Guys and Gals, join your real estate club if you want to prosper in Real estate investing
I'm fortunate to have signed up with one the top real estate clubs in the nation! http://www.azreia.org
It just happens that Alan who runs this club kicks ass and has great speakers. The topic of the night was tax liens. The benefits of the club is simple. Networking! There was about 40 people and you never know who you'll meet that will be able to help you suceed in your business. Actually, we filled out a postcard that described who we are , what we're about, and what we like to invest in, and what we're looking for. Then we meet with someone that we don't know and introduce ourselves. This is really powerful. I'm a intravert by nature so this exercise reminds me that I do need to work harder to get my name out there (note: put in personal goals)!
Example: That night the sellers (investors) had time to present their properties to the audience. This gal had a duplex w/ following requirements.
Rent income: $450 (1 bed) $550 (bed)
Well, I got on the horn to get more information. Location is ok, and not surprisingly she bought it to fix it up and sell. But I was surprised with her answer to this question. "Rachael, this seems like a wonderful property, why would you ever consider selling it? Rachael: "Because I'm in way over my head!"
Humm.. this seems interesting ..After one more question , "Rachael are you looking for a quick sale or are you looking to get top dollar? She opened up and told me the story.
She bought: 105k
Money to fixup: 15k
Sell for: 125k (to make a little profit)
Jeezz.. With just a few questions and I was able to get her down from 139k to 125k!!
I use a rule of thumb to estimate a value of a property and to be able to cashflow. That number was 115k maximum. So we're not too far off. If the property is indeed worth 139, than buying it at 115 would be a 82 LTV. Not too bad.. but she would have to lose 5k w/ no profit.
I told her that her price just didn't fit my cash buy criteria, however, I was going to investigate a better investor loan for rentals (contact I got from that club meeting) that I may be able to get the numbers better.
So I didn't ask her to go lower yet, but if this is going to work for me, she will have to! Stay tuned!!