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Kathy Carter, Real Estate Pro in Bergen County, NJ

I know a guy who is suddenly on fire to be a real estate investor. (He was a car salesman before now.)

Asked by Kathy Carter, Bergen County, NJ Mon Feb 18, 2008

Apparently he took a how to be a real estate investor seminar. He has purchased 3 short sales in the past month or so. His wife just called me to ask me some real estate related questions. The majority of the questions that she asked lead me to believe that her husband has been sold a bunch of junk ideas. They live out of state, otherwise i'd simly offer to list to properties. This wife is very concerned about her families financial future. The husband is convinced that they're on the brink of becoming millionaires.

What kind of advise can I offer this wife?

I'd love to hear if anybody out there has related experience.

Thanks

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Answers

4
Well, first I must say to be very careful not to be giving legal advice. That being said, I work with a number of investors that do indeed make a good living flipping houses. However, with the soft market, the "old pros" are not selling as much as leasing with option or straight rental. They will hold the properties until the market recoversbefore considering selling (buy low, sell high).

I don't know good of a deal your guy got...just because it was a short sale, doesn't mean he bought it below market. Many loans were made the past few years that were 100% loans and some markets experienced negative equity. (bought high and market dropped below sales price). I would recommend telling her to find an experienced REALTOR to do a CMA or hire an appraiser. There is no way to know more, or how to help her, until you know what the homes are worth vs what he paid.

Good Luck! cf
1 vote Thank Flag Link Tue Feb 19, 2008
Crystal and Gina. BAsically that's what i've suggested to her. I know better than to get into anybody's marital business. But she sounded so frantic when she called. It broke my heart. I tried to sound positive and told her "you never know what the market might do." But in all honesty it seem like he bought at "fair market value" or just below. I think he simply underestimated what "below" market was.

I have a very good freind who's fallen prey to these "become a millionaire through real estate" seminars and it gets very ugly sometimes. She paid a lot of money to be told a LOT of flat out lies! It's a real shame!
Web Reference: http://www.Kathy-Carter.com
0 votes Thank Flag Link Tue Feb 19, 2008
I've always thought most of those investor seminars were a crock. I know a friend of mine who bought one of those investor packages and it ended up that none of the properties were in NJ and that 100% refund was also a bunch of crock. If she's asking you general across the board realtor questions I'm sure you can provide her with information or perhaps refer them to an agent in their state who can work with them listing the properties. At least that way you'd get a referral fee. I've worked with investors before who had bought flip properties but in a non-flip market their profit wasn't that high. Good luck!

Gina Chirico
GinaChirico@PruNewJersey.com
0 votes Thank Flag Link Tue Feb 19, 2008
Best advice....stay out of it. You must have better things to do. He has already the property, in a very tough market. I'd find something else to spend my time on.
Good luck
Terry
0 votes Thank Flag Link Mon Feb 18, 2008
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