Posts Tagged ‘Rockstars’

I get this question on REO Rockstars calls a lot so let me share a bit of free insight on why REO agents and investors buying bank owned homes have their hopes of a golden finish blow out violently, like a speed skater who’s shoved into the boards, trying to squeeze out Apollo Ohno on the last turn before the finish line! Grab a pen and paper and take some notes my friend. This stuff is not for the faint-hearted but it doesn’t take 4 years of torturous training either-just a tiny little bit if focus. You can manage that can’t you? …Every day my office receives offers from these “would be” investors. Seems like everyone has taken some class, “learned from a friend”, or just plain walks blindly into the “investor” game. Now not to be critical of REAL investors here. We do business with PLENTY of super smart guys who make a very good living at this. But how do they do it? Well, it begins with the basics of knowing HOW to structure a deal that just makes sense. Contrary to what the “wanna be” guys seem to think, a great deal involves a heck of a lot more than looking at a few comps and speculating on a flip price. Bluntly, It is not the HOUSE that matters. It’s the PLAN. Smart investors, the guys who actually make a career out of this (and no, I’m not talking about some of these TV goofballs who make me cringe as they buy termite infested, water logged, structurally defunct houses and end up rebuilding from the foundation up-HACKS!), break the numbers down to the last penny, including the financing factors. First, they have to consider “where” they are going to get the non-occupant financing and more importantly “how” they are going to convince the hard money guy to fork over a chunk of change to finance the project.