Specialize - The Key to Success! - Posted by Big Harold

Real Estate Investing
1

Posted by Big Harold on July 09, 2001 at 13:00:57:

In answer to the questions:

  1. I didn’t put any money down. That’s the beauty of the lease option - you can set the details.
  2. The houses aren’t renting for that, that’s my cash flow. The first one rents for $575/mo, I pay $300/mo, the other also rents for $575/mo, I pay only $250/mo, so correction, that one is $325/mo cashflow. It still works!
2

Specialize - The Key to Success! - Posted by Big Harold

Posted by Big Harold on July 09, 2001 at 10:43:50:

I’ve been working to get my REI business going for 11 months now. I have bad credit and no money. Back in November, I thought I had hit paydirt when I had a little success - I bought a house to live in(was renting at the time), and another to rent out. Things were going great, then I couldn’t find any deals. I was trying everything, and still coming up with nothing.

This was until I decided to specialize. I had been trying to buy, sell, lease option, rent - I just got too scattered. I was looking at all kinds of properties, and couldn’t get anything closed because of my credit. That’s when I decided in Early June to just do Lease/options - no credit hassles, and I could draw some income. In one month, I’ve closed on 2 properties, and had both rented in 3 days - one for $275/mo profit, the other for $350/mo profit! I have plenty more houses lined up to close like this too. It’s awesome now, but I had to find my niche. I just wish it didn’t take me so long to find it!

3

Re: Specialize - The Key to Success! - Posted by Joel - MN

Posted by Joel - MN on July 09, 2001 at 16:15:51:

I’ve noticed on the board that when lease optioning it’s necessary to run a credit check on potential T/B. That being the case, how could you get into one without a credit check? Is it a case of a major-league don’t wanter?

Thanks.

Joel

4

Re: Specialize - The Key to Success! - Posted by Sue

Posted by Sue on July 09, 2001 at 12:46:45:

Harold, I just found this page and it’s great. I have my RE license and also just got the Sheets course. I’m so anxious to get started because I’ve always believed in the power of owning real estate.
I, too, am scattered by nature and a bit overwhelmed. It’s easy for me to have so many options that I get paralyzed. You have an excellent idea in just concentrating on one area to start with. I was going to try an inner city rehab and rental, but I’ve been burned once by a bad tenant and it makes me leary.
The course has talked about lease-option but if you could tell me how you approach it, it may make it a little clearer. RSVP when you can. Thanks, Sue

5

Re: Specialize - The Key to Success! - Posted by SueC

Posted by SueC on July 09, 2001 at 11:17:08:

Harold, what did you do differently when you decided to focus on one area? Did your marketing change? Or just the way you approached sellers who contacted you?

6

Re: Specialize - The Key to Success! - Posted by Big Harold

Posted by Big Harold on July 10, 2001 at 10:55:31:

Joel,
You must realize that most homeowners DON’T read this website, have NEVER bought a homestudy course, so they’ve NEVER heard of lease/option! This means I’m the one introducing the idea to them, which means I make my own terms. They have no idea you usually ask for a down payment, so they do it. I sell the idea to them, and, since they are now getting money on a house they weren’t before, and don’t even have to manage it or anything, they’re happy and I’m happy. Works.

7

Re: Specialize - The Key to Success! - Posted by Big Harold

Posted by Big Harold on July 09, 2001 at 13:03:19:

Sue,
I just call ads and drive around looking for houses that look empty. Once I contact the owner, I ask if they’d do a lease option. There’s a great post on here from Joe Kaiser that has a message you leave on answering machines of sellers, asking if they’ll do the rent-to-own option. If they call back, you know you’ve got a hot one! This is just great. Let me know if you need anything else.

8

Re: Specialize - The Key to Success! - Posted by Big Harold

Posted by Big Harold on July 09, 2001 at 11:32:32:

Actually, my approach to sellers did change. On the phone, instead of asking a lot of questions about the house and/or price, I really want to know if they’ll do the lease/option or not. If they might, then I’ll take a look at the property, but if not - I just move to the next one. It’s been working great!

9

Re: Specialize - The Key to Success! - Posted by Zidzi

Posted by Zidzi on July 09, 2001 at 12:20:16:

Congratulations Big Harold and thank you for sharing your success story. Just a couple of questions:

  1. How much do you put down, if any?

  2. When you say the two deals you just closed are renting for $275 and $350, is that what they rent for or is that your cashflow?

Your answers will be greatly appreciated., and good luck with the others you have in the pipeline.
Zidzi