Newbie Moving Slowly - Too Slowly - Posted by Yolanda

Posted by Yolanda on September 25, 2006 at 06:37:50:

Joe Kaiser is offering a program. You can find it on this website under products.

Yolanda

Newbie Moving Slowly - Too Slowly - Posted by Yolanda

Posted by Yolanda on September 23, 2006 at 21:16:14:

Hi Everyone:

I have been successful in finding motivated sellers who are looking to allow me to assume their mortgage or rent with an option to buy. However, each time I run into a problem putting together a deal. I think I just don’t know enough strategies to make a deal happen. I also have a problem coming up with exit strategies. I welcome your suggestions:

The scenario goes like this:
1)The owner is motivated enough to allow me to take over payments or rent with an option.
2)The monthly PITI is too high to cashflow as a rental.
3)The monthly PITI is too high for a tenant buyer.
4)Some times the owner is behind in their payments.

I’m drawing a blank when trying to figure out how to solve these issues.

Yolanda

Re: Newbie Moving Slowly - Too Slowly - Posted by John Corey

Posted by John Corey on September 25, 2006 at 09:06:18:

Yolanda,

What you are coming across are suspect or maybe prospects.

What you do not appear to have are real deals? As Terry Vaughan will sometimes say, “Where’s the deal?”

Some of the time the deal comes to light when you find a better angle. Some of the time there is no deal and your eyes are really seeing things correctly.

Keep the faith. Keep learning. Keep asking questions so you can grow the number of solutions that are in your toolbox.

Better to be slow but do profitable deals than to feel you are missing out and execute bad deals.

John Corey

Re: Newbie Moving Slowly - Too Slowly - Posted by Joe Kaiser

Posted by Joe Kaiser on September 24, 2006 at 15:06:44:

This is the kind of deal that gets newbie investors in trouble. They
seem to think there’s something to be had here, and every now and
then, there is.

Unfortunately, the ones that don’t work out are far more common and
the risk of getting a deed, say, do not outweigh the rewards.

You first need to understand what makes a deal, with Profit being the
#1 element. Here, it’s completely missing and why this sort of deal
should be avoided by all but the most experienced investors who know
what they’re doing (and even better, why).

I couldn’t touch it.

Joe

Be Versatile or Be Mobile - Posted by Jimmy

Posted by Jimmy on September 24, 2006 at 08:02:06:

You are learning a lesson that many of us have had branded into our hides. It does NOT surprise me that your particular biz midel does not work in your part of NJ.

  1. not all strategies work in all places.

  2. there are many ways to do REI. You need to figure out which ones work in your area. If you are a one-trick pony, your REI career may be a short one.

  3. the strategy you describe does not work in Califoria and other higher-priced locations, but can work in a lot of places between the coasts.

  4. There’s no rule that says you have to do biz in your own backyard. Plenty of us own properties in far away places.

Re: Newbie Moving Slowly - Too Slowly - Posted by Luke

Posted by Luke on September 23, 2006 at 23:36:56:

I’m assuming these aren’t cheap enough to flip or you would be doing that.

I’ve heard of people having the seller throw in some cash each month to cover the negative cashflow. I’ve never talked to anyone that has actually done it.

Where do you live Yolanda?
Luke

Re: Newbie Moving Slowly - Too Slowly - Posted by Yolanda

Posted by Yolanda on September 24, 2006 at 20:15:48:

Gotcha!!! I do know that the seller of two of the deals is now in forclosure. I thought I may be able to work on a short sale at this point. I plan on asking a more experience wholesaler to work on the short sale with me.

Thanks Again. Love this group.

Yolanda

Re: Be Versatile or Be Mobile - Posted by Yolanda Judge

Posted by Yolanda Judge on September 24, 2006 at 20:39:17:

Quick cash is what I’m trying to do at this point. I don’t find myself in a position that allows me to hold on to anything. However, I willing to assign or wholesale a deal when I find one. Jersey City is hot, moving and the prices are ridiculous and unbelievable to someone like me who was familiar with houses back in the day that were going for $150k that are now $1mil. However, I know people who are wholesaling their rearends off in this area. I’m just trying to get a piece of the pie.

I guess my frustration comes from seeing the same type of situation that doesn’t allow me to wholesale. Although I’m getting better at recognizing an “undeal” when I see it. And after all of that I’M NOT MAKING ANY MONEY. Thanks for the feedback.

Yolanda

Re: Newbie Moving Slowly - Too Slowly - Posted by Joe Kaiser

Posted by Joe Kaiser on September 24, 2006 at 15:12:24:

Happens all the time . . . you just write up your purchase as a lease
option and pay rent (in other words, what amounts to the equivalent of 5
or 6% interest only, at most).

Joe

Re: Newbie Moving Slowly - Too Slowly - Posted by Yolanda

Posted by Yolanda on September 24, 2006 at 06:33:34:

Hi Luke:

No these aren’t cheap enough to flip. I do know two are going into foreclosure. My thought was to try for a short sale on those. I’m sure the 3rd one will be going into foreclosure at some point. But she’s not there just yet.

I’m in NJ.

Yolanda

Re: Be Versatile or Be Mobile - Posted by John Corey

Posted by John Corey on September 25, 2006 at 19:57:17:

Yolanda,

I want to caution you that some of the folks you might be talking to at a REIA meeting could be more talk than it seems.

People who are skilled can find more deals than someone just starting out. There are also markets where the prices are such that flipping is not as easy as some people want you to believe. Or they talk about their deals that they have just done but the deals have not fully closed. Only when the cash is in the bank does it really mean the deal worked.

If you can not hold then find someone who can do so and see if they want to partner in some way. Not that different from finding someone who would buy your deals and hold them as long term investments.

If you are mostly trying to flip to retail buyers do you have a buyer’s list? If so focus on what they can afford to buy and then operate legally (not as an agent for them).

When someone is learning a new field they normally have to go to school. More so with a field where they can make serious money. Pounding the pavement and getting better at recognizing a deal from a non-deal is part of the process. You might not be making money right now but you are not likely spending as much as you would to attend a top university.

If you spend a full year to find one deal but you then make $30K from the deal that is not bad for what I am guessing is a part time activity (assuming your work, etc). Building your network, your marketing, learning the area that you farm or other such things is an investment.

Hang in there as results will come with continued application. Get advice from people who are successful and make sure you have checked them out to know that they are not just blowing smoke. Then do what they tell you will work in your market if they have experience with the market or that type of market.

John Corey

Re: Be Versatile or Be Mobile - Posted by Jimmy

Posted by Jimmy on September 25, 2006 at 07:20:05:

I have never tried to do what you are doing. Quick profits happen sometimes, but I am never looking for them. [I prefer to keep my properties indefinitely, which is why I am 90% focused on cash flow]. there are three basic situations where I find quick turn profit potential. I suspect these same situations would work in Nueva Jersey.

  1. when I can buy multiple properties in a single deal.

  2. when I can buy properties in distress (properties in need of major rehab work).

  3. when I can buy properties from sellers in distress (which is very different from properties in distress).

and every once in a while, all three factors will harmonically converge in one deal. the results can be fantastic. ran into this scenario once in my 6 years of REI. but I see factors 1 and 2 in the same case pretty often.

REI is a numbers game, and an investor must look at lots and lots of prospective deals. Keep turning over rocks.

Re: Newbie Moving Slowly - Too Slowly - Posted by Yolanda Judge

Posted by Yolanda Judge on September 24, 2006 at 20:02:20:

Could you clarify just a little bit more for me. I don’t use the word “Newbie” lightly.

BTW, your “Hunt for Abandon Properties” program is great. Jersey City,NJ is very hot right now. I’m jussst missing the deals. I’m getting faster with my search.

Yolanda

Re: Newbie Moving Slowly - Too Slowly - Posted by Phil

Posted by Phil on September 24, 2006 at 09:52:49:

What part of NJ are you in. North, central, south? I am in northern NJ.

Re: Be Versatile or Be Mobile - Posted by Berno

Posted by Berno on September 26, 2006 at 10:03:41:

“Building your network, your marketing, learning the area that you farm or other such things is an investment.”

How true!

Yolanda, starting off in this business can take time but if you keep at it, keep learning and keep networking it will pay off. I’ve had a person call me out of the blue and tell me he had a property locked up at an unbelievable price. After passing along $1,000 the contract, and later the property, were mine. Why did he call me up? He knew I’d be interested because he knew what I was looking for. This was a fellow investor in SF rentals too…my competition. I also have a great realtor who calls me sometimes before a property that is getting listed even hits the ad sheet. I had one property locked up at about 60% of what the asking price was GOING to be before the mainstream even knew it was going to be for sale. Both of these examples didn’t happen in my first couple of years in REI. They came after I got my name out there and people grew to know and trust me.

If you want it, keep at it Yolanda. For most of us it’s not easy at first. It gets easier the more you learn and the more people you meet.

-Berno

Re: Be Versatile or Be Mobile - Posted by John Corey

Posted by John Corey on September 25, 2006 at 19:50:34:

Jimmy,

If you are 90% focused on cash flow what location or what type of property is your focus?

John Corey

Re: Newbie Moving Slowly - Too Slowly - Posted by Brian

Posted by Brian on September 24, 2006 at 22:59:18:

Hi!

What is your “Hunt for Abandoned Properties” program that you are offering? I live in Northern NJ and would love to learn more about finding abandoned properties.

Thanks,

Brian

Re: Newbie Moving Slowly - Too Slowly - Posted by Yolanda

Posted by Yolanda on September 24, 2006 at 19:56:24:

Northern, I’m in Jersey City.

Yolanda

Re: Be Versatile or Be Mobile - Posted by Yolanda Judge

Posted by Yolanda Judge on September 26, 2006 at 19:31:00:

Thanks everyone for the support. Sometimes I feel like I’ve been at it for a long time. In reality I’ve just become very serious about all the possibilities out there for me in real estate. As I think back, it was all the possibilities that got me caught up and overwhelmed because I was trying to do everything. Focus is key!!

Yolanda

Re: Be Versatile or Be Mobile - Posted by Jimmy

Posted by Jimmy on September 26, 2006 at 07:39:41:

east TX.