Weekly Report 4/8/2011

Issue #35 – Friday, April 8, 2011

Dear [fname],

Many investment courses and books on real estate (mine included) tell you to find a motivated seller. That’s where you get your good deals. As a rule, that’s true. The higher the level of motivation, the more likely you’re going to get a good price or good terms or both. But generally, when you find a motivated seller offering a good deal, you should take a moment to look that gift horse in the mouth.

Ask hard questions about why a seller is motivated. In this issue Ill give you some examples of good opportunities that shouldn’t necessarily motivate you to buy.

Also in this issue…

Ask Ron–I answer H. Chisom’s question about who to name as a trustee on a land trust.

Planet Ron–Lauren, our D.A.M. reporter and I talk about what I’ve been up to this week.

And this weeks Golden Nugget is from Hebrew poet and Jewish philosopher Solomon Ibn Gabriol.

Enjoy,

Ron

When to Look A Gift Horse In the Mouth

Caveat Emptor–Let The Buyer Beware

by Ron LeGrand

The seller advertises a fixer upper, but it isn’t. Yes, it could use new paint . . . and new carpet would make it look tremendous, but that isn’t the real problem. The reason they’re trying so hard to sell this turkey is because the floor plan doesn’t work. In fact, it’s what we call functionally obsolete.

When you buy a house to live in, you pay a lot of attention to the floor plan. Unfortunately, many people looking for rental houses or small apartment units don’t pay enough attention to the floor plan. Look through the property as if you were going to live in it. Would you be happy with having to go through the kitchen to get to the master bedroom? Or through a bedroom to get to the kitchen? How about a bathroom that is attached to your kitchen? A ceiling less than 7ft high or a house that’s literally sitting on the ground with no concrete slab blocks or piers underneath.

I have seen all these problems in houses and so has everyone else who has looked at more than a few properties. I saw a house recently with 33 rooms. About two-thirds of them were added on as more relatives joined the family, and none of the additions were constructed properly. Most were just sitting on the ground and the additions jutted out in all directions from the original building.

READ THE ENTIRE ARTICLE HERE

New Planet Ron Video

Lauren and Ron talk about Ron’s recent trip to the auction.

When To Look A Gift Horse In The Mouth

“Real estate investors have to wear two hats. They must wear the hat of an optimist and chase down every potential property – especially those that look like a bargain. But they also have to wear the hat of a pessimist and learn to ask enough questions and listen closely enough to the answers to find out why the sellers are motivated. Persistence pays, and bargains are to be had. Just make sure you find a true bargain and not somebody else’s problem.

You don’t want to make it yours.”
~Ron LeGrand

Ask Ron…

This week in our Ask Ron series, Harrol Chisom asks:
I’m in Los Angeles, CA. Who is the best person to have as a trustee of a land trust? Would it be better to have your corp as the trustee or a family member with a different last name?

WATCH RON’S ANSWER HERE

Attention Gold Club Members:

Your NEW lesson in posted.

Lesson 12. Locating Prospects Part 2 – Yellow Letters

Or go to http://www.ronsgoldclub.com and click on

Training->Ron LeGrand Real Estate Training

And if you not Gold Club member…what are you waiting for?

Ron’s Gold Club is FULL of valuable information and items you

can start using TODAY!

Just ask Brenton who writes

I would recommend the service to anyone interested in going into Real Estate in a serious dedicated way. The service offers way way way more than $59 of service and information per month.

Personally I feel you can feel proud offing the quality you do.

Regards,

Brenton

Golden Nugget

The first step in the acquisition of wisdom is silence, the second listening, the third memory, the fourth practice, the fifth teaching others.
~Solomon Ibn Gabriol