Im just starting and I want to avoid stupid mistakes. If you can go back to your first or secon deals what would you have done different? what is your current situation? Explain in detail please.
I was attending Beverly Hills High School and I needed an address to continue my schooling. You see my parents lived in Hollywood and that is a no no if you want to continue schooling at Beverly.
So I went into the local Real Estate Office and told them I wanted to buy a house in Beverly Hills. I wanted to live between Sunset and Santa Monica blvd. I wanted a house somewhere close to Camden or Beverly. They sneered as I had arrived on my Bike. After all a BSA from England with stuff on it like a pro.
But they gave me three addresses to look at and told me to leave.
The house at 630 N. Camden was my choice and I just walked up and knocked on the door and this elderly drunk answered and showed me the house. I asked how much and we bargained back and forth and I shook his hand and bought the house.
I went back to the Brokers office. Turned out he did not have a listing and I could have saved the entire commission all I had to do was just go into the Escrow company and give them a check.
The Broker almost lost the deal but I somehow or other prevailed and my mother had the house in her name and I continued my schooling at Beverly. Left my last year to go to University Hi as I was by then full time in an advanced class at UCLA and University would allow the accelleration.
The moral of this tale. Always check and see if the Broker has a proper listing. This was an easy buy, price was right. I think it was $6,350. My times have changed. My neighbor next door was my old principal at El Rodeo Elementary School. It was indeed a small world. I left that summer 1940 and joined the RAF as a fighter pilot. and did not get home until 1954. I resigned from the USAF of which I was then a member and have been doing Real Estate eversince. It goes up and down but never sideways. On my return I bought a house for my mother at 1012 N.Crescent Dr. Just across and up from the Beverly Hills Hotel. I paid a fortune $25,000, 4 bedrooms full servants quarters over the garage and a three bedroom guest house on about 2.5 acres. Pretty good buy. How times have changed.
1. Don't loose track of your timeline. Be organized and detail-oriented.
2. Make sure you have a mortgage broker who understands the process you are going through and the urgency of having the money available in a timely manner.
3. Verify everything. Don't take the homeowner's word for it.
So that we get the ground rules down here is the definition of an expert:
An expert or experienced person; one instructed by experience; one who has skill, experience, or extensive knowledge in his calling or in any special branch of learning.
You question is broad in scope and far reaching so I will explain it this way.
Here is what I feel is one of the first rules of investing:
"due diligence" is a measure of prudence, activity, or assiduity, as is properly to be expected from, and ordinarily exercised by, a reasonable and prudent person under the particular circumstances; not measured by any absolute standard but depends on the relative facts of the special case." In other words, to a potential acquirer, due diligence means "making sure you get what you think you are paying for."
If you do the above you might, just might not have to do anything different.
1. Have clear and simple investing rules.
2. Don't break your investing rules.
3. Know your partners.
4. Only have partners who bring something to the table.
5. Written agreements.
6. Learn from your successes as well as your mistakes.
7. Sunk cost are irrelevant cost.
8. If you can't afford to pay somebody to do it for you then you don't need it done.
9. Never ever buy a tool that has a handle on it.
10. There is more money lost because of indecision then there is by wrong decision.
The worst REI mistake that I ever made was going full time at 35 and not 25. Those ten years cost me more money then I can ever make up.
Trust yourself, you will be amazed at how quick you can learn Negotiation.
I mean, how many slaps does it take before you can get your foot out of your mouth and actualy achieve a date?
My first transaction as a kid. The Broker sneered, I mean how many times does a customer come in on a Bike and in short pants? Of I forgot this is LaLa land happens very often.
The King speaks a truth, just do it. Best contract I ever wrote was in a bar on a napkin. That with an attorney for the Title Company, I took his Quit Claim Deed, wanted to eliminate his soon to be ex wife from title. Did you ever try to get a Notary to Acknowledge a Napkin Deed? You are right, I had to redraw, but by this time the wife was friendly and I then got her deed also. Soooo it all worked out. Just go do it. If it gets a big wobbly go back and do it again.
"My first transaction as a kid", speaking of this how much did the Parthenon go for when it was originally built, I have this feeling you sold it then and what do you think it is worth now should you decide to sell it again?
_________________
"If people like you they'll listen to you, but if they trust you they'll do business with you."[ Edited by JohnLocke on Date 07/02/2004 ]
I think I heard a couple of developers here talking about doing a rehab on the Parthenon-- claim they'll make millions on it. Something about an unjust enrichment suit against the British museum for taking the Elgin marbles.
Contracts on napkins reminds me of the time I advised a former colleague that a purchase contract written on toilet paper would be fine so long as buyer and seller signed it.
As for the Parthenon, if I were you, I'd adjust downwards for a couple of centuries of deferred maintenance. Alternatively, include a 120 day development feasibility contingency and make sure you have test borings done.
I was attending Beverly Hills High School and I needed an address to continue my schooling. You see my parents lived in Hollywood and that is a no no if you want to continue schooling at Beverly.
So I went into the local Real Estate Office and told them I wanted to buy a house in Beverly Hills. I wanted to live between Sunset and Santa Monica blvd. I wanted a house somewhere close to Camden or Beverly. They sneered as I had arrived on my Bike. After all a BSA from England with stuff on it like a pro.
But they gave me three addresses to look at and told me to leave.
The house at 630 N. Camden was my choice and I just walked up and knocked on the door and this elderly drunk answered and showed me the house. I asked how much and we bargained back and forth and I shook his hand and bought the house.
I went back to the Brokers office. Turned out he did not have a listing and I could have saved the entire commission all I had to do was just go into the Escrow company and give them a check.
The Broker almost lost the deal but I somehow or other prevailed and my mother had the house in her name and I continued my schooling at Beverly. Left my last year to go to University Hi as I was by then full time in an advanced class at UCLA and University would allow the accelleration.
The moral of this tale. Always check and see if the Broker has a proper listing. This was an easy buy, price was right. I think it was $6,350. My times have changed. My neighbor next door was my old principal at El Rodeo Elementary School. It was indeed a small world. I left that summer 1940 and joined the RAF as a fighter pilot. and did not get home until 1954. I resigned from the USAF of which I was then a member and have been doing Real Estate eversince. It goes up and down but never sideways. On my return I bought a house for my mother at 1012 N.Crescent Dr. Just across and up from the Beverly Hills Hotel. I paid a fortune $25,000, 4 bedrooms full servants quarters over the garage and a three bedroom guest house on about 2.5 acres. Pretty good buy. How times have changed.
Cheers Lucius
8-)
#1. devise a business plan with a comprehensive exit strategy
#2. keep detailed records
#3. when doing business, "whatever isn't written is rotten..."
#4. it's OK to say, "I don't know..."
[addsig]
Some lessons learned:
1. Don't loose track of your timeline. Be organized and detail-oriented.
2. Make sure you have a mortgage broker who understands the process you are going through and the urgency of having the money available in a timely manner.
3. Verify everything. Don't take the homeowner's word for it.
Jason
When you don't know the answer know where or who to ask for the right answer. Network.
[quote]
On 2004-07-02 08:31, monkfish wrote:
Not sure what your definition is of an "expert."
I'm thinking it would be anyone who's bought even just one investment property, considering you don't own any.
So by my math, that would qualify 90% of the members on this site as "experts."
Quote: This is an ignorant response to my post if you dont have usefull info dont respond!
[addsig]
rbnccarter,
Glad to meet you.
So that we get the ground rules down here is the definition of an expert:
An expert or experienced person; one instructed by experience; one who has skill, experience, or extensive knowledge in his calling or in any special branch of learning.
You question is broad in scope and far reaching so I will explain it this way.
Here is what I feel is one of the first rules of investing:
"due diligence" is a measure of prudence, activity, or assiduity, as is properly to be expected from, and ordinarily exercised by, a reasonable and prudent person under the particular circumstances; not measured by any absolute standard but depends on the relative facts of the special case." In other words, to a potential acquirer, due diligence means "making sure you get what you think you are paying for."
If you do the above you might, just might not have to do anything different.
John $Cash$ Locke
[addsig]
Mistakes? In the first deal? Nah.--
Biggest mistake of all, standing on the sidelines instead of being in the game.
1. Have clear and simple investing rules.
2. Don't break your investing rules.
3. Know your partners.
4. Only have partners who bring something to the table.
5. Written agreements.
6. Learn from your successes as well as your mistakes.
7. Sunk cost are irrelevant cost.
8. If you can't afford to pay somebody to do it for you then you don't need it done.
9. Never ever buy a tool that has a handle on it.
10. There is more money lost because of indecision then there is by wrong decision.
The worst REI mistake that I ever made was going full time at 35 and not 25. Those ten years cost me more money then I can ever make up.
Commercialking does speak a truth.
You cannot win if you do not play.
Trust yourself, you will be amazed at how quick you can learn Negotiation.
I mean, how many slaps does it take before you can get your foot out of your mouth and actualy achieve a date?
My first transaction as a kid. The Broker sneered, I mean how many times does a customer come in on a Bike and in short pants? Of I forgot this is LaLa land happens very often.
The King speaks a truth, just do it. Best contract I ever wrote was in a bar on a napkin. That with an attorney for the Title Company, I took his Quit Claim Deed, wanted to eliminate his soon to be ex wife from title. Did you ever try to get a Notary to Acknowledge a Napkin Deed? You are right, I had to redraw, but by this time the wife was friendly and I then got her deed also. Soooo it all worked out. Just go do it. If it gets a big wobbly go back and do it again.
Cheers Lucius (student of King)
Thank you Lucius for the compliment but I have been your student far more than you have been mine.
How are the ribs?
Lucius,
"My first transaction as a kid", speaking of this how much did the Parthenon go for when it was originally built, I have this feeling you sold it then and what do you think it is worth now should you decide to sell it again?
http://www.joemjoe.com/parthal.htm
John $Cash$ Locke
_________________
"If people like you they'll listen to you, but if they trust you they'll do business with you."[ Edited by JohnLocke on Date 07/02/2004 ]
I think I heard a couple of developers here talking about doing a rehab on the Parthenon-- claim they'll make millions on it. Something about an unjust enrichment suit against the British museum for taking the Elgin marbles.
Lucius,
Contracts on napkins reminds me of the time I advised a former colleague that a purchase contract written on toilet paper would be fine so long as buyer and seller signed it.
As for the Parthenon, if I were you, I'd adjust downwards for a couple of centuries of deferred maintenance. Alternatively, include a 120 day development feasibility contingency and make sure you have test borings done.
Nancy