13, 2002 at 18:33:19:

Thanks for the advice Travis and the information about the option fee to inspect the property. Any suggestions on finding rehabbers?

Re: Nervous Newbie - Posted by DeeDee

Posted by DeeDee on July 13, 2002 at 18:30:00:

Yes, my daughter is attending A&M and we are purchasing a new condo for her. We are looking at it as an investment. HOusing there is at a premium. The site superintendent told us a few days ago that they are selling for $5000 more than we bought it for a few months ago. So I feel pretty good about it. We have a son who also aspires to be an Aggie (My husband says I brainwashed them). Whether or not he goes there I intend to keep it.

The property I was asking about is here in Huntsville, where I live. We do have our own housing provided through our employer.

Re: Nervous Newbie - Posted by Dee Dee

Posted by Dee Dee on July 13, 2002 at 17:47:31:

I went into the property and it is worthless. I had hoped that it would be repairable. The garage apt. seems to be though. I too thought there would be some value in it. WHat happens to properties like these? How do I find other investors to wholesale properties I find? Thanks so much for your input.

Re: Nervous Newbie - Posted by Brian M. Powers(MI)

Posted by Brian M. Powers(MI) on July 13, 2002 at 15:42:35:

GL i think you are referring to Dee-Tx…and i do not believe they are the same.

I do not know - Posted by waynepdx

Posted by waynepdx on July 13, 2002 at 21:10:38:

I have not done that method yet. But I will be. I have heard about it but got the details for it at the seminar I went to the last couple of days.

Lets hear from some people that have done it.

You know what they say in real estate, IF it sounds to good to be true…then you did your negotiations right.