Mike Weiss
Active 3 weeks, 1 day agoForum Replies Created
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Mary,
I’d be willing to help with the calls.
Back in the early 90’s, I bought a few of Legrand’s material. It got me started and I graduated to Jack Miller, Peter Fortunato, John Schaub, Jimmy Napier, Dyches Boddiford, etc. All masters at what they do.
My email is: [email protected]
Thanks,
Mike Weiss
Prescott, AZ
— Currently on tour in south Texas!I was going to post this earlier — anyway, better late than never.
Hope this resonates with all you grey-hairs!
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Thanks Jackie & Jack,Without your support and guidance, I’d be in a far worse position than I find myself today.
Jack Miller et. al., was, and through CFD, continues to educate, inspire and motivate.
Thanks to Jackie and her group for keeping this platform alive and well.
With all the GOO ROO’S out there, its great to have YOU!If you don’t avail yourself of this platform and try these out, you’ll be years behind.
Now I’m not shilling for Jackie, I just know from experience that I’ve been able to close transactions and put $$ in my pocket with the help I received from Jack and Jackie.
If you think that articles published 20+ years ago don’t apply today, you are not paying attention. Yes the numbers have changed, but the strategies and tactics have not.
For example — Options. How many of you have optioned a property? Not a lease/option, just a straight option. Jack said he made more money with options than any other method. Period.
How about leasing? How many of you have master leased a property for 30+ years? It’s a great method for solving cash flow & management problems.
Ok, enough soap box.
Also want to thank Peter Fortunato, John Schaub, Jimmy Napier, Dyches Boddiford, Walter Wofford and all the great people around them.
Thank you,
Mike Weiss
Prescott, AZJackie,
Here’s one from my days in Las Vegas.
Way back in 2004, I went door-knocking foreclosures. This was before the runup in prices. Back then, good, newer houses were going for under $100/psf.
Wish I’d kept a few more of those, huh?
I found a very nice husband and wife who were about 90 days from losing their home. We went over the foreclosure notices and I estimated the date of the foreclosure sale at the courthouse.
They had ‘some’ time. But it went by quickly.
We negotiated for me to buy the house and give them 6 months to move.
I was unable to get them to sign and documents.They thought they’d get a better offer.
The reason for the foreclosure was their 19-y/o son had beaten up a classmate for pinching his girlfriend. And not just beat him up, put him into a coma!
See, the son was the size of a doorway. The other kid wasn’t.
Now the son was in jail for assault and battery. The parents needed to hire a lawyer and the lawyer needed a large retainer, and the parents depleted their savings to pay the lawyer. They then fell behind on their mortgage payments.
We were unable to come to an agreement and (on the day of the foreclosure) after about 90 days from our first meeting, I got a phone call from them. It seems someone came to the door and said he was the new owner and they had to move.
They asked me what they should do. I said, “be nice to the new owner.”
What else could I do?
So, they lost 2 things that year. They lost the house and soon after the foreclosure, the beaten classmate died. And the son went to prison for 20 years.
That has to be harder than losing a property!!
So that’s ONE interesting encounter in the RE biz, more to come.
Mike Weiss
Prescott, AZRobert,
Yes — options not combined with a lease as well as options on commercial property are not affected.
Most of these laws are on the books in an attempt to protect the consumer.
But commercial/investment transactions are not.For example: a tenant buyer who will use the property as their residence is protected under current Texas law.
A landlord using a lease/option- to acquire
is not.
Hope this helps,
Mike
Jake,
First off – welcome!
You wouldn’t happen to have a relative named Clifford, would you?
I had a childhood friend with that name. Great guy!OK, let’s collect some info so we can make multiple offers.
How much is the property worth in its current condition? Not ARV.
Does it need any repairs? If so, what is the cost of those repairs?
How much debt is on the property? Total amount and monthly expense. PITI. Principal, interest, taxes & insurance.
How much would it cost to bring the property out of foreclosure? When is the foreclosure sale scheduled to occur?
What state is the property located in? Some states take years to foreclose, while Texas takes about 3 weeks.What will the owner do if you can solve the problem?
Move or stay?With these and other facts, we can now construct offers that could solve the sellers’ problem.
Or maybe there is no deal here. It happens.Keep us posted,
Mike Weiss
David,
Without knowing what he NEEDS, we are flying blind.
First thought is – what about payment relief?
What if you paid (or arranged to pay) his mortgage payment (or some portion of it)?
He may have other debt that is high interest that can be paid off? Car loans, boat loans, credit cards, personal loans, etc.Might you exhange that for some of the equity in the house or an option to buy some or all of it?
Does he own other property you might get an option on?If you made his mortgage payments for the next 3 years, what would he trade you?
Only he can make that offer to you. Dig in. Ask.$762 + 350 = $1,112 per month or $13,344 per year.
For 3 years, that’s $40,032.What kind of ROI is acceptable to you and the seller.
If you want 18% — then you’d receive $52,570 in 3 years. Is that doable in HIS time frame?
How would you secure it? A note and mortgage/T.D.?Would this exceed usury in his state?
If $40,032 is too much, make half his payments.
What about buying the house at some discounted price and have him lease it back from you? He would not have to move and his debt structure / cash flow position would surely be better for him.
Don’t have the cash to buy it at a discount lying around, sell / jv with a partner for some of the profits. There is 1031 money available to invest in good deals.
Don’t make a homeowner a loan.
It won’t be worth your time and could cost you a lot if not done correctly.Or maybe a life estate.
Keep us posted,
Mike
Ajay,
Ok, yes — I understand.
You can give the tenant the option to lease. And the option to buy.
JM used to do that quite often.Just be EXTRA clear with your tenants that’s what you want to do. And document it.
Many non-standard agreements end up in front of a judge who understands it even less.Be careful you don’t wrap yourself around the (option/lease) docs trying to be creative.
I know, I’ve done just that.Keep us posted,
Mike
Jackie,
These are great – please continue these type of posts.
A few thoughts on this…
If I owned a MHP nearby, I’d buy them (cash or terms) and move them to MY park if they were in moveable/usable condition. Then I’d sell them to my tenants for what I have in them. The one thing I don’t want is to maintain used MH’s. The costs will eat you alive. How did I learn THAT lesson?
At the end of the day, I want to increase the revenue in my park as efficiently as possible.
Let’s say 24 homes would have lot rent of $400/month. I just increased the revenue of MY park by 24 * 400 * 12 = $115,200. If we subtract 40% for expenses, that leaves $69,120. At an 8 CAP that means my park is now worth $864,000 more.
At $450 per month lot rent — using the same formula, the value of MY park is now valued at $972,000 more.
Otherwise, I’d option ALL of them (again, cash or terms) and have them moved out ASAP so the owners can start on their dream home. Maybe sell them to a local park owner(s) so they could do as I described.
Hope I didn’t miss the point on this one,
Mike Weiss
Prescott, AZAristides,
I’ve found that follow-up is the key to getting FSBO deals where others fail.
Talk to them every 30 days (monthly payment) or so and see how their situation has changed.Also, unless you have immense deal flow, try not to negotiate over the phone on the first call.
If these FRBO’s & FSBO’s are local to you, set appointments to meet with them. A seller/owner much prefers to deal with a real human over a voice on the phone.Or — and I’m channeling Jackie here — do a highest bidder sale.
Keep up posted,
Mike
