What would you do?

[Ready2bfamous]

One thing I love about being around people is that there is always someone in the same line of thought as you..

I have assets that I can't touch for another 3 months. There is this house that I want to buy. My assets would cover it but it's not three months yet.

I don't think I am unrealistic when I think I could come up with the money myself but extensive planning and a month is what it would take.

loan, Hard money loan? Private investor?

No clue but this house has to be mine. It's a GREAT deal for me.

If I don't make sense, sorry.. Too much pondering..

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[tchandy]

To add to your comment, is there a reason you want to buy it? Personal home? Investment? This would then allow you to factor in costs and then ask the question, does this make sense? Am I making money or paying money out of my pocket. If it's a rental home is there a demand for rental homes? Who would my target audience be?

Tom

 

[Ready2bfamous]

To add to your comment, is there a reason you want to buy it? Personal home? Investment? This would then allow you to factor in costs and then ask the question, does this make sense? Am I making money or paying money out of my pocket. If it's a rental home is there a demand for rental homes? Who would my target audience be?

Tom

Tom,
Thanks.. I wasn't too clear on everything was I? There is a reason, it's a GREAT house for the dollar that they offered. I want it to be a Personal home/Investment home (If that could be done) I would be paying money at first only to be gaining more at the end. I firmly believe this.

 

[MJ DeMarco]

No clue but this house has to be mine.

That often is the starting premise to making a very bad decision. Be careful!

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[biophase]

Your reasons for purchasing this home do not make any sense. You don't mention if you are buying with equity. What's its value vs market? How is the market doing?

This may all mean nothing because it sounds like you want to live in this house. So then it's just a home.

You make it sound like you can pay cash for it. Why can't you touch the money for 3 months? Is there a penalty for withdrawing early? Does the penalty outweigh the equity you would gain?

Why can't you make an offer that closes in 3 months? Offer alot of non-refundable earnest money if you are sure you can close.

 

[Ready2bfamous]

Well, I have a trust fund that I can do as i please when I turn 30. I want the house now. it was a builder's build.

I wasn't aware that we can close deals that far out. Plus it'd be cool to have house now.

i just wanted to weigh my options and see what I can do. Many things to do, and time goes so slow!

 

[Red]

I wasn't aware that we can close deals that far out. Plus it'd be cool to have house now.

Find yourself a reputable real estate agent to represent you -they'll be able to explain options that you probably never considered with purchasing and potentially help you work something out that benefits everyone if you decide this is a wise decision to make.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Russ H]

You asked: "What would you do?"

"I make mistakes, I am out of control and at times hard to handle.

But if you can't handle me at my worst, then you sure as hell don't deserve me at my best."

Just an observation from someone who's been around the block a few times:

Work on the control and mistakes thing.

Les Gee is fond of saying that much of investing is emotional. Work on your emotions and you can find the key to success.

Mistakes? I love 'em. I try to learn from every single one. Even better, I like learning from others' mistakes, and avoiding them.

But that's not what your post says. Hence my reply.

Learning how to deal w/your control issues and anger when you make mistakes won't cost you as much as a house, and will prolly make you a LOT more money in the long run.

-Russ H.

 

[Nathan]

I think that is actually a Marilyn Monroe quote Russ. But your reply is seemingly spot on for his answers.

 

[Russ H]

I think that is actually a Marilyn Monroe quote Russ. But your reply is seemingly spot on for his answers.

Nathan-

My sig quotes are from Hemmingway and Rockefeller.

But they reflect my worldview.

If Ready2bfamous doesn't live the words in his/her signature,
then I misunderstood the reason for them being there.

-Russ H.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Russ H]

Tom,
. . .it's a GREAT house for the dollar that they offered . . . I would be paying money at first only to be gaining more at the end.

I firmly believe this.

Just b/c you believe it doesn't make it true.

I can show you houses nearby (20 min from me) that sold for $320,000 or more in 2006-- and the banks can't sell them now for 100 grand. These same houses sold last year for as little as $55,000.

That's about 17¢ on the dollar.

Friend of mine (long time RE investor) is buying houses right now, fixing them up and flipping them.

He's buying them for 25-30¢ on the dollar, and selling them for about 40¢ on the dollar.

He's making a killing (40% annual returns). He's done about 8 houses in the past 10 months.

So if the house you're getting is selling for 90% less than everything else in the neighborhood right now (ie, houses next to it are selling for 10x more), then yeah, I think you have a deal on your hands.

But if you don't see any houses nearby selling for LOTS more, then you need to realize that the market has changed. You can't base a home's value on what it could have sold for 4 years ago.

If you told someone you'd invested in a stock that 4 years ago was worth 3x more, b/c you expected it to go up again, they'd laugh at you.

Yet this is what some newbie RE investors are doing right now: Basing their buying decisions on yesterday's numbers.

Since you haven't really detailed your scenario, it may have nothing to do w/the concepts I outline above.

So apologies if I'm making assumptions that are inaccurate.

Not having the details of the deal, it's pretty much impossible to give you realistic advice.

-Russ H.

 

[Ready2bfamous]

Hi guys.
I rarely make decisions base on emotions but I am wanting to have this home as my first home. I am just trying to figure how I can maximize my assets before even having them so that I can buy this house.

It's a Marilyn Monroe quote. It's spot on in how she dealt with people and how people dealt with her.

The house is just an investment. I am going to find a realtor if I can to see if they will allow me to put an enticing escrow deal together and hold off on selling the house for 3 months. Then when I turn 30, I'll be able to touch my trust, etc..

 

[Russ H]

Ready2bfamous-

Investments yield cashflow and have intrinsic value.

Houses you live in are not investments.

Houses you own and rent to others for a net positive difference are investments.

-Russ H.

PS So why did you choose the MM quote for your signature?

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[phade]

"No clue but this house has to be mine. It's a GREAT deal for me. "

"I don't think I am unrealistic when I think I could come up with the money myself but extensive planning and a month is what it would take."


It sounds like you are buying something you want at this moment, but what if after the moment passes you no longer want it?

So "What would you do?"

Wait it out. It's only 3 months.

In fact, take a month and do all the due diligence you would need to make it work "right now." Then take a bit more time and take a look at all the comps that would fit you for that area. Maybe you'll find something better, maybe not; either way you will be far more sure of your decision and will have the choice to walk, or will have much less than 3 months left, and more choices on how you want to pay for it.

 

[biophase]

Hi guys.
I rarely make decisions base on emotions but I am wanting to have this home as my first home. I am just trying to figure how I can maximize my assets before even having them so that I can buy this house.

The house is just an investment.

There is nothing that you have posted that says that this is an investment. In fact, your posts are pure emotion. Please explain to us how this house is an investment and why it is a good investment.

 

[Ready2bfamous]

I chose MM statement because I am pretty off the wall but my heart is in the right place, know what I mean?

I just thought having a home would be the backbone of tax breaks and being able to draw from it to do other things as far as ventures, etc. I am glad I came to talk to people instead of starting my rash streak.

Thanks you guys.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Anon3587x]

Mistakes? I love 'em. I try to learn from every single one. Even better, I like learning from others' mistakes, and avoiding them.

Quote of the day goes to Russ! I love it!

Problems I see with your thoughts on the topic you shared with the forum

Well, I have a trust fund that I can do as i please when I turn 30. I want the house now. it was a builder's build.

I wasn't aware that we can close deals that far out. Plus it'd be cool to have house now.

Being that you came to a entrepreneur forum. If this trust fund is giving you enough money to buy a house. Why not just lease a house for a year and invest that money into some sort of business?

grow that money!

Yes it will take work, research and time.

But the end result will be far better.

If your into music as your intro says how about using that money to go on tour?

Fame does not come to those unwilling to take risks. You day dream about winning a music award right?
Make it happen!

That trust fund is opportunity, do not spend it on materialistic needs.

I have in-depth knowledge on real estate.

I would not be counting on making money from a house in this market without exclusive knowledge and more importantly research.

Sure it can be done, but if this deal was such a great deal the house would be gone already.

There are those people who literally spend each hour of the day checking for new listings and buy within 1 or 2 days of being posted.
If anyone sees the potential of the home, and if the house is pest free and doesn't have any major problems with it it will surely be bought quick or the papers are being processed.

Maybe this is why you want the house right now.
If this is the case time is of the essence.

 

[Ready2bfamous]

That's why I came to the board because I wanted to learn first hand about maximizing the money to do bigger and better things. I am looking at this in an emotional state because I was thinking if I had a house. I would always have a back up plan that would enable me to have something of cash value should I lose the rest of the money.

I guess it was set up well so I didn't make mistakes. Glad I definitely joined this group.

 

[Anon3587x]

That's why I came to the board because I wanted to learn first hand about maximizing the money to do bigger and better things. I am looking at this in an emotional state because I was thinking if I had a house. I would always have a back up plan that would enable me to have something of cash value should I lose the rest of the money.

I guess it was set up well so I didn't make mistakes. Glad I definitely joined this group.

This is smart and reasonable for most people. This is risk free to a sense.

But part of the definition of entrepreneur is defined as "someone who risks"

I look at money different now.
It's not really what can I buy with this money?

It's how can I turn this 500.00$ into 1200.00$

and what doors of opportunity will I now have with 1200.00$

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Ready2bfamous]

I need to get in the mentality so I don't just lose everything all at once

 

[Russ H]

I need to get in the mentality so I don't just lose everything all at once

Stop spending the money.

Start looking at what to put it into that will give you ROI.

And if that's already done for you, then DON'T switch.

If the $$$ you get (monthly? annually?) allows you to live, then do that for a bit-- do Europe on the cheap, or camp around the US.

Spend the interest, not the principal (this may be the most important advice I ever give you).

Experiencing life does not mean you need to be a baller. Or a Douche.

(did I get those terms right, guys? Back in the day we called 'em credit card millionaires).

Get smart FIRST.

Don't touch the money-- or let anyone else touch it-- until you do.

-Russ H.

PS A word of warning-- while the majority of people here are class acts, there are always a few sharks trolling around, looking for an easy kill. You may get PMs from forums members telling you about GREAT investment deals that they have a line on. Look up their posts first-- see if they've even posted, or if they're just here to troll for loose change. Chances are, if anyone is a legit investor, they will look for YOU to contact THEM*, not the other way around.

*After you've done your due diligence.

 

[biophase]

So you are basically buying this house as a method of forced savings? You want to spend $100k so you don't spend it on other stuff? All you need to do is learn how to manage and save the money.

What if you buy the house for $100k and it's worth $80k in a year. Wouldn't the money be better off in a savings account then?

I can say by reading your posts is that buying this house is absolutely the wrong thing for you to do. I don't believe you have an understanding of how money works and all you know is that you are getting a sum of money in 3 months. I would not touch the money in 3 months unless you learn alot more financially.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Anon3587x]

Ready2befamous I would advise you to pay close attention to Biophase and Russ.

Unlike me they have both had a lot of success in business and have proved there advise worthy.

You should take there advise to heart and really follow through with what they are advising.

Don't just read it and do your own thing, actually do what they are advising. They are offering you better advise then a money professional or bank could offer.

They get nothing out of the deal and it only benefits you.

 

[Ready2bfamous]

You know. I have mad respect for you guys. I came on here expecting you all to brainstorm with me about how to get this house fast and believe me, the results are what I least expected. I am going to hold off on the house and look at other ways to maximize money.

I have spent a lot of my adult life working my tail off, it's now a round bottom.. Ha ha lame joke..

I have many ideas and have many people advise me with things they would do and how they'll do it, etc.. I want to make money. I am kinda hoping to take the money and stash it until not a rainy day but a day where I am able to fully maximize it to benefit my surroundings and the world around me.

Thank you guys. I will definitely heed the advice. And make millions

 

[Ready2bfamous]

Without the house that is..

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Anon3587x]

You know. I have mad respect for you guys. I came on here expecting you all to brainstorm with me about how to get this house fast and believe me, the results are what I least expected. I am going to hold off on the house and look at other ways to maximize money.

I have spent a lot of my adult life working my tail off, it's now a round bottom.. Ha ha lame joke..

I have many ideas and have many people advise me with things they would do and how they'll do it, etc.. I want to make money. I am kinda hoping to take the money and stash it until not a rainy day but a day where I am able to fully maximize it to benefit my surroundings and the world around me.

Thank you guys. I will definitely heed the advice. And make millions

You typed that before you even read my post I bet lol.

This is why I love this forum so much. I can tell your train of thought has changed between the time you started this thread and now. ( and For the better at that)

Just remember to follow through with what your learning and soon to learn.

 

[Russ H]

Ready2-

If you truly *are* ready to take the next step, do the exercises in the PLAN thread.

The first few will take a couple of hours-- perhaps days if you really haven't ever asked yourself these questions.

It's all about FOCUS-- mapping out where you want to go, and then figuring out how you're going to get there.

-Russ H.

 

[Cat Man Du]

“I make mistakes, I am out of control and at times hard to handle. But if you can't handle me at my worst, then you sure as hell don't deserve me at my best."

OK..............I’m going to pick on your sig.

The ONLY reason that the person could GET AWAY with this statement was because it was MM herself !

Do you look like her ??????????????????????? hmmmmmmmmm ?

To coin a well known verbal flip from a former VP candidate “ YOU sir, are NO Marilyn Monroe !â€

This is TOO much .... in -your-face...

I’m sure that I wouldn’t like you at your worst................and with this type of attitude I wouldn’t like you at your best either.

If you said this to someone ...face to face ...they would just beat the crpp out of ya....lol

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Ready2bfamous]

the last person that I referenced this saying to, understood where I was coming from.

I just relate to the expression, because I am off the wall and the people surrounding me tend to be around me because they think they will get something out of me or whatever.. I am by no means, that great or great looking for that matter.. Although.. I do have a killer smile!

Russ, I plan on heeding the advice and doing everything I can to learn and understand everything there is to know. With the right direction. Thanks for the link.

 

[Anon3587x]

"I make mistakes, I am out of control and at times hard to handle. But if you can't handle me at my worst, then you sure as hell don't deserve me at my best."

To me this is basically saying I'm going to be unreasonable.

I'm going to bitch and moan and not try to avoid mistakes because I don't have to be any different then this if I do not want to.

If you have a problem with this then piss off.

It's basically reverse psychology straight from the mouth of a bleach blond celebrity who only had to smile and look cute.

What kind of best does someone like that have to offer anyone?

But then again I don't want to hammer and hammer you about it if you feel it fits your personality.

I enjoy people being as they are, without any outside opinions trying to mold them into what they want, or think is right.

But then again you don't go to a rap concert trying to play country music do you?

In this case your dealing with people who see past stupid and think for themselves.