Archive for the ‘Uncategorized’ Category

water from a rock

August 25, 2011

well you never know what you will see when you own an apartment complex.   Check out this video by going to my Vimeo profile at http://vimeo.com/user8997444  and watch the video (img_1941.mov).

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Hard Money goes prime time

July 21, 2011

Did you see the latest news click on marketwatch.com? It is a short report on hard money lending. Check it out here:

http://www.marketwatch.com/video/asset/news-hub-investors-seek-higher-returns-by-lending/E43C5DD6-D335-4C9E-831C-EB983254C377

So you know its bad when everyday people are becoming hard money lenders!

New Data available from Texas A&M real estate center

April 13, 2011

The real estate center at Texas A&M has just updated thier market data for the entire state of texas.   If you need data to back up your investment decisions here is the place to go.

http://recenter.tamu.edu/mreports/

If you dont want to have the vultures sitting on your investment do your home work 1st

Vultures on your Investment

You dont need a loan you need some WORK!

April 12, 2011

You don’t need a loan you need some WORK!!

This is a great story from Dan with 48days.com.   If you are not a subscriber to this newletter you need to sign up today!  

Need a quick loan for the hard times?
Abraham Lincoln’s stepbrother, John D. Johnston, wrote Lincoln that he was “broke” and “hard-pressed” on the family farm in Coles County, Illinois, and needed a loan. Lincoln’s offer of a “matching grant” was a recognition that getting into the habit of working, even if it is a less than perfect job, is far more important than getting a loan or a handout.

ABRAHAM LINCOLN DENIES A LOAN [Dec. 24, 1848]
Dear Johnston:

Your request for eighty dollars, I do not think it best to comply with now. At the various times when I havehelped you a little, you have said to me, “We can get along very well now,” but in a very short time I find you in the same difficulty again. Now this can only happen by some defect in your conduct. What that defect is, I think I know. You are not lazy, and still you are an idler. I doubt whether since I saw you, you have done a good whole day’s work, in any one day. You do not very much dislike to work, and still you do not work much, merely because it does not seem to you that you could get much for it.

This habit of uselessly wasting time, is the whole difficulty; it is vastly important to you, and still more so to your children, that you should break this habit. It is more important to them, because they have longer to live, and can keep out of an idle habit before they are in it, easier than they can get out after they are in.

You are now in need of some ready money; and what I propose is, that you shall go to work, “tooth and nail,” for somebody who will give you money for it. Let father and your boys take charge of your things at home—prepare for a crop, and make the crop, and you go to work for the best money wages, or in discharge of any debt you owe, that you can get. And to secure you a fair reward for your labor, I now promise you that for every dollar you will, between this and the first of May, get for your own labor either in money or in your own indebtedness, I will then give you one other dollar. By this, if you hire yourself at ten dollars a month, from me you will get ten more, making twenty dollars a month for your work. In this, I do not mean you shall go off to St. Louis, or the lead mines, or the gold mines, in California, but I mean for you to go at it for the best wages you can get close to home—in Coles County.

Now if you will do this, you will soon be out of debt, and what is better, you will have a habit that will keep you from getting in debt again. But if I should now clear you out, next year you will be just as deep in as ever. You say you would almost give your place in Heaven for $70 or $80. Then you value your place in Heaven very cheaply, for I am sure you can with the offer I make you get the seventy or eighty dollars for four or five months’ work. You say if I furnish you the money you will deed me the land, and if you don’t pay the money back, you will deliver possession—Nonsense! If you can’t now live with the land, how will you then live without it? You have always been kind to me, and I do not now mean to be unkind to you. On the contrary, if you will but follow my advice, you will find it worth more than eight times eighty dollars to you.

Affectionately,

Your brother
Abe Lincoln

Traded a Mercedes Benz for some cash and a computer

January 15, 2011

Today was the beginning of a wonderful trading adventure.   I traded a mercedes benz for some cash and a computer

Now I need to trade the compter for something of value to me.   Have you done anything creative this year.    The proceeds of the sale fo the car are going to charity and if I can get something of value for the computer it will go to charity as well.   Got anything for trade?   I am a taker with a computer and I can add some real estate.   I have two separate houses for trade one with about 75K in equity and another with about 55K in equity.   See my other posts about rosenberry and coldsprings for sale.   Do I have any takers?

Buy from pessimists and sell to optimists

December 3, 2010

Ron’s sayings and things # 2,857 to make you a better real estate investor.

This is one of the fundamental real estate investment concepts that most people seem to misunderstand or to miss apply to themselves.   Buy low and sell high plays a part in this concept.    It sounds easy enough but the application of this wisdom contained in the instructions is a complex concept.    To do this you must understand market fundamentals and take your time to study who the pessimists are and who the optimists are.    When the market is ugly and no one wants to be a real estate investor, foreclosures are everywhere, and everyone who has something to sell and there are no buyers or very few who want to buy real estate because of the general state of the economy.    In this market the pessimists are ruling.   The trick is to buy something that you can fix or that is in need of the specific skills that you can easily provide.  

 When the market is great and everyone is making money and going to become the next Donald Trump, the economy is booming and money is easy to get.   TV producers create shows profiling regular people making tons of money being real estate investors.   This is a market dominated by optimists.    In 2007 I owned several older houses in a changing neighborhood.    There were investors tearing down houses and building newer bigger houses on these lots.  I was beginning to get excited about the possibility of either rehabbing these houses for big dollars or tearing them down and building something new and big and beautiful.   Then I began to do my research on the costs, risks, and benefits.   After much analysis I determined that it was not in my best interests to pursue these opportunities.   So I decided to sell the houses to some optimists!

 One of the houses had 2 houses on 1 lot.   I sold it for $125,000.    My analysis looked like this: To turn these houses into something beautiful I would need to probably spend something like 100K each and in turn I could probably sell the houses as a package for between 325-350K.   Those are big sells numbers and appeared to be very enticing.   The problems were that I am not a builder!   I am an investor who specializes in buying problems and solving those problems for a profit.    To me it appeared to be wisdom to not do thing that I am not trained or experienced in doing.   Additionally taking on 200K in debt to work this transformation was also a problem for my cash flow.   The 200K would need to be serviced and I don’t like paying on debts without a tenant’s money to do so.   My cost for these houses was about 25K total and I have pulled out another 50K in cash in the form of a mortgage on the properties.   So here is what the math looked like

200K rehab costs + 25K original costs   = 225K

(Not including cost overruns and mortgage interest expense while holding the property for sale)

Profit from the sale:

325K sales price – 25K commissions and closing costs = 300K

Leaving a 75K profit from this little adventure (300-225K= 75K), this excludes any existing loans on the property.

If I just sold the properties for 125K minus commissions and closing costs 10K leaving me of 115K minus the 25K original cost or 90K profit.   This 90K profit was made be not doing anything except thinking and using discipline to not do things that I do not know how to do.   There was not additional leverage applied to get the 90K profit, no risks associated with building, no headaches with contractors, no nothing just sell the property!   So that is what I opted to do.   I listed the property and an optimist came and found me!

The optimist tore down the houses and began the process of building on the lots.   Unfortunately things did not work out as they had planned and they could not find a lender to loan funds to build and now they have torn down the houses that produced income, have a note on the land then needs to be serviced and are searching for an investor who can borrow enough funds to build or who has the cash to do so.   Finally after many months of paying on the vacant lots the optimist lost the property to foreclosure.   It turns out that the market turned before they could build and now a new investor owns the lots and is waiting for another optimist to come along so that they can do the process again.

Do you need an analysis done on your property or portfolio?   Not sure whether you are an optimist or a pessimist?   Do you need guidance on what path to take in the real estate business?   If you think any of these questions apply to you then you should call me at 512-689-6742 or email me.

How Does If Feel To Fill Up An Apartment Complex In 45 Days

May 10, 2010

How Does If Feel To Fill Up An Apartment Complex In 45 Days
Exhausting! Exhilarating all at the same time

In the last 45days or so we have rented 27 apartments evicted 2 people and re-rented their units bought. 6+8 refrigerators and need to buy more, 13 stoves and microwaves fixed countless plumbing leaks, fired 1 employee and hired 4 more, cut so much brush the city is looking at the property and wondering when will he stop. We have aggravated a neighbor and pleased them in the same day. One neighbor is so pleased with the work going on a the property that he said we could cut some brush on the property line and he would pay to have it hauled off! We have also Disposed of 2 dead cats, Gotten 1 bad check, and Taken 100’s of calls. I am tired! I am excited at the same time.


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