Re: Where would you start? - Posted by Eric
Posted by Eric on April 18, 2000 at 22:42:58:
I am a student of Ron LeGrand - By the time I get there, the good deals are LONG gone:
One of my favorite Ron sayings is, “you can’t steal in slow motion”. Why are you even going there? Make your offers sight unseen, with $500 earnest money to make yourself look serious, contingent only to inspection. If you get a bite, THEN go look.
. I just can’t get the jump on agents who comb the MLS a couple of times a day
You’re right, you can’t. That’s why I got my license. Plus, when you tell people you’re an agent yourself, they are less likely to try and BS you.
In the Denver market even junkers are getting close to retail.
That is because Denver and Phoenix are probably the two hottest markets in the country, in the hottest economy EVER.
With all these possibilies and options, my question is “What would be the best place to start? Mobile homes a la Lonnie? Paper buying? Lease options? Stephen Cook’s method?”
You answered your own question:
I realize going after motivated sellers a la Joe Kaiser (I just got his lease option course in the mail) is the name of the game.
Here is what I would do if I were you: Stop looking for properties. Start looking for sellers. Sellers with problems that you can solve - solve them with money, creativity, however you can - and view yourself as a consultant, who, like all consultants, is paid to solve a problem. This is your second job, until it pays enough to remove the first one, the one that you hate. Second, do what I did - BUY A HOUSE. Do you own your own home? I am of the mind that any “Real Estate Investor” should obviously be a homeowner themselves. This is the first investment you should make - the bedrock of your foundation. Where is that $8000 right now? In the stock market? In bonds? Cash? There is no way any of these would net you the kind of return that owning a house, especially in your market, would. Remember, in addition to equity buildup, you also get tax shelter on your payment - that’s really important if you still have a job, that takes out taxes, each and every week. If you do already own - then take a look at your equity (is that the cash you were referring to, perhaps) and BUY ANOTHER HOUSE. Pay retail. You live in a hot market - people will rent it from you, and while they pay the mortgage, that house will increase in value. Rents will go up - but your payment won’t. Eventually, it will bring in lot’s of monthly cash flow. Then, take the equity that got built up, and do it again. What if the economy goes south, and the houses don’t appreciate? GREAT - NOW cash in that equity, and start looking for LeGrand deals. They’ll be out there, and in much greater number, if things go wrong. And if you have cash reserves built up, while everyone else is bleeding out, I don’t think I have to tell you what will happen then…