Beware of the “Quick Turn” Minefield!

[tonypeters]

I have noticed that a lot of people are electing to seek FREE advice with respect to their "Quick Turn" real estate deals on this forum. So I just had to jump in and place this post, as I am EXTREMELY concerned that a lot of people may get themselves (including others) into a WHOLE lot of trouble!Because of my concern, I have elected to place this post in two different categories. I have placed one on the "Legal" section of this forum and one on the "Canadian Quick Turn Real Estate" section of this forum.A word of CAUTION! While FREE advice is great, it has the "potential" to put you OUT of the Real Estate business…and for GOOD!

How do you think I know this? Because I once knew a Real Estate Investor that got himself into a WHOLE heap of trouble! So much so, he ended up having to liquidate his "entire" Real Estate portfolio and go back to work! And ALL because of ONE house, and a house that I like to refer to as…The House from HELL!

The sad part about this story: if he could only have held on for another year, because the Real Estate market took off and he would have realized his dream of becoming a MULTI-MILLIONAIRE!

However, the reality is: people do tend to "gravitate" towards FREE advice.

WHY? Because it`s FREE!

Tony`s TIP: People that like to offer FREE advice, are typically NOT QUALIFIED to do so! Fact is: "Quick Turn" Real Estate investing is NOT for the INEXPERIENCED! With this in mind, it is IMPERATIVE that you take the necessary time to "EDUCATE" yourself and understand the very "BASICS" of Real Estate, BEFORE you jump into the "Quick Turn" Real Estate arena.You can make a LOT of MONEY in this business, but you can also LOSE a LOT of MONEY as well!

So...BE CAREFUL!

As I have said before…

Educate

Take Action

Educate More

Take More Action…

My recommendation, DON`T CHEAP OUT and seek FREE advice!

Be PRO-ACTIVE and "invest" a little time energy and money into your education, if not, you may very well find that it will COST you a whole lot MORE! You can educate yourself by attending seminars. These types of seminars are relatively CHEAP compared with the "REAL LIFE" seminars that you can attend! And I am not talking about the $999 variety here. What I am talking about is the "REAL LIFE" seminars that can cost you THOUSANDS of dollars, and potentially your Real Estate business!

o:Times New Roman-->So please…do NOT be CHEAP! Seek out and speak with the EXPERTS! Experts like Barry McGuire, and people that have travelled this path before. I can GUARANTEE you this, you will be GLAD that you did!NOT sure if you have obtained the required EDUCATION? Then take a step back and ask yourself this "fundamental" question: Am I CONFUSED about ANYTHING? If the answer is YES…STOP RIGHT THERE!

WHY? Because you need MORE EDUCATION! That`s WHY!

Tony`s TIP: DON`T step into the "Quick Turn" Real Estate investing minefield, NOT unless you know how to navigate yourself through it! It only takes one wrong step and you can ruin your DREAM!

Please do NOT take this post or any of my comments the wrong way, as it is NOT my intent to offend anyone. This post and my comments are intended to be…"brutally honest and tell it just the way it is!"

Be careful out there fellow REIN members!

 

[JohnSoucie]

QUOTE (tonypeters @ Nov 10 2009, 01:59 PM) How do you think I know this? Because I once knew a Real Estate Investor that got himself into a WHOLE heap of trouble! So much so, he ended up having to liquidate his "entire" Real Estate portfolio and go back to work! And ALL because of ONE house, and a house that I like to refer to as…The House from HELL!

Tony, care to elaborate a little on what thing or type of thing went wrong in this instance or can go wrong?

Some real life examples might help to crystalize your points and get us thinking the correct way. As you know Ron paints a rosy picture that you can only lose your deposit on these deals. On face value from Ron`s teachings in the manuals, that really is the only risk he seems to be admitting to. Where else are we being exposed??????

Thanks;
John Soucie

 

[tonypeters]

John, as always, I would like to thank you for your contribution to this forum, and specifically this post.As you are probably aware, I have been involved in "Quick Turn" real estate, or as I like to refer to it as…"Creative Real Estate Investing" for quite a few years now. As a result of the renewed (many thanks to Ron LeGrand) interest in this type of Real Estate investing, I have been reading a lot of the "Quick Turn" posts and specifically the resulting threads. What I have noticed is a lot of forum members are either "confused" or they "misunderstand" some of the "strategies" they have learned with respect to "ENTRY" and "EXIT". In some cases, they are mixing them up! In my opinion, this is a potential recipe for disaster!
The other thing I have noticed, and what REALLY concerns me is the "ADVICE" that some forum members are offering. While I do realize this is one of the strengths of this forum, I am starting to notice that a lot of the advice is NOT always correct. While I am positive that everybody has good intentions, the fact of the matter is, "it is far better to receive NO advice, rather than BAD advice". This concerns me, because this is NOT the area of Real Estate that you want to "cut your teeth on".

As I mentioned, the "Quick Turn" real estate game is really quite different from that of the "Long Term Buy & Hold" game, because it involves many different "creative" ENTRY and EXIT strategies, so EDUCATION and the understanding of "what it is you are really doing" is CRITICAL!

To put my concerns into perspective, I recently noticed a post that was looking for some guidance on what type of EXIT they should utilize for a certain type of "Quick Turn" Real Estate deal. But from the comments that were posted, it was quite evident that the poster did not even know what the "ENTRY" point was.

What do I mean by this? The poster was asking other forum members if he/she/they (I do not want to disclose the forum members name here) should use an "AFS" (Agreement For Sale). Based on what I could see on the surface, and I have since verified this with the forum poster, the Sellers "TRUE" MOTIVATION was extremely "TIME SENSITIVE!"

WHY? Because the Seller has personally guaranteed debt, and is EXTREMELY close to BANKRUPTCY! The ONLY ENTRY point is to make an "ALL CASH OFFER" and not try and structure any type of "creative" or "Vendor Financing" terms. In fact, you couldn`t even close on this particular deal with a "CONVENTIONAL" mortgage based on how "TIME SENSITIVE" it is!

In my post I mentioned the fact that this business has the potential of being a "MINEFIELD".

The MINEFIELD in this is particular deal is this: If the forum member was to structure some type of "creative" deal by utilizing an "AFS", and the Seller is forced into Bankruptcy, the forum member would lose ANY and ALL cash invested!

This is WHY I am concerned with the FREE advice being offered. While advice for "regular" and "non-creative" real estate may be ok, it should ONLY be offered by people that actually understand what they are talking about!

To put things into perspective, because I find this is always the BEST way to get people to understand what it is I am trying to say; there are LAWYERS out the that DON`T have a CLUE about this particular area of Real Estate.

WHY? Because some of them have NEVER done it, and they are NOT EDUCATED! Just read some of the forum posts and you will see what I mean.So does this put my concern about FREE advice into perspective?

This is WHY I mentioned Barry McGuire`s name. Because he DOES understand the "creative" Real Estate business…and he is most certainly qualified to provide ADVICE!

Does this help to answer your question?


QUOTE (JohnSoucie @ Nov 10 2009, 01:07 PM) Tony, care to elaborate a little on what thing or type of thing went wrong in this instance or can go wrong?

Some real life examples might help to crystalize your points and get us thinking the correct way. As you know Ron paints a rosy picture that you can only lose your deposit on these deals. On face value from Ron`s teachings in the manuals, that really is the only risk he seems to be admitting to. Where else are we being exposed??????

Thanks;
John Soucie