Good things come to those who...

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Posted by Edward Nolan(Ohio) on December 19, 2002 at 02:14:07:

In Reply to: Re: It must be worth it I guess... posted by Amy Francis on December 17, 2002 at 22:30:09:

Amy,

Hi. Good things come to those who conduct business rationally.

Let me tell you a story...I had a realtor who was a nice person. I told him I wanted to buy a home around 80k. He kept showing me homes around 120k. We made offers for around 80k, but he could never close the deals. We lost out on 3 deals. I asked him for a newer listing of homes. I went on my own and drove by the homes and narrowed my selection down to 3 homes. I called a different realtor made my offer and he closed the deal! Sometimes it's the person, and not the deal!

I understand the frustration but lets look at 2 things you have that are BIG positives. A current rent of $400.00 and a business you have been able to conduct within that $400.00 a month apartment.
Now, one thing I want to tell you is to start letting your money work for you. I want you to look at every dollar as an employee and ask how you can put that dollar to work and make it an asset instaed of a liability.

I don't want to burst any balloons, except balloon mortages, ( a little joke ) so, I want you to ask yourself...
IF I AMY MOVE INTO A HOME AND HAVE TO PAY A MORTGAGE DOES THE MONEY I PAY TO THE MORTGAGE COME FROM MONEY MY MONEY HAS MADE FOR ME, OR DOES IT COME FROM ME WORKING FOR MONEY?

Amy, right now the difference between your current rent 400 and a mortgage, lets say 900 is $500 right? I'm going to give you an example of what you can do to let your money buy your victorian, instaed of you buying your victorian. Keep renting month to month but see if they'll do 3 month intervals. This will give you some stability of no rent increase and a realistic goal to shoot for to raise 20-60k using the $500.00 difference above.

Lets say the first month you run an ad in the home section of the paper that says "Handy Man Special, 100% Financing, Money At Closing" If you left a pager number for those calls to go to, and ran the ad for a week you would get about 30 calls. If you ran an ad that said "RENT TO OWN WITH RENTAL CREDIT", you would get probably double the calls. It would cost about $70 to run either one for a week.

Depending on the ad you run will determine the type of business you employees (money) will be working in. If you run the handy man ad, you are in the foreclosure-rehab business. If you run the rent to own ad, you are in the foreclosure-newer style home business.

No matter what business you choose, you will be taken to a place of excitement. You will learn more things than you could have ever imagined. Not only will you learn about real estate, but the business world and the real truth behind what makes our great nation America tick!

The handy man business you would simply move paper.
The newer home business you would simply move paper.

Both use something called OPM or Other Peoples Money.
You and I use OPM every day. I recently purchased 2 new cars. A 2002 and a 2003. I used OPM when I purchased them.

Handy - You have a contract with the pre foreclosed owner and then you sell the home to a contractor to cash yourself out. You may spend at most maybe $300 on the deal but when you cash out you could earn around 25k.

Newer - You have a 4-6 year lease purchase agreement to buy someones home at the price they currently pay their bank. You maybe give them $10 as good faith money. Then after a couple days you stick a sign in the front yard that says RENT TO OWN. You take calls, you select your new RENT TO OWN person on a 1, or 2 year rent to own, they give you about 5% of the value of the home as a down payment (non refundable), 80k=4k prifit, you charge them about $200 over the price you pay to the original home owner as profit to you, you tack on 10-20k on the option portion due to appreciation, and then when the option kicks in you cash out using the OPM method. If you took the 500 and only paid 10 earnest money on every deal, and had to spend all of it, you would have 50 deals. When the time came to cash out all the deals do you think the money you spent would net you the 100k or more to pay cash for your victorian?

What I'm try

Follow Ups:

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Name    : 
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Subject : 

Comments:
: Amy,

: Hi. Good things come to those who conduct business rationally. 

: Let me tell you a story...I had a realtor who was a nice person. I told him I wanted to buy a home around 80k. He kept showing me homes around 120k. We made offers for around 80k, but he could never close the deals. We lost out on 3 deals. I asked him for a newer listing of homes. I went on my own and drove by the homes and narrowed my selection down to 3 homes. I called a different realtor made my offer and he closed the deal! Sometimes it's the person, and not the deal!

: I understand the frustration but lets look at 2 things you have that are BIG positives. A current rent of $400.00 and a business you have been able to conduct within that $400.00 a month apartment. 
: Now, one thing I want to tell you is to start letting your money work for you. I want you to look at every dollar as an employee and ask how you can put that dollar to work and make it an asset instaed of a liability. 

: I don't want to burst any balloons, except balloon mortages, ( a little joke ) so, I want you to ask yourself...
: IF I AMY MOVE INTO A HOME AND HAVE TO PAY A MORTGAGE DOES THE MONEY I PAY TO THE MORTGAGE COME FROM MONEY MY MONEY HAS MADE FOR ME, OR DOES IT COME FROM ME WORKING FOR MONEY?

: Amy, right now the difference between your current rent 400 and a mortgage, lets say 900 is $500 right? I'm going to give you an example of what you can do to let your money buy your victorian, instaed of you buying your victorian. Keep renting month to month but see if they'll do 3 month intervals. This will give you some stability of no rent increase and a realistic goal to shoot for to raise 20-60k using the $500.00 difference above. 

: Lets say the first month you run an ad in the home section of the paper that says "Handy Man Special, 100% Financing, Money At Closing" If you left a pager number for those calls to go to, and ran the ad for a week you would get about 30 calls. If you ran an ad that said "RENT TO OWN WITH RENTAL CREDIT", you would get probably double the calls. It would cost about $70 to run either one for a week. 

: Depending on the ad you run will determine the type of business you employees (money) will be working in. If you run the handy man ad, you are in the foreclosure-rehab business. If you run the rent to own ad, you are in the foreclosure-newer style home business. 

: No matter what business you choose, you will be taken to a place of excitement. You will learn more things than you could have ever imagined. Not only will you learn about real estate, but the business world and the real truth behind what makes our great nation America tick!

: The handy man business you would simply move paper. 
: The newer home business you would simply move paper.

: Both use something called OPM or Other Peoples Money.
: You and I use OPM every day. I recently purchased 2 new cars. A 2002 and a 2003. I used OPM when I purchased them. 

: Handy - You have a contract with the pre foreclosed owner and then you sell the home to a contractor to cash yourself out. You may spend at most maybe $300 on the deal but when you cash out you could earn around 25k.

: Newer - You have a 4-6 year lease purchase agreement to buy someones home at the price they currently pay their bank. You maybe give them $10 as good faith money. Then after a couple days you stick a sign in the front yard that says RENT TO OWN. You take calls, you select your new RENT TO OWN person on a 1, or 2 year rent to own, they give you about 5% of the value of the home as a down payment (non refundable), 80k=4k prifit, you charge them about $200 over the price you pay to the original home owner as profit to you, you tack on 10-20k on the option portion due to appreciation, and then when the option kicks in you cash out using the OPM method. If you took the 500 and only paid 10 earnest money on every deal, and had to spend all of it, you would have 50 deals. When the time came to cash out all the deals do you think the money you spent would net you the 100k or more to pay cash for your victorian?

: What I'm trying to say is try not to put yourself in a situation where you will regret a purchase due to the fact that it might strap you down to a point where you may not be able to do this business the right way. The right way would be to have plenty of time to research and learn as you go. The right way would be to not have to work a regular 40 hour job so you could devote more time to your real estate. The right way to go would be to stay at the 400 dollar apt. so as not to put unwanted pressure on yourself so you can make rational decisions and not a decision based on your feelings of the dream home. Save the dream home for when your money can buy it for you. 

: Ed


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