Chapter 2
HOW TO BUY A PROPERTY
Buying,
selling, renting, repairing, and designing are fun and lucrative activities.
I’ve done it wherever I have lived Utah, Chicago, Portland, since I was eight
years old. It’s a piece of cake with very little down side. Here are some of
the general advantages:
*You can get started today.
*Use other people’s money or your own if preferred: No money of your own, no work based on your discretion.
*Set your own hours: You can work anytime you like, put in lots of hours or practically none.
*It is hassle free if you learn or know how to make it that way.
*You can do it from your home, South Africa, at your regular job or full time, part time, the internet; the possibilities are endless
*It’s safe, effortless, and more profitable than almost any business
* Little or no financial risk,
*It’s free to learn. I’ll teach you how. So here goes. Don’t miss out! It doesn’t matter if you’re rich or dead broke. You'll be greatly rewarded. Jump right in. First off, it’s necessary to own a house or property before you can sell or rent it, right? business.
*Use other people’s money or your own if preferred: No money of your own, no work based on your discretion.
*Set your own hours: You can work anytime you like, put in lots of hours or practically none.
*It is hassle free if you learn or know how to make it that way.
*You can do it from your home, South Africa, at your regular job or full time, part time, the internet; the possibilities are endless
*It’s safe, effortless, and more profitable than almost any business
* Little or no financial risk,
*It’s free to learn. I’ll teach you how. So here goes. Don’t miss out! It doesn’t matter if you’re rich or dead broke. You'll be greatly rewarded. Jump right in. First off, it’s necessary to own a house or property before you can sell or rent it, right? business.
Buying
Most of the time I use a Real Estate
Option to buy contract, which works very well any time in any economy. When
you’re ready to buy a house obtain as much cash or credit as you can so as to
make a cash offer. Then go look for a property that will sell for the amount of
money or credit you have obtained. It might be a $500. or $50,000. or more.
Everyone does it backwards. They find a house they like then look for a bank
loan. Don’t do that!!!! It is expensive:
Lots of fees like, title insurance, bank fees, liability insurance, inspections
and management fees, closing costs, Etc. There are none of these expenses in
“My Cash Flow” method.
I know what
you’re thinking, that’s all just fine, but where in the world do I get the cash
or credit? Answer: Many, many places! Keep in mind that presently our country is
bankrupt. Banks are giving away money at 1% and less while inflation is about
2% which includes Real Estate of course.
Here is an
example of a first house purchase I did in 1987 when I was flat broke; in fact I was $90,000
in debt after a divorce. On this particular home, I raised 5,000 cash using
several credit cards; $5,000 from a city improvement aid program and $20,000
open credit charge cards to be used at time of closing bringing me to a total
of $30,000. Ok that done; I’m ready to start looking for a $100,000 dollar
house. With cash offers you are able to get a big discount from the asking
price.
I spend a day
or two making 3 or 4 offers. I drive around looking for sale signs, call
realtors, check newspaper ads and foreclosures, maybe talk to friends. Most
often I close within three weeks. I quite often have someone else make my
offers a broker, friend, relative so as to avoid emotional arguments, and what
“ifs.” I try to find The bottom price
the seller will go. The offer is made, and then I wait. In about two weeks
usually one of the seller’s offers will be accepted.
In the particular example above all the
above time was totally wasted time and I'll tell you why. My example was a VA
foreclosure at 245 Patterson. I saw the
sign in the window when I was driving around looking for a place to buy the
first day I started looking. I called a broker friend on my cell phone by the
name of Rod Snyder and gave him the information listed on the sign in the
window. By law the VA will only sell their foreclosures through a Real Estate
Broker. The broker does the paper work and gets the sales commission. The VA
sets the price -- take it or leave it. The price was $12,000. I happily
accepted the terms: no payment for 3 months no money down.
By the time the 3 months were up, I had
already sold it, a homemade sign on the edge of the street was made by my 8
year old daughter. "Option to Buy
Uniform Real Estate Agreement." The
paper work was done at Cardoon Title Company on 12th Street. In a later chapter
I’ll tell you how I sell my properties in 2 or 3 days as the above example was
sold.
I was able to
start working in the house the next day. It took my daughter and me at the
time, two months to remodel. The people that signed my uniform real estate
contract put 5,000. Down, balance owed $27,000 and their monthly payment was
$400. My VA loan pmt. was $103/month.
QUESTION
AND ANSWER TIME AGAIN
Q: What if two or three people accept my offer at the same
time?
A: No problem. It hasn’t happened to me before. But just in
case in the earnest money offer I always
check "subject to
inspection." On further inspection
I could use any excuse to get out of the offer such as I was allergic to the
female cottonwoods trees in the back alley.
Q: I have the house, the deed in my back pocket, no liens
and I own it, lock stock and barrel. Can I put a lean on it to raise cash and
go buy another property? A: Good
Question, glad you asked. Yes. This is exactly what I did, and the next
property I bought two months after buying the VA home was a duplex on 28th and
Liberty Ave which was being sold by a Realtor for $37,000.
Wow, 70 years doing this stuff! I can hardly believe it. How
Ingenious my mother would have said…Bless her heart.
To be continued…
DR. KARL WALLACE D.D.S
To read more
go to:
www.karlwallaceblog.blogspot.com
