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timmym22

borderline deals???

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Guest jvmccall

I don't understand all the complaining about working in California! I have talked to several people that are making a killing out there - specifically one from this board who is the San Francisco area, and another person I know who is in San Diego. I guess it's all about perspective. Not everyone is upside down in California.

 

Who are you marketing to? Are you targeting people who already have their houses listed for rent? California is a big state. I am sure there are tons of people that can lease option their home for 2-3 years and at least break even. Remember, San Diego alone has over 5 million people! St Louis where I am from has 2.9 million. Don't you think you can find 3-4 people out of 5 million every month for whom a CA would perfect solution for them? (That's only 0.00008% of the population.)

 

In fact, I have been wanting to start marketing in California for some time now. I have a crazy idea of putting a public challenge for myself out there, and documenting my progress publicly - maybe on this board and one or two others. Would anyone be interested in that? (Gulp....) :P

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I don't understand all the complaining about working in California! I have talked to several people that are making a killing out there - specifically one from this board who is the San Francisco area, and another person I know who is in San Diego. I guess it's all about perspective. Not everyone is upside down in California.

 

Who are you marketing to? Are you targeting people who already have their houses listed for rent? California is a big state. I am sure there are tons of people that can lease option their home for 2-3 years and at least break even. Remember, San Diego alone has over 5 million people! St Louis where I am from has 2.9 million. Don't you think you can find 3-4 people out of 5 million every month for whom a CA would perfect solution for them? (That's only 0.00008% of the population.)

I trust that your intent was to be encouraging, but this statement came across as condescending, arrogant, and disheartening. :P It's like you're saying, "Other people are doing it, so what's the matter with you?" Just because "several people" are doing well doesn't justify your implication that the California market is somehow easy. The problems I've been having, along with the vast majority of California investors, has little to do with positive thinking or perspective. We know that "not everyone is upside down" and that "California is a big state." There's a learning curve to this game, and some of us are working hard and sharing our experiences in order to gain from each other. It's not complaining, it's a discussion.

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Guest jvmccall

You're right & I am sorry for sounding arrogant. Not my intent. Don't give up or be discouraged. This stuff works in any market. I really believe that. Again, my apologies.

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Apology accepted. Water under the bridge... :P

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All of you guys are more than welcome to jump into the fray in my area. It's the same old same old around here. Prices have held up, sellers are a pain in the ass, buyers are jumping up and down yelling "Me! Pick ME!!!"

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Don't let the distance scare you, boys. Most folks you deal with will be honest and ethical. And you can always do a lot to protect your position with a well worded agreement between you and the homeowner. My thinking is that until I see being screwed over is the norm and not the exception, the USA is my backyard.

 

Hey Michael, I just found this and am wondering how you collect the money for the ooa deals you are doing. Do they mail it to you or paypal or ???

 

Also, are you hiring a local realtor or ic to put up bandit signs (if they're allowed) etc to market the house for l/p.

 

All of my responses are coming from ooa sellers so I am setting up my game plan.

 

Thanks!

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Lots of variables come into play, Dee. Ideally, the homeowner is your "partner" in these deals. Who else should be more motivated and willing to help? He/she does the showings and places a lawn sign and directional signs in and around the area. You handle all the other marketing. In this arrangement the option consideration will be split, most likely 50/50.

When the t/b is found and all terms are agreed to, make it a point of instructing the t/b what they need to bring when they are signing off on the deal: specifically, a cashier's check or bank money order made payable to you. That would then be mailed to you.

These OOA deals are a way to make money on deals you normally wouldn't be making a buck on. But they do require good judgement on your part as to who you can rely on and trust.

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Thank you Michael. That clarifies it for me. Roller coasters are scary too but I prefer the thrill of crei. :lol:

 

One more thing. So, if the house was a 200k deal the t/b's would put $6k or more down which the seller and I would split . . . something like that . . . like you said there are always variables.

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One more thing. So, if the house was a 200k deal the t/b's would put $6k or more down which the seller and I would split . . . something like that . . . like you said there are always variables.

Working on 3%, yes, you could expect option consideration in the $6K range. So if you were to do a 50/50 split, that puts $3K in your pocket. Not a big deal, but considering that all you did was market online for t/b's, that's found money on a house in North Dakota that you wouldn't have made a dime on otherwise.

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Right, heck, beats working for a living B) I'm in!

 

hmmm, just had the thought that it seems that it would be very easy for the seller to just side step me when the t/b is ready to jump in. Just the jaded side of me I guess. :wacko:

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Dee, if someone wants to screw you over, there's little you can do about it. In my almost 20 years of doing this it has probably happened three times. Trust your judgement and don't let unwarranted suspicions prevent you from doing distance deals. The key is to control the money. Which is why in my post above I mentioned it is necessary to be in the t/b's ear and give him the payment instructions. Still no guarantee, I understand. Trust your instincts and forge ahead, my dear!

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Awesome possome Michael.

 

I think I'm going to create this L/O biz as a game . . . like Monopoly. I don't get stressed out when playing a game---it's all fun. And I might just end up with LOTS of houses and money. B)

 

Ok, it's a game, it's a game. That's my new mantra. Like many noobs sometimes I get the "This is serious" virus. I'm out to have fun :D

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