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Friday, March 26, 2010

A New Kind of Thing & My First Burn Out

So far this year I believe I have developed my first unique plan to achieve long term wealth and financial freedom. I am now buying rental properties in SoCal, but the best part is I am getting paid to buy and keep them! I am very excited about this new strategy that I developed. I heard a local wholesaler (who I am now in business with!) talk about not being able to profit in the future from the properties he sells. Once the house is sold, it is just another house on a street not doing anything for you. I took what he said very seriously and put a lot of thought into it. Then I didn't actually meet the guy, but Chris Carlson pointed out a fellow at a Jack Miller seminar up in Reno. He told me what he was doing and it stuck with me as well. Eventually, I combined the two and voila! I have done it twice already!

As for the burn out; I received a call about a property in Rialto that had caught on fire. The garage was in a bad way and it looks like the trusses are toast. I went out to see the property (something I don't do very often any more). The seller says there is about $19,000 in liens and she wants $20K. I don't think $20K is the right number even though it is worth $135,000. A challenge with this particular property is that just next door starts a row of 4-plexes. You can't solve a location problem. I called up the wholesaler and asked me what I am into it for. I told him worst case scenario is $40,000, but I am going to try to shave it down a bit. I'd like to pay $10,000 + the liens. I was comping it out while on the phone with him and told him what I thought the value is. He said with that kind of equity he could sell it.