Random Ramble about people

[fdjake]

Furnished,

I've paid my dues in this business for 20+ years and have learned a lot about making money in real estate.

Flipping houses is without doubt the fastest way to make money in large chunks.  However, this method REQUIRES large chunks to do it in any type of VOLUME.

Forget buying houses off the MLS.  You're competing with EVERYONE....Investors, home buyers, newbie's.....EVERYONE!!  Buy the time you buy it, rehab it, and resell it....There is very little MEAT left on the bone.

The way to do it and get the best returns is to buy directly from the owner.

That's the FIRST HALF of the equation....The second half is RUNNING THE NUMBERS.

I always know what a property is worth BEFORE I buy it....You need to know 2 values...

The rehabbed value, and the AS IS value.  In my experience over a 20 year period, it is USUALLY more profitable to resell these properties AS IS!!
This completely flies in the face of conventional investment theory.  But the reality is this......

It is infinitely easier to place the property on the MLS and let the feeding frenzy begin.
I have these properties cleaned out completely.  I have the overgrown trees and shrubs trimmed because believe it or not,even INVESTORS have a hard time SEEING potential. So you SHOW it to them!!!!!! 

You're not selling to a homeowner that needs BANK FINANCING, HOME INSPECTIONS, APPRAISALS and the other ENDLESS list of bullsh*t retail buyers need.

AND.....by NOT rehabbing the property you leave the buyer a lot of OPTIONS.

If you remember only one thing remember this.....

DO NOT do this the way everyone else does it....Use your IMAGINATION and think about your TIME vs your RETURN.   Rehabbing is a pain in the @ss.   Buy your properties right and you can make the same profit in 2 weeks that your BUYER will make after 6 months of non stop work.

[Hoosier4life2005]

I could probably do what your talking about Jake, just on a smaller scale, when I get like 15K (which Ill be at here in like 3 months or so).

No reason why I couldnt buy some place for 10K (they are around here)with 5K left over for costs, instead of waiting till I get 30K, and buying a place for 20K-25Kish.

Then... i  could quit my job even sooner and actually have fun working!  score

[furnishedowner]

fdjake,
Yes, I am getting it.  I actually have learned to have a knack for turning a piece of garbage-looking little house into something that is appealing.  Otherwise I couldn't get the rents I need in order to keep all these balls in the air.

I am happy not to contemplate rehabbing because I don't do that, I just supervise it and boss people around.  I think I have an eye, but not the hands.

I'm looking forward to my new eye-training when I get back from my cruise.  I don't have MLS access as far as sold comps.  Looks like I need to cultivate a Realtor.  And I will need to cultivate the mentors on this site.

Furnishedowner

[phlemboy]

Hey Hoosier. I just want to make this point. Its great that you want to be in business for yourself. Your nusing job should help get you there. But I want you to remember where you are when you're at work. The people you care for have had their lives reduced to a half of a room. They have to share a room with a person they may/may not like. The food is awful. Many need help to the things we take for granted like eating, bathing and toileting. Many have family members who rarely visit and the staff are pretty much their family.. When you come in to a room with a "this is just temporary for me" state of mind, it will show up in your care. I've seen it too many times in healthcare. Don't be that guy. Take a good look at the pictures they have on their walls. It will help keep your perspective that these people had lives before the nursing home. Give nothing less than your very best in your nursing and REI and you'll be a much happier man, while making a REAL difference in the world.. OK, I'm off my soapbox..  

[REIER]

In my experience over a 20 year period, it is USUALLY more profitable to resell these properties AS IS!!
This completely flies in the face of conventional investment theory.  But the reality is this......

It is infinitely easier to place the property on the MLS and let the feeding frenzy begin.
I have these properties cleaned out completely.  I have the overgrown trees and shrubs trimmed because believe it or not,even INVESTORS have a hard time SEEING potential. So you SHOW it to them!!!!!! 

You're not selling to a homeowner that needs BANK FINANCING, HOME INSPECTIONS, APPRAISALS and the other ENDLESS list of bullsh*t retail buyers need.

AND.....by NOT rehabbing the property you leave the buyer a lot of OPTIONS.

We are in a bargain based market. Everyone is looking for a bargain on RE right now. You need to BUY at a bargain price and you need to SELL at a bargain price. People on the MLS aren't dumb, most know a deal when they see it. Think of the MLS as Ebay, if you list something at a good price, you're gonna attract eyeballs and bids (offers).

I think unless you have a reliable  GC, with a good crew, rehabing isn't the way to go for the small time investor. Buy it at a great price, sell it at a great price. You make money and your buyer makes money.

Now, I know many are stacking up houses and holding them to sell when the herd goes crazy buying everything again, but I just can't stand the idea of dealing with tenants and all the other BS that goes with owning houses. I've been there and would rather not return, but I also know that snatching up those gems right now is key. This is something I keep strugling with..how are you guys who don't like landlording dealing with this?

FO, The MLS is a great tool, but you don't need it starting off. Go search the town's accessor's database and look for sold properties in the area you are interested in.