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  #21  
Old June 22nd, 2017, 03:41 PM
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KGH
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RoverC, all good points. That is why I daily worry about moving to cash and sitting for a while. But my guy is generating good return, and I don't quite see crest of wave. Even with reading ZeroHedge, lol.

RE can be a coin toss. Those of us who got hurt in 08 remember that. Job relo, and we sold at bottom of market! Ouch.

Good luck.
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  #22  
Old June 22nd, 2017, 06:48 PM
RoverC
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Well I humbly disagree that RE is a coin toss.
I started buying distressed RE and REO in 1986 and notes in 1987.

The saying is true, "you make your money when you buy, not sell"

Meaning your spread.

Take the lot for example.
As a distressed sale, the exact lot next door sold as an REO for $27k
My buy is $9k
There is $700 in taxes owed.
So I can sell it at anything over $11k and make a profit (10K + 1K for the lender)
or
I can sell it at 50% down and take payments
or
I could partner with a builder
or...

The NJ note, I buy off of 65% of QSV, (quick sale value) or 60% of UPB (Unpaid Principal Balance) whichever is lower. In this case its the QSV which is $170k.
65% of that is $110k
Im into it only at $90k so thats 53%, even better spread.

Now I can either just resell the note to another investor and make $
or
Have them pay me for 3 mos and refi them into a govt program at 95% of balance
or
offer cash for keys then sell the property outright or on terms
or
have them pay for 11 mos then resell as a performing note to another investor or bank
or
have them pay for 11 mos then sell future payments (partials)
or...

Having multiple exit strategies combined with buying at a steep discount helps alleviate and mitigate risk

What is really risky is the guys who say they will pay 15%, 16%, 18%...
While some may do ok (for awhile), Ive seen more people go under using that model than anything over the years. Even Madoff who was connected to everything couldnt pull off 16% in the long run (albeit doing that with billions is a quite bit harder)

Im realistic and rather frugal, and is how my business model works.
I dont ever want to over promise and under deliver if possible.
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  #23  
Old June 29th, 2017, 02:01 PM
RoverC
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bump
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  #24  
Old August 2nd, 2017, 01:05 PM
RoverC
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bumpin
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  #25  
Old August 17th, 2017, 02:59 PM
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bump
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  #26  
Old August 17th, 2017, 03:13 PM
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Quote:
Originally Posted by RoverC View Post
bump
ever call the guy i sent you?
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  #27  
Old August 17th, 2017, 03:32 PM
RoverC
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Was that the guy at Civic?
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