I replied to an add to a mobile home that had to be moved asap. Very motivated sellers . Mobile home is very livable and in need of some TLC. One owner . Cash offers accepted as owners have moved. Hurry , this wont last long .
I have a couple of sites that would accept a good straight mobile so I took the bait and drove 30 miles to the sale site.
here it is :
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Replies
WHAT!!!!?????
"All right. You've covered your #### now."
-- George W. Bush to the CIA briefer who on Aug 6, 2001 warned him about an imminent Bin Laden strike
War is hell, Shrub Lied to get us into war, so he is the devil.
Repeal article XXII, re-elect Shrub & Co.
If we make it thru twelve years of this $HIT we can survive anything!!!
It's Arkansas. Questions?
All the girlies say that I'm really kind of fly for a white guy.
That would go for about 150K in East Hampton.
"That would go for about 150K in East Hampton."
Wow !
I do wish I had bought it for another reason. I could have shown it in the end looking sharp. I just see a frame that needs dressed. It needed to be finished. Really it was a good house as the frame was there .
Tim
I might be exaggerating a little bit, but probably not by much. I'll post an ad when I find one FYI.
Tell me somthing ;
Is it far off from Kentucky? I know we are in tall cotton compared to La and Ms .
Tim
No not at all. We call them Springer show green rooms. Every place has their whit trash dumps.
All the girlies say that I'm really kind of fly for a white guy.
What medication are you on? Honest to godness, it seems like you Bush haters will interject that venom whether it is germain to the discussion or not!
What does your politial leanings have to do with the thread? All - why am I the first to note????
Why don't just get a stuffed animal, name him Dubya and knock him sensless everytime you feel a fit coming on?
That's his tagline.It appears on every post he makes. Just like my green "yadda yadda yadda" tagline.You can choose not to see people's taglines, in your preferences.Click on your own name here.In the window that opens, choose "My Prefs".Now scroll down until you see "Hide Signatures". Check that box.Now scroll all the way down and click the "submit" button at the bottom.That's it. You won't see taglines anymore.=0)
Yadda yadda yadda
just gets ignored mostly...Life is not a journey to the grave with the intention of arriving safely in a pretty and well preserved body, but rather to skid in broadside, thoroughly used up, totally worn out, and loudly proclaiming<!----><!----><!---->
WOW!!! What a Ride!<!----><!---->
Forget the primal scream, just ROAR!!!
Why don't just get a stuffed animal, name him Dubya and knock him sensless everytime you feel a fit coming on?
Thanks for the laff Brikie!
blue
Friend of mine owned a mobile park. He was trying to get rid of some troublesome tenants.
Their unit was about on par..........insisted that they be paid for it because they were leaving on the site.
My buddy handed them $500.00 and told them to clear out.
He comes back with the backhoe and as the last Jethro and shopping bag of valuables leaves the unit; he smashed it to bits. You should have seen the look in their eyes!
A few of the other tenants shaped up quickly.
[email protected]
It's Never Too Late To Become What You Might Have Been
As you guessed I passed on the trailer but not for the reason you think.
I didnt have a place to put this old a trailer . Thats it .
If you look closely or anyone who cares to can see that its straight .. It was livable . It didnt leak and had a solid floor.
My quick sheet said ;
new front door
two interior doors
window heat pump /air unit
100 amp panel box
Bleach clean and spray paint.
Two windows
Under pinning , a front covered deck, and a stoop back porch
65 yards of commercial carpet
Replace three light fixtures
50 concrete blocks
Storm windows
It would have went HUD for 350 per month on site . Cost of trailer was 1200. Do the math . Its not a joke I just didnt have a place to put it .
Tim
Heres a house I didnt get a bid turned in on time . Someone else actually bought it and there was a fight with another party that had a bid on it too . The night it closed , it burned to the ground and doesnt exist anymore .
Several have made mention of buying distressed properties /repos.
This is the real world of repos . Ive got some inside shots that are on line with the pics posted. You break into these types of properties if you want to see them and bid on the court house square . Sometimes sending a bid into the goverment with out ever being able to be "shown" the house .
I should have really bought this one and would have if I had the time to fix it with out it sitting . I had a clear chance in january to buy it with out any competition.
This house believe it or not would have been a valuable rental in terms of cap rate. Buying investment was 14,000 setting on 3 acres just out side the city limits. Two lots were sellable and have as now been sold with the distraction gone for 12,000 a piece. The house redone with a new back room would have rented for 500 per month. There were two out side buildings to remove as well . The foundation and floor was straight as they get . Termites took the back room but was niot connected to the house foundation nor did it affect it . It needeed a concrete slab on the back to give it back its utility room. Of course it needed a front porch to give it a front but a very solid house otherwise.
This is what separates retail customers from wholesale . Ya gotta dig it , lol.
Tim
Several have made mention of buying distressed properties /repos.
This is the real world of repos
Yep, ya got me drooling. I'd love to find one like that (the house not the trailer). I love rebuilding a mess. I've never done a county auction but the ones i've rebuilt havent been much better than that one.
Have you ever got "bit" at an auction? I've heard if you dont do your homework you can simply end up paying off someone elses bad debt and not getting a house.
Have you ever got "bit" at an auction?
No . I bit myself on some owner sales though. A couple and Im living in one as it turned out . I didnt think DW would want to keep it . The work I did on it to get it ready to sell needs done again and I would not have put shake shingles on somthing I was gonna keep. High maintence. That part sucks.
Ive got a rental thats down right now that I didnt crawl under the floor before I bought it . . Its got roof problems too . I havent lost anything but my time could have better spent . So yea I bit my self on that one , but Im ok on it with price.
Tim
The lot owner is trying to get someone to move his trash for him.
If having a low wage work force was good for a country's economy then why hasn't Mexico built a fence?
The house that burned or the trailer? Could be both .
I showed the trailer for those that say they cant afford it or dont have the capitol.
Id like to see more guys here benifit from real estate since they are making their living working on it and hauling the tools.
I know that geographics play a big part of this business . Money sure seems different to others , but here 350 to 500 per month on one rental could be half of social security to some around here . Often times self employed people havent paid in their share and sometimes it sucks at retirement time .
Lets take the trailer for example . Most could fix it out of their pocket and if not could save it . Twenty acres of land thats paid for and twenty of these trailers would generate 7000 per month and would not prohibit a fulltime job with it . No job and play golf at the course every day and you have 8400 gross income per month. A carps wages here is 16 an hour which calulates to 2880 per month which is also gross BTW. 10 of these trailers still kicks 2880 in the butt and provides a tax shelter.
On the other hand the house would produce the rest of our lives and help support the kids after death. Inflation alone will over take the initial cost. Of course the house would pay out in rent alone in 6 years. Thats an investors dream. The only reason they dont do these houses is because WE cost too much to hire.
Tim
Yeah, I've had a trailer park before.
Wasn't lucky enough to have the trailers as spread out as you describe but it was pretty good. Wish I'd never sold it.
But I only owned one trailer in the park whih had ten spaces. I really got to hate working on trailers.
Now the little house looked quite attractive to me.
I liked the idea of the three acres as much as the house.
If having a low wage work force was good for a country's economy then why hasn't Mexico built a fence?
Trailers are a good place to start or a good place to end .
Ive tried to talk to some of my friends that are in the trades and mention putting a little back every check into a property account . They wont do it and I also feel there are plenty on here that should as well if they are in the right area. Land has always been a great investment for me although it doesnt pay out payments to the bank.
Trailers will make their payment and land payments and if they pay for the land or pay the owner back for the investment thats all you can ask them to do.
I want a trailer park pretty bad but it looks like I will have to build one if I get it . Ive got some acreage thats scattered out and its prime for a couple on each and then Ive got a single spot. Im trying to buy another piece of land that will hold one . So thats 6 spots.
The reason I also said its a good place to end; At 54 yrs old a new building wouldnt pay out in time for me . Older properties make more but are more to baby sit . A trailer park would pay out in 6 years including land . A 10 grand trailer would pay out alone in 28 months clear, not counting land investment. I own the land out right I was talking about so that is what is on my mind . After 28 months, its an added income of 3500 per month clear. I would invest the utilities construction from my rental account as some collateral on the deal.
I havent done very much on trailers but Ive always heard its a pos pain. Its always setting up out side and a trailer is much higher than the ground . Im wanting some drywall panel walls at least and plywood floors.
Tim
You've thought it out pretty well. My experience has been that you attract a more desirable and longer term tenant in a site built hose than in a trailer.
Have you thought about doing the trailer park and just renting spaces? Maybe have one or two trailers you own but mostly just rent spaces?
If having a low wage work force was good for a country's economy then why hasn't Mexico built a fence?
"Have you thought about doing the trailer park and just renting spaces? Maybe have one or two trailers you own but mostly just rent spaces?"
You would probably know more about that than me . Ive never had either .
All I know is what people say and that isnt always correct. Most people who have had rentals and dont anymore bad mouth them terribly enough to talk anyone out of them. When actually if they had taken care of business and treated like a business they would have profited. I head stories that the renters wouldnt move after not paying . Ive heard they tear the property up and so on . I found that by holding a tight rein it isnt the truth. I do have the ability and tools to do the repairs and mebbe they didnt . Big difference.
Anyway people always preach just owning the lots and renting them, but I control the crowd owning them.
Your view?
Tim
Good points but you still control the crowd just by renting out the lots. I found in my small trailer park that it was better to rent out spaces becaues they did not require any up keep from me so it was pretty much passive income. The owners who put their homes there went to some expense ( more than just a utility deposit ) and were good long term tenants.
If having a low wage work force was good for a country's economy then why hasn't Mexico built a fence?
Hurry , this wont last long
Oh good, this thread is about MH--I thought (initially) you were campaigning that a few of us need to quit respiring . . .
What, those aren't the fema-wonders?
"What, those aren't the fema-wonders?"
Just every day houses in Arkansas . Some ARE camoflouged with blue tarps as Dan noticed when he was here.
Tim
I'm finding this thread to be fascinating. Thanks for starting it and sharing some insider's 411. The wheels are turning.View Image
Well geographically I cant speak intelligenty, but its one of the only niches Ive found for a tradesman that can do several different things. The rewards are much higher in the end than getting a good check for working . I really cant figure how many times a rental will repay the work in times xxxxxxx the initial amount . Its way out there and would depend on how long you kept it. Its nothing for a renter or set of them to completely pay for a house and make money on top along the way for maintenence . Dan and I figgure 200 per month per unit while making payments , insurance , & taxes. One thing we dont figgure is inflation as a gift . The more property you get it gets pretty big . Ill put it this way, our kids are turning their heads thinking about their future inheriting it . I didnt pay for it with a job.
I figgured the pics would pretty well be a joke until I started releasing numbers . If you of all peoplle here look at the house pics , you will see the house needs a covered front porch. It didnt have a cover and didnt have a porch but what would that have cost doing your self? On the back was a utility room that was eat up with termites and needed to be removed. That room however was about 10x12 and a shed roof so it would have been pretty cheap to rebuild. It however needed a concrete slab as that part was too low. The kitchen needed an expansion into it . The final job completly remodeled would have been worth around 120,000 .
Tim
Continued as I had to go out last night .
The other option would have been selling it . As I mentioned earliar it was on three acres and it was a mess. There was a falling down roof on a concrete block wall building which wasnt pretty that close to the house . But there was about 200 blocks in that building that could have been used on an adjoing lot . Theree was a large building farther over [Ill see if I have a pic of it in the file] that did not suit a purpose to the property but that was built very well and it was too damn good to burn. It had to come down to use the other three lots . It was high off the ground and would have been a pos for a shop but was pretty large. Ill post back with some more pics. They burned that building too !
When I post the pics Ill really be trying to make a point . The point will be that some people nearly puke and say there is no way they would ever come back much less own some dump like that . Sometimes if you just stay and sit on somthing provided left by uncaring owners thoughts can build it back to make some money. I figured two weeks of my labor would have cleaned the mess up. Plus some equipment at a figgured 1000.00 cost.
Tim
some
I haven't been ignoring your posts... just mulling them over. I think a big part of your success and part of why I'm still hesitant to pull the trigger on anything comes back to the big one..... experience.
I found it quite impressive that you walked through one of the places and rattled off what it needed to become serviceable. That's a real talent. It's not easy to know where to draw the line.... what will get you good return on investment and what will be a waste of money. You had a short concise list... xx yards of commercial grade carpet, xx gallons of paint, etc. It was economical and I have no doubt it would have made all the improvement that the place truly needed to become serviceable again.
Meanwhile I'd be bleeding money because I would have installed a little tile, maybe lost the paneling in favor of board, replaced the windows instead of just washing them, etc. I'm exaggerating a little with the windows, but I think you probably catch my drift.
Being able to walk into a place and see it's potential.... or lack of... and then being able to put a realistic budget to the job, and then running a little cost/benefit analysis on the situation is crucial. That really only comes with experience... but I suppose it's not an insurmountable thing to learn either. Now pulling the trigger and then completing the work on that modest yet sensible budget is another talent in and of it's self. That would be the part I would have a better chance at succeeding at.
Still thinking.... more to come....View Image
Well , I had to mull that over and what I was thinking at the time .
If you went back and studied the pics for kicks to me it was easy. I appreciate the compliment , but I dont feel deserving .
The house was definately a starter home that would qualify for first time home buyers with a little more money sunk in. 1200 for windows would have been ok if you were shooting for a goverment loan buyer.
Normally if you dont do it the goverment inspector will tell you what you need to do and at that time youve got a contract signed.
The short list I provided would have suited a cash buyer , renter, or another investor. It could have been up graded easily but I would not have done it till I had a contract on it .
Tim
If you went back and studied the pics for kicks to me it was easy. I appreciate the compliment , but I dont feel deserving .
Tim, I would have though that one was an easy one too. That place looked like it could have been cleaned up by noon by one person.
That was a cosmetic fixer if Ive ever seen one.
Diesel, your tendency to fix up the place and make it suitable to you might make good business sense on some propertys, but isn't necessary on others. When you get done spending all the money making your improvements, then price the rental accordingly using sound business principles, you might end up pricing yourself out of the rental market. By doing that, you essentially deprive some family out of renting a relatively nice place and you end up with an empty building. Nobody wins.
If you keep your repairs to a minimum, you can pass on the savings to the customer. Your building gets rented and everybody wins.
blue
Well , that one needed a front built and a back rebuilt , but yea after that its basic.
Tim
House_I_lost_x_dammit.jpg
Edited 7/12/2006 11:17 pm by Mooney
Tim.... you and i are alot alike... except that i suck at being a landlord... which is fine when you have good tenants... and not real smart when i have bad ones...
the law of big numbers saves me in that if i can live my current lifestyle and pay all my bills with 30% of my stuff rented... then i'm ok...
I use to believe anyone could do anything.... but as i age i find it's just not so...
as you aquire each new property you have in fact purchased yourself another job.... I use to think if i didn't buy at least one income producing property a year it wasn't a great year... I happen to like strip shopping centers and tripple net leases... I'm not a huge fan of my office buildings right now... (too much "customer service" required) but that changes with the day....
i have and try to teach others to buy a property for each childs education (not something i think i've ever touched on here) but it's just one of my goofy ideas...
Around here in the worst areas of town you can buy houses for under 5k... brick on slab... that might need 2k worth of work and rent for $350-550 a month... thats a 12month payback... it's not something i do... but i know several that do... i have found 20-30 of these and i always offer them to a couple of my long term employees... even offer'n to pay & carry the note... knowing that these guys have the skill set to maintain & fix em.... not one has ever taken the offer... go figure
we preach and try to teach others how not to depend and look to others for their future... but i have to assume watch'n a ball game and moaning about "the man" or "my job" or whatever they wish to blame their lot in life on... has more appeal...
as you know... the idea is easy, the process is simple, but it will require work that most think is below them... which is the only reason i can think... we can do what we do...
p
we have a place like that. worst area in town, highest crime rate in town, crack ville, somebody dies each week there. but its a 100% rental houses. and you can make a killing in rent. but it controlled with iron fist. like that movie landlord with danny divo. somebody late on rent, you phsyically throw them out. go in armed and throw them and prosession on the curb. cop dont care, there aint no cops.
i have and try to teach others to buy a property for each childs education that s good idea, buy a property to rent, give to your kid, let them make money off it, pay notes, pay taxes . deal with renters, maintance, non payers. teach them about people and life real quick. Everything goes good. kid get college and mustang gt. goes bad, burger king night job
pt what area are you in? Mooney thanks for starting this thread..there are few Aussies investing in the States right now.....I'm lining up for a trip over..the potential ROI is much higher than what we can acheive here.
Cal, thanks for pointing me to this thread
regards
Markhttp://www.quittintime.com
Happy New Year , Mate !Mike Smith Rhode Island : Design / Build / Repair / Restore
thanks and hello to the little dutch girl....Mike, how involved to set up a LLC? and should it have an S or C corp tied to it. Any benefit setting up in a different state tax reasons or other?http://www.quittintime.com
mark... they are all about the same in terms of set up
it varies from state to state
each has special requirements and varying liabilities
i'm an S Corp....if we reposted your question in the business section you would get lots of answers
BTW... here's an investment opportunity:
View Image
Tommy's closed last Spring.. was supposed to get sold to someone in Vermont, but the deal fell thru
View Image
now it's clogging up this site at a material's supplier.. he'll sell it cheap to anyone who has the right lot with the right zoning and the desire to own a piece of Americanna
Mike Smith Rhode Island : Design / Build / Repair / Restore
Edited 1/3/2007 6:10 am ET by MikeSmith
Edited 1/3/2007 6:11 am ET by MikeSmith
I reckon it'd look good parked next to your office...give the PAC some competitionhttp://www.quittintime.com
Wow.
The next town over from me has one of them . Its called Stobys .
They sell sammiches and salads mostly and their tea is strong .
Its a great business , it looks like . It sits right off the tracks on a closed spur.
That one is a lot better looking than ours.
Tim
5k for a house? I live on the oregon coast maybe the cheapest home is 150.000 to 200.000, Where do you live ?? Thats amazing to me and also amazing someone would not own one.
Available here in Dayton. Problem is they are in unsafe areas, but yes, you may be able to make money off them if you are the right type. I don't like being carjacked, shot at, propositioned for drugs and sex, assaulted, robbed, burglarized, arsoned?, stabbed etc, so I'll pass.
http://sibcycline.com/viewlisting.asp?mls=338219&b=DTON&p=RESI&s=RESI&m=0&sender=SearchResults
there are 8 -12 unit apt buildings you can buy for 35k... i just looked at one for a younger guy who is a barber... it needs about 50k into it to be up to code.... but it's in an area thats on a huge rebound... if done right it could well be his whole retirement package.... barbers are like any other trade most have nothing but SS if thay have that...
just curious... where do people live there that clean your house? are on some type welfare? or work for min wage? seems to be no matter where you are the ones at the bottom of the economic food chain have to live somewhere?
p
I'm in memphis, tn.... look on ebay every few days you'll see a house in memphis sell for less than 10k sometimes less than 3k...... i don't care what it is in memphis the least i've seen anything rent for is $250mo and you could see sky and dirt from inside without use'n windows or doors...
Is this the thread that you are talking about."My third eviction in the last 30 days !!"http://forums.taunton.com/n/mb/message.asp?webtag=tp-breaktime&msg=78346.1&search=y
.
.
A-holes. Hey every group has to have one. And I have been elected to be the one. I should make that my tagline.
and you could see sky and dirt from inside without use'n windows or doors...
Use to recondition homes that might not have been quite that bad but close to it. Then again now that I think about it...
hehheh I'd always make sure the landlords would know I wasn't starting work until they had someone go in those places before me and clean out all the shid.
Some of those places would give a new definition to the word nasty.
Always did it as a solo gig for the bennies of control and peace of mind but once got to thinking if say a group of three ever wanted to really get it together with the idea of slamming them out fast for the money one could get pretty efficient.
I mean there are still plenty of rotten housing stock that Blueyedevil hasn't dozed over yet and the need is greater than the supply of laborers.
http://www.quittintime.com/
" G@D DAMN IT RICH! CAN YOU PLEASE SHUT the F UP!" Riverfest 2005
the guys i know & see that do them... do a couple things... one use about all mexican labor... make them as maint free as you can... small & few windows try to stick with brick units...use alum or hardie where ever wood would be...keep a good roof on em... and vct floor everywhere... they can almost hose em out...
the other thing is... they sell em on a lease purchase and hold the note... they sell alot to mexicans this way... that way it's "theirs to maintain & improve" in those deals it's the law of big numbers... you have to make so much return on the ones that do right and pay so as to cover yourself for those that don't.... and you will be dealing with the people who only know how to come up with a deposit and then stay for 6 mo... rent free... it's a whole culture thing... i know one guy who rents em the place... then rents em the fridge, stove, window ac unit ect... he'll even rent em a couch & bed...
p
vct? and vct floor everywhere...
http://www.quittintime.com/
" G@D DAMN IT RICH! CAN YOU PLEASE SHUT the F UP!" Riverfest 2005
vinyl composition tile.
duh.
Thank you.
http://www.quittintime.com/
" G@D DAMN IT RICH! CAN YOU PLEASE SHUT the F UP!" Riverfest 2005
And this is the part where if you don't have alot of rental houses and using the same flooring, where you leave matching extra squares stashed somewhere in the house,
so when the tenants wreck the kitchen floor by dragging the frige in and out it makes for an easy fix.
be this I understand
http://www.quittintime.com/
" G@D DAMN IT RICH! CAN YOU PLEASE SHUT the F UP!" Riverfest 2005
""""Around here in the worst areas of town you can buy houses for under 5k... brick on slab... that might need 2k worth of work and rent for $350-550 a month... thats a 12month payback... it's not something i do... but i know several that do... i have found 20-30 of these and i always offer them to a couple of my long term employees... even offer'n to pay & carry the note... knowing that these guys have the skill set to maintain & fix em.... not one has ever taken the offer... go figure
we preach and try to teach others how not to depend and look to others for their future... but i have to assume watch'n a ball game and moaning about "the man" or "my job" or whatever they wish to blame their lot in life on... has more appeal...
as you know... the idea is easy, the process is simple, but it will require work that most think is below them... which is the only reason i can think... we can do what we do..."""
Sorry it took so long to get back. Ive had family here and I knew this would be a longer reply. [warning <G>]
I started seeing people not taking advantage of their buying power as an auctioneer. I worked a long time for another auctioneer as his ring man and I would call in the ring too. We did a sale per week , mostly estate sales where people died . Lots of farm sales where they were forced to sell out for many reasons. Fact is most of the stuff was very good and that wasnt the factor in selling it . We sold it to work and to be in good condition or bring it back the same day.
I kept seeing things that young people needed that sold for a fracton of a new price . The only thing missing were the young people who really needed it to start their households.
For instance , they could buy a fridge for 75.00 that looked good at the time but they would make payments instead on one that cost 300 at the store or more. Now kids rent them.
Its not any different on houses . It saddens me that the young tradesmen dont cash in on their benifits of being a tradesman. Most all of them could own their own home at 30 ta 35 or less .
I guess its the way it will be .
More later , company is getting up.
Tim
Tim,
Its not any different on houses . It saddens me that the young tradesmen dont cash in on their benifits of being a tradesman. Most all of them could own their own home at 30 ta 35 or less .
Yes I would agree. I bought a duplex, and a single family fixer upper when i was 22. the duplex didn't work out, as I sucked at being a landlord.
I bought the single family with a 15 year note, and would have paid it off early, but we leveraged the equity to buy my shop and land. Then used the equity from both properties to buy the abutting acreage and house when it came up for sale.
Bowz
I bought the single family with a 15 year note, and would have paid it off early, but we leveraged the equity to buy my shop and land. Then used the equity from both properties to buy the abutting acreage and house when it came up for sale.
Well Im sure you know but let me share "the rest of your story' .
Equity that you probably paid less down than 50 percent . [guess] Inflation was the rest so in reality you only earned part of that money with your back. [fact]
You used the proceeds to buy the shop and the "land" . Depending on how long youve had it inflation is hitting that too. Not sure about the shop. That depends on your creative decision that it will be worth to someone else what it cost you or more . Evidently it did gain equity cause you used equity again from both those.
Then it seems you bought an extra lot and house. The inflation is rolling on that too!Which means there "will be if not now equity in that ".
Thats how to get richer if they are not alligators and eat from your back pocket.
That is how rental property really multiplys money.
1. You make a buy thats at least 70 percent on the dollar so you magically have 30 percent equity instantly.
2. The renter pays all service on the property and mainly not you. So you arent reaching into your back pocket , the renter does that for you .
3.As time goes by you gain this equity you have found out about while you havent been out a dime .
4. Because not only is the renter paying all service , but they are paying you a management fee/ maintence so when you do mess with it you are paid for your time . All the while the bank could have all the money in it or its a nice return on what ever you put in it .
5. Multiply that by several properties and the numbers resemble a magnifying glass every year at tax time when it gives a shelter too while you watch the different assests grow in different ways. You notice the notes are smaller and its fun to play with numbers of what they are really earning even if its only on paper its still accurate.
Lots of spin offs . Somthing what I call single pay for a job doesnt do and we are taxed on it . Of course if you ever sell you will have to pay the fiddler but as Pony mentioned he pans to will his kids and with that I have to finish my response to him.
Tim
Yes, i understand your 5 step program. Up to this point, other than the duplex, we haven't done any rental properties. The duplex was when i was still young and single, and had very few people skills.
I had worked for a guy who had 35 properties as a spin off of his real estate business. I saw what he had accomplished, and thought maybe I would try that too. I learned that just knowing about houses and construction was not going to cut it as a landlord. But things have changed and DW and I are seriously considering buying one this year.
We bought a second home last year in northern Wisconsin. DW took a teaching job up there, and needed a place to live. After looking around the area with a realtor, DW took a walk in the better section of town. She struck up a conversation with a guy washing his car, and asked if he knew of any houses for sale. He directed her to someone else who gave her the name of an older couple that was going to move to an assisted living facility. DW called them and looked over the house, and asked what they wanted for it.
They named a price 20% under what the house next door had sold for a half year earlier. (similar 3 BR ranches). They said they needed a few months to clear out their stuff and have a rummage sale. We explained that we needed to close quickly as school would be starting shortly. So we offered to buy their stuff as part of the deal. Cost us an additional $500 for the apliances, some bedding and furniture, misc stuff, and one trailer load to the landfill. We closed 2 weeks after looking at it. They were happy to avoid the hassle, we were happy to not have to buy appliances and some furniture, and to get in quickly.
At the closing, we questioned why the square footage of the lot seemed larger than it should be. That's when the title guy explained that we were also buying the extra lot next door too!
The point being, it is not only repossesions that can be bought at a discount. DW is the one who has the ability to talk to people, and found not only that house, but the shop/land, and the land and house abutting the shop. None of those were listed with a realtor, and all were bought under market value.
But we looked at a good number of places before finding these.
Bowz
The extra lot thing happened to me .
I was up late one night looking at properties on the net and ran across a goverment repo. It had been too high priced to go look at . It did not seem like any bargain at 39,000 which was the reduced price but when they get that low ya gotta take a look.
ON checking on it that first morning I had to go through the listing realator. He mentioned no one was looking at it , hmm.
Anyway, when I got there to see it there was land all around it and I said get out this doesnt come with all this land but there was no description. I went door to door talking to neighbors and found out the land did go with it . WOW!
I offered 25,000 as a start up bid because they like to counter offers. They came back at 39000 full price . I waited a week and made another offer of 25,000 and they accepted it . Who knows?
Its a 4 bedroom 2 bath brick on one H of a lot of land in the city.
Total appraised value ; 113,000.
No one knew including the real estaste office cause the goverment never sent a legal description. If they had known they could have sold it full price in about 30 minutes of listing .
I just got lucky but I wouldnt have been if I wasnt looking and working at it . Reminds me of some of those awsome plays over the holidays where somthing stupid happened and some one scored off it . You just dont ever know but like the fishing guide says , you gotta be out there or there wont be any stories to tell. Be there .
Tim
Edited 1/3/2007 6:25 am by Mooney
i have and try to teach others to buy a property for each childs education (not something i think i've ever touched on here) but it's just one of my goofy ideas...
I think this response will finish the reply. <G>
Not so goofy to me although Im not the one to judge goofy. <G>
I didnt have any kids of my own till a couple weeks ago. I adopted my step grandson, but hes always been figgured mine between him and I anyway.
DWs Son and Daughter , I helped raise. They had no interrest in what I do or the properties upkeep. Even the house for that matter, but we helped them both with a college education and they both were successfull.
The boy [12yrs] is with me all the time hes not in school and has helped me full time two summers. I give him spending money as he needs it . Ill mention DW has legally picked up an extra Son which has its meaning in this case. Its time to to give him a third legally and shelter all of us from personal assets. If I should die he will be partners with her and hopefully at the time , take over the properties for him and her . Its up to her what she decides to do but she will control the estate with 66 percent. The third will also pay for his college if he decides to go or what ever training he might desire as long as he has passing grades and stays hooked.
Hes the only kid that likes this work so that makes it a little weird the others did not but that gets us full circle doesnt it ?
Tim
i didn't go into much detail... but...
for less than 5k (invested) pretty easy to buy something valued between 40-80k that should cover it's own note and have a reserve for maint & down time... do this in a childs name before they are 5 yrs old... and by school time if you have choosen wisely you can pretty well expect it have enough equity to cover whatever education they will need... yeah it'll be a pain in the butt at times... but my guess in the 15yrs of ownership you will have less that 300hrs invested...
p
Neat idea.
You are absolutley right .
Thats a lot easiar even at 300 hours than it is pay tution when it comes time . 300 hrs is a steal.
DW mentioned just selling a house at that time but I dont like it near as well because of taxes.
Now to consider your take , if you bought one and let renters pay for it by the time he gets out of school , just give it to him. If he wants to sell it to pay for college or live in it and be a tradesman for example . He could live at home and do the college and let the house rent pay his student loan.
Then you still figgure what I laid out above that will happen to the value of the house .
What I really had in mind is him owning a share of the business so the time he decides to move out he can move into one of the houses and it never collects taxes from a hit from a sale . He still could consider he owns it for he will own more company share than that. Books wise it would look like a company house on taxes not producintg income .
Tim
NOT to hijack......
To let you know that the property we "spoke" about near to a year ago is sold, as of Saturday coming.
And, I had a long talk with DanT about the place, too, before.
I agree with everything you soid about buying a rental for each child. I wish I had thought about it when the reso of my kids were little.
But getting a place around here for less than 350,000 is a dream - and would take 30,000 to repair.
I'm tired of owning a slum, so I'm looking for something a little more upscale and at a minimum, a legal duplex that can be added on to, one more suite.
The only problem with your basic idea, its that by the time I have finished my work for the day, fixed my own place - I'm just too beat to run to the rental to fix their screw-up.Quality repairs for your home.
AaronR ConstructionVancouver, Canada
Heres a key to it .
If you notice the traffic posting on the thread , it isnt getting a lot of posting traffic on the house . I did expect it only I expected more jeers .
The house is real life repos . Its a real rodeo with bucking stock of the repo business . It sounds terriffic on paper but few smell the filth. They are sickening to walk through at best. The lack of pride and the living conditions that kids were forced to live in reeks reality.
You study a set of plans and frame a house but first as you told us you like to get out there and study it before the crew gets there . I you put an addition on to an existing house you have to fit it in . Tie everything together in your mind before you start. Someone has to plan the job so it works. That person is you and repos are no different in that respect . They either have to be ready to rent or to sell . This one needed basic plan. I could shoot you some other repos that would need tile and the like.
In summary , the house doesnt look good right now in the pics. You have to vision it in your mind what a decent frame like this one needs . Picture it cleaned up with a very nice yard you cant see with 3 ft of brush covering it in the pics. Most people pass it by in this condition just like they have not commented on it in this thread . Thats the reason though theres money in them becuse often you buy them at 60 cents on the dollar of what they are worth at the time . Thats not figgurring what they will be worth. You have to compute that before you bid on it also. When yo0u get that answer you will know if you have a project or not . After 20 or so , you get a feel for it. Till then you rely on an honest and experienced real estate agent just like a dependable sub.
Tim
some more
This has the extra land in it with the buildings that needed cleaned up . There is also a huge pile of garbage in the grass not visable .
The land is in a nice area but the house it self has always been the draw back to the area.
Why not buy the three acres and build a small duplex or ????
If having a low wage work force was good for a country's economy then why hasn't Mexico built a fence?
Why not buy the three acres and build a small duplex or ????
The house was setting on the three acres on one end of it luckily.
When I had my shot at buying it , the house went with the deal. Only until it closed did that same night, all three buildings burned to the ground . The new owner collected insurance and cleaned it up and sold individual lots. I never had a shot at just the land. The reason I didnt buy it was that I didnt have the time to clean it up as I already had one I was into .
Tim
Edited 7/12/2006 9:15 pm by Mooney
Tim : i missed this the 1st time thru.. i'll bookmark it for later
Happy New Year , you bitter olde man !
Ya, I missed it too.
Was looking for Junkhound in the dropdown window to say that trailer in post #1 would make a nice $100 shed if you could move it off lot without a lot of trouble.
Sometimes around here $500 will get you one of those but you have to move it.
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" G@D DAMN IT RICH! CAN YOU PLEASE SHUT the F UP!" Riverfest 2005