Archive
Note well the state of your flocks Have you ever read the book of Proverbs in the Bible? If not, check it out sometime. It was written by King Solomon who was called the wisest man who ever lived. He led Israel to become one of the most prosperous nations on earth and amassed great personal wealth. The reason I bring that up is because the book of Proverbs is a book of wisdom Solomon...
What does the seller need? This week I saw a couple of good questions asked about how to get deals done. One was with a subject-to deal and the other was a preforeclosure. Today I would like to go over them and talk about the most common mistake that beginner investors make when talking to sellers. The first question was about a subject-to deal. And as a reminder, that’s a deal where you...
Finding good tenants I was at a lunch meetup this week where one of my friends was telling me about how they are moving away from the Padsplit company and going to self-manage instead. And the biggest reason for that has to do with the tenant selection process Padsplit uses. If you are not familiar with Padsplit, it is a novel idea. Instead of renting an entire house to one family, the...
Substance over form I had an interesting case come across my desk this week that had to do with a lease option going bad. At first, I typed “gone bad,” but the situation has not fully resolved, so I changed it. But it’s a great illustration of what not to do as an investor and I thought I would tell you about it so you don’t make the same mistakes. Lease options have become a popular exit...
Participation lenders When you think of private money lenders, you typically think of either short-term lenders, or long-term lenders. Short-term lenders are the ones you use on quick moving deals like fix and flips and wholetail deals. And if you are not familiar with a wholetail deal, that’s a melding of the words wholesale and retail. What you do in this scenario is buy the...